10 Dividend Stocks Super Investors Own! | Perfect Time To Buy? |

Summary

In this episode, we explore the top 10 stocks held by super investors like Warren Buffett, analyzing their potential as buying opportunities. Alphabet leads with a 15% upside, followed by Microsoft and Meta Platforms. Amazon and Visa show strong buys with significant outperformance over the S&P 500. Apple and UNH are near their intrinsic value, while MasterCard and Wells Fargo offer modest margins of safety. Disney stands out with the highest upside potential at 27%. The analysis includes valuations, dividend yields, and expected EPS growth, providing investors with insights into these market leaders.

Takeaways

• 📈 Alphabet (GOOGL, GOOG) is the most held stock by super investors, with 33 holding GOOGL and 26 holding GOOG.
• 🔢 Alphabet's stock has seen a 15% increase over the last 12 months and a 440% increase over the last 10 years, outperforming the S&P 500.
• 💹 Alphabet's stock is currently trading around the midpoint of the 52-week range and has a forward P/E of 20.9, making it the lowest valued among the Magnificent 7 on this basis.
• 📊 Analysts expect Alphabet to show double-digit increases in earnings per share (EPS) for three of the next four quarters.
• 💰 The intrinsic value of Alphabet is calculated to be $188 using a DCF model, suggesting an 18% upside.
• 💹 Microsoft Corporation is the second most held stock by super investors, with a 31% increase over the last 12 months and a 10% dividend increase announced.
• 💼 Meta Platforms is the third most held stock, with a strong buy rating and a forward P/E of 25.2, slightly higher than Alphabet.
• 🛒 Amazon is ranked fourth, with a 33% increase over the last 12 months and a forward P/E of 39.6, and is considered a strong buy at a 10% margin of safety (MOS).
• 💳 Visa is similar to Microsoft in terms of holding and performance, with a 18% increase over the last 12 months and a forward P/E of 29.4, currently trading near its intrinsic value.
• 🍎 Apple has seen a 24% increase over the last 12 months and is trading at a premium according to the intrinsic value calculation, with a forward P/E of 32.4.
• 🏥 UnitedHealth Group (UNH) is in the portfolio of the presenter, with a 20% increase over the last 12 months and a forward P/E of 21, trading near its intrinsic value.
• 💳 MasterCard has a 20% increase over the last 12 months, a forward P/E of 35, and a 5% MOS, with Wall Street's price target aligning with the intrinsic value.
• 🏰 The Walt Disney Company shows the most upside potential among the top 10 stocks, with a 27% MOS and a forward P/E of just under 19.

Q & A

Which company is the most held stock by super investors according to the script?

Alphabet, with 33 super investors holding GOOGL and 26 holding GOOG.

What is the approximate one-year return for Alphabet based on the script?

Alphabet is up around 15% over the last 12 months.

What is the dividend yield for Alphabet mentioned in the script?

Alphabet recently offered a dividend yield of 0.5%.

What is the forward P/E ratio for Alphabet discussed in the video?

The forward P/E ratio for Alphabet is 20.9.

What is the intrinsic value of Alphabet calculated by the script's analysis?

The intrinsic value of Alphabet is calculated to be $188.

What is the estimated upside for Alphabet if the growth estimate is 10%?

For a 10% growth estimate, Alphabet implies an 18% upside.

What is the second most held stock by super investors as per the script?

The second most held stock by super investors is Microsoft Corporation.

How much dividend increase did Microsoft announce recently, as mentioned in the script?

Microsoft announced a 10% dividend increase.

What is the intrinsic value of Microsoft according to the script?

The intrinsic value of Microsoft is calculated to be $462.

What is the margin of safety for Microsoft at the current price?

The margin of safety for Microsoft at the current price is 5%.

Which stock has the highest dividend yield among those discussed in the script?

Wells Fargo has the highest dividend yield at 3% among the stocks discussed.

What is the forward P/E ratio for Amazon mentioned in the script?

The forward P/E ratio for Amazon is 39.6.

What is the one-year return for Visa as per the script?

Visa has seen an 18% increase over the last 12 months.

What is the margin of safety for Apple at the current price according to the script?

The margin of safety for Apple at the current price is considered to be none, as it's trading at a premium to its intrinsic value.

What is the intrinsic value of Walt Disney calculated by the script's analysis?

The intrinsic value of Walt Disney is calculated to be $66.

What is the estimated upside for Walt Disney if the margin of safety is 10%?

For a 10% margin of safety, Walt Disney is estimated to have a buy price at $111.

