Both Bill Miller and Warren Buffett are prominent fund managers. Warren Buffett is regarded as the best investor of all time, while Bill Miller was on top of the investment world less than a half decade ago. However, both Miller and Buffett seem to have lost their magic. Bill Miller’s Legg Mason Capital Management Value mutual fund has lost nearly 40%, while Warren Buffett’s alpha has gone down over the years. Nevertheless, investors can focus on the stocks that are favored by Buffett and Miller to find value stocks with potential to beat the market.
Procter & Gamble Co (NYSE:PG) – At the end of the second quarter, Warren Buffett had $4.88 billion invested in P&G. It constituted 9.21% of Warren Buffett’s equity portfolio. Buffett has the highest position in P&G. Bill Miller’s Legg Mason had $211 million in P&G at the end of June. He increased stake in the company by 142% during the second quarter. P&G has not had any major gain or loss in share price since the end of June. Ken Fisher’s Fisher Asset Management also has one of the top 5 positions in the company, with $269 million in P&G as of June (view the $38 billion equity portfolio of Ken Fisher).
Wells Fargo & Co New (NYSE:WFC) – WFC is Warren Buffett’s 2nd-largest holding. He owned $9.88 billion worth of WFC shares as of June. He has the largest position in the company. Bill Miller’s Legg Mason Capital had around $190 million in WFC. Miller reduced stake in the company by 31% during the second quarter. Since June, Wells Fargo has lost approximately 11%. John Paulson is also bullish about WFC. In the second quarter he increased his stake in WFC by 64% (check out other bullish stocks of John Paulson).
ConocoPhillips (NYSE:COP) – At the end of June, Warren Buffett had shares of COP worth $2.78 billion. He increased his holdings by 27% in the second quarter. Buffett has the largest position in Conoco Phillips. Bill Miller also has a large stake in COP, worth $166.3 million as of June. Miller decreased his holdings by 29% before the end of June. Since the end of the second quarter, COP has lost around 10%. After Buffett, the highest stake in the company is held by Jean-Marie Eveillard.
American Express Co (NYSE:AXP) – American Express is the 3rd-largest holding in the equity portfolio of Warren Buffett’s Berkshire Hathaway. At the end of June, Buffett had $7.83 billion invested in the company. American Express is also one of the top 20 holdings of Bill Miller’s Legg Mason Capital. As of June, Miller had a position in the company worth $165.2 million. Since the end of June, the share price of American Express has gone down by 3%. Apart from Warren Buffett and Bill Miller, Ken Griffin also has one of the largest positions in the company. Griffin’s Citadel Investment Group has $194 invested in American Express (take a look at Ken Griffin’s portfolio).
Johnson & Johnson (NYSE:JNJ) – According to the June filings, Warren Buffett’s Berkshire Hathaway had $2.83 in J&J. It is Buffett’s 6th-largest holding. Legg Mason Capital had $149.8 million invested in J&J. The company has lost around 2% since the end of June. J&J is quite popular among famous hedge fund managers. Apart from Warren Buffett and Bill Miller, Ken Fisher, Cliff Asness, Jim Simons, and Phill Gross who have major stakes in the company. Phill Gross’ Adage Capital has the 3rd-largest stake in the company with $314 million as of June.
General Electric Co (NYSE:GE) – Buffett owned 7.77 million shares of General Electric, worth $146.6 million, as of June. Bill Miller had a comparatively higher stake in the company worth $170.7 million. Miller reduced GE by 30% during the second quarter. Since the end of June, GE has lost 12.5%. Jim Simons, like Miller, reduced GE by 33% as well. He had $95.5 invested in the company as of June (see billionaire Jim Simons’ top stocks).
MasterCard Inc (NYSE:MA) – Warren Buffett increased his holding in MasterCard by 88% in the second quarter. He had $122 million invested in the company at the end of June. Bill Miller had around $34 million in MasterCard as of June filings. A lot of prominent hedge fund managers are bullish about MasterCard. These include Glenn Greenberg, Chase Coleman, and Ken Griffin, who all increased their holdings in the company. Since the end of the second quarter, MasterCard has gained 15%, justifying the bullish claims of these major investors. The largest position in the company is held by Tom Russo’s Gardner Russo & Gardner.
Wal-Mart Stores Inc (NYSE:WMT) – WMT is currently one of Buffett’s top 10 holdings. He had $2.07 billion invested in WMT at the end of June. Bill Miller, however, has a minor stake in Wal-Mart. As of June, he had $6.8 million in the company. WMT lost -0.2% since the end of June. Steven Cohen is another known investor who is bullish on WMT -- during the second quarter, Cohen increased his holding in the stock by 255% (check out Steven Cohen’s bullish stock picks).
Exxon Mobil Corp (NYSE:XOM) – As of June, Warren Buffett had shares of Exxon Mobil worth $34 million. Miller’s Legg Mason owns shares of Exxon Mobil worth $5.8 million. Since the end of the second quarter, the share price of Exxon Mobil has gone down by 8%. Cliff Asness’ AQR Capital Management also had shares of Exxon worth $131 million at the end of June.
United Parcel Service Inc (NYSE:UPS) – Buffett had $104 million in United Parcel at the end of June. It is currently one of Buffett’s top 20 holdings. He has the 2nd-largest stake in the company. Bill Miller had $56.6 million in United Parcel at the end of the quarter ending in June. Since the end of June, UPS has lost 8%. The largest position in the company is of Jason Capello’s Merchants’ Gate Capital; UPS is the largest holding of Capello’s equity portfolio.
Disclosure: I am long COP.