Among the five holdings of
The vice chairman of Berkshire Hathaway Inc. (
BRK.A, Financial)(BRK.B, Financial) inspired CEO
Warren Buffett (Trades, Portfolio) to invest in high-quality stocks for the long term. Prior to working at Berkshire, Munger studied mathematics at University of Michigan and law at Harvard. The chairman of Los Angeles-based Daily Journal introduced the concept of “Elementary, Worldly Wisdom” as it relates to business and finance.
As of the Sept. 30 filing date, Daily Journal’s $225 million equity portfolio contains five holdings: Alibaba, Bank of America Corp. (
Daily Journal owns 302,060 shares of Alibaba (
Shares of Alibaba traded around $119.23, approximately 9.68% above its 52-week low and down over 51% for the year. The stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.31.
GuruFocus ranks the Chinese e-commerce giant’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins that outperform more than 77% of global competitors.
Other gurus with holdings in Alibaba include
Bank of America
Daily Journal owns 2.3 million shares of Bank of America (
Shares of Bank of America traded around $44.73, up approximately 49.82% for the year. The stock is significantly overvalued based on Thursday’s price-to-GF Value ratio of 1.31.
GuruFocus ranks the Charlotte, North Carolina-based bank’s financial strength 3 out of 10 on the back of cash-to-debt and debt-to-equity ratios that are underperforming more than 70% of global competitors.
Buffett’s Berkshire also has a holding in Bank of America: The insurance conglomerate owns 1,010,100,606 shares, giving the position 14.61% equity portfolio weight.
Daily Journal owns 1,591,800 shares of Wells Fargo (
Shares of Wells Fargo traded around $48.34, up approximately 62.52% for the year. The stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.03.
Daily Journal owns 140,000 shares of U.S. Bancorp (
Shares of U.S. Bancorp traded around $56.26, up approximately 24.28% for the year. The stock is fairly valued based on Thursday’s price-to-GF Value ratio of 0.99.
GuruFocus ranks the Minneapolis-based bank’s profitability 6 out of 10 on the back of a 4.5-star business predictability rank despite three-year revenue growth rates outperforming just over 57% of global competitors and three-year earnings growth rates underperforming more than 67% of global banks.
Daily Journal owns 9,745 shares of POSCO (
Shares of POSCO traded around $58.07, up approximately 0.2% for the year. The stock is fairly valued based on Thursday’s price-to-GF Value ratio of approximately 1.
GuruFocus ranks the South Korean steel company’s profitability 6 out of 10 on the back of profit margins outperforming more than 60% of global competitors despite three-year earnings decline rates underperforming over 66% of global steel companies.