Outlines

00:00

📈 Stock Analysis: Super Investors' Top Holdings

This paragraph discusses the top stocks held by super investors like Warren Buffett and Bill Ackman. It focuses on Alphabet (Google), which is the most held stock among these investors. The stock has seen a 15% increase over the last 12 months and has significantly outperformed the S&P 500 over the last decade. The video analyzes Alphabet's current trading price, dividend yield, and forward P/E ratio. A DCF (Discounted Cash Flow) model is used to estimate Alphabet's intrinsic value at $188, suggesting an 18% upside. The video also discusses the company's future earnings growth expectations and provides a margin of safety analysis, suggesting that Alphabet is a strong buy with a 15% margin of safety.

05:01

💼 Microsoft and Meta Platforms: Super Investors' Holdings

The second paragraph delves into Microsoft Corporation and Meta Platforms (formerly Facebook), two other top holdings among super investors. Microsoft has seen a 31% increase and a 10% dividend increase, and is considered a strong buy by Wall Street and Seeking Alpha, with a hold from Quant. The video provides an intrinsic value estimate for Microsoft at $462, with a 5% margin of safety (MOS) up to $439. Meta Platforms, with a double buy rating, has seen a 77% increase over the last 12 months and a 37% dividend. The intrinsic value is estimated at $567, with a 5% MOS. Both companies are expected to show double-digit EPS growth in the upcoming quarters, and the video concludes that while Microsoft is not a strong buy at the current MOS, Meta Platforms might be considered with a higher MOS.

10:02

🛒 Amazon, Visa, and Apple: Super Investors' Portfolio Insights

The third paragraph covers Amazon, Visa, and Apple, which are also among the super investors' favorite stocks. Amazon has shown a 33% increase over the last 12 months and is expected to have double-digit EPS growth in three of the next four quarters. The intrinsic value is estimated at $226, with a 15% MOS. Visa, with a double buy rating, has seen an 18% increase over the last year and is trading near its 52-week high. The intrinsic value is $323, with a 10% MOS. Apple, with a singular buy rating, has outperformed the S&P 500 over the last decade but is currently trading at a premium according to the video's analysis. The intrinsic value is estimated to be slightly above the current market price, with a 10% MOS at $187. The video suggests that while Amazon and Visa might be considered for investment with their current MOS, Apple may not offer as much value at present.

Keywords

💡Super Investors

Super investors refer to highly successful and influential investors who have a significant impact on the financial markets due to their vast experience, wealth, and investment strategies. In the context of the video, super investors like Warren Buffett and Bill Ackman are mentioned as examples. Their investment choices are often closely watched and analyzed by other investors for insights into market trends and potential investment opportunities.

💡Portfolio

A portfolio in finance refers to a collection of financial assets such as stocks, bonds, cash, and cash equivalents held by an individual or institution. In the video, the focus is on analyzing the top 10 stocks held by super investors in their own portfolios, indicating the importance of understanding the composition of an investor's portfolio for making informed investment decisions.

💡Alphabet

Alphabet Inc. is the parent company of Google and several other subsidiaries. It is mentioned in the video as the most held stock by super investors, highlighting its significance in their portfolios. The video discusses Alphabet's stock performance, dividend offering, and valuation, which are critical factors for investors considering adding or holding this stock in their portfolios.

💡Margin of Safety

The margin of safety is a concept in investing that refers to the difference between the estimated intrinsic value of a stock and its current market price. A higher margin of safety implies a lower risk of loss. In the video, the margin of safety is used to evaluate the potential upside and risk associated with the stocks held by super investors, with the presenter discussing the percentage margins for various stocks.

💡Dividend

A dividend is a payment made by a corporation to its shareholders, usually from the company's earnings or profits. In the context of the video, dividends are mentioned as a form of return on investment for shareholders, with companies like Alphabet and Microsoft having recently offered dividends, which can be an attractive feature for income-seeking investors.

💡Forward P/E

The forward price-to-earnings ratio (forward P/E) is a measure of a company's current share price relative to its expected future earnings per share. It is used as a valuation metric to determine whether a stock is overvalued or undervalued. In the video, the forward P/E ratios of various companies are discussed to assess their valuation and potential for investment.

💡EPS Growth

Earnings per share (EPS) growth refers to the increase in a company's earnings per share over a specific period. It is an indicator of a company's financial health and profitability. The video mentions the anticipated EPS growth for the next four quarters for several companies, which is a key factor in evaluating their future performance and investment potential.

💡Intrinsic Value

Intrinsic value is an estimate of the true value of a company based on an analysis of its fundamentals, such as cash flows, growth prospects, and risk. It is used to determine whether a stock is a good investment by comparing it to its current market price. The video discusses the intrinsic value of various stocks, calculated using a discounted cash flow (DCF) model, to identify potential buying opportunities.

