Chris Davis

Chris Davis

Last Update: 2014-11-12

Number of Stocks: 185
Number of New Stocks: 21

Total Value: $32,192 Mil
Q/Q Turnover: 8%

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

Chris Davis Watch

  • Chris Davis New York Venture Fund Fall Review 2014

    Key Takeaways


    Our confidence in the coming decade is driven by the durability, growth potential and attractive valuations of our businesses. Significant co-investment, experience, patience, a willingness to look different, and research rigor can result in successful active management. Davis has more than $2 billion invested alongside its shareholders. Nearly 50% of funds have zero. Only 12% have more than $1 million.1 Since 1969, Davis New York Venture Fund outperformed the market in 71% of all rolling five year periods and 94% of all rolling 10 year periods versus 41% and 37% for all large cap funds respectively.2

      


  • DGX: A Healthy Diagnosis

    How much are you paying for the revenue of companies in your portfolio? The less you pay per dollar of revenue, the better. Why? Because revenue translates into earning power, and as we know, when earnings grow, they pull up stock prices. As with almost any asset, buying for less is best if it's an investment of some kind.


    Quest DiagnosticsTake the case of Quest Diagnostics Incorporated (DGX), which I found on the Historical Low Price/Sales Ratios screener at GuruFocus.

      


  • Chris Davis Comments on Kühne & Nagel International AG

    A current contrarian investment is Kuehne+Nagel (XSWX:KNIN), one of the world’s leading freight forwarders, whose business is currently out of favor due to the slowdown in global trade that we believe will be a temporary headwind. This Swiss-based company works behind the scenes to arrange the transport of heavy cargo typically from a manufacturer in one part of the world to a buyer who may be thousands of miles away. Logistics businesses like Kuehne+Nagel not only play a critical role in global trade but also are essential in managing the increasingly complex supply chain of global multinationals. While trade volume is cyclical in nature over the short term, we believe that the long-term trend in global trade favors growth and Kuehne+Nagel is well positioned to benefit from this tailwind in the years ahead.

    From Chris Davis (Trades, Portfolio)’ Davis International Fund Semi-Annual Review 2014.  


  • Chris Davis Comments on Groupe Bruxelles Lambert

    Groupe Bruxelles Lambert (XBRU:GBLB), an investment holding company listed on the Brussels Stock Exchange since 1956, is an example of an out-of-the-spotlight business in the Portfolio. The company, whose capitalization makes it one of the largest firms in Belgium, is an investment vehicle for Belgium businessmen Albert and Gerald Frère and the Desmarais family in Canada. Groupe Bruxelles Lambert tends to concentrate its investments in a handful of mostly European public companies it believes are undervalued industry leaders. Holdings include the integrated energy and chemicals company Total, the international utility company GDF Suez, the building materials firm Lafarge, the industrial minerals company Imerys, and the global wines and spirits company Pernod Ricard, all of which are based in France. Because the stock of Groupe Bruxelles Lambert trades at a significant discount to the market value of its investments, our ownership of this stock allows us to participate in this portfolio of businesses at a steeply discounted price.

    From Chris Davis (Trades, Portfolio)’ Davis International Fund Semi-Annual Review 2014.  


  • Chris Davis Comments on Essilor International SA

    Another example of a global market leader is Essilor (XPAR:EI), the world’s leading provider of coated prescription eyeglass lenses. Based in France, the company’s reach is truly global as it operates in more than 100 countries and dominates the market on every continent. It is also an innovator with a strong global research and development effort and regularly adds to its base of more than 5,000 patents. Essilor estimates as much as two-thirds of the world’s population could be helped by corrective lenses but only about a quarter so far have corrected vision, offering the company significant growth opportunities in the years ahead.

    From Chris Davis (Trades, Portfolio)’ Davis International Fund Semi-Annual Review 2014.  


  • Chris Davis Comments on Cie Financiere Richemont SA

    An example of a global market leader in the Portfolio is Compagnie Financière Richemont (XSWX:CFR), one of the world’s leading luxury goods groups. This Swiss-based company owns some of the world’s most prestigious brands, including jewelers Cartier and Van Cleef & Arpels; watchmakers Piaget, Vacheron Constantin, Jaeger-LeCoultre, Officine Panerai, and IWC; and makers of fine writing instruments such as Montblanc. Richemont has been adding stores in flagship cities, a strategy that offers better brand control and higher margins than its wholesale channel. Its powerful brands provide pricing power and act as a barrier to competitors. Long term we believe Richemont is well positioned to benefit from the global wealth effect, particularly in fast-growing emerging markets.

