3 Stocks Recently Sold by a $23 Billion Long-Term Winner

Should you sell (or perhaps buy) any of them?

Feb 28, 2014 at 5:37PM

The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.

For example, consider Lone Pine Capital, founded by Steve Mandel in 1997. Prior to that, Mandel was a managing director at Tiger Management. Lone Pine is one of the biggest hedge fund companies and has reportedly outperformed the S&P 500 handily since inception. Like many value investors, Mandel is known to dig deep into companies, aiming to buy undervalued stocks. Lone Pine's reportable stock portfolio totaled $23.2 billion in value as of Dec. 31, 2013.

Lone Pine Capital's latest 13F report shows that it sold out of Visa (NYSE:V) and Kinder Morgan (NYSE:KMI), while trimming its Monsanto Company (NYSE:MON) position by 37%.

Visa is poised to profit as more and more people and businesses shift from cash transactions to electronic ones, and its presence in emerging markets is also auspicious. Visa was added to the Dow Jones Industrial Index this year, which is significant, given that the index includes only 30 blue chips. It sports many strong numbers, such as solid (and growing) profit margins, and it has been buying back many shares, too, while delivering estimate-topping earnings and revenue. Its 0.7% dividend yield might seem puny, but the company has increased its payout close to fourfold over the past five years. Bears worry that Visa's stock is a bit overpriced right now, and they see growth slowing, perhaps in part because of competition from newer forms of electronic payments.

Pipeline giant Kinder Morgan is a premier midstream MLP (master limited partnership) enjoying reliable income as it collects gobs of cash from its partners. Its natural-gas network is the largest in North America, and it has a five-year backlog of currently identified growth projects totaling $15 billion. Analysts at TheStreet recently rated the stock a buy, citing its revenue growth, growing profit margins, and healthy return on equity, among other things. The long-term picture remains promising for Kinder Morgan. Its dividend recently yielded 5.1%.

Agriculture and seed giant Monsanto, yielding 1.5%, is often in the midst of controversy over herbicides, genetically modified organisms (GMOs), and more. There's more to the company than that, though, as it also sports non-GMO offerings, develops new agricultural technologies (such as agricultural enzymes), and even works to save honeybees. It has generally been triumphant in courtrooms, but that may not continue. Still, bulls like the strong demand for its herbicides and its rich pipeline of products in development, among other things.

Interested in even faster-growing stocks?
Motley Fool co-founder David Gardner has proved skeptics wrong time and time again with stock returns such as 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his six carefully chosen picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Selena Maranjian, whom you can follow on Twitterhas no position in any stocks mentioned. The Motley Fool recommends Kinder Morgan and Visa. The Motley Fool owns shares of Kinder Morgan and Visa. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers