Donald Smith

Last Update: 2014-02-18

Number of Stocks: 80
Number of New Stocks: 3

Total Value: $5,017 Mil
Q/Q Turnover: 4%

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

Donald Smith Watch

  • Shinning with Donald Smith’s New Buys

    Donald G. Smith is the CIO of Donald Smith (Trades, Portfolio) & Co. In the last quarter he bought three new stocks, and holds 80 in total, in a portfolio valued at $5.017 million.


    New Gold Inc. (NGD)

      


  • Guru Donald Smith's Top Five Q4 Stocks

    Donald Smith (Trades, Portfolio) is the guru and CIO of Donald Smith (Trades, Portfolio) & Co., a registered investment adviser specializing in managing value equity accounts for tax-exempt and taxable funds, as well as high net worth individuals. The deep-value investing fund looks for out-of-favor stocks that are valued in the bottom decile of price-to-tangible book value ratios.


    Over the past quarter Donald Smith (Trades, Portfolio) added three new stocks to his holdings bringing his total portfolio to 80 stocks valued at $5.017 billion.

      


  • Weekly 3-Year Low Highlights: BJRI, NTZ, PRXI, MNDO

    According to GuruFocus list of three-year lows; BJ’S Restaurants Inc., Natuzzi SPA, Premier Exhibitions Inc., and Mind C.T.I. Ltd. have all recently reached their three-year lows.

    BJ's Restaurants Inc. (BJRI) Reached the Three-Year Low of $28.59  


  • Not Everything That Shines Is Gold

    After reaching a three-month high, gold prices fell once again following the announcement of a possible strike on Syria. Considering investors are already skeptical when it comes to gold mining firms, due to their cyclical nature, Yamana Gold Inc. (AUY) and Eldorado Gold Corp (EGO) have a lot to prove.

    A Potential Buy  


  • Donald Smith’s Q3 Portfolio Updates: Two New Stocks Are StanCorp Financial and Nabors Industries

    Guru investor Donald Smith of New-York based Donald Smith & Co. Inc. investment firm, has reported a total of 31 transactions in its third quarter portfolio updates, consisting of:

    Additions to Current Shares 10
    New Buys 2
    Reductions to Current Shares 17
    Sold Out 2
      


  • RadioShack (RSH): Short-Term High Expected Return

    Driven by what I believe is the markets miscalculation of current short term risk. So even if the bears are right and RSH is just a large piece of melting ice, they can still be short-term materially wrong on the estimated decay rate and month, quarter or year of a complete meltdown. If and when that day is reached there could be countless short-term catalysst to push the stock significantly higher, providing a satisfactory return with lower market risk.

    The problems with RadioShack are well known as evident by downgrades and a negative 72% 52-week return. While doing some research I stumbled upon this mock former CEO interview. Funny and I think we've all asked ourselves some of those mock "questions," but it does force one to think and realize for long-term investors the struggle is real. Serious bears will appreciate this tongue-in-cheek CEO interview.  


  • Deep-Value Investor Donald Smith Adds Shares of Photronics Inc.

    Donald Smith, CIO of Donald Smith & Co., added 486,804 shares of Photronics Inc. (PLAB) on May 24, 2012 at about $5.69 per share, according to GuruFocus Real Time Picks. After the purchase, he owns 10.07 percent of the company’s outstanding shares. Smith is a deep-value, strict bottom-up manager who invests in out-of-favor companies.

    Photronics is one of the world’s leading suppliers of reticles and photomasks, components used in the semiconductor and flat panel display industries. In the second quarter ended April 29, 2012, it had revenue of $117.5 million, a 5 percent sequential increase, and a year over year decline from $133.1 million. GAAP net income for the quarter was $8.8 billion, compared to a loss of $16.4 billion the previous year, which included a $30 million debt extinguishment due October 2014. On a non-GAAP basis net income was $14.8 billion in last year’s quarter.  


  • Donald Smith Buys Low P/B Stocks: EXC, WPX, AAV, RSH, VLO

    Donald Smith measures the valuation of companies with price to book (P/B) ratios. He loves to buy good companies that are sold at historical low P/B ratios. In the first quarter, he bought five new positions that are sold that low P/B ratios. Buying stocks at low P/B ratios was also an original idea of Ben Graham. Donald Smith’s firm found that from 1951 to 2009 stocks in the lowest price-to-tangible book value decile had the highest long-term returns, delivering a 15.4% return versus 10.7% for the S&P 500.

