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

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.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2858843, ~/Articles/ArticleHandler.aspx, 8/30/2015 6:49:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Selena Maranjian

Selena Maranjian has been writing for the Fool since 1996 and covers basic investing and personal finance topics. She also prepares the Fool's syndicated newspaper column and has written or co-written a number of Fool books. For more financial and non-financial fare (as well as silly things), follow her on Twitter...

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:01 PM
KMI $32.63 Up +0.63 +1.97%
Kinder Morgan CAPS Rating: *****
MON $98.38 Down -0.02 -0.02%
Monsanto CAPS Rating: ***
V $72.46 Up +0.06 +0.08%
Visa CAPS Rating: ****