As of Friday, the top-four stocks in the “Buying” basket are Intel Corp. (NASDAQ:INTC), Apple Inc. (NASDAQ:AAPL), Biogen Inc. (NASDAQ:BIIB) and Simon Property Group Inc. (NYSE:SPG).
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As mentioned in the new feature announcement, Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) said that the Omaha, Nebraska-based conglomerate has three baskets for investing: yes, no and too tough to understand. The GuruFocus baskets utilize Buffett and Munger’s theories of achieving higher returns by investing only within one’s "circle of competence."” data-reactid=”13″>As mentioned in the new feature announcement, Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) said that the Omaha, Nebraska-based conglomerate has three baskets for investing: yes, no and too tough to understand. The GuruFocus baskets utilize Buffett and Munger’s theories of achieving higher returns by investing only within one’s “circle of competence.”
The GuruFocus Baskets feature allows users to vote stocks into one of four baskets:
- Buying the stock right now
- Considering buying the stock
- Researching the stock as a potential investment
- Not interested in the stock
As of Friday, the stocks with the most “Buying” votes among users are Intel, Apple, Biogen and Simon Property Group.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Intel” data-reactid=”28″>Intel
Sixteen users voted they are buying shares of Intel as of Friday.
Shares of the Santa Clara, California-based semiconductor giant closed at $50.59, down 16.24% from Thursday’s close of $60.40 on the heels of the company releasing weaker-than-expected guidance for the third quarter and for the full year, despite reporting second-quarter revenue and earnings that outperformed management’s expectations. The company’s stock decline contributed to the Dow Jones Industrial Average’s 182.44-point tumble for the day, with the 30-stock index closing at 26,469.89.
Intel announced in its earnings release that the company plans to accelerate its 10-nanometer products this year to meet demand for 10-nanometer Intel Core processors. As such, the company now expects a six-month delay in its seven-nanometer CPU product timing relative to prior expectations, driven by a 12-month lag in the yield of Intel’s seven-nanometer manufacturing process. The company now expects to release its Intel-based seven-nanometer product in late 2022 or early 2023.
Despite the company’s price decline, Intel’s profitability ranks 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a four-star business predictability rank, and an operating margin that has increased approximately 4.10% per year on average over the past five years and is outperforming over 97% of global competitors.
Gurus with large holdings in Intel include Ken Fisher (Trades, Portfolio) and PRIMECAP Management (Trades, Portfolio).
Jerome Dodson (Trades, Portfolio)’s Parnassus Endeavor Fund (Trades, Portfolio) purchased 10,000 shares of Intel during the June quarter, with shares averaging $59.71.
Nine users voted they are buying shares of Apple while seven users voted they are considering buying shares. Despite this, four users dismissed Apple as a potential investment, second only to Tesla Inc.’s (NASDAQ:TSLA) 15 votes and Netflix Inc.’s (NASDAQ:NFLX) four votes.
Shares of the Cupertino, California-based consumer electronics giant closed at $370.46, down 0.92% from Thursday’s close of $371.38.
GuruFocus ranks Apple’s valuation 1 out of 10 on several signs of overvaluation, which include price-book and price-sales ratios near 10-year highs and underperforming 98% and 88% of global competitors. Despite this, Apple’s profitability ranks 10 out of 10 driven by a 4.5-star business predictability rank, a high Piotroski F-score of 8, and a return on assets that outperforms over 97% of global hardware companies.
Berkshire owns over 245 million shares of Apple as of the March-quarter filing date.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Biogen” data-reactid=”143″>Biogen
Seven users voted they are buying shares of Biogen while five users voted they are considering buying shares.
GuruFocus ranks the Cambridge, Massachusetts-based drug manufacturer’s profitability 10 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, a 4.5-star business predictability rank and an operating margin that has increased approximately 2.10% per year on average over the past five years and is outperforming over 98% of global competitors.
Biogen’s valuation ranks 9 out of 10 on the back of price valuations near 10-year lows and outperforming over 88% of global competitors.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Simon Property Group” data-reactid=”180″>Simon Property Group
Seven users voted they are buying shares of Simon Property Group.
GuruFocus ranks the Indianapolis-based REIT’s financial strength 3 out of 10 on the back of several warning signs, which include a weak Altman Z-score of 0.65 and a debt-to-Ebitda ratio higher than Joel Tillinghast’s safe threshold of 4. The website also flags Simon Property Group’s increasing long-term debt as a sign of high financial leverage.
Despite low financial strength, Simon Property Group’s profitability ranks 8 out of 10 driven by a four-star predictability rank and expanding operating margins.
Disclosure: The author is long Intel, Apple and Biogen. The mention of holdings in this article reflect holdings as of the March quarter and do not include any trades made during April-July. Per Securities and Exchange regulations, quarterly portfolios are due 45 days after the quarter ends.
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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article first appeared on GuruFocus.
” data-reactid=”225″>This article first appeared on GuruFocus.
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