Ted Weschler Premium Guru

Last Update: 05-14-2013

Number of Stocks: 9
Number of New Stocks: 0

Total Value: $1,123 Mil
Q/Q Turnover: 8%

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

Ted Weschler Watch

  • Buffett's Berkshire Buys Verizon, Boosts Stake in Liberty Global, Wal-Mart

    Warren Buffett (Trades, Portfolio) is now joined by his two investing side-kicks, Ted Weschler and Todd Combs, who make independent decisions about stocks for Berkshire Hathaway (BRK.A)(BRK.B)’s portfolio. The three have unveiled their first-quarter stock activity. The new buy was Verizon (VZ), with sizable adds going to Liberty Global Plc (LBTYK)(LBTYA) and Wal-Mart Stores Inc. (WMT).

    Verizon Communications Inc. (VZ)  


  • Buffett's Investor Pick Ted Weschler Discusses DaVita Inc.



  • How Todd Combs and Ted Weschler Outperformed the S&P500 and Warren Buffett in 2013

    The Wall Street Journal on Jan. 18 reported that both Todd Combs and Ted Weschler outperformed the S&P 500 and Warren Buffett (Trades, Portfolio) in 2013.  The 2013 results mark the second year in a row that the two portfolio managers hired by Berkshire Hathaway’s (BRK.A) (BRK.B) Warren Buffett (Trades, Portfolio) have exceeded the S&P 500 (which gained 32% including dividends last year) as well as Mr. Buffett.  Mr. Combs, who started at Berkshire in 2011 has beaten the S&P 500 three years in a row.  Similarly, Mr. Weschler’s returns have exceeded the S&P 500 in each of the two years he has been with Berkshire.  In 2012, Mr. Combs and Mr. Weschler each beat the S&P 500 by a double digit margin.


    How did Mr. Combs and Mr. Weschler outperform the S&P 500 and Mr. Buffett in 2013?  From quarterly Form 13F filings with the Securities and Exchange Commission, Berkshire’s portfolio of U.S. based equities is available through September 30, 2013.  The 13F for the quarter ending December 31, 2013 will likely be filed on February 14, 2014.  Mr. Buffett has said that the small positions in Berkshire’s portfolio of 43 stocks as of September 30 are very likely investments made by Mr. Combs or Mr. Weschler, while the larger ones are his.   For example, since the arrival of Mr. Combs and Mr. Weschler, Mr. Buffett has acknowledged investments in IBM (IBM) in 2011 and Exxon Mobil (XOM) in 2013 with yearend 2013 market values of $12.6 billion and $4.1 billion, respectively.

      


  • A Year in Warren Buffett’s New Managers Ted Weschler and Todd Combs

    More than two full years have transpired since Buffett hired two relatively unknown managers to begin investing funds for Berkshire Hathaway (BRK.A)(BRK.B), allowing for a slightly clearer picture of their strategies and performance. This year solidified that their tenure as Berkshire portfolio managers has begun on a positive note.


    Buffett, when he has mentioned the two men, has indicated he made as good a decision selecting them as most of his investments. In his 2012 letter he gushed:

      


  • Buffett’s Berkshire Buys More DaVita

    Warren Buffett’s company, Berkshire Hathaway (BRK.A)(BRK.B), bought 1,314,170 additional shares of DaVita HealthCare Partners (DVA) this week. The transaction, reported Dec. 9, represents a 6.77% increase to the existing holding. After the buy, Berkshire’s DaVita stake is sized at 36,461,294 shares, raising its ownership to about 17.14%.

    The filing reporting the position increase was submitted by Ted Weschler, one of Buffett’s two portfolio managers he hired over the past several years. Weschler bought the shares in a series of four transactions taking place from Dec. 5 through Dec. 9, at prices ranging from $57.11 to $59.87 per share.  


  • Should You Buy Warren Buffett's New Stocks This Year?

    Six months may be a blip on the radar screen for someone with a 50-plus-year career, or with their investing eye toward a hazy point in the far-off future. But information about Warren Buffett’s recent buys for Berkshire Hathaway (BRK.A)(BRK.B) can be useful for Buffett-minded people researching his stocks or plotting an attractive point to buy them. The chart below shows that Buffett recently has been allocating more of his investing capital toward equity securities than he has since 1998, at 63%, while cash and cash equivalents has dwindled to a multi-year low of 19% and, and fixed maturity securities likewise at a multi-year low, at 18%.

      


  • What’s Warren Buffett Buying?

    It’s that time again. Warren Buffett’s Berkshire Hathaway (BRK.A) released its quarterly 13F filing today, which details stock by stock what Buffett and his managers have been buying and selling.

    At the top of the list? A 17.8-million-share position in Suncor Energy (SU), Canada’s biggest oil and gas producer. Suncor is a major producer in the Alberta oil sands, and this purchase is consistent with Buffett’s overall belief in a North American industrial renaissance.  


  • Debunking Investment Dogma

    "The opinion of ten thousand men is of no value if none of them know anything about the subject."
    -- Marcus Aurelius  


  • Berkshire Portfolio Managers Weschler and Combs Bonuses to Exceed $50 Million for 2012

    A profile from The Omaha World-Herald of how Weschler and Combs ended up managing money for Warren Buffett:

    Warren Buffett's decision to hire two investment lieutenants is paying off for Berkshire Hathaway, and it's paying off for the two younger money managers, too.  


  • Buffett’s Berkshire Hathaway Buys Even More DaVita Shares

    In the past two months, Berkshire Hathaway (BRK.A)(BRK.B)’s holding of DaVita (DVA) burgeoned from 10,265,515 to 12,293,053 shares, after a series of nine purchases. This gives Warren Buffett’s company a 10.78% ownership of DaVita. Buffett or one of his managers (likely Ted Weschler) appear to like the company enough that price is little consideration, as it has climbed consistently almost 42% year to date.

    Berkshire began accumulating DaVita shares in the fourth quarter of 2011, buying almost 2.7 million at an average share price of $71. It continued to buy more in the next three consecutive quarters at successively higher prices. In the third quarter, it bought its smallest amount yet – 897,569 shares for $98 each on average.  


  • Bloomberg Ted Weschler Profile: Rise from Grace Leads to Role Advising Buffett

    Ted Weschler’s first job after college was at chemical maker W.R. Grace & Co. (GRA) In 2007, six years after the company filed for bankruptcy, his hedge fund held 15 percent of the shares. That’s when he called Joe Rice.

    Rice, a South Carolina lawyer, represented workers who claimed asbestos products manufactured by Grace had caused cancer and other illnesses. The 158-year-old company, which once owned (GRA) shipping lines and restaurants, declared bankruptcy in 2001 under the weight of those lawsuits (GRA). Rice was at an impasse with the firm when Weschler suggested they meet.  


  • Buffett’s Berkshire Hathaway Raises Stake in DaVita to Almost 11%

    Warren Buffett added 0.71% to his holding of DaVita Inc. (DVA) at the average price of $107.82 on 10/09/2012, as reported by GuruFocus Real Time Picks. After the purchase, he owns 9,650,349 shares, of 10.8% of the company. He just increased his holding of DaVita by 3.04% on Sept. 28. DaVita is currently trading at historic highs.

    It is speculated that one of Berkshire Hathaway (BRK.A)(BRK.B)’s new managers, Ted Weschler or Todd Combs, purchased this stock, as Buffett has publicly stated that they were responsible for the smaller positions added to the portfolio around that time. Weschler owned 3.3% of DaVita through his hedge fund prior to leaving it to join Berkshire.  


  • New Berkshire Managers Combs and Weschler Delivering Warren Buffett-Like Returns

    In preparation for his eventual departure, Warren Buffett has selected two investors to help manage Berkshire Hathaway (BRK.A)(BRK.B)’s portfolio until they eventually handle it on their own. The search is still on for a third manager. Todd Combs, hired on October 25, 2010, and Ted Weschler, hired September 12, 2011, have each bought several securities for the Berkshire portfolio, and enough time has passed to get a glimpse of the performance of those who will eventually fill the very large shoes of the greatest investor of all time.

    It is speculated that two of Berkshire Hathaway’s new stocks, Davita (DVA) and DirecTV (DTV) were purchased by Ted Weschler, as he used to own them in the portfolio of his former hedge fund, Peninsula Capital Advisors LLC. In his 11 years at Peninsula, Weschler delivered a return of 1,236%. He scored the job with Buffett after paying a total of $5.2 million to dine with him in a charity auction.  


