Value investor
Chuck Akre
has beaten the S&P 500 in 9 out of the last 10 years. His
10-year cumulative return until Dec. 31, 2011, was 188%, while
the S&P just gained 35%.
Chuck Akre
looks for companies that have high return on equity with a wide
moat, treat shareholders as partners, and have the ability and
capacity to reinvest. He calls this the three-leg stool. To
understand more about his investment philosophy, please read the
transcript of his talk at the 8
th
Value Investor Conference
and
GuruFocus interview with him
.
We have just updated the first quarter portfolio of Chuck Akre.
He has been buying a lot more stocks than selling. As of March
31, 2012, Akre Capital Management LLC owns 38 stocks with a total
value of $975 million. These are the details of the buys and
sells:
- New Purchases:
MCO
,
V
,
SHLD
,
LUK
,
LPS
,
MTG
,
UA
,
- Added Positions:
MA
,
AMTD
,
LPLA
,
AMT
,
TJX
,
NLY
,
ROST
,
AAPL
,
HIG
,
DHIL
,
PRMW
,
- Reduced Positions:
PENN
,
- Sold Out:
BDX
,
TECH
,
Chuck Akre has 44% of his portfolio in non-bank financials. He
has MasterCard (
MA
) as his largest position, and continued to add to this position.
His second-largest and long-term holding American Tower (
AMT
) is about 10% of his portfolio. Markel Corp (
MKL
) is his fifth-largest holding. The Chief Investment Officer of
Markel Tom Gayner is a good friend of Chuck Akre.
Chuck Akre likes MasterCard. He likes the business of earning a
piece of trillions of transactions across of the world. The
business has a 45% of free cash flow return. It needs little
capital to grow; therefore management can repurchase billions of
dollars of shares per year. The market still has huge room to
grow as only about 15% of the world's transactions are in credit
card payments. He favors MasterCard over Visa because MasterCard
has a smaller market share in the U.S., and it has more room to
grow.
Chuck Akre also bought into Visa. Apparently he likes both of
them. His purchase prices were between $99.11 and $120.06, with
an estimated average price of $103.87. The impact to his
portfolio due to this purchase was 3.6%. His holdings were
300,000 shares as of March 31, 2012.
Chuck Akre also bought Sears and Leucadia. Both are run by the
Gurus we track, Edward Lampert and Ian Cumming. Leucadia is now
traded at below book value. Our columnist has written detailed
research on Leucadia, submitted to our Value Idea Contest. You
can read it here: Value Contest Submission - Leucadia.
Here is the complete portfolio of Chuck Akre. Also check out the
Undervalued Stocks, Top Growth Companies and High Yield stocks of
Chuck Akre.About GuruFocus: GuruFocus.com tracks the stocks picks
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