Ruane Cunniff

Ruane Cunniff

Last Update: 02-14-2017

Number of Stocks: 92
Number of New Stocks: 11

Total Value: $10,642 Mil
Q/Q Turnover: 8%

Countries: USA SGP
Details: Top Buys | Top Sales | Top Holdings  Embed:

Ruane Cunniff' s Profile & Performance

Profile

This is the firm founded by William Ruane, who died in Oct. 2005. We continue to track its stock picks. The current investment committee is directed by Richard T. Cunniff. William Ruane is a Graham-and-Doddsville superinvestor recognized by Warren Buffett. William Ruane was founder and Chairman of Sequoia Fund, Inc. (SEQUX). Since inception in 1970 through September 30, 2007, the Fund has returned 15.57% average annually. During the same period the S&P 500 returned an average 11.86% annually. He is a student of Benjamin Graham, and attended his class at the same time as Warren Buffett.

Web Page:http://www.sequoiafund.com/

Investing Philosophy

Ruane Cunniff are value investors focused on the intrinsic value of business. They are long-term investors, and will buy a stock and hold it for a long time, even if sometimes the stocks seem to be overvalued. They look at common stocks as units of ownership in a business, and purchase them when the price appears low in relation to the value of the total enterprise. The Firm shuns technical stock market studies, and looks at the balance sheet, earnings history, and prospects of each investment when determining its value.

Total Holding History

Performance of Sequoia Fund

YearReturn (%)S&P500 (%)Excess Gain (%)
2016-6.911.96-18.9
2015-7.311.38-8.7
20147.5613.69-6.1
3-Year Cumulative-7.2 (-2.5%/year)29 (8.9%/year)-36.2 (-11.4%/year)
201334.5832.392.2
201215.6816-0.3
5-Year Cumulative44.5 (7.6%/year)98.2 (14.7%/year)-53.7 (-7.1%/year)
201113.192.1111.1
201019.515.064.4
200915.3826.46-11.1
2008-27.03-3710.0
20078.45.492.9
10-Year Cumulative78.4 (6%/year)95.7 (6.9%/year)-17.3 (-0.9%/year)
20068.3415.79-7.4
20057.784.912.9
20044.6610.88-6.2
200317.1228.68-11.6
2002-2.64-22.119.5
15-Year Cumulative148.6 (6.3%/year)164.2 (6.7%/year)-15.6 (-0.4%/year)
200110.52-11.8922.4
200020.06-9.129.2
1999-16.5421.04-37.6
199835.2528.586.7
199743.233.369.8
20-Year Cumulative433.2 (8.7%/year)339.2 (7.7%/year)94 (1%/year)
199621.7422.96-1.2
199541.3837.583.8
19943.341.322.0
199310.7810.080.7
19929.367.621.7
25-Year Cumulative1048.9 (10.3%/year)791.8 (9.1%/year)257.1 (1.2%/year)
19914030.479.5
1990-3.8-3.1-0.7
198927.9131.69-3.8
198811.0516.61-5.6
19877.45.12.3
30-Year Cumulative2260.5 (11.1%/year)1719.7 (10.2%/year)540.8 (0.9%/year)
198613.3818.6-5.2
198527.9531.6-3.6
198418.56.112.4
198327.3122.44.9
198231.1221.49.7
35-Year Cumulative6673.9 (12.8%/year)4377.7 (11.5%/year)2296.2 (1.3%/year)
198121.49-526.5
198012.6632.3-19.6

