Ruane Cunniff

Ruane Cunniff

Last Update: 11-16-2015

Number of Stocks: 149
Number of New Stocks: 9

Total Value: $19,485 Mil
Q/Q Turnover: 4%

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

Ruane Cunniff Watch

  • Zeke Ashton Sells Greenlight Capital and Vector Group, Buys Parker and Alphabet

    Zeke Ashton (Trades, Portfolio) is the managing partner of Centaur Capital Partners and manages the investments for the Centaur Value Fund.

    He manages a portfolio composed of 32 stocks with total value of $64 million and the following are his most weighted trades during the third quarter.


  • Hillary and Citron Research Do Not Scare Goldfarb and Poppe

    Ruane Cuniff & Goldfarb was founded by William Ruane (1925- 2005). Warren Buffett (Trades, Portfolio) always spoke highly of Ruane, both attended the same class by Graham, but the firm is also considered of guru level because of its long-term track record and strong value investing fundamental approach. The firm is best known for its Sequoia Fund Inc., which has trounced the Standard & Poor's 500 since inception in 1970. One thing to keep in mind is that Ruane Cunniff (Trades, Portfolio) focused on the intrinsic value of business, but they are committed to the long term and will buy a stock and hold it even through periods of modest overvaluation. The fund is managed by Robert Goldfarb, 67, and David Poppe, 47.

    Recently the firm has been criticized over its giant position in Valeant Pharmaceuticals (NYSE:VRX), which takes up 31% of the firm’s portfolio. Valeant recently declined sharply after Citron Research and Bronte Capital both published research material showing possible questionable business practices by the pharmaceutical company.


  • Four Solid Dividend Payers With Yields Near the Historical High

    Recently, GuruFocus introduced new filters to the Dividend tab in the All-In-One Screener that will better help income investors narrow their stock choices.

    One new field is the “% Below Historical High Dividend Yield,” which allows you to set parameters for stocks with yields in certain ranges below the historically high yield. In addition, you can now filter by dividend frequency and dividend payment months.


  • Ruane Cunniff Adds to Stake in Monsanto

    The intrinsic value of business is Ruane Cunniff (Trades, Portfolio)’s focus when making investment decisions, and its success is clear. Its Sequoia Fund outperformed the S&P 500 from the time the Fund began in 1970 until September 2007, and its record in recent years hasn’t been bad, either. Last year, the Fund returned 7.55%, but that is a drop in the bucket compared to its returns in 2013 (34.58%).

    Ruane Cunniff (Trades, Portfolio)’s most significant second-quarter transaction was its 8,498,547-share reduction of its stake in TJX Companies Inc. (NYSE:TJX), a Framingham, Mass.-based apparel and home goods retailer, for an average price of $66.55 per share. The sale had a -2.82% impact on Ruane Cunniff (Trades, Portfolio)’s portfolio.


  • Why Ken Fisher Is Buying Black Rock Inc.

    During the last quarter, investor Ken Fisher (Trades, Portfolio) with his Fisher Asset Management’s fund, increased by 147.95% his stake in Black Rock Inc. (BLK), and now he holds 87,758 shares and is the third main holder of the company.

    The company


  • Sequoia Fund Comments on Omnicom

    David Poppe:

    Omnicom (NYSE:OMC) is one of four large advertising agency holding companies. The industry has really consolidated down, and there are four large ones left. We think Omnicom is best of breed, but in fact they are all pretty good. It is a very good industry for a couple reasons. One is media is really fragmenting right now. For large corporations that have huge marketing budgets, it is getting harder not easier as advertising spending fragments to online, mobile, social, as well as TV. And TV itself just continues to fragment as there is more and more cable proliferation all the time. We think Omnicom has a good stable of creative agencies. Arguably, you could say Omnicom is the best creatively. Its agencies tend to win the most prizes, for whatever that is worth. Omnicom is also very good at the data analytics side of it as are the others. It is an area where the clients need the help; so we think it is well positioned for the future. Another tailwind is that the emerging world is really growing and global marketers want to reach those new consumers or newly wealthy consumers. And Omnicom, WPP, another big advertising holding company, these companies are necessary to reach those potential new customers.


  • Sequoia Fund Comments on Berkshire Hathaway


    I have a question on Berkshire (NYSE:BRK.A)(NYSE:BRK.B) which I think is your second largest position. Warren Buffett (Trades, Portfolio) now is what, 84, 85. What if he should die or get sick and can no longer manage the company? I know he has given it a lot of consideration. But how do people feel about it?


  • Sequoia Fund Coments on Danaher

    Terence Paré:

    Danaher (NYSE:DHR) is in a lot of different businesses. It started out as an industrial company making things like hand tools and engine retarders. It used to make Craftsman mechanics tools. But the company right now is basically — and in fact has reclassified its documentation with the SEC — to that for industrial instruments. Danaher makes things like oscilloscopes, mass spectrometers. It has a very significant dental business. But it still sells Matco hand tools, which are sold in vans that drive around to garages, industrial printers, medical gear, water treatment equipment, and more.


