Murray Stahl

Murray Stahl

Last Update: 05-15-2015

Number of Stocks: 511
Number of New Stocks: 22

Total Value: $7,221 Mil
Q/Q Turnover: 2%

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

Murray Stahl Watch

  • Murray Stahl's Undervalued stocks trading at low P/E

    Murray Stahl (Trades, Portfolio) is the Chairman of Horizon Asset Management, Inc. He is also Director of Research and Co-Portfolio Manager of the Small Cap Opportunities Fund and the Paradigm Fund.


    During the last quarter of 2014 he bought 32 new stocks to his portfolio and now it is composed of 512 stocks and has a total value of $7,405 Mil with a Q/Q turnover of 4%.

      


  • Mason Hawkins Increases Holdings in Murphy Oil

    Mason Hawkins (Trades, Portfolio) has been Chairman and Chief Executive Officer Southeastern Asset Management since 1975, and he and his partners manage the Longleaf Partners Funds. Mr. Hawkins attended the University of Florida where he earned a B.A. in Finance, and the University of Georgia where he earned an M.B.A. in Finance.


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

      


  • Murray Stahl’s Horizon Kinetics Comments on Coca-Cola

    There is no longer a central mechanism for investors to vote with their feet on an individual stock. Taking Coca-Cola (KO), as an example, during the decade of the 1970s, the company generated about 13% annualized earnings growth, some years approaching 20%. For the first 5 years of the ‘70s, the P/E ratio ranged between about 30x and 40x earnings. Few would argue that it wasn’t overvalued. And, as the reversion to the mean principle would dictate, despite a decade of earnings growth that strong, the P/E contracted to 13.6x by 1978 and, over the course of an entire decade, the shares declined by over 45%.


    Today, Coca-Cola trades at a P/E of 21x, not 30x or 40x. On the other hand, it is now a mature company: its products are everywhere, there is a limit to how much more Coca-Cola per-capita the world’s residents will drink, even if they don’t develop a preference to less sugary drinks. In fact, Coca-Cola has lost revenue in the last two years. With that understanding, at 21x earnings, is Coca-Cola any less overvalued than it was in 1973? It might be more overvalued. This is the type of unhealthy growth (slowing/declining) and valuation (high/rising) pairing that is more and more representative of the major stock indexes. That they have risen of late is no more a sign that one should be invested that way than that one should have been invested in the notorious Nifty Fifty during the early 1970s or in the favored stocks during the 1999 Internet Bubble.

      


  • Murray Stahl’s Horizon Kinetics 4Q 2014 Commentary

    The annual questions: How will the markets do this year? How have we done? Will it be more of the same or different? Every once in a while, those questions are much more important than usual, not merely of seasonal interest. This is one of those times.


    In 2013, our equity strategies were up far more than the market. Would it have been reasonable to expect another 35% or 45%? No. This past year, the S&P 500 was up almost 14%, much more than our strategies. Would it be reasonable to expect that again (or, for the next two years)? No. Why not? Because it’s not just a roll of the dice or momentum; there are specific and very important activities at work behind these results; to not understand them is to risk being exposed as markets approach a dangerous juncture.

      


  • 5 Stocks Multiple Gurus Are Buying

    One of GuruFocus’ useful features is the Consensus Picks of Gurus page, which lists stocks that have been bought or sold by multiple gurus.


    On this page, users can filter stocks with the most active buys or sells over three, six, and 12 month time frames. This feature is just one of the ways you can search for investing ideas and see what stocks gurus are interested in.

      


  • Two of Stahl's Fourth-Quarter Transactions May Be Instructive for Investors

    Guru Murray Stahl (Trades, Portfolio) is chairman of Horizon Asset Management, Inc., which produced a 27 percent return in 2012 and a 36 percent return the year after that.


    Achievements like that can’t be duplicated every single year, but one can’t be blamed for taking a glimpse into such an investor’s quarterly activity for clues to his success. Those clues are hard to come by in Stahl’s latest portfolio; none of his 109 transactions in the fourth quarter had an impact on his portfolio that reached 1%.

      


  • I Think it is Enough and You Should Take the Gains

    In this article, let's take a look at Dick's Sporting Goods Inc. (DKS), a $6.5 billion market cap company that operates as a sports and fitness retailer primarily in the eastern United States. It offers sporting goods equipment, apparel, and footwear for women, children and men.


    Dividend hike

      


  • FPA Capital Fund Adds Two New Technology Stocks to the Portfolio

    FPA Capital Fund (Trades, Portfolio) recently added two new stocks to its portfolio valued at $8.82 billion. The portfolio now has a total of 25 stocks.


    The new buys include Babcock & Wilcox Co (BWC) and Cubic Corp (CUB).

      


  • Betting on a Fairly Value Stock with a Bullish Sentiment

    In a previous article we analyzed the relative valuation of the stock,and concluded that it is trading higher and as a result, it is difficult to identify if there exists an adequate margin of safety to buy the stock. So, in this article let's take a closer look at W.W. Grainger, Inc. (GWW), and analyze the intrinsic value with an absolute valuation model.


    Strategies

      


  • Murray Stahl’s Horizon Kinetics Comments on Royal Gold Inc

    An idiosyncratic security with benefits – a diversifier


    Let’s find a contrasting investment to a utility index or a REIT index, which are front and center as bond substitutes or asset allocation building blocks. They are therefore closely governed in valuation and price behavior by the asset flows of index investors and, so, might be particularly vulnerable to a rise in interest rates. Consider, instead, a very distinctive security like Royal Gold, Inc (RGLD). It is categorized in financial securities databases like a gold mining company. Yet it does not do any mining, and on a balance sheet and income statement basis has as little in common with gold mining as Microsoft (MSFT): it has virtually no property, plant, or equipment, it carries no net debt, it has extremely high after-tax cash flow margins—well over 50%. Microsoft’s are roughly 25%. Its financial statements and casually observable economics say that it really does not belong with the gold mining group.

