Warren Buffett Buys Kroger, Biogen in 4th Quarter


<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Warren Buffett (crafts, Wallet), the $ 486 billion conglomerate of Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B), unveiled its equity portfolio for the fourth quarter of 2019 on Friday, listing new positions in The Kroger Co. (NYSE: KR), Biogen Inc. (NASDAQ: BIIB), SPDR S & amp; P 500 (SPY) and the Vanguard S & amp; P 500 (VOO). "Data-reactid =" 11 "> Warren Buffett (Transactions, Portfolio) & # 39; s A $ 486 billion conglomerate, Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B), has unveiled Friday its equity portfolio for the fourth quarter of 2019, listing new positions in The Kroger Co. (NYSE: KR), Biogen Inc. (NASDAQ: BIIB), SPDR S&P 500 (SPY) and Vanguard S&P 500 (VOO).

With a record $ 128 billion to spend on stocks, the famed guru and his two portfolio managers, Ted Weschler and Todd Combs, have also added to the holdings of the Western Petroleum Corp. conglomerate. ), General Motors Co. (NYSE: GM) and RH (NYSE: RH).

Long-term investors also reduced their positions in Wells Fargo & Co. (NYSE: WFC), Goldman Sachs Group Inc. (NYSE: GS), The Travelers Companies Inc. (TRV), Apple Inc. (AAPL), Phillips 66 (PSX), Bank of America Corp. (BAC), American Airlines Group Inc. (AAL) and Bank of New York Mellon Corp. (BK).

Valued at $ 242.05 billion, the stock portfolio was made up of 52 stocks at the end of the fourth quarter. Almost half of the portfolio was invested in financial services stocks at 43.32%, while the technology sector has a weight of 31% and the consumer defense space represents 14.26%.

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At the end of the quarter, Buffett's top five holdings, representing more than half of the portfolio, were Apple, Bank of America, The Coca-Cola Co. (KO), American Express Co. (AXP) and Wells Fargo.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Kroger"data-reactid =" 35 ">Kroger

Buffett has invested in 18.9 million shares of Kroger, devoting 0.23% of the equity portfolio to participation. The stock was traded at an average price of $ 26.57 per share during the quarter.

The Cincinnati-based grocery chain has a market cap of $ 22.52 billion; its shares were trading around $ 28.23 on Friday with a price-to-earnings ratio of 14.38, a price-to-pound ratio of 2.56 and a price-to-sale ratio of 0.19.

Peter Lynch's chart shows that the stock is trading slightly below its fair value, which suggests that it is undervalued. While the price-to-sales ratio and price are close to one-year highs, ranking GuruFocus ratings also involves undervaluation.

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GuruFocus rated Kroger's financial strength 5 out of 10 due to low interest coverage and a low debt ratio of 0.03. The Altman Z-Score of 3.78, however, indicates that the company is in good financial shape.

The company's profitability scored 8 out of 10 despite a declining operating margin. Kroger is also supported by returns that outperform at least half of its competitors and a Piotroski F-Score of 6, which means that trading conditions are stable. Its five out of five star business predictability rank is under surveillance due to slower growth in sales per share in the past 12 months. According to GuruFocus, companies of this rank generally see their shares gain on average 12.1% per year over a period of 10 years.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With his purchase of 2.37% of the outstanding shares from Kroger, Buffett is now his biggest guru shareholder. Jim Simons (crafts, Portfolio) & # 39; Renaissance Technologies, Pioneer Investments (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) , Joel Greenblatt (Trades, Portfolio), Ken Fisher (Trades, Portfolio) and Richard Snow (Trades, Portfolio) also have positions in the stock. "Data-reactid =" 61 "> With his purchase of 2.37% of the outstanding shares of Kroger, Buffett is now its main shareholder guru Jim Simons (trades, portfolio) & # 39; Renaissance Technologies, Pioneer Investments (trades, portfolio), Jeff Auxier (trades, portfolio), PRIMECAP Management (trades, portfolio), Lee Ainslie (trades, portfolio), Paul Tudor Jones (trades, portfolio), Joel Greenblatt (trades, portfolio), Ken Fisher (trades, portfolio ) and Richard Snow (trades, portfolio) also have positions in the stock.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Biogen"data-reactid =" 62 ">Biogen

Omaha's Oracle has picked up 648,447 shares of Biogen, allocating 0.08% of the equity portfolio to the holding company. During the quarter, the stock was traded at an average price of $ 279.04 per share.

The biotechnology company, headquartered in Cambridge, Massachusetts, has a market capitalization of $ 57.96 billion; its shares were trading around $ 333 on Friday with a price-to-profit ratio of 10.56, a price-to-pound ratio of 4.34 and a price-to-sale ratio of 4.33.

According to Peter Lynch's chart, the stock is undervalued. The valuation rank of 9 out of 10 also indicates an undervaluation.

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Biogen's financial strength was rated 6 out of 10 by GuruFocus, thanks to comfortable interest coverage and a solid Piotroski F-Score of 4.93.

The company's profitability scored a perfect 10 out of 10 thanks to expanding margins and strong returns that outperform the majority of industry peers. Biogen is also supported by a moderate Piotroski F-Score of 6. Due to the constant growth in profits and revenues, it has a predictability ranking of five stars.

PRIMECAP is Biogen's largest guru shareholder with an 8.73% stake. Other major guru investors include Simons, the Vanguard Health Care Fund (Trades, Portfolio), Hotchkis & Wiley, Pioneer, Greenblatt, Fisher, Steven Cohen (Trades, Portfolio), Jones, Snow, Richard Pzena (Trades, Portfolio), Jeremy Grantham (Professions, Portfolio) and Auxier.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SPDR S & amp; P 500"data-reactid =" 93 ">SPDR S&P 500

The guru bought 39,400 shares of the exchange-traded fund, which gives him 0.01% space in the equity portfolio. The units were traded for an average price of $ 308.48 each during the quarter.

The ETF, which tracks the performance of the S&P 500 stock market index, has a market capitalization of $ 323.7 billion; its shares were trading around $ 337.60 on Friday with a price-earnings ratio of 20.58 and a price ratio of 3.25.

The 14.5 day relative resistance index of 65.5 indicates that it is approaching overbought levels.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Vanguard S & amp; P 500"data-reactid =" 97 ">Vanguard S&P 500

The renowned investor bought 43,000 units of the ETF, which had an impact on the equity portfolio of 0.01%. The units were traded for an average price of $ 283.37 each during the quarter.

The ETF, which tracks the investment performance of the S&P 500 India, has a market capitalization of $ 144.9 billion; its units were trading around $ 310.28 on Friday with a price-earnings ratio of 19.82 and a book-price ratio of 3.19.

The 14.6 day relative resistance index of 65.6 indicates that it is approaching overbought levels.

See Buffett's full portfolio here.

Disclosure: No positions.

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