David Winters Sees Bright Future For his Fund and Stocks: BRK.B, CNQ, BEN, CTO, RAI, PM

David Winters Sees Bright Future For his Fund and Stocks

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Sep 22, 2010
David Winters, chief executive officer of Wintergreen Advisers LLC, talks with Bloomberg's Mark Crumpton and Julie Hyman about his strategy for value investing and some of his stock picks. Winters's Wintergreen Fund is up 18 percent over the past 12 months, outperforming 99 percent of its peers this year.


Winters sees a bright future for the stocks in his portfolio and the same for future of his fund.





(Source: Bloomberg)



He focuses on things people have to do every day. In the interview, he is particularly bullish on what is going on in Asia. His portfolio is full of names that will benefit from the shift of economic power to the east. One stock he talks extensively is Genting Berhad, a gaming company traded in Malaysia. Another company is Schindler Holding, a Switzerland-based elevator company which will benefit from the urbanization trend of the world. And finally, he commented on Nestle SA (NSRGY) that is growing organically despite of economic downturn. The ADR of Nestle SA is traded in the US under the symbol “NSRGY”.


In a June 2010 interview with Barron’s, Winters stated that above 70% of his fund’s money is invested in companies outside of the US. Unfortunately, not all companies are traded here is the US. What Gurufocus captures and what he has report on are the stocks that are traded in the US. As of June 30, 2010, his domestic portfolio contains 16 stocks and only $425 million assets.


Well, we have to work with what we have got. Here are the top holdings and their histories in the portfolio:


No. 1: Berkshire Hathaway Inc. (BRK.B, Financial), Weightings: 24.72% - 1,322,950 Shares


We have discovered yet another Warren Buffett follower.


Berkshire Hathaway Inc. has a market cap of $206.06 billion; its shares were traded at around $83.09 with a P/E ratio of 24.4 and P/S ratio of 2.1. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years.





No. 2: Canadian Natural Resources Ltd. (CNQ, Financial), Weightings: 10.57% - 1,358,334 Shares


Canadian Natural Resources Limited is a senior independent oil and natural gas exploration, development and production company based in Calgary, Alberta. Canadian Natural Resources Ltd. has a market cap of $36.43 billion; its shares were traded at around $33.46 with a P/E ratio of 14.5 and P/S ratio of 3.7. The dividend yield of Canadian Natural Resources Ltd. stocks is 0.9%. Canadian Natural Resources Ltd. had an annual average earning growth of 10.2% over the past 10 years.





No. 3: Franklin Resources Inc. (BEN, Financial), Weightings: 10.12% - 501,044 Shares


Franklin Resources provides investment advisory and related services to retail mutual funds, institutional and private accounts, and other investment products globally. Franklin Resources Inc. has a market cap of $23.98 billion; its shares were traded at around $106.39 with a P/E ratio of 17 and P/S ratio of 5.7. The dividend yield of Franklin Resources Inc. stocks is 0.8%. Franklin Resources Inc. had an annual average earning growth of 15.8% over the past 10 years. GuruFocus rated Franklin Resources Inc. the business predictability rank of 4-star.





No. 4: ConsolidatedTomoka Land Co (CTO, Financial), Weightings: 9.9% - 1,481,474 Shares


Consolidated-Tomoka Land Co. is primarily engaged in the real estate industry through its wholly owned subsidiaries. Consolidatedtomoka Land Co has a market cap of $158.9 million; its shares were traded at around $27.77 with a P/E ratio of 347.1 and P/S ratio of 9.3. The dividend yield of Consolidatedtomoka Land Co stocks is 0.1%.





No. 5: Reynolds American Inc. (RAI, Financial), Weightings: 8.06% - 659,657 Shares


Reynolds American Inc. is the parent company of R.J. Reynolds American Inc. has a market cap of $17.33 billion; its shares were traded at around $59.43 with a P/E ratio of 12.5 and P/S ratio of 2. The dividend yield of Reynolds American Inc. stocks is 6.1%. Reynolds American Inc. had an annual average earning growth of 3.2% over the past 10 years.





No. 6: Philip Morris International Inc. (PM, Financial), Weightings: 7.75% - 720,826 Shares


Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris International Inc has a market cap of $102.71 billion; its shares were traded at around $56.04 with a P/E ratio of 15.4 and P/S ratio of 1.7. The dividend yield of Philip Morris International Inc stocks is 4.1%.





Read the complete Barron’s interview here.


Check out David Winters’s complete domestic portfolio: http://www.gurufocus.com/holdings.php?GuruName=David+Winters


It seems that David Winters likes the way Warren Buffett manages money. In his following Buffett, he ventures out a lot too. He owns far more foreign companies than Buffett does; he owns far more tobacco companies than Buffett does; and he will not avoid casinos as he stated in the interview.


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