Top Ranked Articles

Ruane Cunniff Makes One Significant Buy Sequoia Fund enters dental space after disposing of Valeant
On Tuesday, Ruane Cunniff (Trades, Portfolio) disclosed its first quarterly update since losing significantly on a position in Valeant Pharmaceuticals (NYSE:VRX), a fast-growing drug maker accused of price gouging and a dubious relationship with a pharmacy. The firm’s Sequoia Fund made only one large purchase during the third quarter, Dentsply Sirona (NASDAQ:XRAY). Read more...
Ruane Cunniff Comments on Wells Fargo Guru stock highlight
Wells Fargo (NYSE:WFC) is the highest return and arguably the best run very large bank in the U.S. It is the number one U.S. bank in many categories including retail deposits; middle market, small business and used car lending; equipment and inventory financing; railcar leasing; and commercial and residential mortgage servicing and originations. It is in fewer volatile business lines than other large banks. It leads the industry in the intensity of its customer relationships with over six products per customer. The number of primary checking accounts at Wells is currently growing at around 5%, an impressive growth rate for a financial institution of this size. Through deposit-driven asset growth and stock buybacks, Wells has done a good job of counteracting shrinking net interest margins over the past decade. Read more...
Ruane Cunniff Comments on Wells Fargo Guru stock highlight
We did not add to or reduce our 2% position in Wells Fargo (NYSE:WFC) during the quarter, but recent events prompt us to share our thoughts on the bank with you. News emerged in September that since 2011, Wells Fargo employees had created up to 2.1 million sham customer accounts in order to meet aggressive sales quotas set by bank management. While this behavior caused the bank to fire some 5,300 employees over a period of five years, the bank was distressingly slow to change the incentives that prompted this bad behavior. We believe that Wells management has damaged the bond of trust the bank had built with its customers, and that senior executives should be held accountable for the practices their policies engendered. That said, it is important to note that only about 5% of the unauthorized accounts had fees associated with them—and that these fees came to about $2.6 million in total. Wells Fargo is an enormous enterprise, with 93 million customer accounts and $22.4 billion of net income in the past year. The sham accounts did not make money for Wells, and more likely cost it money as the bank paid bonuses to employees who opened Read more...
Ruane Cunniff Comments on Dentsply Sirona Guru stock highlight
After a busy second quarter in terms of portfolio activity, the third quarter was far quieter. Our only significant purchase was of the dental supply leader Dentsply Sirona (NASDAQ:XRAY). We’ve owned predecessor company Sirona since 2011, and it has been an excellent performer. Our original investment thesis was based on Sirona’s leadership in digital dentistry. Sirona is strong in digital equipment, and its product line includes CEREC, an incredibly innovative and useful CAD/CAM system that allows dentists to design and mill crowns in their offices during the course of a single patient visit. The merger brings together the highest-tech maker of dental equipment (Sirona) with the largest maker of dental consumables (Dentsply), creating the industry’s largest global supplier. It is our belief that Dentsply Sirona is in a unique position to create and sell new value-added solutions in both equipment and consumables over the years ahead. In addition, we think CEO Jeff Slovin is the right person to drive the combined organization toward a world-class level of Read more...
Francis Chou Adds to 2 Positions in 2nd Quarter Guru reports quarterly portfolio
During the second quarter, Francis Chou (Trades, Portfolio) of Chou Associates Management added 48.11% and 38.77% to its positions in Valeant Pharmaceuticals International Inc. (NYSE:VRX) and Sears Holdings Corp. (NASDAQ:SHLD). As the stock prices continue to decline, the companies offer investing opportunities. The above transactions align with Chou’s strategy of investing in companies with depressed prices. Read more...
» More Ruane Cunniff Articles

Commentaries and Stories

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Ruane Cunniff Sells Berkshire and Praxair, Exits Walmart The guru's largest 4th-quarter deals Ruane Cunniff,Tom Russo,Chris Davis,First Eagle In - Ruane Cunniff Sells Berkshire And Praxair, Exits Walmart
Ruane, Cunniff & Goldfarb Inc. was founded by William Ruane, and Ruane Cunniff (TradesPortfolio)'s current investment committee is directed by Richard Cunniff. He manages a portfolio composed of 92 stocks with a total value of $10.642 billion. During the fourth quarter the guru sold shares in the following stocks: More...

