Norwegian hedge fund manager Ole Andreas Halvorsen is one of the world’s most highly regarded investors. He’s also worth following because he tends to run a relatively concentrated portfolio — slightly more than 50% of Viking Global Investors holdings are in the top 10 stocks — so his stock picks are highly relevant. With this in mind, let’s take a look at three stocks Viking added in the last quarter.
Invest like a Viking
Halvorsen is clearly someone who backs the conviction of his approach because the three stocks bought in the period in question spent much of it underperforming the S&P 500 index. In other words, it appears that Viking responded to the declines by buying the stocks because their long-term fundamentals remain sound despite market jitters.
Here are the three stocks in relation to the Viking portfolio.
|Company||Percentage of Viking Holdings||Current Value||Increase in Shares Held|
|Amazon.com (NASDAQ:AMZN)||8.18%||$1,601 million||12%|
|Lowe’s Companies (NYSE:LOW)||2.79%||$558 million||250%|
|Fortive (NYSE:FTV)||1.73%||$344 million||New position|
Amazon remains an enigma
Superficially speaking, no one is going to get excited about buying a stock that trades at 44 times its current free cash flow (FCF) and 65 times analyst consensus earnings for 2020. That said, the case for buying stock in Amazon has always been about the idea that it was a high-growth business on its way to penetrating and dominating new markets and that margin, earnings, and cash flow would inevitably follow.
It’s a compelling case. After all, the company has grown revenue at an annual rate of 28% a year over the last decade, and analysts have 19% penciled in for the next few years. Moreover, the… Continue reading at The Motley Fool