Some interesting things I’ve seen in the recent batch of 13Fs:
- John Paulson initiated a position in Comcast (CMCSA); purchased 44 million shares
- Berkowitz initiated a position in Comcast; purchased 23.5 million shares
- Michael Price purchased some Citigroup (C) for his portfolio (I already pointed out to you that Berkowitz purchased a lot of Citigroup); Paulson nearly doubled his stake in Citigroup; Tepper of Appaloosa increased his Citigroup holding
Smart people are continuing to recognize that Comcast is a good investment. Comcast makes up about 18% of my personal portfolio — I think it is very undervalued. If Comcast could just improve its customer service and work on making its customers happier (thereby retaining more of them and spending less to steal them from others), Comcast will turn out to be an even greater investment. But for now I am content with them churning out cash, repurchasing shares, and paying me a small dividend.
Smart people also seem to be feel Citigroup is now a good investment. I remember reading interviews with Berkowitz in the 90s when he was ebullient about Wells Fargo being a screaming deal so I think Berkowitz knows banks and knows a good bargain when he sees one. Though many value investors are turned off by the very mention of the name, I believe this is exactly when you should be trying your hardest to understand the company. I don’t think Citigroup is the same bank it was even last year. Like Berkowitz said, the government is not going to let them fail and Citigroup is making new and better loans. I also suspect that Citigroup is going to be selling pieces of itself in the future and shareholders will benefit from this. There has to be several good reasons why the only bank Berkowitz owns is Citigroup. Citigroup for crying out loud.