Scott Black's Top First Quarter Holdings

Author's Avatar
Apr 24, 2014
Article's Main Image

Scott Black is the chairman, president, chief investment officer and founder of Boston-based Delphi Management, and is often featured in Barron’s. Delphi Management’s investment philosophy states that they “only invest in companies that meet our internally developed set of rigorous quantitative criteria.” The fund also only invests in equity securities of US-listed companies, and takes only long positions.

Over the past quarter Guru Scott Black purchased 13 new stocks, bringing his total first quarter portfolio to 109 stocks valued at $924 million.

The following five companies are Scott Black’s top five stock holdings as of the close of the first quarter.

Berkshire Hathaway (BRK.B)

Black’s largest holding is in Berkshire Hathaway where the guru holds on to 204,074 shares of the company’s stock. His position in the company takes up 2.8% of his portfolio and 0.01% of the company’s shares outstanding.

Black made a slight increase in his position in Berkshire Hathaway over the duration of the first quarter. The guru upped his stake 0.81% by purchasing 1,642 shares. He bought these shares in the first quarter price range of $108.78 to $125.20 per share. From the estimated average quarterly price of $116.77, the share price is up about 9.1%.

Scott Black’s historical holding history:

03May20171438291493840309.png

Berkshire Hathaway is a conglomerate holding company owning subsidiaries engaged in a number of business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

03May20171438301493840310.png

The analysis on Berkshire Hathaway reports that the company’s price is near a 10-year high, it has shown predictable revenue and earnings growth and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

03May20171438311493840311.png

Berkshire Hathaway has a market cap of $297.31 billion. Its shares are currently trading at around $127.20 with a P/E ratio of 15.30, a P/S ratio of 1.60 and a P/B ratio of 1.30. Berkshire Hathaway had an annual average earnings growth of 9.30% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

Mylan (MYL)

Black’s second largest holding is in Mylan Inc where he currently holds on to 274,571 shares. His position in the company represents 1.5% of his total portfolio and 0.07% of the company’s shares outstanding.

During the first quarter Black reduced his position by -10.63%. The guru sold a total of 32,643 shares in the price range of $42.26 to $57.20, with an estimated average quarterly price of $48.30. Since then the price per share is up about 4.1%.

Scott Black’s holding history of Mylan as of the first quarter:

03May20171438311493840311.png

Mylan and its subsidiaries make up a global pharmaceutical company that develops, licenses, manufactures, markets and distributes generic and branded generic pharmaceuticals, specialty pharmaceuticals and active pharmaceutical ingredients.

Mylan’s historical revenue and net income:

03May20171438311493840311.png

The analysis on Mylan reports that the company’s price is near a 10-year high, its revenue has been in decline over the past five years, they have issued $363.26 million of debt over the past three years and its Piotroski F-Score is high, indicating that the company is in a healthy situation.

The Peter Lynch Chart suggests that the company is currently overvalued:

03May20171438321493840312.png

Mylan has a market cap of $18.7 billion. Its shares are currently trading at around $50.28 with a P/E ratio of 31.80, a P/S ratio of 2.80 and a P/B ratio of 6.40. Mylan had an annual average earnings growth of 12.70% over the past five years.

Foot Locker (FL)

The guru’s third largest position is in Foot Locker where he holds on to 301,562 shares of the company’s stock. His position in the company makes up for 1.5% of his total portfolio and 0.2% of the company’s shares outstanding.

During the first quarter the guru cut his holdings by -6.31%. He sold 20,323 shares during the quarter at an estimated average quarterly price of $41.42 per share. Since then the price per share has gone up about 10.4%.

Scott Black’s historical holding history of Foot Locker:

03May20171438321493840312.png

Foot Locker is a retailer of athletically inspired shoes and apparel, operating 3,369 mainly mall-based stores in the United States, Canada, Europe, Australia, and New Zealand. It operates in two reportable segments — Athletic Stores and Direct-to-Customers.

Foot Locker’s historical revenue and net income:

03May20171438331493840313.png

The analysis reports that the company’s Piotroski F-Score is high, indicating a healthy situation, its dividend yield is near a 5-year low and its interest coverage is comfortable. It also notes that the company’s price is at a 10-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

03May20171438331493840313.png

Foot Locker has a market cap of $6.66 billion. Its shares are currently trading at around $45.73 with a P/E ratio of 16.10, a P/S ratio of 1.10 and a P/B ratio of 2.70. The company had an annual average earnings growth of 6.30% over the past ten years.

Oracle (ORCL)

The guru’s fourth largest position is in Oracle where he maintains 343,912 shares of the company’s stock. His position in the company makes up for 1.5% of his portfolio and 0.01% of the company’s shares outstanding.

Over the past quarter Scott Black (Trades, Portfolio) reduced his holdings -1.92% by selling 6,724 shares. He sold these shares at the estimated average quarterly price of $37.98 per share. Since his buy the price per share has increased approximately 4.8%.

Black’s historical holding history:

03May20171438471493840327.png

Oracle provides technologies of cloud computing, including database and middleware as well as web-based applications, virtualization, clustering and systems management. It provides cloud services as well as software and hardware products to other cloud service providers, both public and private.

Oracle’s historical revenue and net income:

03May20171438481493840328.png

The analysis on Oracle reports that the company’s revenue has slowed down over the past year, its price is near a 10-year high, its operating margin is expanding and its dividend yield is also near a 5-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

03May20171438481493840328.png

Oracle Corporation has a market cap of $177.42 billion. Its shares are currently trading at around $39.79 with a P/E ratio of 16.70, a P/S ratio of 4.90 and a P/B ratio of 4.00. The company had an annual average earnings growth of 19.40% over the past ten years.

GuruFocus rated Oracle the business predictability rank of 4.5-star.

Comcast Corp (CMCSK)

The guru’s fifth largest holding is in Comcast where he holds on to 262,080 shares of the company’s stock. His position in Comcast represents 1.5% of his entire portfolio and 0.01% of the company’s shares outstanding.

During the first quarter Black decreased his stake in the company by 8,547 shares. He sold these shares in the quarterly price range of $48.02 to $52.95, with an estimated average quarterly price of $50.42. Since then the price per share has stayed roughly the same.

Cohen’s historical holding history:

03May20171438491493840329.png

Comcast Corporation is a global media and technology company with two main businesses, Comcast Cable and NBCUniversal.

Comcast’s historical revenue and net income:

03May20171438491493840329.png

The analysis on Comcast reports that the company’s revenue has slowed down over the past year, its dividend yield is near a three-year low and its price is near a 10-year high. The analysis also recognizes that the company’s operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently overvalued:

03May20171438501493840330.png

Comcast has a market cap of $133.45 billion. Its shares are currently trading at around $50.43 with a P/E ratio of 20.10, a P/S ratio of 2.10 and a P/B ratio of 2.80. The company had an annual average earnings growth of 17.20% over the past 10 years.

GuruFocus rated Comcast the business predictability rank of 5-star.

Check out Scott Black (Trades, Portfolio)’s first quarter portfolio here.

Try a free 7-day premium membership trial here.