      


  • Murray Stahl’s Horizon Kinetics 3Q 2014 Commentary

    This year’s commentaries review some of the surprising ways in which scientific-seeming or rule-based approaches to investing, which are now the norm and implemented via exchange-traded funds (ETFs) and index-based mutual funds, are foiled in practice by the social science reality of the fluid marketplace. A formulaic approach can work for a while, until a sufficient number of additional investors apply it. Their aggregate actions impact the supply/demand balance, valuations change, and the formula can no longer work. In reviewing some popular building blocks of the asset allocation model of investing, we have, hopefully, demonstrated:


    -That an emerging markets index probably does not contain much in the way of emerging markets exposure, so much as exposure to large, relatively mature companies, many of which are exporters that, economically, are really global companies, not local. That the historical excess returns recorded by emerging markets indexes are probably not a reliable set of figures. That a non-indexed approach, or a different form of index, could better capture the local-economy potential of emerging markets.

      


  • W.W. Grainger Should Be a Profitable Investment

    In this article, let's take a look at W.W. Grainger, Inc (GWW), a $16.92 billion market cap company, which is the largest global distributor of industrial and commercial supplies, such as hand tools, electric motors, light bulbs and janitorial items.


    Fundamentals

      


  • Expedia Has Made Astute Acquisitions

    In this article, let's take a look at Expedia Inc. (EXPE), a $10.89 billion market cap company tha is one of the world's largest online travel services companies. Businesses include Expedia, Hotels.com and Hotwire. In December 2011, Expedia spun off TripAdvisor as a publicly traded company.


    Dominant player

      


  • Wendy's Absolute and Relative Valuation

    In this article, let's take a look at Wendy's Co (WEN), a $3.12 billion market cap company, which is one of the largest fast food restaurants.


    Revenues, margins and profitability

      


  • General Motors Reinstated Dividend Payment

    In this article, let´s consider General Motors Company (GM), a $49.36 billion market cap that is the world's second-largest producer of cars and trucks. It has a trailing P/E ratio that indicates that the stock is relatively overvalued (PE 50.9x vs Industry Median 15.8x).


    The company maintains quality and has one of the best designs. Not only cars, it is also a leader in truck models, too. We think that, in the near future when vehicle demand recovers, the firm will be in an excellent position to grow its earnings. Further, the company focuses on four brands instead of eight, making marketing efforts more concentrated and efficient. Efficiency is reflected also in pricing policies, where it developed a pricing model searching for profitability. This means that is operating a demand-pull model where it produces only to meet demand.

      


  • Murray Stahl on Icahn Enterprises

    Murray Stahl (Trades, Portfolio): My favorite stock at the moment is Icahn Enterprises, which is something we have owned for, I think, 14 years, and it is our third-largest holding. As you know, it is comprised of an assortment of assets. It owns Apple (AAPL) and other securities. It owns two assets that trade more or less at their stated net asset value, but I think they are undervalued. One of them is the Fontainebleau Hotel and Casino in Las Vegas, which owns an 80% completed building. All around that casino there is building activity going on and then there is this hulk. It cost about $3 billion to construct that structure to be 80% complete. To construct it today would cost even more. That is an asset that could be monetized and could be worth a lot of money. We should mention that Icahn Enterprises bought the Fontainebleau Hotel and Casino for 10 cents on the dollar in 2008 or 2009. That $2 billion is not on the balance sheet; only a couple hundred million dollars is on the balance sheet.


    Another asset that Icahn Enterprises owns is American Railcar Leasing (ARII). Leasing railcars means primarily leasing tanker cars. The company leases other cars, too, but primarily tanker cars. Because the United States is finding oil in all sorts of places that it did not find oil before and because there is no pipeline capacity to get it to market, the only way to get it to market is by rail lines. In theory you could build pipelines except most people do not want to have a pipeline across their property, or anywhere near a property, or even through their town. As a practical matter you cannot build the pipelines.

      


  • Anadarko is a Strong Player with an Interesting Mix Composition

    In this article, let's take a look at Anadarko Petroleum Corporation (APC), a $56.08 billion market cap company, one of the largest independent exploration and production companies in the world.


    International operations

      


  • FRMO Corporation's 2014 Annual Meeting of Shareholders Transcript

    Murray Stahl (Trades, Portfolio): Thank you, Therese, and thanks, everybody, for coming today.


    I was very fortunate when beginning to write the annual Letter to Shareholders to be apprised of an event that you may have read about in that letter. The idea was that we as a corporation were lacking in certain corporate governance formalities and requirements, one of which happened to be the lack of a compensation committee, and I took the occasion to comment on that. I hope you’ll understanding that I did it tongue in cheek. Corporate governance is a very serious matter, but in our case the recommendation of a certain proxy firm was to withhold the vote from us for, among other reasons, the lack of corporate governance relating to management compensation.

      


  • Urban Outfitters' Price Touched Its 52- Week Level; And Now?

    In this article let's take a look at Urban Outfitters Inc. (URBN), the leading lifestyle specialty retail company that operates Urban Outfitters, Anthropologie, Free People, Terrain and BHLDN brands.


    Expanding outside the U.S.

      


  • Genuine Parts Co. is the Largest Independent Distributor of Automotive Parts

    In this article, let's take a look at Genuine Parts Co (GPC), a $13.75 billion market cap company, which is a leading wholesale distributor of automotive replacement parts, industrial parts and supplies and office products.


    Leading position

      


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