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Ken Fisher Betting Big on ING Groep

- By Kyle Ferguson

Ken Fisher (Trades, Portfolio) is the son of legendary value investor Philip A. Fisher, who invented the "scuttlebutt" method of investing using a "15-point" checklist designed to create "bonanza" or huge returns.

Among the legend's techniques are looking at a company's management, production, sales, research, profit margin as well as ensuring that companies have outstanding labor personnel.

Ken Fisher began Fisher Investments with $250 in 1979. Since then the fund has grown to a total valuation of an estimated $59.994 billion, and it owns 718 stocks.

During the first quarter, Ken Fisher nearly tripled his stake in ING Groep NV (ING).

The guru added 2,424,953 shares to his portfolio for an average price of $14.65 per share.

He now owns 2,869,131 shares.


Headquartered in Amsterdam, ING Groep is a financial institution offering banking services. The company's segments include Retail Netherlands, which offers current and savings accounts, business lending, mortgages and other consumer lending in the Netherlands; Retail Belgium, which offers products that are similar to those in the Netherlands; Retail Germany, which offers current and savings accounts, mortgages and other customer lending; Retail Other, which offers products that are similar to those in the Netherlands, and Wholesale Banking, which offers wholesale banking activities (a full range of products from cash management to corporate finance), real estate and lease.

The company's Retail Banking business lines provide products and services to individuals, small and medium-sized enterprises (SMEs) and midcorporates. ING's banking activities in Australia are undertaken by ING Bank (Australia) Ltd. (trading as ING Direct) and ING Bank NV Sydney Branch.

ING Groep has a market cap of $58.45, a price-earnings (P/E) ratio of 11.76, an enterprise value of $174.07 and a price-book (P/B) ratio of 1.25.

According to GuruFocus, the company has a 5 of 10 financial strength rating with a cash-debt ratio of 0.15 and an equity-asset ratio of 0.06. The company's Beneish M-Score of -2.68 indicates it is a manipulator of its financial statements.

The company has a 4 of 10 profitability and growth rating. It has an operating margin of 37.66%, a net margin of 29.34%, a return on assets (ROA) of 0.56% and a three-year revenue growth rate of 1.20%.

Since Fisher nearly increased his stake by six times in ING Groep, the company's market price gained an estimated 11%.

Below is a Peter Lynch chart that shows ING Groep is trading below its intrinsic value

Disclosure: Author does not own any shares of this company.

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This article first appeared on GuruFocus.