The Stocks George Soros Keeps Buying
has the best investing record ever at his former Quantum Fund,
and continues to invest to this day. While Soros is a
value-oriented investor, he also applies the philosophy of
reflexivity to choose which stocks people are mispricing out of
emotional reactions and identify bubbles.
Soros' portfolio as of the first quarter has a value of $9.56 billion. It contains 207 stocks, of which 74 are new, giving it a 21% quarter-over-quarter turnover.
His top five positions make up only 13% of his portfolio. They are: Pioneer Natural Resources Company ( PXD ), Google Inc. ( GOOG ), Charter Communications Inc. ( CHTR ), Johnson & Johnson ( JNJ ) and EQT Corp. ( EQT ).
Soros, however, has been building positions in several companies over time. The positions he keeps adding to are: Pioneer Natural Resources ( PXD ), EQT Corp. ( EQT ), Constellation Brands ( STZ ) and Mosaic Brands ( MOS ).
Pioneer Natural Resources ( PXD )
Both Soros' top stock and the stock of which he is buying the most is Pioneer Natural Resources Company ( PXD ). He first bought 1,396,236 million shares in the third quarter of 2012 and over the next two quarters increased his shares to 2,322,781 as the price hiked from the upper $90s to the lower $121s. The company's near 10-year high price Friday of $144.73 gives him a 42% average gain.
Pioneer is an oil and gas company which is active in the Permian Basian, South Texas, the Rockies, the Mid-Continent, Texas' Barnett Shale Combo and Alaska's Oooguruk field. It has 1.1 billion BOE of proved reserve and daily production of approximately 156,000 BOE/day.
The company's stock appreciated 79.5% in the last year and is the best performing energy stock in the S&P 500 since 2009.
In the last three years, the company experienced revenue growth:
Pioneer in 2008 cut its dividend from $0.30 per share to $0.8 per share, and it has remained at that level since. Its dividend yield is 0.10, higher than 76% of the companies in the global oil and gas E&P industry.
The P/E of Pioneer is near a 10-year high at 259.8, P/B is 3.3 and P/S is near to a 10-year high at 5.6.
EQT Corp. ( EQT )
Soros added to EQT, his fifth largest stock, for two consecutive quarters. He established the position in the second quarter of 2012 and owns 3,085,411 shares as of the first quarter of 2013. Its stock gained 64% in the past year and trades for $79.66 Friday - close to a 10-year high.
EQT is one of the nation's largest natural gas producers, with operations in five states and three business units: production, midstream and commercial operations. It focuses on the Marcellus Shale.
This is EQT's 10-year revenue, earnings, price and P/E ratio history:
In the first quarter EQT production increased 47% over the first quarter 2012, and sales volumes increased 33% from a year earlier. Its operating revenues rose to $558.66 million, from $449.96 million the previous year. Its net income also rose to $109.28 million from $72.06 the previous year.
The $12.46 million market cap company has a near 10-year high P/E of 56.4 and near 10-year high P/S of 6.8. EQT did pay an annual dividend of $0.88 per share since 2008, but cut it to $0.12 per share beginning January 2013 when it sold its natural gas distribution business and select midstream and commercial arrangements, and blended its two remaining core businesses in December 2012.
Constellation Brands Inc. ( STZ )
Soros has been adding to his Constellation Brands since he opened it in third quarter 2013. He owns 2,512,000 total in the first quarter and has a 44% average gain on the stock. It is trading near a 10-year high at $50.49 Friday.
Constellation brands owns a number of wine, beer and spirits brands, such as Arbor Mist, Clos du Bois and Negra Modelo. It has more than 100 brands and sales in approximately 100 countries.
Over the past several years, the company's revenue has declined, while its bottom line has seen improvement:
In fiscal 2013, the company gained market share in its beer, wine and spirits businesses and outperformed the growth of the U.S. wine and spirits industry. Its net sales increased 5% and net income declined 13% year over year. On June 7, it completed the acquisitions of Grupo Modelo's U.S. beer business from Anheuser-Busch InBev ( BUD ) for $4.75 billion. The acquisition made it the owner of six of the top 20 important beer brand sin the U.S. and a portfolio of premium brands in the U.S. imported beer market.
Constellation has a P/E of 25, P/B near a 10-year high at 3.34 and P/S near 10-year high at 3.5.
Mosaic Co. ( MOS )
Lastly, Soros has added to his stake in Mosaic Co. ( MOS ) for two consecutive quarters. He added 1,059,370 shares in the first quarter, ending it with 1,643,370 in total. At a price of $56.69 Friday, he has an average 2% gain.
Mosaic is the world's largest maker of crop nutrients made of phosphate and potash used globally in agriculture. Below is its long-term price, revenue, earnings and free cash flow history:
In the quarter ended Feb. 28, 2013, Mosaic reported net sales of $2.24 billion, compared to $2.19 billion a year previously, though its nine-month sales were down from last year's first nine months. Its net earnings were $345.4 million for the quarter compared to $271.9 million a year previously. First nine-month's earnings also fell short of the same period last year.
Mosaic pays a dividend of $0.25, which it raised from $0.05 a year ago. Its dividend yield of 1.8 is higher than 66% of the companies in the global agricultural inputs industry. The company has a P/E of 12.8, P/B of 2.1 and P/S of 2.4.
The Peter Lynch chart notes that it is undervalued:
See George Soros' portfolio here. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of George Soros.
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