Tom Russo

Tom Russo

Last Update: 05-12-2016

Number of Stocks: 107
Number of New Stocks: 5

Total Value: $11,835 Mil
Q/Q Turnover: 2%

Countries: USA NOR GBR FRA CHE SGP ESP
Details: Top Buys | Top Sales | Top Holdings  Embed:

Tom Russo Watch

  • How to Fish in the Right Ponds

    It’s been widely quoted that in investing, just like in fishing, choosing the right pond to fish in can be more important than the skill and the equipment possessed by the fish man. If you are a skillful fish man with best in class equipment and you choose the right pond, you will have wonderful results. In investing, this is when skill, experiences and circle of competency meet the “strike zone.”


    In the past two years or so, I have noticed a pattern among a few outstanding investors. For instance, Tom Russo (Trades, Portfolio) has historically had an overwhelming overweight to consumer staples; Don Yacktman’s investments have been mainly in consumer staples and entertainment; Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) have historically heavily invested in financials, just like Bruce Berkowitz. One of Vanguard’s most successful funds is the Vanguard Health Care Fund, which has crushed the S&P 500 in any given five-year and 10-year period.

      


  • Thomas Russo on Global Value Investing

    Tom Russo is a partner at Gardner Russo & Gardner LLC. According to Insidermonkey.com, his company managed to beat the Standard & Poor's 500 index by 4.7 percentage points annually between 1984 and 2011.


    Last year, Russo gave a talk on his value investing philosophy at Google which I’ve posted below. This video was my first exposure to Russo, and I learned a lot. Russo was a student at Stanford University in 1982 when he attended a presentation given by Warren Buffett (Trades, Portfolio). He credits Buffett’s presentation for inspiring him to pursue a career in the investment industry.

      


  • Dealing With Foreign Currency

    Most value investors are bottom-up. Yes, our focus should be the fundamentals of the business, not the macro economic factors that are less predictable and less controllable. But how far up should we get? Should macro factors be totally ignored? If not, how much attention should we devote to macro factors such as foreign exchange rates?


    Somehow the answer came to me when I was reviewing an article I wrote earlier this year, which discussed how long is long-term. Of course it depends on your holding period; the longer it is the less important macro factors are.

      


  • Tom Russo's Global Stock Picks

    Tom Russo recently spoke with Bloomberg's radio show "Taking Stock." The guru manages about $10 billion. He likes family-controlled companies because families think long term and don't care as much for quarterly numbers, and also tend to be more conservatively financed. He also likes to invest in companies with high ROE numbers. On the show he touts four stocks, three of which are non U.S. companies.


    Nestlé SA (NSRGY)

      


  • Altria, Cigna, Philip Morris Are Outperforming the S&P 500

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    Altria Group Inc. (MO) has a market cap of $120.66 billion, and during the last 12 months has outperformed the S&P 500 Index by 19.4%. Currently six gurus are holding the company that has returned 9% year-to-date and 146% during the last five years. It is now trading with a P/E ratio of 23 and according to the DCF calculator, it looks overpriced by 115%.

      


  • Tom Russo on Emerging Markets and Berkshire Share Buy Back

    Tom Russo (Trades, Portfolio), partner at Gardner Russo & Gardner, told Bloomberg yesterday that value investors will make money over time, and it will depend on the ability of the companies in which they've invested to reinvest the money over time. Russo has large positions in Richemont (XSWX:CFR), Pernod (XPAR:RI), Heineken (XAMS:HEIA), which have large exposure to emerging markets. But most of his companies have a long-term outlook and ability to withstand sudden downturns such as China, he said.


    Russo also said he maintains confidence in Warren Buffett (Trades, Portfolio)'s ability to deploy large amounts of capital but he likely lacks opportunity at the present time. He doubts Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) will repurchase shares on their recent slump because Buffett would rather spend the money on buying businesses.

      


  • Tom Russo Cuts Berkshire, Unilever Stakes

    Tom Russo joined Gardner Russo & Gardner as a partner in 1989. His investment philosophy emphasizes return on invested capital, principally through equity investments. His approach to stock selection stresses two main points: value and price. He manages a portfolio composed of 104 stocks with total value of $11,073 million.


    The following were his largest trades during the third quarter.

      


  • Why GEICO's Growth Rate Took Off in the Late 1990s

    Over time, I’ve wrote a handful of articles about GEICO. Back in July, I discussed Berkshire Hathaway’s (BRK.B) sizable investments in GEICO in 1976 and 1980 (it accounted for nearly 25% of Berkshire’s equity investments by 1977) and what happened over the ensuing years. I ended that article with this quote from Warren Buffett's (Trades, Portfolio) 1995 shareholder letter – the year Berkshire acquired the 49% of GEICO it did not already own for $2.3 billion:


      


  • AB Inbev and SABMiller Agree on Merger

    On Wednesday, Nov. 11, Anheuser-Busch InBev (NYSE:BUD) and SABMiller PLC (SBMRY) reported a merger agreement that would combine the world’s two largest beer makers. After nearly two months of negotiations, SABMiller has agreed to the acquisition which, at its final price, values SABMiller at $108 billion or $66.50 per SABMiller share.


    After board agreement, the acquisition will now undergo regulatory approval which could take up to a year to finalize. Under terms of the agreement SABMiller will be required to sell its MillerCoors LLC ownership and its Miller portfolio in order to reduce competitive hurdles that could slow the regulatory approval process.

      


  • Global Value Investing – Tom Russo Talks at Google

    Long-term patient value investing: The majority of the money that trades on the stock market every day is certainly not done so using that philosophy.


    Tom Russo (Trades, Portfolio) is a proven long-term investor.

      


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