Icahn Enterprises LP (IEP) / Carl Icahn

Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Wed Mar 16, 2016 1:50 pm

High Yield Stocks to Buy: Icahn Enterprises LP (IEP)

Believe it or not, Carl Icahn is owner of one of the biggest high yield stocks: Icahn Enterprises LP (IEP) gives investors a chance to invest alongside Uncle Carl.

His public vehicle is like a mini-mutual fund, which holds a number of different public companies.

It’s an interesting time for IEP, which has gotten hammered and is about 33% off its 52-week high, but also about 50% off its 52-week low.

Icahn had a rough fourth quarter because he has a lot of holdings in energy and in copper, which have gotten crushed by the market.

Yet the thing about Icahn is that he’s the world’s most successful investor over the long term, and if just a handful of his vulture plays work out, his investments return multiples over time.

It’s not a bad time to get in on IEP stock, which yields 9%.

Source: Investor Place
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Sat Apr 16, 2016 6:45 am

Forbes Billionaire's Pro Perspectives

Today, we want to walk through some analysis we did last year on billionaire investor Carl Icahn. We looked back at Icahn's stock investments over the past 20 years. We think most investors would find the statistics very surprising.

Here is a high level analysis of Icahn's portfolio, dating back to the early 1990s for his 13D positions (i.e. positions he has a 5% stake or more in).
chart

Now, for the key takeaways:

First, for perspective, Icahn has a return of around 31% annualized since 1968. Even more impressive, Icahn has returned 20% annualized since the year 2000, during one of the worst stock market periods in history. He beat the S&P 500 by 4 to 1 over the period.

And Icahn has, unequivocally, shown superior skill to even the great Warren Buffett. Buffett returned 19.5% annualized during virtually the same time period that Icahn returned 31% annualized. To put that in perspective, $1,000 invested in Buffett would be worth about $5 million today … $1,000 invested in Icahn would be worth over $400 million today.

So when we are discussing Icahn's portfolio that dates back to the 1990s, keep in mind, you are looking into the mind of THE greatest investor of all–time. And one that has amassed a net worth of $21 billion from his investing prowess.


Takeaway #1: The media, mutual funds, CNBC, finance books … they all say having a high win rate is paramount to good investing. They tell you that the most important thing is being right. Like many widely accepted adages, it happens to be dead wrong.

In fact, billionaire iconic hedge fund investor George Soros says "it's not whether you're right or wrong, but how much money you make when you're right and how much money you lose when you're wrong."

With that, you can see from Icahn's portfolio, over the past 20 years he has a win rate that is barely better than a coin toss. Out of the almost 100 stocks Icahn has purchased over the past 20 years, only a little more than half have been profitable.

But he puts himself in position, so that when he wins, he has the chance to win big! Among Icahn's stocks, his winners are almost twice that of his losers. His average winner is +87% and his average loser is –49%.


Takeaway #2: What made Icahn rich were concentrated bets … i.e. big bets. And as Buffett famously says, "you only need one or two great ideas a year to get rich." This is exemplified in Icahn's portfolio … see the performance distribution below …
chart


Takeaway #3: Patience is king. You don't have to go to Harvard or have a Goldman Sachs investing pedigree to have patience. And many times, that can be the difference between making money and losing money in investing. Icahn has an average holding period of over two years. To make big returns, he has to wait for his activist campaigns to play out, and sometimes it takes a lot of patience. But clearly patience is rewarded as you can see from Icahn's Portfolio.


Takeaway #4: Risk! When you hunt for big returns, you must be willing to accept drawdowns and losers. Icahn has multiple stocks over the past 20 years that have been full losers (i.e. they've gone to zero — see the above chart). But when you have a portfolio of potential big winners, in the end, they can more than pay for the losers.

Given Icahn has the greatest long–term track record of all–time, his portfolio is the premier example of wealth creation through stocks.

Source: Forbes
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Fri Apr 29, 2016 8:12 am

Icahn: ‘We’re no longer in Apple’

“We no longer have a position in Apple,” Icahn told CNBC’s “Power Lunch”


He said he made roughly $2 billion on Apple, a stock he continued to tout as “cheap” despite his reservations.

Icahn said China’s attitude toward Apple largely drove him to exit his position.


Source: CNBC

http://thecrux.com/icahn-were-no-longer-in-apple/
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Fri Apr 29, 2016 5:23 pm

Icahn: Markets will have 'a day of reckoning'

by Everett Rosenfeld

Source: CNBC

http://www.cnbc.com/2016/04/28/icahn-ma ... =103589626
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Wed May 11, 2016 7:13 am

Carl Icahn is preparing his portfolio for 'day of reckoning'...

by Andrew Bary

An investment fund run by the 80-year-old Icahn had a net short position of 149% at the end of the first quarter.

Icahn is considerably more bearish than he was at the end of 2015, when the fund’s net short position was 25%.


‘We’re much more concerned about the market going down 20% than we are it going up 20%.


Source: Barron’s

http://thecrux.com/carl-icahn-preparing ... reckoning/
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Wed May 11, 2016 11:15 am

This Is How Much Carl Icahn Is Betting On An Imminent Market Collapse

By Tyler Durden

Source: Zero Hedge

http://www.thetradingreport.com/2016/05 ... -collapse/
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Fri May 20, 2016 6:04 pm

The Smart Money: Carl Icahn

Source: Liz Sawyer Via Flickr

Plays to Focus On: Apple, Icahn Enterprises, Gannett, PayPal

Speaking of Mr. Icahn, he’s been fairly active himself in the last quarter, though he’s been doing more selling than buying. As I mentioned a moment ago, Icahn sold his entire enormous position in Apple last quarter. Not too long ago, fully 20% of Icahn’s portfolio was in Apple, so this is a major move.

