Chuck Akre

Chuck Akre

Last Update: 02-13-2015

Number of Stocks: 36
Number of New Stocks: 0

Total Value: $3,798 Mil
Q/Q Turnover: 3%

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

Chuck Akre Watch

  • Analyzing Chuck Akre's Top Buys: CarMax

    Chuck Akre (Trades, Portfolio) is the founder of Akre Capital Management LLC. He has been in the securities business since 1968, and continues to be the primary person responsible for his firm's investment advisory services and investment selection. He was on Barron's "Top 100 Mutual Fund Managers" list from 2003-2006, one of only two small cap growth managers to make the list four consecutive years. Akre employs a classic value approach in selecting companies for his portfolio. He likes to buy companies with strong business model demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share. He also looks at the quality of the management.


    Akre's portfolio turnover is remarkably low. His portfolio is also concentrated, with about 40 stocks, and his top ten holdings typically make up over 60% of assets.He has been increasing his stake in CarMax (KMX) for the past couple of quarters. He bought 505,000 shares of the company last quarter. As of Dec 31, 2014, he was holding 1.7 million shares of the company. The following chart shows his holding history in the company.

      


  • Analyzing Chuck Akre's Top Holdings: Roper Industries

    Chuck Akre (Trades, Portfolio) is the founder of Akre Capital Management LLC. He has been in the securities business since 1968, and continues to be the primary person responsible for his firm's investment advisory services and investment selection. He was named to Barron's "Top 100 Mutual Fund Managers" list from 2003-2006, one of only two small cap growth managers to make the list four consecutive years. Chuck Akre (Trades, Portfolio) employs a classic value approach in selecting companies for his portfolio. He likes to buy companies with strong business model demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share. He also looks at the quality of the management.


    Chuck Akre (Trades, Portfolio)'s portfolio turnover is remarkably low. His portfolio is also concentrated, with about 40 stocks, and his top ten holdings typically make up over 60% of assets. Roper Industries (ROP) is one of his top ten holdings. As of the last quarter, he was holding 1,146,390 shares of the company.

      


  • Akre Focus Fund 4th Quarter 2014 Commentary

    The fourth quarter turned out to be the strongest of the year. And, as we shared with you in the third quarter letter, we began to put excess capital to work in the fall. We remain pleased with the holdings in the portfolio and feel there have been few surprises in the operating experiences of the Fund’s holdings. We remain optimistic as to the continuation of strong operating performance, given the nature of the businesses owned. As usual, we are not waiting with baited breath for the release of earnings reports or other corporate filings. We are able to move beyond that precisely because of our investment philosophy and implementation.


    The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 6.97% and 7.03%, respectively, net of fees and expenses in the fourth quarter of 2014 versus the S&P 500 with a return of 4.93% for the same period.

      


  • Akre Adds to Stakes in Third Quarter

    An English literature major in college, guru Chuck Akre (Trades, Portfolio)’s education didn’t appear – on the surface – to prepare him for a career in finance. Upon his graduation from college, he considered going to medical school before opting for the path he took – a path that ultimately led him to start his own firm, Akre Capital Management, in 1989.


    Akre calls his investment philosophy the “three-legged stool” approach, which emphasizes business models, rates of return and reinvestment opportunities. The name is derived from a small milking stool he has in his office. The reasoning behind the name is that, on such a stool – low to the ground – a farmer will not fall far if it flipped over while he was using it. The suggestion is that ACM's investors won’t suffer serious damage if their investments go south on them.

      


  • Bargain Hunting Among the All-Time High List

    Most value investors use the 52 week low or all-time low stock list as a screening tool. I myself was certainly in that camp. Logically speaking, it makes sense to shop in the bargain department as demonstrated by lowest prices.


    What I found interesting is that I see many stocks appear on the all-time low list day after day after day and a good amount of them stay on the low list for an extended period of time. This made me think – do I really want shop in this department?

      


  • Motley Fool's Top Positions in the Financial Sector

    Recently, hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission. In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into Motley Fool Asset Management.


    Recently, the fund reported its equity portfolio ended September. The total value of the portfolio amounted to $492.4 million, down from $521.5 million disclosed at the end of the previous quarter. Consequently, the fund's equity market change value was negative 21.5 million in the last quarter. The filing revealed that at the end of September, the fund added three new positions to its equity portfolio and sold out three positions. The top 10 portfolio holdings as of the end of the quarter represented 29.03%. The largest changes from previous 13-Fs fillings are in the energy and consumer discretionary sectors.

      


  • Chuck Akre’s Akre Focus Fund Q3 2014 Commentary

    As you are aware, prices in the third quarter declined by a modest amount in general, but significantly in a few places that interested us a great deal. We actually welcome the current disruption in the market, as it presents us with an opportunity to add to our investments in several of our favorite holdings at more favorable valuations. This is thoroughly consistent with our long-term outlook as investors rather than speculators of stock prices. The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned -1.42% and -1.36%, respectively, net of fees and expenses in the third quarter of 2014 versus the S&P 500 with a return of 1.13% for the same period.


    Our positions in American Tower and Moody’s were the largest contributors to performance over the quarter. Colfax and Markel were the most meaningful detractors from performance over the quarter. At the end of the third quarter the Fund was approximately 94.3% invested and the portfolio held 30 positions.

