As a continuation of our Guru Report Card series, in which we assign letter grades to the investment moves of well-established fund managers and "stock gurus," we will focus on stocks the pros were selling over the last quarter. After sifting through 13F filings and identifying which companies these gurus are currently betting against, we have ranked each company according to AFG’s Economic Margin Valuation model.
Specifically, we will take the stocks the pros have been selling and give them letter grades (A, B, C, D, F). The companies that receive a grade of F or D are companies that look attractive according to our investment criteria; therefore, we disagree with the decision of the guru to decrease their position in the company’s stock. Accordingly, companies that receive a grade of A or B do not look attractive based on our investment criteria.
| TICKER | COMPANY | MANAGER | ACTION | AFG VALUATION GRADE | | Warren Buffett's Decreased Positions | | (NLC) | NALCO HOLDING COMPANY | BERKSHIRE | SOLD ALL | A | | (NKE) | NIKE INC. | BERKSHIRE | SOLD ALL | A | | (BDX) | BECTON, DICKINSON AND COMPANY | BERKSHIRE | SOLD ALL | C | | (BAC) | BANK OF AMERICA CORPORATION | BERKSHIRE | SOLD ALL | D | | (FISV) | FISERV, INC. | BERKSHIRE | SOLD ALL | F | | John Hussman's Decreased Positions | | (AMZN) | AMAZON.COM, INC. | HUSSMAN ECON. | Sold All | A | | (NTAP) | NETAPP INCORPORATION | HUSSMAN ECON. | Decreased Position | A | | (KO) | COCA-COLA COMPANY | HUSSMAN ECON. | Decreased Position | B | | (ABX) | BARRICK GOLD CORPORATION | HUSSMAN ECON. | Decreased Position | B | | (BDX) | BECTON, DICKINSON AND COMPANY | HUSSMAN ECON. | Decreased Position | C | | (ORCL) | ORACLE CORPORATION | HUSSMAN ECON. | Decreased Position | D | | (VZ) | VERIZON COMMUNICATIONS | HUSSMAN ECON. | Decreased Position | D | | (PG) | PROCTER & GAMBLE CO | HUSSMAN ECON. | Decreased Position | F | | (XOM) | EXXON MOBIL CORPORATION | HUSSMAN ECON. | Sold All | F | | (NEM) | NEWMONT MINING CORPORATION | HUSSMAN ECON. | Decreased Position | F | | Whitney Tilson's Decreased Positions | | (SATS) | ECHOSTAR CORPORATION | T2 PARTNERS | Decreased Position | A | | (XTEX) | CROSSTEX ENERGY L P | T2 PARTNERS | Decreased Position | A | | (DWA) | DREAMWORKS ANIMATION SKG, INC. | T2 PARTNERS | SOLD ALL | B | | (ADP) | AUTOMATIC DATA PROCESSING, INC | T2 PARTNERS | Decreased Position | B | | (YHOO) | YAHOO! INC. | T2 PARTNERS | Decreased Position | D | | (TGT) | TARGET CORPORATION | T2 PARTNERS | SOLD ALL | D | | (C) | CITIGROUP INC. | T2 PARTNERS | SOLD ALL | F | | (PFE) | PFIZER INC. | T2 PARTNERS | SOLD ALL | F | |
In the following quarter, we will review the performance of these stocks as well as each group (A’s, B’s, C’s, D’s, and F’s) to see how our value our analysis added. We have demonstrated that our insights can improve the performance of your portfolio by identifying firms likely to outperform as well as potential torpedoes to avoid.
