He's bullish energy. EOG remains a big holding. It's the elite name in oil production, the Apple of E&P. They have incredible proprietary technology and have low debt, generate tons of cash even if oil falls to the $80's. EOG has sold off from its highs, so buy it now.
oil / gas
Healthcare is his favourite defensive sector. AbbVie needs to provide clear guidance about the erosion curve in Humira, its top drug (that will go off-patent next year). A popular drug going generic isn't necessarily a death sentence for the stock. He thinks management can pull this off. Sales declined only slightly, despite a 40% drop in Humira. Today, they announced a $2.2 billion settlement in opiod litigation (the opiod epidemic) which removes that overhang. It's probably a pretty good buy here.
Posted records profits today. Shares are surging today and so far this year. Nice top and bottom line beats and return on capital of 26% as they reduced debt below 15%. Also, they raised their share buyback. The oil supply/demand imbalance won't change for a while.
integrated oils
He just sold his Walmart. The news earlier this week cut guidance for full-year 2023. There's a shift on consumer sentiment. It trades at a forward 22x which is a premium to the market. That's why he sold. WM will figure things out but will take a quarter or two.
department stores
Amazon is a better play as it continues to take market share from Walmart. Amazon's e-commerce is stronger, of course.
specialty stores
Staples are up YTD, but struggled in the past month. P&G's organic sales are slowing, 10% last quarter, 7% this, and guiding 3-5%. Shutdowns in China, high USD and reduced operations in Russia are reasons. 50% of sales are overseas so the strong dollar is headwind.
misc consumer products
Struggling today after earnings. Organic sales did surprise, up 10%, while Latin American growth was over 12%. But multinationals with lots of overseas exposure will struggle against the high USD.
misc consumer products