In a recent appearance on CNBC, Icahn went to great lengths to praise Apple and CEO Tim Cook, but he also made it clear that he worried about Apple’s ability to navigate a rough Chinese market.

Icahn made a good profit in Apple, earning a little over 40% based on his average purchase price. But I think he sold too soon. Apple could rise by a good 50% from here and not be even close to overvalued.

In addition to the Apple sale, Icahn liquidated his positions in Hologic (HOLX), Tegna (TGNA), Mentor Graphics (MENT), Pep Boys (PBY) and Gannett Company (GCI) and he reduced his positions in Nuance Communications (NUAN) and PayPal Holdings (PYPL).

One of the few things Ichan actually bought was actually his own MLP stock, Ichan Enterprises LP (IEP). Icahn Enterprises now makes up fully 34% of his primary hedge fund’s portfolio.

With all this selling, it looks to me like Icahn is hoarding cash. To what end, we have no way of knowing. Perhaps he’s taking a little risk off the table. Or maybe … just maybe … he has a major whale of an investment in mind.

I suppose we’ll find out soon enough.

Source: Investor Place
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Tue May 24, 2016 7:50 am

Carl Icahn

No one has done a better job at creating change for shareholders than Carl Icahn – certainly not over the span of the past three decades. That’s why we have 10% of our Forbes Billionaire's Portfolio in stocks owned and controlled by Icahn.

We consider Icahn the godfather of activism. Very early on, Icahn found that, among all of the complications people like to add to investing, there is a very simple opportunity to take advantage and capitalize on the simplicities that we all know about human nature.

In his words, “some people get rich studying artificial intelligence. Me, I make money studying natural stupidity.

I’ll interpret that remark with these three simple points:
1) People will take advantage of opportunities to satisfy their own self-interests.
2) People will find ways to justify their self-serving actions.
3) People will be greedy.

Add this human nature to a concoction called the public equity markets, and you find, among many things, a witch’s brew of bad management teams at publicly traded companies.

To most investors, identifying a company that's run poorly is a red flag – something to stay away from.

For Icahn, it’s opportunity. It’s blood in the water. Why? Because it presents the opportunity for CHANGE. And when you get change, you have a chance to make a lot of money as the stock re-prices to reflect that change.

Icahn has done this over and over throughout his long career. That's why he has been able to compound money at nearly 30% a year for almost 50 years. That's the greatest long-term investment track record in history (as far as we know). One thousand dollars with Icahn when he started has gone to $275 million.

Even at the age of 80, Icahn has been as vocal and as influential as ever. He influenced Apple to a near double by encouraging Apple to use their treasure chest of cash to buy back stock. Cash sitting on a balance sheet idle does nothing for shareholders. Share buybacks create shareholder value.

That’s the name of the game. Despite what some CEOs may think, that is precisely why they have been employed, to create shareholder value. And that is often the change that has to take place (the CEO or the mindset of leadership).

Icahn’s continued investing success can be attributed to one important talent: He’s a change-maker. When we follow him, we can be assured that he has a plan for change and that he will fight to make it happen.

Plus, when we follow Icahn, we get an added bonus that few, if any, other big time investors summon: Because of his great success, his campaigns tend to attract other influential investors to join in – stacking the odds even more favorably for shareholders.

Source: Forbes
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Wed Jun 01, 2016 8:15 am

Icahn has a new big bet…

Billionaire investor Carl Icahn said he has taken a “large position” in Allergan Plc (AGN)


The drugmaker is in the process of selling its generics business to Teva Pharmaceutical Industries Ltd. for about $40 billion, a deal that, last week, Saunders reiterated should close within the first half of this year.

With the cash from that transaction, Allergan will pay down some debt, buy back shares, and gain the ability to do more mergers.


Source: Bloomberg


http://thecrux.com/icahn-has-a-new-big-bet/
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Re: Icahn Enterprises LP (IEP) / Carl Icahn

Postby winston » Sat Jul 02, 2016 11:35 am

Value Stocks to Buy: Icahn Enterprises LP (IEP)

A friend asked me about Carl Icahn’s company the other day. He wanted to know if the 11% yield on Icahn Enterprises LP (NASDAQ:IEP) was safe or not, because if it was safe, IEP was worth owning.

He’s not wrong.

The question one must first ask themselves is whether the current troubles facing Icahn are permanent or temporary. I believe, like Trinity Industries, the issues plaguing IEP stock are temporary and they will soon disappear into the woodwork as all temporary setbacks do.

At the moment, Icahn is trying to buy all of the shares in auto parts maker Federal-Mogul Holdings Corp (NASDAQ:FDML) he doesn’t already own. It’s a brilliant move. That’s because his auto-related investments have done well at the very same time that his oil investments have tanked.

By gaining control of the entire company, Icahn can affect more change at Federal-Mogul, generating greater profits in the future.

When oil prices are high, auto stocks don’t do as well and vice versa. By doing what he’s doing, Icahn is protecting his company against future moves, up or down, in the price of oil. That’s smart diversification.

At the end of the day, Icahn Enterprises’ total debt of $12.5 billion is just 39% of its total assets, and while it did lose $837 million in the first quarter, that is temporary. With 4% returns the norm for equities moving forward, an opportunity to get 11% on the dividend alone is music to any value investor’s ears.

Source: Investor Place
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