After a turbulent month of August, the Spanish stock market faces the last third of the year full of uncertainty. A scenario where value investing can be a good way to identify investment opportunities. Below, we analyze some of the favorite stocks in the Spanish Buffett’s portfolio.
Value investing, which consists of thoroughly analyzing companies and understanding their business in order to determine their intrinsic value and identify those that are undervalued from a fundamental point of view, has the American tycoon Warren Buffett as a great proponent, but also has in Spain important representatives : Francisco García Parames (Cobas), Alvaro Guzman (Azvalor) or Ivan Martin (Magellan) are some of them.
Francisco García Parames
Perhaps the best known of all is Francisco García Paramés, who has operated through his own fund manager since 2016. Cobas Asset Management. The manager’s main Spanish equity fund is the Cobas Iberia B FI which invests at least 75% in shares of Spanish and Portuguese companies.
An analysis of this fund’s portfolio shows that Elecnor is the largest weight in the portfolio at 9.76%. And the truth is that the Basque company has had a very good year on the Continuous Market, with a cumulative appreciation of 33.5% in 2023, taking its market capitalization to 1,200 million euros.
8.98% of the portfolio is invested in Tecnicas Reunidas, the other big bet on the Spanish stock market. With a revaluation of 3.5% and a market value of almost 700 million, the engineering company does not have such a productive year ahead. Other Spanish stocks with a strong weight in the portfolio are Vocento (4.75%), CAF (4.61%), Almirall (4.36%) or Grupo Catalana Occidente (3.61%), according to data compiled by Morningstar .
Alvaro Guzman
Álvaro Guzmán, who was a student of Paramés during his Bestinver days, is another star Spanish manager to take charge Azvalor Wealth Management. your background Azvalor Iberia FI has at least 65% exposure to Spanish and Portuguese equities and may also invest up to 0% in the equity market of other OECD countries.
Focusing on its main positions, the name Tecnicas Reunidas comes up again, this time as the first bet (12.94% of the portfolio). Behind is Tubacex (8.82%), which is up more than 52% so far this year in the continuous market.
Other relevant positions in the portfolio, according to Morningstar data, are Prosegur Cash (7.90%), Elecnor (6.79%) and Miquel y Costas (5.07%). The Azvalor fund is also heavily invested in two IBEX 35 securities, with 4.94% of the portfolio in Grifols and 4.13% in Meliá Hotels.
Ivan Martin
Among the top value investors in Spain is Iván Martín, founding partner of Magallanes Value Investor. your background Magallanes Iberian Equity, FI It focuses mainly on Spanish and Portuguese listed companies, but does not exclude other stocks from OECD countries.
In his case, Gestamp is the main bet with a 6.41% weight in the portfolio. The automotive components company is up almost 18% in the Continuous Market this year. Even more spectacular is the 50% that Applus has achieved, which accounts for 5.96% of the portfolio, according to Morningstar.
Miquel y Costas (4.71%) and Repsol (4.14%) are among the fund’s main investments, as are insurers Grupo Catalana Occidente (3.99%) and Mapfre (3.96%). Also of note is the 3.74% stake in FCC shares.
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