The Sequoia Fund was founded in 1970 by William Ruane, who died in Oct. 2005. Currently, the Fund ‘s investment committee consists of Richard T. Cunniff, Robert Goldfarb, and David Poppe. $10,000 invested in the fund in 1970 at inception would become $1,922,460 through June 30, 2010, dividend and distribution re-invested. Talk about fortune making!
Morningstar has recently an article on the fund entitled Sequoia Dials Down Its Concentration. It is an interesting article. You should check it out if you own the fund or are thinking about owning the fund. The article mentioned that the Fund seeks to invest in companies long-term. Typically they are looking for companies that have rock-solid balance sheet and an ability to compound capital.
The Fund managers practice buy-and-hold. Some of its holding stay in the portfolio for really long time. However, either because the stock gets too expensive or the manager found something cheaper, we do see some churns in the portfolio.
These are the top sells of the fund during the 3Q10 quarter:
No. 1: Walgreen Company (WAG), Reduce: -2.32% of the portfolio - Total: 28,670 SharesWalgreen Co. is a national retail pharmacy chain and considered the leader in innovative drugstore retailing. Walgreen Company has a market cap of $32.26 billion; its shares were traded at around $34.85 with a P/E ratio of 16.3 and P/S ratio of 0.5. The dividend yield of Walgreen Company stocks is 2%. Walgreen Company had an annual average earning growth of 11.7% over the past 10 years. GuruFocus rated Walgreen Company the business predictability rank of 4.5-star.
No. 2: W.R. Berkley Corp. (NYSE:WRB), Reduce: -0.71% of the portfolio - Total: 1,603,675 SharesW. R. Berkley Corporation is an insurance holding company, which through its subsidiaries, operates in all segments of the property casualty insurance business: regional property casualty insurance; reinsurance; specialty lines of insurance; alternative markets; and international. W.R. Berkley Corp. has a market cap of $3.96 billion; its shares were traded at around $26.69 with a P/E ratio of 9.8 and P/S ratio of 0.9. The dividend yield of W.r. Berkley Corp. stocks is 1%.
No. 3: Liberty Global Inc. (NASDAQ:LBTYA), Reduce: -0.17% of the portfolio - Total: 500,000 SharesLiberty Global owns interests primarily in broadband distribution and content companies operating outside the continental U. Liberty Global Inc. has a market cap of $8.55 billion; its shares were traded at around $35.26 with and P/S ratio of 0.8. Liberty Global Inc. had an annual average earning growth of 52.3% over the past 5 years.
No. 4: Johnson & Johnson (NYSE:JNJ), Reduce: -0.09% of the portfolio - Total: 114,238 SharesJohnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson has a market cap of $169.54 billion; its shares were traded at around $61.55 with a P/E ratio of 12.9 and P/S ratio of 2.8. The dividend yield of Johnson & Johnson stocks is 3.5%. Johnson & Johnson had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.
No. 5: IRSA Inversiones y Representaciones S.A. (NYSE:IRS), Reduce: -0.07% of the portfolio - Total: 80,000 SharesIRSA Inversiones y Representaciones S.A. invests in and develops industrial, commercial and residential real estate in Argentina, Chile and Brazil. Irsa Inversiones Y Representaciones S.a. has a market cap of $928.3 million; its shares were traded at around $16.04 with and P/S ratio of 2.8. The dividend yield of Irsa Inversiones Y Representaciones S.a. stocks is 3.2%. Irsa Inversiones Y Representaciones S.a. had an annual average earning growth of 10.3% over the past 10 years.
Check out the complete stock portfolio by clicking on Ruane Cunniff.