When it comes to investing, going with the crowd will rarely -- if ever -- make you rich. If your objective is to buy low and sell high, then in the words of Warren Buffett, you must be "greedy when others are fearful and fearful when others are greedy." This is the foundation of contrarian investing.
But there's a twist. To be a contrarian investor, you must first know what to be contrary to. And this is where the SEC's invaluable EDGAR database comes in. Every quarter, companies and large institutional investors are required to disclose their equity holdings. By patching these together, we can get a fuller picture of a particular stock's popularity.
What follows, in turn, is a look at the principal owners of U.S. Bancorp's (USB -0.24%) outstanding common stock.
A broad overview
As you can see in the following chart, the majority of U.S. Bancorp's 1.9 billion shares are held by institutional investors. Company insiders, including board members and corporate executives, own a further 0.11% of the outstanding common stock. And the public at large owns the remaining 28%.
Source: S&P's Capital IQ.
Institutional investors
Digging in a big further, the largest institutional stakeholders in U.S. Bancorp are bond giant BlackRock, followed by Fidelity Investments, The Vanguard Group, the asset management arm of State Street, and T. Rowe Price Group.
Source: S&P's Capital IQ.
The largest buyers have been BlackRock and Citadel LLC, which have recently acquired 9.9 million and 4.6 million shares of common stock, respectively. Meanwhile, the two largest sellers of late have been Marsico Capital Management and Fidelity Investments, which have disposed of 10.9 million and 4.3 million shares, respectively.
Biggest insiders
Turning to inside investors, the largest inside owner is Richard Davis, U.S. Bancorp's chairman and chief executive officer. The second largest holder is David O'Maley, a director of the bank. And the third largest holder is Andrew Cecere, the bank's chief financial officer.
Source: S&P's Capital IQ.
The Foolish bottom line
While insider and institutional ownership together represent only one metric, it's nevertheless an important one. Beyond hinting at the overall market's sentiment toward a stock, it also gives investors insight into the confidence of the people best positioned to predict a company's current state and future success.
John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
As an investment expert deeply entrenched in the world of finance, I can attest to the significance of contrarian investing and the pivotal role played by the Securities and Exchange Commission's (SEC) EDGAR database in this strategy. My extensive experience in analyzing financial markets and investment patterns aligns with the principles outlined in the provided article.
Contrarian investing, as eloquently described by Warren Buffett, involves seizing opportunities when the crowd is fearful and exercising caution when others are exuberant. To effectively implement this strategy, investors need to identify what they should be contrary to. This is where the SEC's EDGAR database becomes invaluable. The database serves as a treasure trove of information, providing quarterly disclosures from companies and large institutional investors regarding their equity holdings.
In the context of the article's focus on U.S. Bancorp (USB), let's break down the key concepts presented:
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U.S. Bancorp's Share Ownership Overview:
- The article presents a breakdown of U.S. Bancorp's outstanding common stock ownership.
- Institutional investors hold the majority of shares, accounting for a significant portion of the ownership.
- Company insiders, including board members and executives, own a small percentage of the outstanding common stock.
- The public at large owns the remaining portion.
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Institutional Investors:
- The largest institutional stakeholders in U.S. Bancorp include BlackRock, Fidelity Investments, The Vanguard Group, State Street's asset management arm, and T. Rowe Price Group.
- Notable transactions by institutional investors are highlighted, with BlackRock and Citadel LLC being the largest buyers, while Marsico Capital Management and Fidelity Investments are the largest sellers.
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Biggest Insiders:
- Inside investors, comprising company executives and board members, play a crucial role.
- The three largest inside owners of U.S. Bancorp are Richard Davis (Chairman and CEO), David O'Maley (Director), and Andrew Cecere (Chief Financial Officer).
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The Foolish Bottom Line:
- The article emphasizes that insider and institutional ownership is a significant metric.
- It suggests that these ownership patterns not only reflect market sentiment but also provide insights into the confidence of individuals well-positioned to assess a company's current state and future prospects.
In conclusion, the intersection of contrarian investing, ownership analysis, and the use of SEC data underscores the complexity and depth of strategic decision-making in the financial world. This information is crucial for investors aiming to navigate markets intelligently and make informed choices based on a comprehensive understanding of ownership dynamics and market sentiment.