💡DCF Model

The discounted cash flow (DCF) model is a valuation method used to estimate the value of an investment based on its future cash flows. It is mentioned in the video as the method used to calculate the intrinsic value of companies like Alphabet. The DCF model involves forecasting future cash flows, selecting an appropriate discount rate, and calculating the present value of those cash flows to arrive at the intrinsic value.

💡Quant

Quant refers to quantitative analysis, which involves using mathematical and statistical methods to analyze financial data. In the video, Quant is mentioned as a source that provides investment ratings and recommendations, such as 'buy', 'hold', or 'sell', based on quantitative analysis of stocks. These ratings are used by investors to make informed decisions about their investments.

Highlights

Super investors like Warren Buffett and Bill Ackman reveal their portfolio holdings every quarter.

Top 10 stocks held by super investors are discussed, with analysis on buying opportunities.

Alphabet is the most held stock by super investors, with 33 holding GOOGL and 26 holding GOOB.

Alphabet has outperformed the S&P 500 over the last 10 years, with a 440% increase.

Alphabet's current trading price is around the midpoint of the 52-week range.

Alphabet has a forward P/E of 20.9, the lowest in the Magnificent 7 on this valuation basis.

Alphabet anticipates double-digit increases in earnings per share for three of the next four quarters.

The intrinsic value of Alphabet is calculated to be $188, implying an 18% upside.

Microsoft Corporation is the second most held stock, with a 31% increase over the last year.

Meta Platforms is the third most held stock, with a strong buy rating from Wall Street.

Amazon is the fourth most held stock, with a 33% increase over the last 12 months.

Visa is held in the presenter's portfolio, with a 71% dividend yield and a forward P/E of 29.4.

Apple has a singular buy rating from Wall Street and a forward P/E of 32.4.

UNH (UnitedHealth Group) is in the presenter's portfolio, with a strong buy rating and a forward P/E of 21.

MasterCard has a double buy rating, with a 53% dividend yield and a forward P/E of 35.

Wells Fargo has a double buy rating, with a 3% yield and a forward P/E of 10.7.

The Walt Disney Company has the most upside at 27%, with a double buy rating and a forward P/E of 19.

