Wally Weitz likes to invest with billionaires he's known a long time. He's been a shareholder for more than 35 years in Berkshire Hathaway Inc. (BRK/A), run by his Omaha, Nebraska, neighbor Warren Buffett, and has held stakes in companies run by media mogul John Malone for more than 20.
The investments helped Weitz's Partners III Opportunity Fund (WPOPX) produce the best risk-adjusted performance among U.S. value funds in the past five years, according to the Bloomberg Riskless Return Ranking. The $901 million fund had below-average volatility and the second-highest absolute return among 283 vehicles with at least $500 million in assets.
Weitz has always looked for companies whose stocks are cheap compared with the cash flow he expects them to generate, a common metric for value investors. Over time, he has come to believe that finding management teams that know how to redeploy any excess cash intelligently is critical to investment success.
Best Warren Buffett Companies To Watch In Right Now: Terra Nitrogen Company L.P.(TNH)
Terra Nitrogen Company, L.P. engages in the production and sale of nitrogen fertilizer products for agricultural and industrial applications. The company primarily offers anhydrous ammonia and urea ammonium nitrate solutions. Its customers for fertilizer products include dealers, national farm retail chains, and distributors. Terra Nitrogen GP Inc. serves as the general partner of the company. Terra Nitrogen Company, L.P. was founded in 1991 and is based in Deerfield, Illinois. Terra Nitrogen Company, LP. operates as a subsidiary of Terra Industries Inc.
Advisors' Opinion:- [By Robert Rapier] While the MLP space is dominated by the oil and gas sector, in last week’s article we began to explore some of the more exotic master limited partnership offerings. This week we continue our exploration of nontraditional MLPs by looking at the partnerships supplying fertilizer.
Rentech (Nasdaq: RTK) has been around for more than a decade, and it has shifted strategies several times. Full disclosure: Rentech’s Chief Technology Officer Harold Wright is a former manager of mine when we were both at ConocoPhillips, and I have visited Rentech’s facility in Commerce City, Colorado.
For most of Rentech’s existence, the company has sought to commercialize alternative fuels. At one time it had ambitions to build a large coal-to-liquids (CTL) plant, but federal legislation ultimately nudged it instead into the biomass-to-liquids (BTL) space. The company did build a BTL demonstration plant, but ultimately shut it down and has now refocused its efforts on becoming “one of the largest wood processing companies in the world.”
During its interesting journey as a company, Rentech acquired two ammonia nitrogen fertilizer facilities, which turned out to be a profit center that funded the alternative energy research. In November 2011, Rentech spun off this fertilizer business into an MLP called Rentech Nitrogen Partners LP (NYSE: RNF).
In the months leading to the spin-off, RTK’s market capitalization was about $200 million. Rentech maintained 60 percent ownership of RNF, and three months after the spin-off RTK’s market cap had risen to $400 million, while investors had bid RNF up to $1 billion. Interestingly, RTK’s share of RNF was worth more than RTK’s entire market cap, a situation that persists. The market currently values Rentech at $482 million, while the valuation of Rentech Nitrogen Partners makes RTK’s 60 percent stake in RNF worth slightly more than $600 million — another illu - [By Alex Planes]
The exception, Terra Nitrogen (NYSE: TNH ) , is a master limited partnership that operates under somewhat different accounting rules. No other major fertilizer company trades as cheaply as CF, and the company is presently paying out just 18% of its free cash flow in dividends. There's a lot of room to boost that payout, which is currently good enough for a tiny 0.9% yield after the pop.
Best Warren Buffett Companies To Watch In Right Now: Enterprise Financial Services Corporation(EFSC)
Enterprise Financial Services Corp operates as the holding company for Enterprise Bank & Trust that provides banking and wealth management services to individuals and business customers located in the St. Louis, Kansas City and Phoenix metropolitan markets. It accepts various deposit products that include interest-bearing transaction accounts and demand deposits, money market accounts, savings accounts, certificates of deposit, and non interest-bearing demand deposits. The company?s loan portfolio comprises commercial, commercial real estate, financial and industrial development, real estate construction and development, residential real estate, and consumer loans. It also provides financial planning, advisory, investment management, and trust services to businesses, individuals, institutions, and non-profit organizations; business financial services focused in the areas of retirement plans, management compensation, and management succession planning; and personal advisor y services, which include estate planning, financial planning, business succession planning, and retirement planning. As of December 31, 2010, the company had four banking locations and a support center in the St. Louis metropolitan area, seven banking locations in the Kansas City metropolitan area, and two banking locations in the Phoenix metropolitan area. The company was founded in 1988 and is headquartered in St. Louis, Missouri.
Hot Performing Stocks To Watch For 2014: ProShares Ultra S&P500 (SSO)
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Advisors' Opinion:- [By Dan Caplinger]
The unwillingness to take big bets has also driven money out of leveraged and inverse funds. The big losses in many inverse stock ETFs makes outflows logical, but leveraged bullish ETFs have posted amazing returns. ProShares Ultra S&P (NYSEMKT: SSO ) , for instance, has posted more than double the rise of the unleveraged S&P 500 so far this year. Nevertheless, short-term traders are apparently satisfied to cash in their profits and take less aggressive positions going forward.
