Arnold Van Den Berg (Trades, Portfolio), founder of Century Management, told investors at the 11th Annual Value Investor Conference in Omaha, Nebraska in May that he was greatly concerned about the economic consequences of ending quantitative easing. He envisioned that it could be “a repeat of the 1970s” due to the risk of inflation and multiple declines. Even if this happens, he still has faith in U.S. investing.
“While we are likely to be faced with challenging financial times in the years ahead, I am still a big believer in America over the long run,” he said in his presentation.
Van Den Berg also made headlines in recent quarters for his significant investments in gold and metals miners, which have been quite successful.
In the second quarter, the investor bought nine new stocks – of which only one was a miner – for a total of 78 holdings in his portfolio valued at $1.14 billion. The largest new buys were: Ensco Plc (ESV, Financial), Atwood Oceanics Inc. (ATW, Financial), Loews Corp. (L, Financial), Cogent Communications Holdings Inc. (CCOI, Financial) and Enstar Group Inc. (ESGR, Financial).
Enstar Group Inc. (ESGR, Financial)
Van Den Berg bought 275,530 shares of Ensco Plc in the second quarter, making it 1.3% of his portfolio. The company’s stock price averaged $52 during the quarter.
Ensco Plc was formed as a Texas corporation in 1975 and was reincorporated in Delaware in 1987. Ensco Plc has a market cap of $12.57 billion; its shares were traded at around $53.78 with a P/E ratio of 9.0 and P/S ratio of 2.50. The dividend yield of Ensco Plc stocks is 5.10%. Ensco Plc had an annual average earnings growth of 12.0% over the past 10 years.
Atwood Oceanics Inc. (ATW, Financial)
Van Den Berg purchased 290,880 shares of Atwood Oceanics Inc. in the second quarter, making it 1.3% of his portfolio. The share price averaged $49 for the quarter.
Atwood Oceanics Inc. was organized in 1968 as a Texas corporation and commenced operations in 1970. Atwood Oceanics Inc. has a market cap of $3.28 billion; its shares were traded at around $50.95 with a P/E ratio of 9.60 and P/S ratio of 3.0. Atwood Oceanics Inc. had an annual average earnings growth of 27.10% over the past 10 years. GuruFocus rated Atwood Oceanics Inc. the business predictability rank of 3-star.
Van Den Berg bought 317,585 shares of Loews Corp., representing 1.2% of his portfolio. The share price averaged $44 for quarter two.
Loews Corporation was incorporated in 1967 and is an insurance holding company. Loews Corp has a market cap of $17.03 billion; its shares were traded at around $44.05 with a P/E ratio of 41.60 and P/S ratio of 1.10. The dividend yield of Loews Corp stocks is 0.60%. Loews Corp had an annual average earnings growth of 5.30% over the past 10 years.
Cogent Communications Holdings Inc. (CCOI, Financial)
Van Den Berg bought 300,595 shares of Cogent Communications Holdings Inc., representing 0.91% of his portfolio. The share price averaged $36 in the second quarter.
Cogent Communications Group, Inc. was incorporated in Delaware in 1999. Cogent Communications Holdings Inc. has a market cap of $1.57 billion; its shares were traded at around $33.67 with a P/E ratio of 27.90 and P/S ratio of 4.50. The dividend yield of Cogent Communications Holdings Inc. stocks is 1.80%. Cogent Communications Holdings Inc. had an annual average earnings growth of 16.10% over the past five years.
Enstar Group Ltd. (ESGR, Financial)
Van Den Berg bought 62,119 shares of Enstar Group Ltd., representing 0.82% of his portfolio. The company’s share price averaged $137 for the quarter.
Enstar Group Ltd. was incorporated under the laws of Bermuda in August 2001. Enstar Group Ltd. has a market cap of $2.76 billion; its shares were traded at around $148.91 with a P/E ratio of 11.10 and P/S ratio of 5.40. Enstar Group Ltd. had an annual average earnings growth of 49.30% over the past 10 years.
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