      


  • Largest Low-P/B Stocks Donald Smith Added in Q3: LUV, MU, PTP

    Donald Smith founded Donald Smith & Co. in 1980 and now has $3.6 billion under management. He has achieved compounded annualized returns of 15.3% since inception, and an annualized return of 12.1% over the last 10 years, versus a loss of 0.4% for the S&P 500.

    Smith concentrates on stocks in the bottom decile of price to tangible book valuations. He was fortunate enough to have learned personally from Benjamin Graham, when Graham taught at UCLA Business School while Smith was attending UCLA Law School. Smith was inspired to follow a low-P/B strategy when Graham needed help performing calculations to complete a study of the portfolio performance of the lowest P/E stocks of the Dow Jones (i.e., the Dogs of the Dow). During his analysis, Smith found the P/E ratio method flawed and decided a to develop a better strategy based on book value, which he considered more stable.  


  • Everest Re: Low Risk, High Reward

    "The source of our insurance funds is 'float,' which is money that doesn’t belong to us but that we temporarily hold... The $20 million of float that came with our 1967 purchase (National Indemnity - NICO) has now increased — both by way of internal growth and acquisitions — to $46.1 billion."

    Warren Buffett  


  • Low P/B Stock Buys: Donald Smith Q1 Portfolio Update

    Donald Smith is a deep-value manager employing a strict bottom-up approach. He invests in stocks of out-of-favor companies selling at discounts to tangible book value. He looks for companies in the bottom decile of price-to-tangible book ratios and with a positive outlook for earnings potential over the next 2-4 years.

    Study shows that stocks with low P/B ratios did outperform the market. According to the data published on his website of Donald Smith, “A study that we conducted with Compustat data showed that from 1951 to 2009 stocks in the lowest price-to-tangible book value decile had the highest long-term returns, delivering a 15.4% return versus 10.7% for the S&P 500.” The results of the study are displayed in the chart below:  


  • Donald Smith Buys Low P/B Companies: MHO, TNCC, MU, AAI, SANM, OSG, TSO

    Donald Smith is a newly added guru who focuses on low P/B stocks. This is his Q3 portfolio update.

    If you don’t know about Donald Smith, he is the CIO of Donald Smith & Co. He began his career as an analyst with Capital Research Company and subsequently worked at Capital Guardian Trust Co. In 1980, Donald be-came the CIO of Home Insurance Company, and President of Home Port-folio Advisors, Inc., which he bought in 1983 and changed the name to Donald Smith & Co., Inc.  


  • New Guru Added: Donald Smith; Top Holdings: DDS, TSO, JBLU, AUY, CNA, PNW

    Donald Smith has been added into our List of Gurus. This is a review of his investing philosophy and top holdings (DDS, TSO, JBLU, AUY, CNA, PNW).

    Donald G. Smith is the CIO of Donald Smith & Co. He began his career as an analyst with Capital Research Company and subsequently worked at Capital Guardian Trust Co. In 1980, Donald be-came the CIO of Home Insurance Company, and President of Home Port-folio Advisors, Inc., which he bought in 1983 and changed the name to Donald Smith & Co., Inc.  


  • Donald G. Smith on price-to-tangible book value

    The Fall 2010 edition of the Graham and Doddsville Newsletter, Columbia Business School‘s student-led investment newsletter co-sponsored by the Heilbrunn Center for Graham & Dodd Investing and the Columbia Investment Management Association, has a fascinating interview with Donald G. Smith. Smith, who volunteered for Benjamin Graham at UCLA, concentrates on the bottom decile of price to tangible book stocks and has compounded at 15.3% over 30 years:

    [quote]G&D: Briefly describe the history of your firm and how you got started?  


Add Notes, Comments or Ask Questions

User Comments

Goforit
ReplyGoforit - 1 month ago
How are premium members of GuruFocus supposed to evaluate the list of Gurus when more often than not there is no historical performance records. Most of the time the "profile/performance" tab does not have anything on performance. Why not? This is very frustrating.

Also, if you do not have the performance record, then how do you even know that they deserve to be in the Guru list? Maybe they should not be listed?



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
Hide