RealMoney Silver - Spotlight Portfolio: Invest Like a Prince

Spotlight Portfolio: Invest Like a Prince
By Stockpickr Staff
5/14/2008 12:57 PM EDT

Updated from 9:40 a.m. EDT

Prince Al-Waleed, a member of the Saudi royal family, is a noted multibillion-dollar investor, in the same league as Warren Buffett, George Soros and T. Boone Pickens.

The prince got his investing start in the early 1990s with a large position in Citicorp, now Citigroup (C) . He's among the richest people in the world, and his investment vehicle, Kingdom Holding Company, is the largest foreign investor in the U.S.

One of the stocks that the prince owns is Eastman Kodak (EK) , which two weeks ago reported quarterly earnings. Revenue increased by 1% year over year, digital businesses grew by 10%, and the company reported a narrower first-quarter loss. The stock has a price-to-earnings ratio of 7, a P/E-to-growth (PEG) ratio of 5 and a yield of 2.9%.

Kodak stock is also owned by Bruce Sherman's Private Capital Management, a portfolio management company founded in 1986. Sherman also owns shares of CA (CA) , the information technology management software company, which has a PEG of 1.57, and casino operator MGM Mirage (MGM) , which has a PEG of 1.5.

Another stock that the prince owns is Motorola (MOT) . The company just announced an expanded line of tools for its Motodev Studio development platform. Motorola also recently declared a dividend of 5 cents per share, giving it a yield of 2%. The stock has a P/E of 23 and a PEG of 22.92.

Motorola is also favored by Carl Icahn, the noted corporate raider who made his billions partially with the help of financier Michael Milken's junk bonds. Icahn also owns shares of Anadarko Petroleum (APC) , which has a PEG of 1.9, and BEA Systems (BEAS) , with a PEG of 1.79.

News Corp. (NWS) , the entertainment conglomerate, is another stock in which the prince has taken a significant position. The company just reported that paid subscriptions to the print version of The Wall Street Journal increased by 1.6% during the six-month period ended March 31. The stock has a P/E of 18, a PEG of 1.06 and a yield of 0.6%.

News Corp. is in the portfolio of Dodge & Cox Stock Fund, which has a Morningstar rating of four stars and is managed by Harry Hagey. Dodge & Cox also owns shares of Comcast (CMCSA) , which has a PEG ratio of 1.8, and Wal-Mart (WMT) , with a 1.4 PEG ratio.

All of the Prince's stocks can be found in the Prince Al-Waleed portfolio at Stockpickr.com.