Saturday, March 10, 2012

Piggyback Off the Stocks of the Richest Man in the World

Forbes Magazine has published its billionaire list again and Carlos Slim Helu, or more commonly referred to as Carlos Slim, is again at the top of the list for the third year in a row. Slim is the Mexican businessman who is worth $69 billion.

In second place is Bill Gates of Microsoft (MSFT) fame at $61 billion, and third is Berkshire Hathaway's (BRK-A) (BRK-B) Warren Buffett at $44 billion.

One investing technique that has become popular is to piggyback on the stocks that are owned by the rich and famous. Taking a look at the stocks held by Slim, both directly and indirectly, there are several different ones to choose from in different industries, according to

For example, he is owner of shares of, and on the Board of Directors of, Philip Morris International (PM), which makes and markets Marlboro, Merit, Parliament, Virginia Slims, L&M, and Chesterfield cigarettes internationally. The company has over 15% of the international cigarette market outside the US. The stock trades at 14.3 times future earnings and yields 3.6%. Earnings for the latest quarter were up 7.6% on a 9% rise in revenues.

Slim also owns Saks Inc. (SAKS), a New York based company which operates luxury fashion retail stores. The stock has a forward price to earnings ratio of 20.2 carries a price to earnings growth ratio of 1.36. The company recently reported a substantial quarterly earnings increase of 48% on a 6.8% boost in sales.

The New York Times (NYT) is another one of Slim's holdings. The stock trades at 10.9 times forward earnings. Unfortunately, recent quarterly earnings were negative.

To see a list of all the Carlos Slim stocks, go to The list can be downloaded, sorted, and updated.

Disclosure: Author did not own any of the above at the time the article was written.


No comments: