Categories: Smart Money Masters HotlinesStock Market News

Warren Buffett’s Hand Is Everywhere

U.S. and global stock markets closed a positive week, though upward momentum waned somewhat.

All of the major market indexes rose by less than 1%. The S&P 500 rose 0.33%, the Dow Jones jumped 0.70%, the Nasdaq recovered 0.98% and the MSCI Emerging Markets Index eked out a 0.74% gain.

Your Smart Money Masters portfolio had a good week.

Prem Watsa’s bet on BlackBerry (BB) jumped another 4.52%. Dan Loeb’s Baxter International (BAX) gained 3.58%. Restaurant Brands International (QSR) rose 3.16%. Wilbur Ross’ Navigator Holdings (NVGS) gained 1.80%.

Seven of your positions sport double-digit-percentage gains. PayPal Holdings (PYPL) is now up over 63%.

Restaurant Brands International (QSR) and BlackBerry (BB) are both up by about 30% since they were recommended.

Kraft Heinz (KHC), Liberty Broadband (LBRDK), The St. Joe Company (JOE) and Costco (COST) are all trading below their 50-day moving averages and are currently HOLDs.

Portfolio Update

Warren Buffett is a recurring theme in your Smart Money Masters.

I have always listed Restaurant Brands International (QSR) as an investment by Bill Ackman.

That’s because Ackman has an incredible 40.1% of his fund Pershing Square Capital Management invested in the company’s stock.

Here’s what I have not yet highlighted. While private equity firm 3G Capital is the largest shareholder, owning 42.5% of the shares, the second-largest shareholder, owning 11.6% of QSR, is National Indemnity.

National Indemnity itself is a subsidiary of Warren Buffett’s Berkshire Hathaway (BRK-B).

Once you look through the ownership structure, together, 3G and Berkshire own about 54% of QSR. That means that 3G and Berkshire effectively control the entire company.

Indeed, Warren Buffett’s hand is everywhere.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.