Billionaire Carlos Slim Loves These Stocks

Depending on the source and what month it is, Carlos Slim is either the richest, second-richest or third-richest man in the world, with a reported net worth of $53 billion, according to Forbes magazine.

Slim is a Mexican businessman who made much of his wealth in the telecommunications industry in Latin America. He has been the vice president of the Mexican Stock Exchange and the president of the Mexican Association of Brokerage Houses.

If he's so rich, maybe it is time to pay closer attention to what he invests in.

One of the stocks that Slim owns is Allis-Chalmers Energy (ALY), a provider of equipment and services to oil and gas exploration and production companies in Alabama, Arkansas, Colorado, Louisiana, Mississippi, New Mexico, Oklahoma, Texas, Utah, Wyoming and West Virginia. Standard & Poor's Ratings Services just boosted its ratings for the company to B+ from B. The company is in the process of acquiring Bronco Drilling Company. The stock has a P/E of 11 and a PEG of 0.72.

Allis-Chalmers Energy shows up in a Stockpickr portfolio called Barron's Insider Purchases 3-08-08, which lists the largest insider purchases. Other stocks in the portfolio include General Electric (GE), with a PE of 13 and a yield of 4.4%; Enterprise GP Holdings (EPE), with a P/E of 33 and a yield of 6%; and Eli Lilly (LLY), with a P/E of 15 and a yield of 2.9%.

Another stock of Slim is America Movil (AMX), the fifth-largest mobile network operator and the largest corporation in Latin America, with over 152 million wireless subscribers. The company is expected to post an 8.5% increase in second-quarter net profit. The stock has a P/E of 16 and a PEG of 0.54, and it pays a yield of 4.2%.

America Movil is also owned by Level Global Investors, a $1.7 billion hedge fund managed by David Ganek and Anthony Chiasson, who formerly worked at SAC Capital Advisors. Level Global has a minimum investment of $5 million. It also holds Electronic Arts (ERTS), with a forward P/E of 21 and a PEG of 1.53; Devon Energy (DVN), with a P/E of 12 and a PEG of 1.32; and Qualcomm (QCOM), with a P/E of 22 and a PEG of 1.35.

Another stock owned by Slim is Kraft Foods (KFT), the third-largest food and beverage company in the world and the second-largest based in North America. The stock has a P/E of 19, a PEG of 2.19 and a yield of 3.6%.

Kraft is also owned by the Allianz NFJ Dividend Value Institutional Fund, a Morningstar-rated five-star fund managed by Ben Fisher. The fund has had an average annual return of 14.19% over the last five years. The fund also owns GlaxoSmithKline (GSK), with a P/E of 13 and a yield of 4.3%; Dow Chemical (DOW), with a P/E of 11 and a yield of 4.9%; and Seagate Technology (STX), with a P/E of 5 and a yield of 3.2%.

Source: http://www.stockpickr.com