    From Chris Davis (Trades, Portfolio)’ Davis International Fund Semi-Annual Review 2014.  


  • Chris Davis Comments on Bank of New York Mellon

    Bank of New York Mellon (BK) is a third example of the type of financial services businesses that Davis Advisors finds attractive. This company is a behind-the-scenes giant in the mundane yet durable businesses of trust services, asset custody, transaction processing, and asset management. While less widely understood than its traditional banking peers, Bank of New York Mellon is at the forefront of its industry in size and depth, operating in 35 countries with a leading $27.9 trillion under custody and/or administration. Although not in a glamorous industry, we believe its business lines are profitable, scalable, less risky, and less capital intensive than traditional banking with good long-term growth potential worldwide.

    From Chris Davis (Trades, Portfolio)’ Davis Financial Fund Semi-Annual Review 2014.  


  • Chris Davis Comments on Wells Fargo

    Wells Fargo (WFC), another representative holding in the Fund, is one of the largest and we believe best-managed financial services companies in the United States. Wells Fargo provides banking, insurance, investment, mortgage, and consumer finance services across North America through its branch network as well as other channels. A key competitive advantage is its sizeable, low-cost retail deposit base that enables it to generate one of the highest net interest margins in the industry. We believe that risk management is a core company strength and that this business is well positioned for the years ahead.

    From Chris Davis (Trades, Portfolio)’ Davis Financial Fund Semi-Annual Review 2014.  


  • Chris Davis’ Davis Financial Fund Semi-Annual Review 2014

    Q: Please provide an overview of Davis Financial Fund.



    A: Davis Financial Fund invests in durable, well-managed financial services companies at value prices that can be held for the long term. Our expertise in studying and investing in financial services traces its roots to the 1940s when legendary investor Shelby Cullom Davis, known as the “Dean of Insurance Stocks,” began investing in financial companies. Davis Financial Fund was opened to investors in 1991.

      


  • Chris Davis International Fund Semi-Annual Portfolio Review

    Q: Please discuss the Fund’s recent performance.


    A: During the 12 months ending June 30, 2014, international equity markets advanced broadly with the MSCI ACWI® (All Country World Index) ex U.S. returning 21.75%. Davis International Fund outperformed the Index by a wide margin, returning 28.07% during the period.1

      


  • Chris Davis Opportunity Fund Research Team Commentary Q2 2014

    Q: Please provide an overview of Davis Opportunity Fund.


    A: Davis Opportunity Fund, which invests predominantly in U.S.-listed companies, has the flexibility to own companies of any size (small, mid and large cap) and to weight positions according to the managers’ level of conviction. The Fund’s management team – Christopher Davis, Danton Goei, Tania Pouschine, Ryan Brown, and Dwight Blazin – are among the most senior members of the Davis research team and exemplars in executing the Davis Investment Discipline.

      


  • Chris Davis International Funds - An Update from The Davis Research Team 2nd Quarter

    Q: Please discuss the Fund’s recent performance.

      


  • Chris Davis Comments on UnitedHealth Group

    UnitedHealth Group (UNH), the largest health care insurance company in the United States, is an example of a headline risk or contrarian holding in the Portfolio. The company focuses solely on its core health care business and has a diversified product line in most major segments including underwriting health insurance plans for large employers, administering plans on a non-risk basis, and offering Medicare Advantage as an alternative to traditional Medicare. In addition the company has successfully built an array of less regulated health care related noninsurance businesses, including the third largest pharmacy benefit management company, and also offers consulting and other services in the area of health care information technology. We view UnitedHealth Group as a well-managed and durable franchise with good growth potential that is overshadowed by current political debates.


    From Chris Davis' Davis New York Venture Fund First Quarter 2014 Update.

      


  • Chris Davis Comments on Paccar

    Paccar (PCAR) is an example of an out-of-the-spotlight holding in the Portfolio. Although not a household name, this more than 100-year-old company is the largest manufacturer of trucks in North America and also has a substantial and growing global presence. Paccar’s brands, including Kenworth and Peterbilt in the United States and DAF in Europe, have earned a reputation for high quality and longevity. Financially strong and resilient, the company regularly buys back shares and has paid a dividend every year since 1941. Management’s interests are aligned with shareholders’ as Paccar’s founding family owns nearly 30% of the company.


    From Chris Davis' Davis New York Venture Fund First Quarter 2014 Update.