  • Ted Weschler Would Recommend These Stocks

    Ted Weschler has been director of WSFS Financial Corporation since 2009. He has served as director of WSFS Financial Corporation from 1992 to 2007. His current position expires in 2013. He is the managing partner of Peninsula Capital Advisors LLC. This company deals with a pool of capital that predominantly invests in publicly trades companies over long terms. In 1989 he founded Quad-C a private equity firm and before that he held several positions at W.R. Grace & Co. He also worked for their Corporate Development Group.

    Here are some of his top holdings:  


  • Ted Weschler Begins Closing Down Shop to Join Berkshire Hathaway

    Ted Weschler, current managing partner of hedge fund Peninsula Capital Advisors LLC, will soon join Berkshire Hathaway (BRK.A)(BRK.B) as one of two newly appointed money managers who will eventually replace Warren Buffett. Weschler’s connection with Buffett came about by an unusual means— the two met when Weschler paid a total $5.3 million to have lunch with him two years in a row through a charity auction. After two more meetings, Buffett offered Weschler the position, which he, already a successful hedge fund manager, accepted just a few weeks later. In his 11 years at his firm, Weschler made a return of 1,236%. Little has been reported about the low-key manager’s investing style, although Morningstar says his firm makes “substantial long-term investments in publicly traded companies possessing both strong prospects and outstanding management teams.”

    GuruFocus did an in-depth analysis of Weschler’s investing history here.  


  • 12 Stocks to Consider

    Someone who reads my blog sent me this email:

    Hi Geoff,[i]  


  • New Buffett Manager Gets Less Pay, Higher Taxes by Choice

    How would you feel about taking a pay cut and paying more in taxes?

    Meet Ted Weschler. He just did both. And he’s happy about it.  


  • Alice Schroeder – The Meaning Behind Berkshire Hathaway Hiring Ted Weschler

    Sometimes the cutesiness of Berkshire Hathaway Inc. is part of its endearing charm. Sometimes it is a minor quirk to be brushed aside. Occasionally, it can mislead, as happened this week when Warren Buffett’s favorite scribe, Carol J. Loomis of Fortune magazine, began her insider’s report on the hiring of 50-year-old Ted Weschler, the founder of Peninsula Capital Advisors LLC, as a Berkshire investment manager. She wrote: “It is surely unprecedented for a person to spend $5,252,722 to get a job, but in a funny way, that is precisely what Ted Weschler, of Charlottesville, Virginia, did.”

    At first blush, the Fortune description of the Weschler hiring wasn’t at all inspiring: A “cute meet” in which Weschler twice spent millions to win a charity auction for a meal with Buffett. At 81, the Berkshire chairman and chief executive officer is beginning to delegate his responsibilities for investing the company’s $100 billion portfolio to as many as three money managers. Those meetings led directly to Buffett offering Weschler one of the most prestigious jobs in asset management. “I should have bid higher,” a few people joked at a meeting of asset managers that I attended this week.  


  • WSJ – A Little More Info on the New Portfolio Manager at Berkshire

    I get a feeling it is going to be hard to get a lot of info on Mr. Weschler. I’m certainly hungry for as much as I can get as it is fascinating to see who Buffett thinks is worthy of managing Berkshire’s money.

    The WSJ has the following which fills in some blanks:  


  • New Berkshire Hathaway Portfolio Manager Ted Weschler’s Investing Style and Career Highlights

    Ted Weschler recently became the second of possibly three portfolio managers of Berkshire Hathaway (BRK.A)(BRK.B), part of a group in line to take over the entire equity and debt portfolio of the greatest investor of all time, Warren Buffett, upon his retirement. Prior to accepting the offer, Weschler managed his own private investment firm, Peninsula Capital Advisors, LLC, which he founded in 2000. The fund manager that piqued Buffett’s interest delivered a return of 1,236% over the last 11 years, Reuters reports, but Weschler somehow managed to remain under the public radar in spite of his prowess. He made the acquaintance of Buffett by winning a lunch with him through a charity auction benefitting Glide, a San Francisco homeless charity. Actually, he won twice, paying a total of $5.2 million to dine with Buffett in Omaha in 2010 and 2011.

    Though little is known about his investing style, a bio of him from Morningstar says, “Peninsula manages a pool of capital that, on behalf of its clients, makes substantial long-term investments in publicly-traded companies possessing both strong prospects and outstanding management teams.”  


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