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Valeant Pharmaceuticals Is a Potential Sell Company reports declining financial outlook for 2017 Steven Cohen,Ruane Cunniff,Bill Ackman - Valeant Pharmaceuticals Is A Potential Sell
Valeant Pharmaceuticals Inc. (NYSE:VRX) reported a net loss of $515 million during fourth-quarter 2016 based on generally accepted accounting principles and an adjusted EBITDA of $1.05 billion. For full-year 2016, the company reported a GAAP net loss of $2.4 billion, which translates to a loss per share of approximately $6.94. These values suggest that Valeant has a weakening financial outlook for 2017. More...

BILL ACKMAN, RUANE CUNNIFF, STEVEN COHEN


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Ruane Cunniff Comments on Liberty Media Guru stock highlight
At the very end of the year, we found what we believe will be another good use for our dry powder when we joined a select group of investors in purchasing a stake in Liberty Media Group, a John Malone-affiliated company, as part of Liberty’s acquisition of the Formula One auto racing business. The deal closed on January 23, and Sequoia purchased 4.7 million shares at a discounted price of $25 per share.Recently, Liberty Media (NYSE:BATRR) has traded above our cost basis in the public market. Sequoia’s allocation will be restricted for several months, meaning we won’t be able to sell the shares. During that time, accounting rules require us to price the stock at a modest discount to its market price to reflect its illiquidity. Undoubtedly, the share price will fluctuate during the lock-up period, but we’re delighted to have acquired shares at what we believe is an attractive price. More importantly, we believe Formula One is a powerful global brand and Liberty will be an excellent manager. Our expectation More...

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Ruane Cunniff Comments on Amazon Guru stock highlight
In the fall, we exited our small position in Walmart and replaced it with a similarly small position in Amazon (NASDAQ:AMZN). The company’s e-commerce operation (Amazon.com) and its cloud computing platform (Amazon Web Services) are two of the most advantaged businesses we’ve analyzed in quite some time. Both are growing fast and have miles of runway ahead of them. And they are run by arguably the most talented, customer-focused and long term-oriented businessman of his generation.At a consolidated level, Amazon produces very little in the way of reported profits. Amazon Web Services, whose financials are disclosed separately, earns very rich margins, but the larger e-commerce business reports scant earnings. Our research indicates that the company’s e-commerce business has substantial earnings power that is being masked by a variety of ambitious growth investments. The Fund purchased shares at what we believe to be a reasonable multiple of underlying earnings power excluding those investments. Estimating More...

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Ruane Cunniff Comments on Chipotle Guru stock highlight
Chipotle (NYSE:CMG) has been a weak performer, down 13% since purchase through the end of 2016. We knew Chipotle faced a long road to recovery after several outbreaks of food-borne illnesses frightened customers away, but we were attracted by the enormous potential of the business, which could grow for many years and generate high returns if the executive team manages the recovery adeptly. Chipotle is making changes to management and its board of directors, including adding a director who played a key role in the turnaround at McDonald’s a decade ago. Recently reported sales figures for December showed encouraging gains in customer traffic, but we are watching carefully, as the pace of recovery thus far has fallen short of our initial expectations. More...

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Ruane, Cunniff & Goldfarb's Sequoia Fund 4th Quarter Shareholder Letter Discussion on 'most difficult year' Ruane Cunniff - Ruane, Cunniff & Goldfarb's Sequoia Fund 4th Quarter Shareholder Letter
Dear Shareholder: More...

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O’Reilly Automotive: Does Debt Diminish Its Value Stock Status? This auto parts retailer has several powerful metrics in its favor, but also a hefty amount of long-term debt Lee Ainslie,Ruane Cunniff - O’Reilly Automotive: Does Debt Diminish Its Value Stock Status?
O’Reilly Automotive Inc. (NASDAQ:ORLY) currently holds a spot on the Undervalued Predictable screener list at GuruFocus due to a couple of recent dips in the share price: More...

AUTO PARTS, RETAIL, SPECIALTY RETAIL, UNDERVALUED, PREDICTABLE, PULLBACK, LONG


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21 Questions for Bluegrass Capital's Founder 'I shy away from interacting with management as I am generally afraid the relationship will create bias' Jim Simons,Ruane Cunniff,Bill Gates,Tom Gayner,Mur - 21 Questions For  Bluegrass Capital's Founder
Thank you for your interest in me. I am a longtime follower of your site and hope my responses prove useful to at least a few of your readers. I look forward to other interviews in this series. More...