      


  • Chris Davis Comments on American Express

    Another example of a global market leader in the Portfolio is American Express (AXP), which combines a strong, upscale charge card brand with ownership of the underlying payment network to create a unique business model. The company attracts some of the most desirable cardholders whose affluence leads to average spending about three times as great as ordinary bank cards. American Express reinforces this higher charge card spending with a market-leading cardholder rewards program, creating a virtuous circle of higher spending and higher rewards. The company earns much of its revenue from the transaction or interchange fees it charges merchants that accept its card. Because its payment network is wholly owned, American Express avoids sharing this important revenue source, generating significantly better economics than the payment networks of its competitors whose interchange fees are shared with banks. We believe American Express is well positioned to benefit over the long term as card-based transactions continue to increase at the expense of cash-based transactions.


    From Chris Davis' Davis New York Venture Fund First Quarter 2014 Update.

      


  • Chris Davis Comments on Google

    Google (GOOGL), an example of a market leader in the Portfolio, globally dominates the business of online search with a market share of more than 65%. We consider Google a new generation media company with a business model that is exceptionally well positioned to capitalize on the continuing transition from traditional print and television media to Internet-based content and advertising. With advertising representing about 95% of its revenue, Google is one of the largest advertising companies in the world. Financially strong, Google is a cash flow machine with no net debt and ample liquidity provided by its substantial cash balances.


    From Chris Davis' Davis New York Venture Fund First Quarter 2014 Update.

      


  • A Conversation with a Third Generation Value Investor - Chris Davis

    Value investing is all in the family for Chris Davis (Trades, Portfolio). From his grandfather to his father and now to him, Chris Davis (Trades, Portfolio) carries on a family tradition of value investing.


    In the interview below Davis explains how he approaches investing by focusing on long term business value and not pieces of paper.

      


  • Another Pick by Peter Lynch

    Oil prices have entered a faithful declining trend in April 2011. Until then, crude oil prices were closer to $130 per barrel of oil equivalent; today, the value has slipped below $110. As a consequence, operating margins in the oil and gas industry have been reduced. For some competitors, the new context meant renewed financial trouble. For others, however, it meant an opportunity to settle the business as competition eased somewhat. Most telling are the actions taken by Statoil (STO), a self-imposed slowdown to guarantee a sounder business model through debt reduction and improvement of reserve replacement ratio. Canadian Natural Resources (CNQ) appears to be taking similar steps, and gurus with long-term positions have not modified their opinion. Last, according to the Peter Lynch’s earnings line, this is a good moment for entering a position in the company.


    Old and New Assets

      


  • Chris Davis' Davis Funds 2013 Portfolio Managers Update

    The chart below summarizes results through December 31, 2013 for Davis New York Venture Fund. As the Fund’s managers, my colleagues and I at Davis Advisors have two objectives: to earn a satisfactory absolute investment return and to generate relative results in excess of the S&P 500® Index. In our view, the data in the chart below presents a mixed picture. Over virtually all periods, the Fund’s absolute returns have been satisfactory. In particular, a one year return of 35% and five year compounded annual return of 16% should be considered extraordinary.1 On a relative basis, we fell short of our goal in a number of these periods. Although both goals are important, if forced to choose between strong absolute returns in which we trailed the market or negative absolute returns in which we beat the market, we would far prefer the former. When people choose to invest rather than spend their hard earned money, their objective is generally to be able to afford something more in the future. For our shareholders, this might mean a child’s or grandchild’s education, a more comfortable retirement, a new house, or simply the peace of mind that comes from being prepared for life’s unexpected expenses. Thus, as stewards of shareholders’ savings, we always remember the wisdom of the old saying, “you can’t eat relative returns.” However, we aim to achieve both goals and unquestionably have ground to make up on a relative basis. The year 2013 was a good start but we have a ways to go.


    The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s shares may be worth more or less than their original cost. The total annual operating expense ratio for Class A shares as of the most recent prospectus was 0.88%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800-279-0279.

      


  • Davis Selected Advisers Chris Davis' Top Five Holdings at Year-End

    Over the past quarter Chris Davis of Davis Selected Advisers reported a total portfolio of 184 stocks valued at $40.93 billion. The guru purchased 14 new stocks over the quarter.



    The Davis Funds select their stocks based on the types of businesses that they would want to own. Their criterion includes companies with proven management and durable, financially strong business models as well as companies with sustainable competitive advantages.
      


Add Notes, Comments

If you want to ask a question, or report a bug, please create a support ticket.

User Comments

No comment yet



Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK