Tom Gayner

Tom Gayner

Last Update: 05-06-2016

Number of Stocks: 129
Number of New Stocks: 8

Total Value: $3,725 Mil
Q/Q Turnover: 1%

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

Tom Gayner Watch

  • High Yield and Profitability: Sturm Ruger, Infosys

    Thanks to Gurufocus’ All-In-One Screener, I want to highlight stocks that have a growing dividend yield with sustainable payout ratio. This sustainability is confirmed to long-term company profitability and a very strong financial situation:

    Novo Nordisk A/S (NVO) has a dividend yield that during the last five years has grown by 38%. The yield is 1.74% with a payout ratio of 47%. The average ROA of the last five years has been positive, 35.93%, and so has the ROE with an average performance of 60.54%.


  • Alphabet (aka Google): A Case Study in Spotting Value Creation

    On June 22, 2015, Tom Gayner (Trades, Portfolio), co-chief executive officer of specialty insurance underwriter Markel Corporation (NYSE:MKL), gave a presentation titled "The Evolution of a Value Investor" during the lunch hour to the employees of Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), parent company of Google, the world’s largest Internet company.

    Gayner began his presentation by summarizing his business background as a certified public accountant and security analyst before taking a position as an investment officer for Markel in 1990. Gayner's 58-minute presentation may be viewed on YouTube and is most insightful and well worth the time.


  • Stocks Tom Gayner Has Been Buying in the Last 2 Quarters

    Tom Gayner (Trades, Portfolio) is the executive vice president and chief investment officer of Markel Corp. (NYSE:MKL) and President, Markel Gayner Asset Management Inc., the investment subsidiary of Markel since December 1990. He manages a portfolio composed of 75 stocks, several of which have been bought for the last two quarters.

    Apple Inc. (AAPL)


  • Gayner Sells Stakes in Courier Companies in 1st Quarter

    Tom Gayner (Trades, Portfolio) sold out nine existing stakes in his portfolio in the first quarter. His two most noteworthy divestments involved courier companies.

    Gayner sold his 793,500-share stake in United Parcel Service Inc. (NYSE:UPS), a Sandy Springs, Georgia-based package delivery provider, for an average price of $97.06 per share in what was, by far, the guru’s most significant first-quarter transaction. The divestiture had a -2.07% impact on Gayner’s portfolio.


  • Tom Gayner Sells Out of Coach

    Guru Tom Gayner (Trades, Portfolio), CEO of Markel (NYSE:MKL), sold his 54,000-share stake in Coach Inc. (NYSE:COH) in the first quarter.

    Started in 1941 as a family run workshop in New York City, Coach was a pioneer in leather goods, establishing itself as the original American house of leather during the second half of the 20th century. Its products include women's and men's bags, women's and men's small leather goods, business cases, footwear, wearables including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel bags and other lifestyle products. Coach operates in two segments, North America and International.


  • Undervalued Stocks Gurus Are Buying

    According to GuruFocus' All-in-One Screener, the following are companies with a market cap above $5 billion that are trading with a very low P/S ratio.

    Deere & Co. (DE) is trading at about $82 with a P/S ratio of 0.97 and an estimated P/E multiple of 15.08. The company has a market cap of $25.91 billion and over the last 10 years, the stock has risen by 85%. During the last 52 weeks, the price has been as high as $98.23 and as low as $70.16.


  • Bearish Sentiment in Becton Dickinson's Stock

    Becton Dickinson & Co. (NYSE:BDX) is a $33.87 billion market cap company that provides a broad range of medical devices and diagnostic products used in hospitals, doctors' offices, research labs and other settings.

    The med-company is trading at $159.55. Analysts have a consensus $163.53 price target on the stock. Yahoo! (NASDAQ:YHOO) Finance estimates a one-year target share price at $166.9. Also, investors will be paid a dividend of $2.64 at the end of the year. The dividend yield is 1.65%, which tries to protect the purchasing power. Dividend investors often pay attention to the track record of dividends payments and favorable expectations regarding dividend growth for the next year. This company has paid dividends since 1926; during the past 13 years, the highest yield was 2.44%, the lowest was 1.05%, and the median was 1.77%. Now it is close to a five-year low.


  • Looking at the Office Furnishings Industry

    In a previous article, I posted a lecture on value investing given by Tom Gayner (Trades, Portfolio), co-CEO of Markel Corporation (NYSE:MKL). Markel is often compared to Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) because it is an insurance company that uses its float to invest in other businesses. A key insight was Gayner’s emphasis on differentiating between spotting value and focusing on creators of value.

    I saw an example of this concept when researching the office furniture industry. Below is the thought process that motivated me to study it.


  • CME Group Among Guru Stocks With Growing Yield

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

    CME Group Inc. (CME) has a trailing dividend yield of 2.15% with a three-year growth rate of 3.70% and a five-year growth rate of 16.80%. The stock is now trading with a trailing 12-month P/E multiple of 25.30 and an estimated forward P/E multiple of 19.38. During the last 12 months, the stock price has dropped by 4%.


