The One Stock That Superinvestors Are Dumping: Is It Time to Sell?

As part of the weekly research here at The Acquirer’s Multiple we’re always interested in superinvestors who hold the same stocks that appear in our Acquirer’s Multiple Stock Screeners, based on their latest 13F’s. Investors such as Warren Buffett, Joel Greenblatt, Carl Icahn, Jim Simons, Prem Watsa, Jeremy Grantham, Seth Klarman, Ray Dalio, and Howard Marks.

While doing this research we’ve also uncovered a number of stocks that superinvestors have sold, or reduced in their portfolios, according to their latest 13f’s. So we’re now providing a new weekly feature article called ‘One Stock Superinvestors Are Selling‘. This week we’ll take a look at:

Microsoft Corp (MSFT)

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

A quick look at the price chart below for the company shows us that the stock is up 34% in the past twelve months.

Source: Google Finance

Superinvestors who reduced, or sold out of the company’s stock, according to their latest 13Fs, include:

(Remaining shares)

Chris Hohn – 10,531,890

Cliff Asness – 3,979,965

Ken Griffin – 2,982,129

Israel Englander – 2,796,250

Dan Loeb – 1,765,000

Donald Yacktman – 1,589,290

David Tepper – 1,400,000

Jean-Marie Eveillard – 660,956

John Rogers – 365,791

Lee Ainslie – 183,831

Bernard Horn – 108,926

Mario Gabelli – 129,449