- [By Dave and Donald Moenning]
To give an incentive to continue reading, let's first review the performance of this particular model. Due to changes in data availability, the overall model was reworked at the end of 2011. However, the live performance hasn't been too bad. In 2012, using the leveraged ProShares Ultra S&P 500 (SSO) when the model is positive, the ProShares Short S&P 500 (SH) on negative signals, and a cash equivalent on neutral signals, the test of the model would have produced a return of 46.2 percent (compared to the S&P 500 cash index return of 16.3 percent).
Best Warren Buffett Companies To Watch In Right Now: B2Gold Corp (BTG)
B2Gold Corp. (B2Gold) is a gold producer with mining operations in Nicaragua and a portfolio of development and exploration assets in Colombia, Nicaragua and Uruguay. It operates the Libertad Mine and the Limon Mine in Nicaragua. It owns or has an interest in the Gramalote and Mocoa properties in Colombia, and the Bellavista property in Costa Rica. La Libertad Mine is located 110 kilometers east of Managua. The Limon Mine is located approximately 100 kilometers northwest of Managua and 20 kilometers from the Pan- American Highway. The Otjikoto gold project is located approximately 300 kilometers north of Namibia�� capital city, Windhoek. The Gramalote property is located approximately 230 kilometers northwest of the Colombian capital of Bogota and approximately 80 kilometers northeast of Medellin. The Gramalote property area is covered by 31 contiguous claim blocks totaling 42,790.09 hectares. In Jnauary 2013, the Company acquired CGA Mining Ltd.Best Warren Buffett Companies To Watch In Right Now: Federal Signal Corporation(FSS)
Federal Signal Corporation designs and manufactures a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers worldwide. The company operates in three segments: Safety and Security Systems, Fire Rescue, and Environmental Solutions. The Safety and Security Systems segment offers various systems for automated license plate recognition, campus and community alerting, emergency vehicles, first responder interoperable communications, industrial communications and command, municipal networked security, vehicle classification, parking revenue, and access control. This segment also provides products, such as lightbars and sirens, public warning sirens, and public safety software. The Fire Rescue segment offers articulated and telescopic aerial platforms for rescue, fire fighting, and maintenance purposes. This segment sells its products to municipal and industrial fire services, civil defense authorities, rental companies, elect ric utilities and industrial customers. The Environmental Solutions segment provides various self-propelled street cleaning vehicles, vacuum loader vehicles, municipal catch basin/sewer cleaning vacuum trucks, and water blasting equipment. The company was founded in 1901 and is based in Oak Brook, Illinois.
Best Warren Buffett Companies To Watch In Right Now: Capita Grp(CPI.L)
Capita PLC provides business process outsourcing and professional services in the United Kingdom and Ireland. The company operates in five divisions: Life and Pensions Services; Integrated Services; Insurance and Investor Services; Professional Services; and ICT, Health, and Business Services. The Life and Pensions Services division provides life and pensions outsourced administration services comprising open and closed books of individual life and pensions policies and occupational pension schemes. The Integrated Services division offers central government contracts, property consultancy, contact centers, and portfolio of human resources (HR) services consisting of resourcing business, integrated HR solutions, HR and payroll administration, learning and development, and outplacement services. The Insurance and Investor Services division provides financial services to corporate and consumer markets, which include share registration, fund administration and insurance policy and claims administration, financial advisory and treasury services, insurance services for motor, and household and pet insurance products, as well as trust administration and fiduciary services across a range of tax jurisdictions. The Professional Services division offers children services; outsourced administration services; strategic advice and interim support services; and information and communications technology (ICT), and software solutions and support. The ICT, Health, and Business Services division provides health, business travel administration, hotel booking, meetings management, conferences, and consulting services. It also offers radio network services, communication systems to the emergency services and to central and local governments, and customer services management to clients related to customer contact administration and fulfillment activities. The company was founded in 1984 and is headquartered in London, the United Kingdom.
Best Warren Buffett Companies To Watch In Right Now: Silvore Fox Minerals Corp (SFX.V)
Silvore Fox Minerals Corp., a development stage company, engages in the acquisition and exploration of mineral resource properties in Canada. The company explores for base and precious metals, such as copper, gold, silver, molybdenum, zinc, and cobalt. It primarily holds interest in the Coxheath property and Oceanview claims located in the Nova Scotia. The company was formerly known as Silvor Foxx Capital Corp. and changed its name to Silvore Fox Minerals Corp. in October 2008. Silvore Fox Minerals Corp is headquartered in Toronto, Canada.
Best Warren Buffett Companies To Watch In Right Now: Majestic Gold Corp. (MJS.V)
Majestic Gold Corp. engages in the acquisition, exploration, and mining of precious metals in China. The company primarily explores for gold. It holds interests in the Sawayaerdun project located in the Xinjiang Province, China; and Muping Mineral and Shandong projects located in Shandong, China. Majestic Gold Corp. is headquartered in Vancouver, Canada.
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