John Armitage Portfolio Analysis (December 31, 2021)

Famous superinvestor, John Armitage, revealed in a recent regulatory filing his newest positions.  In John Armitage portfolio 2021 analysis, we will go into more detail about top 5 stocks this superinvestor had as of December 31, 2021.

Armitage manages his investments via his fund, Egerton Capital, which holds about $21.4 billion according to the latest available 13F filling. Click here for the latest available 13F filling.

The most notable stocks in John Armitage’s Q4 portfolio include Alphabet Inc, Canadian Pac Ry Ltd, Microsoft Corp, Csx Corp and Charter Communications Inc N. In addition to others mentioned in detail below.

We used the Q4 portfolio of John Armitage’s Egerton Capital to select his top 5 value stocks. We ranked the securities according to Armitage’s stake value in each holding.

Summary

• John Armitage’s top 5 securities make up 40.9% of the entire portfolio.
• Egerton Capital owns position in 32 holdings, managing approximately $21.4 billion.
• Alphabet Inc, Armitage’s largest holding, makes up 11.7% of the total portfolio.

Alphabet Inc (GOOGL)

Egerton Capital’s stake value: $2.5 Billion

Percentage of Egerton Capital’s 13F Portfolio: 11.7%

Alphabet Inc does business in Information sector and has 135301 employees. Current CEO is Sundar Pichai.

As of February 13, 2022 Alphabet Inc had a market cap of $1.774T Million. Analysts predicted 1 year target price of $3454.88 that exceeds the current price of $2772.0 for 24.6%. Trailing twelve months P/E ratio is currently 23.94 making it a slightly cheaper stock than the rest of the S&P500 index. Looking at revenue, Alphabet Inc generated significant amount of revenue, $257637 million in 2021, surging by 41.2% in comparison to 2020 when it was $182527 million. Net income surged according to the latest fillings, jumping in 2021 by around 88.8% adding up to total of $76033.0 million. Further, in 2021, the net profit margin, was at 29.5%, shows an improvement compared the company’s previous years of operation.

Canadian Pac Ry Ltd (CP)

Egerton Capital’s stake value: $2.1 Billion

Percentage of Egerton Capital’s 13F Portfolio: 9.8%

Canadian Pacific Railway Ltd does business in Transportation and Warehousing sector and has 11890 employees.

As of February 13, 2022 Canadian Pac Ry Ltd had a market cap of $66.917 Million. Analysts predicted 1 year target price of $83.13 that exceeds the current price of $72.93 for 14.0%. Trailing twelve months P/E ratio is currently 21.9 making it a slightly cheaper stock than the rest of the S&P500 index. Regarding revenue, Canadian Pac Ry Ltd generated $7995 million revenue in 2021, mildly increasing of 3.7% in contrast to 2020 when it was $7710 million. Net income was much higher than previous year, increasing by 16.7% in 2021 coming up to $2852.0 million. Besides, profit margin, which levels at 35.7%, shows an improvement, comparing to the previous years.

Canadian Pacific is a transcontinental railway in Canada and the United States with direct links to major ports on the west and east coasts.

Microsoft Corp (MSFT)

Egerton Capital’s stake value: $1.5 Billion

Percentage of Egerton Capital’s 13F Portfolio: 6.9%

Microsoft Corporation does business in Data Processing, Hosting, and Related Servicesindustry, which is Information sector and has 163000 employees. Current CEO is Satya Nadella.

As of February 13, 2022 Microsoft Corp had a market cap of $2.212T Million. Analysts predicted 1 year target price of $370.72 that exceeds the current price of $303.19 for 22.3%. Trailing twelve months P/E ratio is currently 31.42 making it a slightly more expensive stock than the rest of the S&P500 index. If we look at revenue, Microsoft Corp generated high $168088 million revenue in 2021 which is a considerable increase of 17.5% compared to 2020 when it was $143015 million. Net income surged according to the latest fillings, jumping in 2021 by around 38.4% adding up to total of $61271.0 million. Further, in 2021, the net profit margin, was at 36.5%, shows an improvement compared the company’s previous years of operation.

Microsoft enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

Csx Corp (CSX)

Egerton Capital’s stake value: $1.3 Billion

Percentage of Egerton Capital’s 13F Portfolio: 6.3%

CSX Corp. does business in Line-Haul Railroads industry, which is Transportation and Warehousing sector and has 19300 employees. Current CEO is James Foote.

As of February 13, 2022 Csx Corp had a market cap of $74.014 Million. Analysts predicted 1 year target price of $39.96 that exceeds the current price of $33.92 for 17.8%. Trailing twelve months P/E ratio is currently 19.9 making it a slightly cheaper stock than the rest of the S&P500 index. If we look at revenue, Csx Corp generated high $12522 million revenue in 2021 which is a considerable increase of 18.3% compared to 2020 when it was $10583 million. Net income surged according to the latest fillings, jumping in 2021 by around 36.7% adding up to total of $3781.0 million. Besides, profit margin, which levels at 30.2%, shows an improvement, comparing to the previous years.

CSX Corporation, based in Jacksonville, Florida, is a premier transportation company.  It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products.

Charter Communications Inc N (CHTR)

Egerton Capital’s stake value: $1.3 Billion

Percentage of Egerton Capital’s 13F Portfolio: 6.2%

Charter Communications Inc. does business in Information sector and has 96100 employees. Current CEO is Thomas Rutledge.

As of February 13, 2022 Charter Communications Inc N had a market cap of $104.462 Million. Analysts predicted 1 year target price of $731.77 that exceeds the current price of $608.99 for 20.2%. Trailing twelve months P/E ratio is currently 24.71 making it a slightly cheaper stock than the rest of the S&P500 index. Regarding revenue, Charter Communications Inc N generated $51682 million revenue in 2021, mildly increasing of 7.5% in contrast to 2020 when it was $48097 million. Net income surged according to the latest fillings, jumping in 2021 by around 44.4% adding up to total of $4654.0 million. In addition, the net income margin, which in 2021 was 9.0%, shows significant improvement set side by side with last few years.

Charter Communications, Inc. is a leading broadband connectivity company and cable operator serving more than 31 million customers in 41 states through its Spectrum brand.

Conclusion

To conclude, here is the list of the top 5 holdings and most recent financial indicators of these positions as of February 13, 2022.

Stock	% of portfolio	Market Cap (USD)	P/E	Net earnings (USDm)	Net earnings y/y	Profit margin
Alphabet Inc (GOOGL)	11.7%	1.774T	23.9	76033	88.8%	29.5%
Canadian Pac Ry Ltd (CP)	9.8%	66.917B	21.9	2852	16.7%	35.7%
Microsoft Corp (MSFT)	6.9%	2.212T	31.4	61271	38.4%	36.5%
Csx Corp (CSX)	6.3%	74.014B	19.9	3781	36.7%	30.2%
Charter Communications Inc N (CHTR)	6.2%	104.462B	24.7	4654	44.4%	9.0%

Canadians can find the above stocks on Questrade.

Other investors can use Interactive Brokers or eToro.

Disclosure & Disclaimer: Please take into consideration that this is not financial, investing, or tax advice. The information on this website is for informational and recreational purposes only. Before any financial decision do your own due diligence. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.