  • Sequoia Fund Comments on Mohawk

    Terence Paré:

    We have owned Mohawk (NYSE:MHK) for a long time. But I feel better about the company today than I have in a very long time. There are a couple reasons for that. One, the company is practically a unique franchise. It is the only flooring company that has exposure across almost the entire globe and is in most of the important flooring markets in the world. Number two, its portfolio of brands covers just about every kind of flooring that there is. It will add sheet vinyl and luxury vinyl tile when it closes on the IVC acquisition, which it announced at the end of last year. So it will make every kind of floor covering, be in most important markets, and generally be the leader in just about every market that it is in. It is the largest ceramic tile manufacturer in the world, and ceramic tile is the largest floor covering in the world.


  • Sequoia Fund Comments on IBM


    I noticed the fund has a position in IBM and there have been many questions about Google. They seem to be companies moving in two different directions. Even though IBM screens cheaply on metrics, what is your attraction to the business right now?


  • Sequoia Fund Comments on Cabela's


    Can you comment on Cabela’s please? Was it a mistake? How long are you going to hold on to it? What do you think the future is?


  • Sequoia Fund Comments on Perrigo

    Saatvik Agarwal:

    Regarding Perrigo (NYSE:PRGO), Mylan (NASDAQ:MYL) made an offer for Perrigo about a month ago. The original offer was made for about $205 but Mylan never disclosed the actual terms of the offer. It came as a surprise to Perrigo. It came as a surprise to us. Since then, Mylan has actually disclosed the terms of the offer. And it does not quite work out to $205 a share if you use the terms Mylan has disclosed. You have to value it based on the stock price of Mylan before it made the offer, because it is a stock and cash deal, and the stock price of Mylan ran up when they made the offer partly because people speculated that it would put Mylan into play and that Teva would bid on Mylan, which is what happened — Teva made a bid for Mylan after Mylan made an offer for Perrigo. Then Mylan raised its bid for Perrigo.


  • Sequoia Fund Comments on Praxair


    Could you talk about the attractiveness of the industrial gas market, and more specifically about Praxair (NYSE:PX), the relative attractiveness of that company versus the other players in the market?


  • Sequoia Fund Comments on Verisk Analytics


    I know you have a relatively small position in Verisk Analytics. Just a question on the investment thesis, the valuation, capital allocation, and more specifically the Wood Mackenzie acquisition, which the company announced in March.


  • Sequoia Fund Comments on Google

    Chase Sheridan:

    Great question. When people ask me about risks to Google (NASDAQ:GOOGL), hubris is one of the primary risks that it faces because the core business is so good. Management is investing really, really heavily in being the aggressor in a lot of areas — the opposite of a milker. Some people milk their businesses. Google is putting the milk back in the cow. With its capital allocation strategy, I will start by looking backwards and saying I thought that Google overpaid for YouTube at the time. I thought that Google overpaid for DoubleClick at the time. Looking back, those were both great acquisitions. I would certainly advise Google to do them again.


  • Sequoia Fund Comments on Valeant Pt. II

    David Poppe:

    I do not think we actually know the weighted average P/E on GAAP earnings. For companies like Valeant, I am not sure it would be a relevant number anyway. On the rest of it we will bring Rory up and put him on the spot.


  • Sequoia Fund Comments on Idexx

    Arman Kline:

    The company had a wonderful 2014. It made a big decision to go to direct distribution. Historically, Idexx (NASDAQ:IDXX) distributed the consumables for its instruments and its rapid assay tests for companion animals through a network of distributors in the US. Overseas it was a little bit more direct. It made a decision to go direct here, and the reason it made that decision is that it felt as the market leader with a dominant market share introducing new technology, new products, it needed a sales force that could encourage the adoption of those products more than it needed the help of distributors to penetrate the market. We think that management made the right decision.


  • Sequoia Fund Comments on Fastenal


    I had a question on Fastenal (NASDAQ:FAST) — your thoughts on its net margins as the company pushes into non-fastener products and larger customers. And then maybe a little bit on Fastenal versus Grainger.


  • Sequoia Fund Comments on Precision Castparts


    Could you update us on Precision Castparts (NYSE:PCP)? I know that the stock underperformed in 2014. I know it was kind of slowing down. And in 2015, it preannounced a couple quarters back to back. I was wondering if you could update us on that and if you still see compelling value there.


  • Sequoia Fund Comments on Tiffany & Co.

    David Poppe:

    I will talk about Tiffany (NYSE:TIF) and Saatvik can talk a little bit about Richemont. I will give you the high level view. The high level view we have is that Cartier and Tiffany are two of the great jewelry brands in the world. We have owned Tiffany not consecutively but for most of the last 14 or 15 years; so we feel like we know it pretty well. What I would say about Tiffany is it has grown the topline at about 7% over the last decade, which is good, not great but good. But it is still immature in a lot of parts of the world. Except for Japan, Tiffany was very late to Asia-Pac, very conservative about expanding in Europe. American luxury — I think a lot of Europeans do not believe in it, and Tiffany was conservative about enlarging the store base there. But in the last few years, Tiffany has opened a bunch of stores in Europe including one on the Champs-Élysées in Paris, and done very well. The company has gotten more aggressive in the last few years about opening stores in China, and not only are those stores doing really well, but the engagement ring custom is catching on there as it did in Japan, I want to say in the ‘70s. It seems like that is going to become a custom for people all through Asia as well, which is good for Tiffany since the company has a strong position in higher-priced engagement rings.


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