Tom Gayner's Top 5 2nd Quarter Stock Buys
- By Holly LaFon
Tom Gayner (Trades, Portfolio) serves as co-CEO of Markel Corp. (MKL), an insurance, reinsurance and investment holding company. On Thursday, he released his second-quarter portfolio, which lists 13 new stocks.
Warning! GuruFocus has detected 6 Warning Sign with MKL. Click here to check it out.
The intrinsic value of MKL
Markel's investment segment focuses on long-term returns rather than quarterly variations, but it produced a taxable total investment return of 4.6% for the first half of 2016.
In its 2015 annual report, Market described how it selects equities: "To review, we follow a four part process of seeking profitable businesses with good returns on capital at modest leverage, with honest and talented managers, with reinvestment opportunities and capital discipline, at fair prices."
Markel-Gayner Asset Management Corp. is the internal money management firm at Markel. It has a stock portfolio valued at $3.8 billion, listing 130 stocks. Gayner has allocated 25% of it in to financial services, 22.1% to consumer cyclical and 14.8% to consumer defensive, as its top sectors.
During the second quarter, Gayner's the top five biggest stock buys were: Liberty Media Corp. (LSXMK), Liberty Media Corp. (LSXMA), Comcast Corp. (CMCSA), Brookfield Business Partners (BBU) and McKesson Corp. (MCK).
Liberty Media Corp. (LSXMK)
Gayner purchased 522,000 shares of Liberty Media Corp., a 0.42% portfolio weight. The average second-quarter price for the stock was $31.
Liberty Media Corp has a market cap of $2.79 billion; its shares were traded around $33.38 with a P/E ratio of 23.36 and P/S ratio of 2.10.
Liberty Media Corp. (LSXMA)
Gayner purchased 426,000 shares of Liberty Media Corp., a 0.35% portfolio weight. The average second-quarter price for the stock was $32.
Liberty Media Corp has a market cap of $2.85 billion; its shares were traded around $34.07 with a P/E ratio of 23.42 and P/S ratio of 2.15.
Comcast Corp. (CMCSA)
Gayner purchased 35,000 shares of Comcast Corp., a 0.06% portfolio weight. The average second-quarter price for the stock was $62.
Comcast Corp. has a market cap of $162.46 billion; its shares were traded around $67.36 with a P/E ratio of 20.46 and P/S ratio of 2.21. The trailing 12-month dividend yield of Comcast Corp. stocks is 1.55%. The forward dividend yield of Comcast Corp. stocks is 1.64%. Comcast Corp. had an annual average earnings growth of 15.9% over the past 10 years. GuruFocus rated Comcast Corp. the business predictability rank of 4-star.
Brookfield Business Partners (BBU)
Gayner purchased 101,594 shares of Brookfield Business Partners, a 0.05% portfolio weight. The average second-quarter price average was $23.
Brookfield Business Partners has a P/S ratio of 0.17. The forward dividend yield of Brookfield Business Partners LP stocks is 1.24%.
McKesson Corp. (MCK)
Gayner purchased 9,100 shares of McKesson Corp., a 0.04% portfolio weight. The average second-quarter price average was $175.
McKesson Corp. has a market cap of $44.35 billion; its shares were traded around $196.52 with a P/E ratio of 20.40 and P/S ratio of 0.24. The trailing 12-month dividend yield of McKesson Corp. stocks is 0.57%. The forward dividend yield of McKesson Corp. stocks is 0.57%. McKesson Corp. had an annual average earnings growth of 14.9% over the past 10 years. GuruFocus rated McKesson Corp. the business predictability rank of 4.5-star.
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This article first appeared on GuruFocus.
Warning! GuruFocus has detected 6 Warning Sign with MKL. Click here to check it out.
The intrinsic value of MKL