      


  • Danaher: Prices Go Up While ROE Goes Down

    In this article, let´s see one of the most important financial ratios applying to stockholders, the best measure of performance for a firm's management: the Return on Equity (ROE), and we are going to analyze it in the case Danaher Corp. (DHR)


    ROE is calculated as net income applicable to common shares divided by the average book value of common equity: ROE = Net Income / Av. Book Value

      


  • What About CarMax and Its 'Non-Conventional Strategies'?

    In this article, let's take a look at CarMax Inc. (KMX),a $11.69 billion market cap company, which is the largest U.S. retailer of used vehicles. It owns and operates more than130 used car superstores in about 60 markets and sells new vehicles at five locations.


    Successful “No-Haggle Pricing”

      


  • Do You Understand the Business?

    One of the key concepts in value investing is circle of competence. Warren Buffett (Trades, Portfolio) has always reminded us to stick to our circle of competence. Only investing in businesses that you can understand intuitively makes sense but what I’ve observed over the years is that the proper definition of understanding a business is often misconstrued.


    Many investors equate understanding the business to understanding the product or service of the business. I certainly wasn’t too far from that line of thinking in my earlier investment journey. I was ignorant enough to think that Coca-Cola, MasterCard and Wal-Mart were without doubt within my circle of competence. I don’t drink Coke, but I certainly know what Coke is. Heck, better yet, I even know Cherry Coke and Diet Coke. I have two credit cards that have MasterCard sign on them and I use them very often. I also go to Wal-mart occasionally. How could I not understand these businesses? They are part of our daily lives.

      


  • Chuck Akre Comments on MasterCard Corporation

    MasterCard Corporation (“MasterCard”) (NYSE: MA)


    Market cap: $85.8 billion (as of 6/30/14)

      


  • Chuck Akre Comments on Moody’s Corporation

    Moody’s Corporation (“Moody’s”) (NYSE: MCO)


    Market Cap: $18.7 billion (as of 6/30/14)

      


  • Chuck Akre Comments on Colfax Corporation

    Colfax Corporation (“Colfax”) (NASDAQ: CFX)


    Market Cap: $9.2 billion (as of 6/30/14)

      


  • Chuck Akre Comments on American Tower Corporation

    American Tower Corporation (“American Tower”) (NYSE: AMT)


    Market Cap: $35.6 billion (as of 6/30/14)

      


  • Chuck Akre 2nd 2014 Quarter Commentary

    AKRE FOCUS FUND 2nd QUARTER 2014 COMMENTARY


    We continue to believe the U.S. economy is making modest advances. With that said, it will not surprise you that we disclaim any ability to forecast the rate of U.S. economic growth over the next six months, or six years for that matter. A mentor once remarked, “Happiness comes from small improvements.” The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 3.70% and 3.76%, respectively, net of fees and expenses in the second quarter of 2014 versus the S&P 500 with a return of 5.23% for the same period.

      


  • Don't Be Afraid to Pay a Little Bit More

    “Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, a low dividend yield – are in no way inconsistent with a ‘value’ purchase.”


    - Warren Buffett (Trades, Portfolio)’s 1992 Letter to Shareholders

      


  • Chuck Akre's Focus Fund First Quarter 2014 Commentary

    From our perch in Middleburg it looks to us like the market continues to absorb the often unpleasant news from around the world. Every so often the market has indigestion. With the attendant back and forth of emotions, it follows that investment outcomes for the first quarter were fairly benign. The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 1.10% and 1.19% net of fees and expenses, respectively in the first quarter of 2014 versus the S&P 500 with a return of 1.81%.


    Our positions in Colfax and O'Reilly Auto were the largest contributors to performance over the quarter. MasterCard and Dollar Tree were the most meaningful detractors from performance over the quarter. At the end of the first quarter the Fund was approximately 91.4% invested and the portfolio held 31 positions.

      


  • Chuck Akre: Investing in Compounding Machines

    We had the honor to hear from Mr. Chuck Akre (Trades, Portfolio) from Akre Capital Management at the Value Investor Conference, which was held in Omaha on May 1-2, the days before the Berkshire Hathaway shareholder meeting. Mr. Akre’s topic is “Investing in Compounding Machines.” Below are the notes from his speech.

    Good judgment comes from experiences and experiences come from bad judgment. Many years ago, when I was getting into this business, since I had no formal training, I started to think about what makes a good business and what makes a good investment. So let me ask you what’s a good investment?  


  • Quality and Good Prices Are the Foundations of Expansion Plans for CarMax

    CarMax Inc. (KMX) is engaged as a retailer of used vehicles. The company operates in two segments: CarMax Sales Operations, which consist of auto merchandising and service operations, excluding financing provided by CarMax AutoFinance (CAF); and CAF, which consists of finance operation that provides vehicle financing to customers through its superstores. Let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.


    Aggressive Store Growth Policy

      


  • Chuck Akre Comments on Colfax Corp.

    The only other business included in the top ten which we have not previously mentioned is Colfax Corp. (CFX). This is a manufacturing company whose business model is to acquire other manufacturing business and rationalize them in such a way as to importantly improve their operating results. The management of Colfax Corp. has demonstrated this skill at another company with which we are familiar, and we believe we have an important opportunity here, hence a top ten holding.

      


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