Scott Black (Trades, Portfolio), a financial manager widely followed for his staunch Graham-Dodd value strategy, invested in 11 new companies in the third quarter as he sold out of his positions in 13.
Black purchases only U.S. companies that have good businesses when they sell at a cheap price, regardless of market conditions. His Boston-based Delphi Management uses proprietary research to find underpriced stocks and holds Berkshire Hathaway (BRK.B, Financial) as their largest position.
At the end of the third quarter, the firm’s portfolio contained 101 stocks valued at $637 million. Consumer cyclical stocks composed 26% and technology stocks 18.7% of the portfolio as the largest sector representations.
As his largest new positions of the quarter, Black purchased: Boston Properties Inc. (BXP, Financial), Whirlpool Corp. (WHR, Financial), LyondellBasell Industries NV (LYB, Financial), Cummins Inc. (CMI, Financial) and PACCAR Inc. (PCAR, Financial).
Boston Properties Inc. (BXP, Financial)
Black purchased 69,015 shares of Boston Properties, a 1.28% portfolio weight. The price per share averaged $120 for the third quarter.
Boston Properties Inc. is a Delaware corporation, organized in 1997. Boston Properties Inc. has a market cap of $19.02 billion; its shares were traded at around $123.85 with a P/E ratio of 31.25 and P/S ratio of 7.67. The dividend yield of Boston Properties Inc stocks is 2.1%. Boston Properties Inc. had an annual average earnings growth of 8.2% over the past 10 years.
Whirlpool Corp. (WHR, Financial)
Black purchased 54,410 shares of Whirlpool Corp., a 1.26% portfolio weight. The price per share averaged $169 for the quarter.
Whirlpool Corp. was incorporated in 1955 under the laws of Delaware. Whirlpool Corp. has a market cap of $12.38 billion; its shares were traded at around $158.34 with a P/E ratio of 18.56 and P/S ratio of 0.6. The dividend yield of Whirlpool Corp. stocks is 2.07%. Whirlpool Corp. had an annual average earnings growth of 1.5% over the past 10 years.
LyondellBasell Industries NV (LYB, Financial)
Black purchased 94,075 shares of LyondellBasell Industries, a 1.23% portfolio weight. The price per share averaged $99.
LyondellBasell Industries NV is a public company with limited liability incorporated in Netherlands under Dutch law on Oct. 15, 2009. LyondellBasell Industries NV has a market cap of $42.68 billion; its shares were traded at around $94.97 with a P/E ratio of 10.24 and P/S ratio of 1.25. The dividend yield of LyondellBasell Industries NV stocks is 3.1%.
Black purchased 70,112 shares of Cummins Inc., a 1.19% portfolio weight. The price per share averaged $124.
Cummins Inc. is a diesel engine manufacturer. The company designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products, including filtration, after treatment, turbochargers, fuel systems, controls systems, air handling systems and electric power generation systems. Cummins Inc. has a market cap of $17.47 billion; its shares were traded at around $98.35 with a P/E ratio of 10.57 and P/S ratio of 0.91. The dividend yield of Cummins Inc. stocks is 3.38%. Cummins Inc. had an annual average earnings growth of 13.1% over the past 10 years. GuruFocus rated Cummins Inc. the business predictability rank of 3-star.
Black purchased 141,135 shares of PACCAR Inc., a 1.16% portfolio weight. Its price per share averaged $61.
PACCAR Inc. was incorporated under the laws of Delaware on Sept. 19, 1971, is the successor to Pacific Car and Foundry Company which was incorporated in Washington in 1924. Paccar Inc. has a market cap of $18.2 billion; its shares were traded at around $51.50 with a P/E ratio of 11.15 and P/S ratio of 0.91. The dividend yield of Paccar Inc. stocks is 1.80%. Paccar Inc. had an annual average earnings growth of 1.4% over the past 10 years.
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