Transcripts

every quarter super investors like

Warren Buffett like Bill Amman reveal

what they have been purchasing in their

own portfolio over the last few months

and in today's episode we're going to

take a look at the top 10 stocks that

the super investors hold within their

own portfolio and mention whether or not

we believe they are great buying

opportunities now and what price we do

see these with certain margins of safety

now the first one that every investor or

the majority do hold is alphabet now we

can see 33 super investors hold gol in

fact another 26 hold goog now the

difference between those are purely down

to the Voting Rights so if we were to

add these two up together we can in fact

see it would be the most held stock by

super investors by quite some margin so

what do we think about this company well

it is up around 15% over the last 12

months we also note over the last 10

years it has outed the SNP it is up

440 and right now we see it trading

around the midpoint of the 52e range

where we get a double buy rating from

Seeking Alpha and Wall Street with a

hold from Quant now it did recently

offer a dividend. 5% and we do see it

now with a forward P 20.9 this is

essentially the lowest traded company in

the Magnificent 7 on a valuation from

this basis and when we take a look at

how they've performed well nice to

report over for the next four quarters

they are anticipating three of them to

be double digit increases to the

earnings per share and we note

historically they have outperformed in

terms of analyst targets over the last

four quarters giving them a 100% track

record now taking a look at the

valuation of this company our value of

$188 how we got to this we did run it

through a DCF model now we'll show our

process for this company but moving

forward we will make it very brief what

we have done is we've put it through the

free cash cash flow analysis free cash

flow year on-ear average growth of 24%

and as we can see forward looking we've

gone 10% we want to be conservative that

is lower than the previous year increase

lower than the average growth rate and

with that 10% including our discount

rate we ultimately get the present value

of future cash flows and terminal value

which we add together with their cash

subtract total debt get to the x value

divide by the shares outstanding and as

we can see 188 which does imply 18%

upside now some people may say that is

too low so for the 15% estimate we can

in fact see 265 which for confirmation

does come through this calculation

giving 67% upside and for those who are

a lot more bullish about the future

prospects at 20% 372 does indicate 34%

which is more than double the current

trading price now we will take the 10%

which we do believe to be on the more

conservative side but as always you can

grab a copy of this model by clicking on

the pin comment below running your own

numbers whether it's for alphabet or any

others first thing we want to point out

Wall Street are very bullish they do see

28% upside $24 price Target and when we

run through the margin of safety on this

channel we always like to start off with

10% and we execute on this if we believe

it meets our three golden criteria wide

Mo strong financial metrics good

forward-looking data if you believe that

well it buy up to

$169 then we keep going till it's near

the current trading price and in today's

episode we see a 15% MOS Wall Street see

28 % upside and remember this is based

on what we would say as a conservative

10% estimate moving forwards so in our

opinion the number one stock held by

super investors does look like a fairly

strong buy before we continue we also

want to let you know we have released

our latest fre weekly article where you

can get access to this and many others

by clicking on that pin comment below

and getting access straight away we have

in fact also within this released our 25

undervalued stocks for the month of

September for your own consideration and

on top of that just last week we also

released a spreadsheet looking at 22

stocks in the S&P which have the most

upside right now according to Wall

Street so do go ahead check that out by

clicking below the second most held

stock by super investors is Microsoft

Corporation now this is up 31% remember

they just announced yesterday a 10%

dividend increase with a massive share

buyback authorization program over the

last 10 years another one that has

significantly out formed the S&P it is

now trading at the the upper end of the

52e range although we do know both Wall

Street and Seeking Alpha consider this a

buy with Quan giving this a hold in

terms of the yield again fairly trivial

69% and in terms of the valuation

currently at a 33 on the forward PE we

also know very similar to alphabet

moving forwards three of the next four

double digit EPS anticipated and they

have historically out formed in terms of

what the analysts have expected for this

company now in terms of our valuation we

have an intrinsic value of

$462 and whil this is a very high

quality company when we run it through

the calculation in today's episode we

only see a 5% MOS up to around

$439 now if you want that 10% you would

have to wait around $46 at 15% around

393 and at the 20% Mark around 370

however no one knows if it will hit any

of these marks right now as we said 5%

MOS with Wall Street indicating 17%

upside they are a l more bullish with a

$55 price Target now right now this

isn't one that we do believe is a strong

buy as we said only 5% MOS and we would

like to see a lot higher in terms of

that safety before executing although

this is one that we already do hold in

our own portfolio third most held stock

is meta platforms very similar to

Microsoft a double buy where they hold

from quum and similarly Wall Street do

give this a strong buy this one is now

trading right there towards his 52 we

high up 77% over over the last 12 months

over the last 10 years again following

that theme that it has out formed the

S&P and similar to alphabet recently

announced the dividend 37% so again on

the lower end but as we can see a lot

cheaper in terms of valuation versus

Microsoft but marginally higher than

alphabet around

25.2 in terms of analyzing the forward

movements well we can in fact see all

four of the next quarters they are

anticipating double digit EPS growth and

they have historically over the last

year perform analyst and their target

now in terms of our valuation with an

intrinsic value of

$567 we have here a MOS of 5% very

similar to Microsoft although we do note

unlike Microsoft where Wall Street were

a lot more bullish we see their 550

price Target indicating very minimal

upside similar to Microsoft though our

investment strategy for meta is the same

we don't believe right now with a 5 MOS

this is one to consider unless it is

maybe a part of a group of companies

that you do dollar cost averag in over a

certain period we then move on to

Company Number Four which is Amazon

where we have again very very similar

Strong by Wall Street buy from seek

