The former vice president of the U.S. from 1993 to 2001 under President Bill Clinton, Al Gore, is the co-founder and chairman of Generation Investment Management, a member of the board of directors of Apple (AAPL) and a senior adviser to Google (GOOG).
Generation is a money management company with over $1 billion under management. Gore co-founded it with David Blood, former CEO of Goldman Sachs Asset Management, which gives Generation the nickname of "Blood and Gore."
One of the stocks owned by Blood and Gore is Johnson Controls (JCI), which is involved in energy-saving technologies, automotive products and hybrid battery systems. The company just completed its acquisition of PWI Energy, allowing it to get into the energy and greenhouse gas management services business. The stock has a P/E of 13 and a PEG of 1.02, and it pays a yield of 1.7%.
Johnson Controls is also owned by the Goldman Sachs Large Cap Value Institutional Fund, which has a Morningstar rating of four stars and is managed by Eileen Rominger. The fund has had an average annual return of 15.62% over the last five years. It also owns Sprint Nextel (S), with a forward P/E of 119 and a PEG of 16; Exxon Mobil (XOM), with a P/E of 11 and a PEG of 1.65; and Entergy (ETR), with a P/E of 18 and a PEG of 1.32.
Aflac (AFL) is another Gore stock. This life and health insurance company, which is the largest marketer of supplemental disability insurance, just reported an increase in operating income of almost 20%, and net income rose 16% for the latest quarter. It also just declared a quarterly dividend of 24 cents. The stock has a P./E of 15, a PEG of 0.98 and a yield of 1.7.
Aflac is also held by Markel (MKL), often referred to as a mini-Berkshire Hathaway (BRK.A). Markel also happens to own Berkshire Hathaway, which has a P/E of 15. Markel also owns Diageo (DEO), with a P/E of 15, and CarMax (KMX), with a P/E of 21.
Amdocs (DOX) is another stock owned by Generation Investment. This provider of communication service software just reported third-quarter profits of 61 cents per share, up from 54 cents per share in the third quarter of 2007. Revenues increased by 15.2%. The stock has a P/E of 17 and a PEG of 0.91.
Although Amdocs has its headquarters in Missouri, it has major operations in Israel, which is why it shows up in the Stockpickr portfolio called Top Israeli Stocks. Other stocks in the portfolio include Blue Square Israel (BSI), with a P/E of 9; Elbit Systems (ESLT), with a P/E of 26; and Check Point Software Technologies (CHKP), with a P/E of 16.
For the rest of Gore's top holdings, check out the Generation Investment Management portfolio at Stockpickr.com.
A note from James Altucher:
Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.
Here are some examples:
Stocks related to drilling the Marcellus Shale
Microcaps trading for less than tangible book
Stocks that do well after Hurricanes
Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.
Posted on Aug. 6, 2008
