Both David Tepper and David Einhorn have been nominated as GuruFocus’ Guru of the Year 2013, so I decided to see which stocks both gurus hold on to and what they had to say about them. The three top stocks held by both are General Motors (GM, Financial), Apple (AAPL, Financial) and Delphi Automotive PLC (DLPH, Financial).
David Einhorn’s Top Five Holdings:
- Apple (AAPL, Financial)
- General Motors (GM, Financial)
- Marvell Technology (MRVL)
- Aetna Inc. (AET)
- Cigna Corp (CI)
David Tepper’s Top Five Holdings:
- SPDR S&P 500 ETF (SPY)
- Citigroup (C)
- PowerSHares QQQ Trust, Series 1 (QQQ)
- Goodyear Tire & Rubber (GT)
- United Continental Holdings (UAL)
General Motors (GM)
Both Tepper and Einhorn hold a notable stake in General Motors. The gurus are also amongst the top guru shareholders of the stock with Einhorn being the second largest shareholder and Tepper being the sixth largest holder.
As of the close of the third quarter Einhorn held on to 17,047,339 shares of the company’s stock, representing 1.23% of the company’s shares outstanding and 10.9% of his total assets managed. The guru didn’t alter his holdings over the duration of the third quarter.
David Einhorn’s historical holding history:
At the close of the third quarter Tepper held on to a total of 4,983,202 shares of General Motors, representing 0.36% of the company’s shares outstanding and 2.9% of his total portfolio holdings. Over the third quarter, Tepper cut his holdings a minor -1.73%.
David Tepper’s historical holding history:
David Tepper’s commentary on GM and how the stock market is not in a bubble.
General Motors Company designs, builds and sell cars, trucks and automobile parts. The company also provides automotive financing services through General Motors Financial Company Inc.
General Motors’ historical revenue and net income:
The analysis on GM reports that the company’s revenue has been in decline over the past five years, it has issued $5.4 billion of debt over the past three years and its price is sitting near a 5-year high.
General Motors has a market cap of $57.35 billion. Its shares are currently trading at around $41.29 with a P/E ratio of 13.30, a P/S ratio of 0.45 and a P/B ratio of 2.00.
Apple (AAPL)
Both Davids also hold a stake in Apple. As a guru favorite stock, Apple boast 41 guru owners as of the close of the third quarter. Einhorn is once again the second largest shareholder of Apple stock, following the boisterous Carl Icahn.
As of the close of the third quarter, Einhorn holds on to 2,397,706 shares of the company’s stock, representing 0.26% of their shares outstanding and 20.3% of his total assets managed. Einhorn did not alter his holdings in Apple over the past quarter. His last transaction in Apple was reported in the first quarter of 2013.
David Einhorn’s historical holding history of Apple:
David Einhorn’s interview with CNBC concerning his holdings in Apple and Micron Technology (MU):
David Tepper holds on to a much smaller 244,120 shares of Apple stock. As of the third quarter Tepper’s position made up for 0.03% of the company’s shares outstanding and 1.9% of his total portfolio. During the third quarter the guru cut his holdings -36.26% by selling 138,884 shares of his stake in the company.
David Tepper’s historical holding history:
You can watch David Tepper’s commentary on Apple here:
Apple designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals, and networking solutions.
Apple’s historical revenue and net income:
The analysis on Apple reports that the company’s revenue has slowed over the past year, its asset growth is notably faster than its revenue growth and its operating margin is expanding.
The Peter Lynch Chart suggests that the company is currently undervalued:
Apple has a market cap of $506.71 billion. Its shares are currently trading at around $563.17 with a P/E ratio of 14.20, a P/S ratio of 3.10 and a P/B ratio of 4.10. The company currently holds a dividend yield of 2.10% and has seen an annual average earnings growth of 60.10% over the past ten years.
GuruFocus rated Apple the business predictability rank of 4.5-star.
Delphi Automotive PLC (DLPH)
The last stock that both Tepper and Einhorn hold notable positions together in is in Delphi Automotive. David Einhorn is the fourth largest guru shareholder of Delphi and Tepper is the eleventh.
David Einhorn held on to 3,331,278 shares of Delphi Automotive as of the third quarter, representing 1.07% of the company’s shares outstanding and 3.5% of the company’s shares outstanding. Einhorn did not alter his position in Delphi over the duration of the third quarter, but he sold over 2.5 million shares of his stake during the second quarter of 2013.
Einhorn’s historical holding history:
David Tepper owned 783,311 shares of Delphi as of the close of the third quarter. This position makes up for 0.25% of the company’s shares outstanding and 0.73% of his total portfolio. During the third quarter Tepper sold 16,000 shares, making for a -2% reduction in his holdings.
Tepper’s historical holding history:
Delphi Automotive is a global vehicle components manufacturer and provides electrical and electronic, powertrain, safety and thermal technology solutions to the global automotive and commercial vehicle markets. Its customers include the 25 largest automotive OEMs in the world.
Delphi’s historical revenue and net income:
The analysis on Delphi Automotive reports that the company’s dividend yield is at a 1-year high and its price is sitting near a 3-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Delphi Automotive has a market cap of $17.97 billion. Its shares are currently trading at around $58.39 with a P/E ratio of 17.40, a P/S ratio of 1.20 and a P/B ratio of 6.50.
You can check out both David Tepper’s and David Einhorn’s third quarter portfolios here.
