Harry Domash's Winning Investing


Follow Your Favorite Guru

Work Smarter - Not Harder

Here’s an idea. Instead of spending hours find and researching stocks on your own, why not simply mimic the trades of your favorite investing guru?

For instance, if you like Warren Buffett’s investing style, you’d want to know that the “Oracle of Omaha” recently established new positions in Charter Communications (CHTR) and energy products distributor Now Inc. (DNOW). He also added substantially to existing positions in Verizon Communications (VZ) and international telecom provider Liberty Global Plc (LBTYA). On the other hand, Buffett closed-out or substantially reduced his holdings of ConocoPhillips (COP), diversified education and media company Graham Holdings (GHC), and TV programming provider Starz (STRZA).

I found these tidbits on RelationalStocks.com. (www.relationalstocks.com), a free site that lists the current holdings and recent trades of more than 50 prominent investors. The site is easy to use.

From its homepage, open the Guru/Institutions dropdown menu and pick a guru that interests you. When you do, the Top 20 Portfolio Holdings display automatically. However, I've found recent trades more valuable than a guru’s total holdings. If you agree, click on “Buy/Sells” (left-menu) to see his or hers' recent trades. Besides for Buffett, here are other gurus that I found interesting.

David Einhorn
Einhorn runs Greenlight Capital, a value-oriented hedge fund. According to RelationalStocks.com, Einhorn has delivered double-digit returns in all but two of the past 10-years. Einhorn recently established new positions in specialty chemical maker Chemtura (CHMT), worker-housing provider Civeo (CVEO), commercial property finance REIT(real estate investment trust) NorthStar Realty Finance (NRF), and Time Inc. (TIME). He closed-out big positions in Rite Aid (RAD), Nokia (NOK) and gambling casino operator Penn National Gaming (PENN).

Carl Icahn
One of the world’s most visible investors, Icahn regularly makes headlines when he tries to cajole company managements to make changes that he thinks would increase the value of their stock. Despite his sometimes “rough around the edges” approach, Icahn usually makes a sizable profit on his investments. He recently established big positions, or significantly increased holdings of Apple, CVR Refining (CVR) and diversified media company Gannett (GCI). He also closed out positions in Forest Labs (FRX) and CVR Refining (CVRR).

Robert Olstein
Olstein runs Olstein Capital Management, which, according to RationalStocks.com, has returned 17% annually since its inception in 1995. Olstein recently initiated new holdings in Whole Foods Markets (WFMI), medical device maker Medtronic (MDT), home improvement and building products maker Masco (MAS) and Now Inc. (DNOW). He closed out his holdings in luxury accessories retailer Coach (COH), semiconductor chip maker Microsemi (MSCC), and Charles Schwab (SCHW).

Using the Info
It’s important to pick gurus compatible with your investing style. For instance, Warren Buffett follows a long-term ‘buy and hold’ strategy. So, there’s no point in tracking his moves if you’re a short-term trader.

RelationalStocks.com gets its portfolio information from documents that the gurus or their funds file with the Securities and Exchange Commission. The holdings information related above came mostly from documents filed in August. Because of the filing delays, it’s best to focus on relatively low turnover gurus, such as those mentioned in this article.  

published 11/17/14

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