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Bet on economic recovery Buffett holdings of Wal-Mart to buy Nestle

2010-5-24 9:46:45

  Earlier this month, when the "stock god" Buffett at the helm of Berkshire Hathaway plans to 26 billion U.S. dollars heavily to acquire the second largest U.S. railroad operator - 77% of shares of Burlington Northern's news came to light, a stock market began to fashion, "Buffett rail concept." Less than two weeks, "stock god" named by another chain of retail giant Wal-Mart's generous holdings and investment Nestle and Exxon Mobil.

  Berkshire Hathaway Monday, according to regulatory documents submitted to the show, as at 30 September, Buffett's holding on the scale of Wal-Mart from the end of June of 1990 to 3780 million shares, increasing holding as much as 90%. In addition, Buffett also holds Nestle 340 million shares worth 145 million U.S. dollars in American Depositary Receipts (adr), and holds 128 million shares of energy giant Exxon Mobil (worth 87.6 million U.S. dollars).

  This reporter learned that the Buffett holdings or buying listed companies are industry leaders. Wal-Mart is the world's largest chain, Nestle and Exxon Mobil were the world's largest food manufacturers and oil companies.

  Since March this year the strong rebound in U.S. stocks since the beginning, the three company's shares has been worse than broader market trend. According to statistics, as of this week (Nov. 16), the Dow Jones industrial average on March 9 this year has been rebound 57% since the same period, Wal-Mart (nyse: wmt) stock rose only 9%, while Exxon U.S. Fu (nyse: xom) is up 16%. Some analysts believe that, even if the economic downturn, Buffett still like to invest in undervalued shares.

  It is worth mentioning that Buffett overweight Wal-Mart, is seen as the restoration of the prospects for the U.S. retail industry, betting, and once again the economic data to prove their "share God" title for nothing. 16 November, the Commerce Department reported retail sales in October increased 1.4% monthly rate increase is much higher than market expectations of 0.8% and of -1.5% in September this year. On the other hand, Exxon Mobil invested more obvious reason, the international crude oil prices have soared 40% this year, 100 U.S. dollars a barrel, the impact of future more possible.

  Asset Management chief investment officer Daiweikazi matrixassetadvisors that Buffett holdings of Wal-Mart to suggest that the company has a long-term commercial comparative advantages, which is consistent with Buffett's investment philosophy - to select undervalued growth companies.

  Wal-Mart in 2009 Third Quarterly Bulletin revealed that the company has successfully reduced inventory and enhance the net sales 4.1% 1.1%, net profit of 3.25 billion U.S. dollars recorded, an increase of 3.2%, earnings of 84 cents a share. It is gratifying that their performance is not subject to U.S. same-store sales fell 0.4%.

  "When the economy continues to recover, the future market demand for oil will certainly improve." Janneymontgomeryscottllc analyst Paul Howard said the United States, "Warren Buffett is not the target of a quarter, Exxon Mobil but the next 10 years, or even 20 Strategic Jiancang to 30 years. "

News Analysis

  Industry: "stock god" a new action has little effect on a stock

  Data shows that if investors can continue to imitate in 31 years, Buffett's stock picking strategy, will receive 25% of the annualized rate of return is roughly twice the yield of the S & P index.

  Buffett to be acquired in the previous operator Burlington Northern Railway after, a stock market set off a wave of railroad stocks rally. As of November 17 closing, the industry leader Daqin Railway (601006, sh) gained 12 percent this month, the Guangzhou-Shenzhen Railway (601333, sh) rose 13%, Kwok-hang rail (000594, sz) rose 19% over the same period in Shanghai means the only rose 9.6%. Buffett's big hands so the holdings of Wal-Mart, Department Stores category in the retail sector would set off a wave of frenzy in it?

  Yu Jie, Dongguan Securities Research and Development Center Manager, to the "Daily Economic News", said Buffett's investment philosophy is to search for a high margin of safety, while more traditional business model and easy to understand stocks. Wal-Mart's business has been very mature and consistent with the high margin of safety stock selection strategy. However, unlike before the market enthusiastically participated in the "concept stock Buffett" BYD or large Young Creation, the Buffett holdings of Wal-Mart can give a relatively small share of the imagination, while the current commercial stocks valuations are not cheap and the Fund for the purchase more difficult situation there hot money speculation crazy. However, investors can learn from Buffett's investment idea, buy the blue chips pe less than 20 times as the medium to long term hold.