Deviser of stock market investing tactics for the everyman, Joel Greenblatt (Trades, Portfolio) disclosed this week what he bought for his own portfolio in the fourth quarter. The guru owns 950 stocks in total, of which 220 are new as of the quarter. It is valued at $4.2 billion and most heavily weighted among the industrials (24.2%), technology (20.1%) and consumer cyclical (19.7%) sectors.
He has relatively high turnover in his portfolio at 39% over the previous quarter due in part to his investing style. The “Magic Formula,” the famous strategy he created for consistently market-beating returns, involves: screening for top-ranked stocks, buying them and holding them for one year.
His five largest stocks buys of fourth quarter 2013 are: Spirit AeroSystems Holdings Inc. (SPR, Financial), Amdocs Ltd. (DOX, Financial), Pentair Ltd. (PNR, Financial), LifePoint Hospitals Inc. (LPNT, Financial) and Scotts Miracle Gro Co. (SMG, Financial).
Spirit AeroSystems Holdings Inc. (SPR, Financial)
Greenblatt bought 625,966 shares of Spirit AeroSystems Holdings Inc., a 0.51% portfolio weight. The company sold for an average of $29 a share in the fourth quarter.
Spirit AeroSystems Holdings Inc. or Spirit Holding was formed in February 2005 as a holding company for Spirit its subsidiary Spirit AeroSystems Inc. Spirit Aerosystems Holdings Inc. has a market cap of $4.14 billion; its shares were traded at around $28.62 with a P/E ratio of 189.60 and P/S ratio of 0.70.
Greenblatt bought 363,758 shares of Amdocs in the fourth quarter, equating to 0.36% of the portfolio. His fourth quarter average share price was $39.
Amdocs Ltd. was organized under the laws of the Island of Guernsey in 1988. Amdocs Ltd. has a market cap of $7.08 billion; its shares were traded at around $44.43 with a P/E ratio of 17.30 and P/S ratio of 2.10. The dividend yield of Amdocs Ltd. stocks is 1.20%. Amdocs Ltd. had an annual average earnings growth of 8.50% over the past 10 years. GuruFocus rated Amdocs Ltd. the business predictability rank of 4-star.
Greenblatt bought 159,748 shares of Pentair Ltd., worth 0.3% of his portfolio. The stock’s price averaged $69 in the fourth quarter.
Pentair Ltd. Was formerly known as Tyco Flow Control International Ltd. Pentair Ltd. has a market cap of $15.79 billion; its shares were traded at around $79.22 with a P/E ratio of 139.30 and P/S ratio of 2.20. The dividend yield of Pentair Ltd stocks is 1.20%.
LifePoint Hospitals Inc. (LPNT, Financial)
Greenblatt bought 226,690 shares of LifePoint Hospitals Inc. in the fourth quarter, comprising 0.29% of his portfolio. Shares averaged $50 each during the quarter.
LifePoint Hospitals Inc., a Delaware corporation, acting through its subsidiaries, operates general acute care hospitals primarily in non-urban communities in the U.S. LifePoint Hospitals Inc. has a market cap of $2.49 billion; its shares were traded at around $52.87 with a P/E ratio of 19.60 and P/S ratio of 0.70. LifePoint Hospitals Inc. had an annual average earnings growth of 10.30% over the past 10 years. GuruFocus rated LifePoint Hospitals Inc. the business predictability rank of 3.5-star.
Scotts Miracle Gro Co. (SMG, Financial)
Greenblatt bought 164,186 shares of Scotts Miracle Gro Co., a 0.24% portfolio holding. The company’s price averaged $59 in the fourth quarter.
Scotts Miracle Gro Co. is a manufacturer and marketer of branded consumer lawn and garden products. Scotts Miracle Gro Co. has a market cap of $3.49 billion; its shares were traded at around $56.28 with a P/E ratio of 21.50 and P/S ratio of 1.30. The dividend yield of Scotts Miracle Gro Co. stocks is 2.90%. Scotts Miracle Gro Co. had an annual average earnings growth of 3.60% over the past 10 years.
For the remainder of Greenblatt’s stocks, see his portfolio here. Not a Premium Member of GuruFocus? Try it free for 7 days here!