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Ruane Cunniff Makes One Significant Buy Sequoia Fund enters dental space after disposing of Valeant Ruane Cunniff - Ruane Cunniff Makes One Significant Buy
On Tuesday, Ruane Cunniff (Trades, Portfolio) disclosed its first quarterly update since losing significantly on a position in Valeant Pharmaceuticals (NYSE:VRX), a fast-growing drug maker accused of price gouging and a dubious relationship with a pharmacy. The firm’s Sequoia Fund made only one large purchase during the third quarter, Dentsply Sirona (NASDAQ:XRAY). More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Ruane Cunniff Comments on Wells Fargo Guru stock highlight
We did not add to or reduce our 2% position in Wells Fargo (NYSE:WFC) during the quarter, but recent events prompt us to share our thoughts on the bank with you. News emerged in September that since 2011, Wells Fargo employees had created up to 2.1 million sham customer accounts in order to meet aggressive sales quotas set by bank management. While this behavior caused the bank to fire some 5,300 employees over a period of five years, the bank was distressingly slow to change the incentives that prompted this bad behavior. We believe that Wells management has damaged the bond of trust the bank had built with its customers, and that senior executives should be held accountable for the practices their policies engendered. That said, it is important to note that only about 5% of the unauthorized accounts had fees associated with them—and that these fees came to about $2.6 million in total. Wells Fargo is an enormous enterprise, with 93 million customer accounts and $22.4 billion of net income in the past year. The sham accounts did not make money for Wells, and more likely cost it money as the bank paid bonuses to employees who opened More...

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Ruane Cunniff Comments on Walmart Guru stock highlight
We reduced our holding in Walmart (NYSE:WMT) during the quarter, and exited the stock in early October. Over our 11-year holding period, Walmart generated a positive total shareholder return but modestly underperformed the S&P 500 Index. Walmart remains a formidable company, but over the past decade its dominance has waned. International expansion has never generated good returns for shareholders, while Walmart has struggled to develop a winning e-commerce strategy. We think higher wages for its entry level workers, continued growth at Amazon and the need to invest heavily in e-commerce will put pressure on Walmart’s earnings over the next few years. More...

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Ruane Cunniff Comments on Trimble Navigation Guru stock highlight
We sold our few shares of Trimble Navigation (NASDAQ:TRMB). While Trimble is an interesting business, it has diversified away from its core GPS offerings for agricultural and construction machinery into a host of new areas, few of which have borne fruit. As Trimble amounted to less than 1% of the Fund’s holdings and we weren’t excited about its diversification efforts, we exited. Over our six-year holding period, Trimble generated a positive return but underperformed the Index. More...

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Ruane Cunniff Comments on Dentsply Sirona Guru stock highlight
After a busy second quarter in terms of portfolio activity, the third quarter was far quieter. Our only significant purchase was of the dental supply leader Dentsply Sirona (NASDAQ:XRAY). We’ve owned predecessor company Sirona since 2011, and it has been an excellent performer. Our original investment thesis was based on Sirona’s leadership in digital dentistry. Sirona is strong in digital equipment, and its product line includes CEREC, an incredibly innovative and useful CAD/CAM system that allows dentists to design and mill crowns in their offices during the course of a single patient visit. The merger brings together the highest-tech maker of dental equipment (Sirona) with the largest maker of dental consumables (Dentsply), creating the industry’s largest global supplier. It is our belief that Dentsply Sirona is in a unique position to create and sell new value-added solutions in both equipment and consumables over the years ahead. In addition, we think CEO Jeff Slovin is the right person to drive the combined organization toward a world-class level of More...

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Sequoia Fund 3rd Quarter Update, Says Wells Fargo 'Attractive' Ruane Cunniff reflects on portfolio and activity since Valeant fallout Ruane Cunniff - Sequoia Fund 3rd Quarter Update, Says Wells Fargo 'Attractive'
Dear Clients and Shareholders: More...

