George Soros
and
Warren Buffett
are two of the world's most successful investors. While Buffett
holds stocks for the long term, Soros is more likely to trade in
and out of positions with greater frequency.
Both of their viewpoints overlap on eight stocks. The largest
positions they hold in common are: Walmart (
WMT
), Kraft (
KFT
), DirecTV (
DTV
), DaVita (
DVA
) and Johnson & Johnson (
JNJ
).
Walmart (
WMT
)
Warren Buffett
owns 46,708,142 shares of WMT, valued as $3.3 billion as of June
30, 2012, which accounts for 4.4% of his equity portfolio.
George Soros
owns 4,831,800 shares of WMT, valued as $337 million as of June
30, 2012, which accounts for 4.9% of his equity portfolio.
Walmart Stores Inc. is the world's largest retailer. Walmart Inc.
has a market cap of $243.99 billion; its shares were traded at
around $72.59 with a P/E ratio of 15.4 and P/S ratio of 0.6. The
dividend yield of Walmart stocks is 2.2%. Walmart Inc. had an
annual average earnings growth of 11.3% over the past 10 years.
GuruFocus rated Walmart the business predictability rank of
5-star.
Walmart in its second quarter reported earnings per share
increased 10.1% from the previous quarter, and revenue increased
6.4%, with its fourth consecutive quarter of positive comp sales.
Net sales at Walmart International grew 6.4%. The company raised
and narrowed its full-year EPS guidance to a range of $4.83 to
$4.93 from its previous range of $4.72 to $4.92.
Kraft (
KFT
)
Warren Buffett owns 58,826,390 shares of KFT, valued as $2.3
billion as of June 30, 2012, which accounts for 3.1% of his
equity portfolio. George Soros owns 361,000 shares of KFT, valued
as $14 million as of June 30, 2012, which accounts for 0.2% of
his equity portfolio.
Kraft Foods Inc. is the largest branded food and beverage company
headquartered in the U.S. Kraft Foods Inc. has a market cap of
$74.3 billion; its shares were traded at around $41.9 with a P/E
ratio of 17.5 and P/S ratio of 1.4. The dividend yield of Kraft
Foods Inc. stocks is 2.8%. Kraft Foods Inc. had an annual average
earnings growth of 0.4% over the past 10 years.
On August 14, Kraft's board approved the spin-off of its North
American grocery business and declared a pro-rata distribution of
shares of its holding company, Kraft Foods Group Inc., to Kraft
Foods Inc. common stock shareholders. The spin-off will be
complete on October 1. On that date, shareholders of Kraft Foods
Inc. will receive one share of Kraft Foods Group common stock for
every three shares of Kraft Foods Inc. common stock they hold.
Buffett sold almost 20 million shares of his Kraft stake in the
second quarter, but said on Bloomberg in July that he will wait
to see what each new company sells for, and will need more
information to decide which he would invest in.
DirecTV (
DTV
)
Warren Buffett owns 28,420,700 shares of DTV, valued as $1.4
billion as of June 30, 2012, which accounts for 1.9% of his
equity portfolio. George Soros owns 450,453 shares of DTV, valued
as $22 million as of June 30, 2012, which accounts for 0.32% of
his equity portfolio.
DirecTV is a provider of digital multichannel television
entertainment in the United States and Latin America. DirecTV has
a market cap of $34.47 billion; its shares were traded at around
$52.55 with a P/E ratio of 13.6 and P/S ratio of 1.3. DirecTV had
an annual average earnings growth of 33.4% over the past 10
years. GuruFocus rated DirecTV the business predictability rank
of 2.5-star.
In the second quarter, DirecTV reported a 9% revenue increase due
largely to subscriber growth in DirecTV Latin America and DirecTV
U.S. over the last year. The company's net income declined 1%,
primarily due to higher operating profit and partially offset by
a $43 million pre-tax, non-cash loss due to the revaluation of
U.S. dollar-denominated Brazilian liabilities, and a $64 million
charges related to the early retirement of debt, and several
other charges.
DirecTV's growth is particularly strong in Latin America, where
revenues increased 20% since the last year due to high subscriber
growth. Net additions increased 37% to a record 645,000.
DaVita (
DVA
)
Warren Buffett owns 9,300,000 shares of DVA, valued as $913
million as of June 30, 2012, which accounts for 1.2% of his
equity portfolio. George Soros owns 123,000 shares of DVA, valued
as $12 million as of June 30, 2012, which accounts for 0.17% of
his equity portfolio.
DaVita Inc. is one of the largest providers of high-quality
dialysis and related services for patients suffering from chronic
kidney failure, also known as end stage renal disease. DaVita
Inc. has a market cap of $9.12 billion; its shares were traded at
around $97.19 with a P/E ratio of 16.2 and P/S ratio of 1.3.
DaVita Inc. had an annual average earnings growth of 17.8% over
the past 10 years. GuruFocus rated DaVita Inc. the business
predictability rank of 3.5-star.
In the second quarter, DaVita's net income declined to $95.3
million from $100 million the previous year. Operating revenues
increased to $1.8 billion from $1.6 billion the previous year.
The company raised its operating income guidance for 2012 to be
in the range of $1.27 billion to $1.33 billion, from its previous
guidance of $1.23 billion to $1.31 billion. DaVita began
expanding internationally in 2011 and opened four new centers
outside the U.S. in the second quarter, the same number as the
previous quarter.
Johnson & Johnson (
JNJ
)
Warren Buffett owns 10,333,128 shares of JNJ, valued as $698
million as of June 30, 2012, which accounts for 0.94% of his
equity portfolio. George Soros owns 155,000 shares of JNJ, valued
as $10 million as of June 30, 2012, which accounts for 0.15% of
his equity portfolio.
Buffett liquidated over 60% of his Johnson & Johnson holding
in the second quarter. He said in February that Johnson &
Johnson has "obviously messed up in a lot of ways in the last few
years."
Johnson & Johnson is engaged in the manufacture and sale of a
broad range of products in the health care field in many
countries of the world. Johnson & Johnson has a market cap of
$185.66 billion; its shares were traded at around $67.56 with a
P/E ratio of 13.4 and P/S ratio of 2.9. The dividend yield of
Johnson & Johnson stocks is 3.6%. Johnson & Johnson had
an annual average earnings growth of 7.2% over the past 10 years.
GuruFocus rated Johnson & Johnson the business predictability
rank of 2.5-star.
In the second quarter, Johnson & Johnson's sales declined
0.7% to $16.5 from the previous year. Domestic sales decreased
1.2% and international sales decreased 0.4%.
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