Monday, August 23, 2010

What Stock Does Warren Buffett and Carl Icahn Agree On?

Two of the top investors are Warren Buffett and Carl Icahn. Both of these billionaires have been investing in stocks for years, with very successful track records. Warren Buffett, as most are aware, is the head of Berkshire Hathaway's (BRK-A) (BRK-B). Carl Icahn, a top trader who started his investment career in 1961, has previously taken significant holdings in numerous companies including RJR Nabisco, TWA, Texaco, Phillips Petroleum, Western Union (WU), Gulf & Western, Viacom (VIA-B), Uniroyal, Marshall Field, American Can, Revlon (REV), Blockbuster (BLOKA.PK), and Motorola (MOT).

If you look at the list of stocks that each own, you will find only one that they agree on.

The stock is NRG Energy, Inc. (NRG), which owns, builds, and operates power generation facilities. The stock trades at 9.5 times current earnings and 15 times forward earnings. On the positive side, the stock has $8.56 in cash per share and is trading at less than 21 per share, way below its book value of 31.66. However, the latest earnings were down over 50% on a 4% drop in revenues. The company does not pay a dividend.

For a list of stocks that Warren Buffett owns, along with other interesting stock lists, go to

Author does not own any of the above.


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