|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Tisch Beats Buffett With 8% Return Citing Diana Ross
Posted by: GuruFocus (IP Logged)
Date: May 10, 2012 11:37AM
Loews Corp. Chief Executive Officer James Tisch is the dealmaker who won’t make a deal.
He has almost $50 billion to invest, including premiums from an insurance company his New York-based conglomerate owns. Yet Tisch hasn’t made a big purchase in five years, holding off even during the 2008 and 2009 financial meltdown, when the Standard & Poor’s 500 Index (SPX) fell more than 50 percent.
Tisch gives a musical answer when asked about acquisitions. “Do you remember Diana Ross and the Supremes?” he muses in his seventh-floor office on the East Side of Manhattan. He then breaks into a smooth, tenor rendition of one of the Motown trio’s 1960s hits.
“You can’t hurry love,” Tisch croons, slicing the air with his hand. “No, you just have to wait.”
Tisch, 59, says he won’t rush into any big purchase, partly because hungry private-equity firms are driving up prices. Other U.S. corporate chieftains are equally reluctant. The companies in the S&P Industrial Index, which excludes financial firms and utilities, are holding a record stash of more than $1 trillion and, like Loews, are using some of their cash to buy their own shares rather than taking on new enterprises in a shaky economy.
Even while counseling patience, Jim Tisch and his management team have outperformed the value investor and serial acquirer to whom they’re often compared: Warren Buffett. Since Tisch took over the top spot at Loews in December 1998, the firm’s shares have returned 8 percent annualized through the end of March, almost double the 4.3 percent return of the Class A stock of Buffett’s Berkshire Hathaway Inc. (BRK/A), a company more than 10 times Loews’ size.
Book ValueGrowth in Loews’ book value per share -- a metric favored by Buffett -- has averaged 10 percent annualized from 1998 through 2011 compared with 8.1 percent for its Omaha, Nebraska- based rival.
Read the complete article.
Guru Discussed: James Tisch: Current Portfolio, Stock Picks
Stocks Discussed: L, LO,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.