Famed value investor and author of Margin of Safety Seth Klarman's Baupost Group recently revealed its public equity portfolio in its quarterly filing with the SEC. Klarman founded Baupost in 1983 and now has assets under management of nearly $30 billion. Outlined below are five takeaways from Baupost's portfolio, which include some interesting additions (check out Klarman's cheap stock picks).
Few days ago Warren Buffett stated that he would buy more shares ofInternational Business Machines(NYSE: IBM)from “time to time”. Investing in large cap tech stocks is always a good idea, and IBM offers a great return on investment. With innovation being the key to the company’s strategy, IBM has outgrown its peers whenever there's been a technological shift.
Rackspace Hosting(NYSE: RAX) is a cloud computing company that manages web-based IT systems for all kinds of businesses worldwide. With the help of cloud computing, companies can use IT resources via the internet. This is a win-win situation for both the provider and the customer. The specialized service provider gets customers and revenue, while customers do not need to implement difficult solutions that take time, effort, and are costly more »
Market-watchers were intrigued but not overly surprised by the recent announcement that Houston-based application software firm BMC Software (NASDAQ: BMC) had agreed to a buyout offer worth nearly $7 billion. In recent years, BMC had struggled to compete with smaller, more nimble cloud-based app designers as well as larger software firms that had successfully predicted and leveraged the now-obvious transition to virtual computing. The company had been seeking a buyer more »
The “Oracle of Omaha” is being examined again. But too much of the coverage implies that there's some magic formula out there that can make you a billionaire like Buffett. It's the “magic bullet” theory of investing, and I speak the truth when I say that it won't work for you.
Look, Warren Buffett appears to be a nice man. He seems a bit fond of having more »
The CRM sector has been experiencing rapid growth as technology adoption continues to grow. According to an estimate by Gartner, the SaaS-based CRM sector could reach $7.9 billion in 2016, an annual growth of 15% from $3.9 billion in 2011. Since competition is also intensifying, the key is to identify what companies will be able to profit the most.
This Lake Oswego, OR based fund seems to have a good appetite for technology stocks, with Oracle (NASDAQ: ORCL) and Microsoft (NASDAQ: MSFT) being its two major holdings. The management team at Jensen Investment has also made a massive addition to their stake in Abbott Laboratories (NYSE: ABT). Let us take a closer look into the fund's top 5 positions. You can also compare this portfolio with that of more »
Cloud investing carries big risk. The median of 40 ISE index members sells for 25 times projected earnings for its current fiscal year, nearly double the S&P 500 index median.
Even so, it is not going away, and investors should research and make it a part of their investment strategy. Industry experts are projecting a huge increase this year in enterprise spending as companies look to migrate their networks more »
You could make the case that while Workday(NYSE: WDAY)likes to operate under the radar, investors are starting to pay attention. Since its initial public offering back in October, the price has gone up 28%. That's a steady increase. But it leads one to wonder if Workday, in its current $60 price range, is a bit overvalued.
The company is getting more institutional investor interest. InsiderMonkey reports that more »
For those investors who are seeking both income and growth, the tech sector could offer a way to potentially achieve both. While some of the once-powerful names in the industry have cooled off a bit, shares could continue to move upward, while providing a steady dividend income stream along the way.
The key to success is networking
One tech giant that is currently offering its shareholders a healthy dividend yield more »
Industry experts are projecting a huge increase this year in enterprise spending as companies look to migrate their networks further into the cloud.
IDC, a tech research firm, estimates that revenue from public cloud services exceeded $30.5 billion in 2012 and will grow to a staggering $72.9 billion in 2015. This growth is approximately four times faster than the IT market as a whole. Another source, Gartners, recently more »
Seriously, when will people stop buying the Amazon (NASDAQ: AMZN) hype?
In it's earnings call for last quarter, online retailer Amazon.com reported a lower profit margin, a lower net income and indicated that it anticipates next quarter's net to run somewhere between $10 million and a loss of $340 million. Of course shares jumped 2.2%.
Really, the hypnosis-like hold Amazon has on investors is a mystery more »
It was one of the top-performing sectors in 2012, with many companies from the group hitting new 52-week highs. And with this bullish trend still in play, these stocks are in position for more of the same for the remainder of 2013.
I'm talking about big technology.
With investors searching for stability in 2012, big technology was especially hot last year. That pushed mega-cap technology companies such as International more »
Out of even the most tragic of circumstances, some opportunities may arise. One thing that the recent terrorist activity at the close of the April 15 Boston Marathon highlighted is that as helpful as the public was in going through countless photos, inaccuracies launched incorrect identifications. However, technology does provide an answer.
One privately-held company called CrowdOptic provides market-based solutions to advertisers in large venues, such as stadiums. However, that more »
SQ Advisors has roughly $1.2 billion in its equity portfolio, which is heavily weighted with stocks from the financial and services sectors. Overseen by manager Lou Simpson, the fund has seen growth of a little more than one percent so far this quarter. It’s extremely important to pay attention to hedge fund sentiment because studies have shown that the smart money’s best small-cap picks can beat the more »
Big technology companies such as Cisco Systems (NASDAQ: CSCO), Microsoft (NASDAQ: MSFT) and Oracle (NASDAQ: ORCL) are in decline. Many investors believe that these stocks have become relatively cheap because there isn't any future growth priced in. Meanwhile, the companies offer considerably high dividends if compared to past payouts. If these companies have any success whatsoever, investors should expect even greater gains for a decade or so.
It’s rare that I recommend watching a movie in order to try to understand investing, but in this case I strongly suggest finding the time to look at the late great Akira Kurosawa's masterpiece ‘Rashomon.’ The film is about the relativity of truth and depicts how three different people recall (in contrasting fashion) what is broadly the same event. Tech investors will have an inkling of what I more »
The late Steve Jobs was said to possess a “reality distortion field,” a charisma that got people to jump through walls for him, and drew capital to him, even when results weren't going his way.
But who has the biggest reality distortion field today?
It's clear that many tech companies don't have one. Microsoft doesn't have one. Intel doesn't have one. Hewlett-Packard and Dell don more »
These days I am a "Buy and Hold" investor by accident only. What I have discovered is that regardless of how invincible you may imagine yourself to be, accidents do happen.
After many years of watching my professionally managed accounts see paper gains evaporate and then come back again just long enough to make it clear that cycles do exist, I went on a different path.
Red Hat(NYSE: RHT) is an American multinational software company and the world’s leading provider of open source solutions. Founded in 1993 and headquartered in Raleigh, North Carolina, it is engaged in providing such solutions to different enterprises. The offerings include its core enterprise operating system platform, Red Hat Enterprise Linux, Red Hat JBoss Middleware, virtualization, cloud, and other storage offerings.
The company is facing tough competition from its more »