Alpha and a hold from qu this one

doesn't currently pay a dividend with a

forward P of 39.6 trading at the upper

end of the 52e range great performance

over the last 12 months up 33% very

strong performance over the last 10

years massively out forming the S&P up

over 1,000% we also note over the next

four quarters three of them double digit

growth expected and similarly they have

outperformed management Expectations by

quite some distance in terms of

valuation well

$226 very similar to alphabet we do

believe this is a fairly strong buy now

at a 10% MOS a buy 204 at 15% around1

192 and it isn't currently at the $181

mark But if it was to get there we would

see a 20% MOS but right now 15% MOS with

Wall Street pretty much fairly similar

price as us

$223 upside of 20% and like we said

similar to alphabet our conclusion is

the same this is definitely one we would

consider in the portfolio given the MOs

given the upside and just the general

strength of this company as we have

analyzed over the last few days we then

move on to Visa similar to Microsoft

this one does sit within our own

portfolio and it has hit a double buyer

rating where they hold from quum this

one also trades at the upper end of the

52e range a 71% yield and in fact as we

can see a forward PE of

29.4 over the last 12 months up 18% over

the last 10 years again up

446 significantly outperforming the S&P

and we also know three of the next four

quarters double digit expectations to

the earnings per share and out of the

last four quarters at a bare minimum

they've either been in line or they have

outperformed now our valuation of Visa

today as we can see

$323 on the intrinsic value marginally

higher than Wall Street 316 where they

see upside of 9% terms of a margin of

safety well at 10% pretty much is where

we see this company right now and for

those that want to see at 15% a buy 274

at 20% around 258 and it wasn't really

there that long ago so this is

definitely one we would consider to add

with at least a minimum 20% MOS for

those that also want to see at the 25%

level

242 but in today's episode 10% MOS with

9% upside as always do give us your

thoughts as we go along these stocks

today we then move on to Apple where we

have just a singular buyer rating from

Wall Street this one is trading at the

upper end of the 52e range a yield of

46% and a forward P of 32.4 over the

last 12 months up 24% over the last 10

years again another outperformer of the

S&P up

774 and we note only two of the next

four quarters double digit growth

expected that again the trend does

continue where they have outperformed in

terms of what analysts were expecting

then we get to the valuation the first

one today where we do believe the

current price is above the intrinsic

value therefore we see this company

trading at a bit of a premium however

Wall Street on the other hand they have

a price target of $250 and they see 14%

upside so running it through the MOs

just for those that are curious at 10% a

buy at 187 at 15% around 177 and at the

20% Mark 166 but as we said we do

believe this right now is trading at a

little bit of a premium we then move on

to UNH another one that does sit in our

portfolio alongside visa and Microsoft

we get a strong buy rating from Wall

Street a buy from Seeking Alpha with the

hold from quam this one does trade at

the upper end of the 52 we range a yield

of 1.45% and as we can see here a

forward PE of around 21 over the last 12

months up 20% over the last 10 years

again up

572 significantly outperforming the S&P

and they've also outperformed in in

terms of expectations over the last year

and we do also note two of the next four

anticipated double digit growth now in

terms of unh and the valuation well we

pretty much see it right now trading at

its intrinsic value by a few dollars

difference and we also see here that

Wall Street don't see much more upside

with $600 price Target and 3% upside now

in terms of mos we at 10% a Buy around

528 at 15% a b 498 again something we

have seen not too long ago at 20% around

4 69 but though right now as we

mentioned this company similar to Apple

is trading near enough around its

intrinsic value so if you are buying you

may be paying a little bit of a premium

depending at what price you are getting

it we then move on to MasterCard where

we get a double buy and a hold from

Quant this one is trading pretty much

towards its 52e highs a yield of 53% a

forward PE of around 35 and a nice 20%

gain over the last 12 months with over

the last 10 years up

564 again this one like all of them so

far today has out formed the S&P and

again similar theme double digit EPS

growth expected over each quarter with

outperformance over the previous four

then we look at Mard and we do see in

terms of the valuation there is a little

bit of a MOS level not massive at the 5

level up to $54 if you're waiting for a

10% that would be around

478 again for those that are interested

15% at 451 20% at 424 although right now

5% MOS with mid single digit increase of

7% in terms of wall Street's

expectations of 530 which is in line

with our own intrinsic value the ninth

most owned stock by super investors we

have Wells Fargo and company with a

double buy rating a hold from qu this

one is trading in the mid to uper end of

the 52e range probably the highest

yielder we've seen today at 3% and a

forward P of 10.7 now over the last 12

months up 26% pretty much around the

same as the S SMP over the last 10 years

they up only 6% now in terms of their

performance they have outperformed over

the analyst expectations over the last

four quarters we do know three of the

next four are expected to be negative

growth to the earnings per share now in

terms of the valuation the first one

where we actually see some nice upside

of 16% price target of $64 where our own

intrinsic value of 66 is only marginally

higher now a temp MOS a buy at 5953 at

15% around 56 which is pretty much where

it's at today at 20% if you wanted to

wait it would be around $53 so

conclusion for this company 15% MOS with

16% upside this then brings us on to the

final company the Walt Disney with

double buy and a hold from quam this one

is trading at the lower end of the 52e

range a yield of around 1% with a

forward Peak just under 19 over the last

12 months up 9% over the last 10 years

very marginal growth 4.6% very similar

to what we saw at Wells Fargo and we do

like to report over the last four

quarters they have out formed analyst

targets moving forwards the next quarter

strong double digit growth although we

can see fluctuations over the next three

now in terms of the valuation for Walt

Disney we see probably the most upside

at stock number 10 27% and when we do

run it through the MOs we at 10% a buy

111 15% a by at 105 20% a by at 98 and

in fact in today's episode for the Walt

Disney Company we see 25% margin of

safety with Wall Street giving 27%

upside as always if you enjoy today's

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you all on the next one