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PRIMECAP Adds to Trimble, NN Inc. Firm adds to positions in technology and industrial products stocks PRIMECAP Management,Ruane Cunniff,Meridian Funds,J - PRIMECAP Adds To Trimble, NN Inc.
PRIMECAP Management (Trades, Portfolio) added to its positions in Trimble Inc. (NASDAQ:TRMB) and NN Inc. (NASDAQ:NNBR) on Sept. 30. More...

PRIMECAP, BUY, ADD, TECHNOLOGY, INDUSTRIALS


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Ruane Cunniff Cuts Allergan, Berkshire, IBM Largest sale by the guru in 2nd quarter Ruane Cunniff,Warren Buffett,Tom Russo,Chris Davis - Ruane Cunniff Cuts Allergan, Berkshire, IBM
Ruane Cunniff (Trades, Portfolio) is a value investor focused on the intrinsic value of business. It manages a portfolio composed of 118 stocks with a total value of $10.499 billion. During the second quarter the guru traded the following stocks. More...

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Francis Chou Adds to 2 Positions in 2nd Quarter Guru reports quarterly portfolio Francis Chou,Ruane Cunniff,Bill Ackman,Fairholme F - Francis Chou Adds To 2 Positions In 2nd Quarter
During the second quarter, Francis Chou (Trades, Portfolio) of Chou Associates Management added 48.11% and 38.77% to its positions in Valeant Pharmaceuticals International Inc. (NYSE:VRX) and Sears Holdings Corp. (NASDAQ:SHLD). As the stock prices continue to decline, the companies offer investing opportunities. The above transactions align with Chou’s strategy of investing in companies with depressed prices. More...

FRANCIS CHOU, RUANE CUNNIFF, BILL ACKMAN, BRUCE BERKOWITZ


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Ruane Cunniff Comments on Wells Fargo Guru stock highlight
Wells Fargo (NYSE:WFC) is the highest return and arguably the best run very large bank in the U.S. It is the number one U.S. bank in many categories including retail deposits; middle market, small business and used car lending; equipment and inventory financing; railcar leasing; and commercial and residential mortgage servicing and originations. It is in fewer volatile business lines than other large banks. It leads the industry in the intensity of its customer relationships with over six products per customer. The number of primary checking accounts at Wells is currently growing at around 5%, an impressive growth rate for a financial institution of this size. Through deposit-driven asset growth and stock buybacks, Wells has done a good job of counteracting shrinking net interest margins over the past decade. More...

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Ruane Cunniff Comments on Charles Schwab Guru stock highlight
Charles Schwab (NYSE:SCHW) pioneered the discount brokerage business in the mid-1970s and has remained an innovator in the investment services industry ever since. It built the well-known OneSource marketplace to provide individual investors access to thousands of no-load mutual funds and was among the first to provide individual investors with an online interface. The success of its investor-friendly strategy is evidenced by a tripling of the company’s client assets from $870 billion in 2000 to more than $2.5 trillion at year-end 2015. This makes Schwab the largest publicly-traded investment services firm in the U.S., ahead of all other discount brokers as well as all the wirehouses. We believe Schwab will continue to attract new brokerage accounts and client assets. More...

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Ruane Cunniff Comments on Chipotle Mexican Grill Guru stock highlight
In the latter half of 2015, a series of pathogen outbreaks at Chipotle Mexican Grill (NYSE:CMG) caused a precipitous drop in traffic at the Mexican-themed restaurant chain. The ensuing negative publicity caused Chipotle’s stock to drop into the low $400 range from a high of $757 per share. Prior to the outbreaks, Chipotle was one of the most successful restaurant concepts of the past thirty years. CEO Steve Ells, a classically trained chef, helped pioneer the concept of high-quality food made from fresh ingredients in a fast casual environment. Chipotle’s high quality product, simple menu, and efficient service combined to make its restaurants extraordinarily profitable, and this in turn has allowed Chipotle to expand its footprint at a rapid pace without resorting to franchising or borrowing money. More...

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