When you talk about Wall Street successful investors, Carl Icahn is one name that will definitely make the list.
Carl Icahn is an American financier and founder of Icahn Enterprise – a diversified holding company with a net worth of $16.7billion. Some call him a shareholders activist. Carl’s first investment breakthrough came in 1979 with Tappan, a kitchen stove maker. After winning a seat on the board, he engineered the sale of the company in a transaction that earned him $3million dollars. His experience there made him to focus on increasing the share price of his investments by forcing the divestiture of the company’s undervalued assets.
He’s known to be quite ruthless with investing and has been shaking corporate America for decades with his investment strategy.
Carl’s Investment Strategy
When it comes to investing, Carl is a contrarian and you can see it in his investment strategy:
- Buy something when no one wants it.
- He identifies stocks with low price-earnings ratios that exceed the current market valuation.
- After purchasing a significant position in the company, he then either calls for the election of an entirely new board of directors or a sell-off of assets in order to deliver more value to shareholders.
Investors usually follow his lead and buy into businesses he set his focus on.
Although the financier has over 50 companies in his portfolio. Here are the top 6 stocks.
- Icahn Enterprise (IEP): This is Carl’s holding company founded by him and he owns 61% of the company. This diversified holding company is engaged in nine (9) business segments, such as, Automotive, Investment, Energy, Railcar, Food packaging, Metals, Real Estate, Home Fashion and Gaming. Since the year began, the company has had a 6.46% stock growth.
- CVR Energy (CVI): CVR is a subsidiary of IEP, operating in the petroleum refining & nitrogen fertilizer market. The petroleum segment refines and markets gasoline, diesel fuel and other refined products, while the nitrogen fertilizer segment owns and operates a nitrogen fertilizer plant in North America. This energy company has a 84.83% stock growth since the year began, it also makes up 8.32% of Icahn’s portfolio.
- Occidental Petroleum (OXY): Occidental is a Texas-based oil company that deals with the development of oil and gas properties in the U.S., Middle East, Africa and Latin America. It operates in the oil & gas, chemical and midstream segments, as well as the marketing of these products.
- Cheniere Energy (LNG): Cheniere is a leading producer of liquefied natural gas, based in Texas. LNG provides clean, secure liquefied natural gas to integrated energy companies worldwide. As with major oil stocks, this stock has seen a growth of 34.16% since the year began.
- Bausch Health Companies (BHC): Bausch is a Canadian multinational pharmaceutical company that manufactures medical devices and drugs.
- Newell Rubbermaid (NWL): Newell is an American manufacturer and marketer of consumer and commercial products, creating products in 5 different segments, commercial solutions, home appliances, home solutions, learning & development and outdoor and recreation.
With the rate at which oil stocks are booming right now, it’s no wonder Carl’s portfolio is majorly energy companies.
Looking for energy stocks to add to your portfolio? Here’s a free guide on the companies dominating the energy sector.