See Which Stocks This $23 Billion Winner Bought

Might you want to buy any of them yourself?

Jun 2, 2014 at 7:15PM

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. Lone Pine is one of the biggest hedge fund companies, and it has reportedly outperformed the S&P 500 handily since inception. Its reportable stock portfolio totaled $23 billion in value as of March 31, 2014. According to its recently released 13F statement, Lone Pine established or added to positions in Jazz Pharmaceuticals plc (NASDAQ:JAZZ), SouFun Holdings Ltd (NYSE:SFUN), and Valeant Pharmaceuticals International (NYSE:VRX).

Jazz Pharmaceuticals has doubled in value over the past year, and with a forward P/E ratio near 14, along with double-digit growth rates, it seems like it has a lot of stock appreciation left in it. The company has a lot to offer, such as successful products on the market (narcolepsy drug Xyrem, for example), a promising pipeline, some promising acquisitions, actual profits, and solid free cash flow. It has a particular focus on orphan drugs, which tend to face little or no competition and can thus command premium prices and generate relatively reliable revenue. Based in Ireland, Jazz Pharmaceuticals even enjoys a lower tax rate. Some speculate that the company might get bought out by a bigger entity, too, as happens relatively frequently in the industry.

SouFun Holdings may not be familiar to you, but it's a China-based e-commerce specialist with a market value near $5 billion, focused on real estate, home furnishings, and home improvement, among other things. The stock has been quite volatile, more than doubling over the past year while trading at a fraction of its 52-week high. Bears don't like that China's real estate market has been accumulating excess inventory, and they weren't thrilled with SouFun's latest earnings report, which featured management tempering expectations. On the other hand, the earnings report also featured revenue growing by 33% year over year and net income surging 46%. The stock's valuation seems compelling, with a forward P/E ratio near six and a 3.3% dividend yield to boot.

Canada-based Valeant Pharmaceuticals International is a giant, with a market cap near $44 billion. It's been in the news more than usual lately after making several bids for Allergan (NYSE:AGN), maker of Botox, breast implants, eye drops, and more. Valeant has several Botox alternatives on the market and is interested in owning Botox itself. Allergan's ophthalmology products can complement Valeant's own eye-care operations, which became substantial with its $8.7 billion purchase of Bausch & Lomb last year. Some think both companies will benefit from the acquisition if it's ultimately approved, but Allergan isn't enthused, and it commissioned reports that suggest Valeant can't grow well on its own without resorting to acquisitions. Bulls see plenty of growth potential, though, and they like Valeant's business model of acquiring products rather than pouring big money into developing treatments on its own that may or may not pan out. Somewhat lost because of the Allergan story is news that Nestle has bought the U.S. and Canadian rights to Valeant skincare products for $1.4 billion.

Warren Buffett just bought nearly 9 million shares of this company
Imagine a company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click here to discover more about this industry-leading stock and join Buffett in his quest for a veritable landslide of profits!

Longtime Fool specialist Selena Maranjian, whom you can follow on Twitter, owns shares of Jazz Pharmaceuticals. The Motley Fool recommends Valeant Pharmaceuticals. The Motley Fool owns shares of Valeant Pharmaceuticals. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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