  • Walt Disney, Union Pacific: Undervalued With Predictable Business

    According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating, and at least five gurus are shareholders in the companies.

    Walt Disney Co. (DIS)


  • Tom Gayner Sells Stakes in GE, Walmart, Anheuser-Busch

    The most eye-catching fourth-quarter activity from Tom Gayner (Trades, Portfolio), president of Markel Gayner Asset Management, involved the sales of stakes in his portfolio, but the guru made some intriguing purchases as well.

    Gayner’s most significant fourth-quarter transaction was the sale of his 2,963,000-share stake in General Electric Co. (NYSE:GE), a Fairfield, Connecticut-based conglomerate, for an average price of $29.73 per share. The deal had a -1.97% impact on Gayner’s portfolio.


  • Investors Can Follow Tom Gayner in Harley Davidson

    In the fourth quarter, guru Tom Gayner added to his stake in Harley Davidson Inc. (NYSE:HOG) at an average price of $49.13. The 36% add took the holding to a total of 292,000 shares and represents a 0.09% impact on the portfolio.

    Since that period, Harley Davidson has fallen to a price around $43. For patient investors willing to hold for the longer haul, does this represent an opportunity? Or is HOG on a long-term rocky road?


  • Tom Gayner Discusses His Evolution as an Investor

    Tom Gayner (Trades, Portfolio) is co-CEO at Markel Corporation, a holding company for insurance, reinsurance, and investment operations around the world. The company has often been compared to Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) in the way it operates. Markel is an insurance company that uses a value investing philosophy and invests its float in other businesses. You can see in the graph below how Markel has outperformed Berkshire over the last five years.



  • FedEx Reports Solid Results, but Price Plummets

    Several hedge fund managers initiated new positions in FedEx Corporation (NYSE:FDX), the leader in global express delivery services, in the third quarter and lost ground thanks to a price decline.

    FedEx provides guaranteed domestic and international air express, residential and business ground package delivery, heavy freight and logistics services.


  • 2015 Results and Review of Largest Holdings

    This is the fourth year-end portfolio review I’ve written on GuruFocus. I’ll stick with the same disclaimers I’ve used in the past: first, I have no idea how these stocks will do over the next 30, 90, 180 or 365 days; and second, I hope they go lower so I can buy more at attractive prices (I plan on being a net buyer of stocks for a long time). With that, let’s get started.

    As I noted in my 2014 year-end portfolio review (here), I started 2015 with roughly 16% of my portfolio in cash and equivalents (short-term treasuries). While I found a handful of opportunities to put some capital to work, I made reductions elsewhere. In addition, I added some more cash to my portfolio that was relatively meaningful in comparison to the size of my portfolio. As a result, my cash and equivalents balance at the end of 2015 increased marginally, to 22%.


  • Value in a Qualitative Sense: A Presentation by Steve Markel, Tom Gayner

    A long-term horizon isn't for everyone. But for Steve Markel and Tom Gayner, it is important.

    In the video below, these two successful managers of Markel discuss how adding an "s" to value is at the core of their business and investing philosophies.


  • Tom Gayner Buys Harley-Davidson and JPMorgan in 3rd Quarter

    Tom Gayner (Trades, Portfolio) is the executive vice president and chief investment officer of Markel Corp. (NYSE:MKL) and president of Markel Gayner Asset Management Inc. He thinks stock is part of a business, and the business is worth what the present value of the future cash flows are.

    His portfolio is composed of 122 stocks, and the following are the most heavily weighted trades during the third quarter.


  • 5-Year Lows: 3D Systems Corp., Atwood Oceanics, Seacor Holdings, Rent-A-Center Inc.

    According to GuruFocus list of five-year lows, these guru stocks have reached their historical low prices: 3D Systems Corp., Atwood Oceanics Inc., Seacor Holdings Inc. and Rent-A-Center Inc.

    3D Systems Corp. (NYSE:DDD) reached $9.01


  • Simpson and Greenberg Buy Brookfield Despite Negative Report

    Recently the Probes Reporter wrote a negative report on Brookfield Asset Management (NYSE:BAM) calling it "An Unanalyzable Black Box." In the report it discusses several government investigations, lack of disclosures about the investigations and Brookfield Asset Management's financial engineering.

    This comes about 2½ years after the Southern Investigative Reporting Foundation "SIRF" wrote a negative report discussing Brookfield Asset Management's history, IFRS accounting practices and other issues. SIRF would write another report six months later in November 2013 further questioning Brookfield Asset Management.


  • Marriott and Starwood to Create the World's Largest Hotel Chain

    Marriott International Inc. (MAR) is going to buy Starwood Hotels & Resorts Worldwide Inc. (HOT) in a deal that will create the world's largest hotel chain. The merger should offer a wider choice of brands to consumers, improve economics for owners and franchisees and increase unit growth.

    Marriott will have great presence in markets outside the United States since the combined company will own or franchise more than 5,500 hotels with 1.1 million rooms worldwide.


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