Oct. 2 at 4:32 PM
One of the biggest winners in my portfolio?
A stock many have never heard of.
Jefferies Financial.
$JEF
I’m up over 124%, with a yield on cost of over 5.10%.
The reason I discovered this stock?
Stealing ideas from Super Investors.
Super Investors are investors with over
$100M in assets under management.
Every 3 months, they are required by law to reveal all of the moves they’ve been making in their portfolio.
This most recent quarter, they made some shocking moves.
I compiled insights on the top 50 most bought dividend stocks by Super Investors.
The trend we see every quarter?
Super Investors have a bias towards dividend growth stocks.
Stocks that grow free cash flow at a high rate, and as a result, grow dividends at a high rate.
The average total dividend growth over the last 5 years from these stocks was almost 80%.
Technology and finance were the most frequently purchased sectors.
That’s somewhat typical for Super Investors.
But over the last 2 quarters?
Healthcare has been the most frequently purchased sector.
In the past year, the healthcare sector has lagged the market by a remarkable margin.
- S&P 500 performance: +15.79%
- Vanguard Healthcare Index: -10.24%
But the real deviation isn’t just price performance.
It’s the valuation.
This chart from Goldman Sachs shows current forward P/E ratios across S&P 500 sectors, compared against both their own history and the S&P 500 as a whole.
Nearly every sector is trading at a premium compared to their historical valuations.
Here’s what stands out for healthcare:
Current P/E: 16x — well below the S&P 500 average of 22x.
Historical Valuation: Healthcare valuations are in the 34th percentile versus the past 30 years. That means they’ve been cheaper 66% of the time.
Relative Valuation: Compared to the S&P 500, healthcare sits at the 0th percentile over both 10 and 30 years. In other words, relative to the market, healthcare has never been this cheap in modern history.
And ironically enough, the number one most frequently bought stock was a healthcare stock.
💰 Super Investors Top 10 Buys
1. 🏥 UNH — UnitedHealth Group
2. 🔎 GOOGL — Alphabet (Class A)
3. 📱 META — Meta Platforms
4. 💻 MSFT — Microsoft
5. 🌐 GOOG — Alphabet (Class C)
6. 🖥️ TSM — Taiwan Semiconductor
7. 🍏 AAPL — Apple
8. 💳 COF — Capital One Financial
9. 🎬 DIS — Walt Disney
10. 🛠️ FERG — Ferguson plc
If you want to download the top 50 list, you can do so here. https://dividendology.kit.com/98d353ba95
