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Simplicity Rules – Joho Capital’s Top Six

August 01, 2013 | About:
Sally Jones

Sally Jones

49 followers
Robert Karr, founder of Joho Capital, has been recognized as one of the highest-gaining investors, according to the GuruFocus Score Board of Gurus, listing Karr as the third highest gainer in the last six and 12 months. Karr made an average gain of 54.5% over the last six months and averaged 42.27% over the last 12 months. A famed “Tiger Cub" known for simple, concentrated investments, Robert Karr is also an expert in Asian markets.

Here’s an update of Joho Capital's top six holdings, three of them Internet content companies. All six companies are up over 12 months.

Up 40% over 12 months

No. 1: Google Inc. (GOOG)

Weighting: 25.3%

Shares Owned: 287,596

Share Price: $887.75

Incorporated in 1998, Google Inc. (GOOG) has a market cap of $292.77 billion; its shares were traded at around $887.75 with a P/E ratio of 25.00 and P/S ratio of 5.20. Google Inc. had an annual average earnings growth of 44% over the past 10 years. GuruFocus rated Google Inc. the business predictability rank of 2.5-star.

Historical pricing:

1375305404092.png

According to his five-year trading history, Robert Karr has averaged an 80% gain on 626,229 on shares bought at an average price of $494.81. He gained 76% on 340,413 shares sold at an average price of $504.1.



Up 1% over 12 months



No. 2: Mead Johnson Nutrition Company (MJN)

Weighting: 15.2%

Shares Owned: 1,766,900

Share Price: $72.84
Founded in 1905, Mead Johnson Nutrition Company (MJN) has a market cap of $14.71 billion; its shares were traded at around $72.84 with a P/E ratio of 23.70 and P/S ratio of 3.70. The dividend yield of Mead Johnson Nutrition Company stocks is 1.80%. Mead Johnson Nutrition Company had an annual average earnings growth of 2.4% over the past five years.

Karr’s trading history shows four quarters of trading where he averaged a loss of 1% on 1,766,900 on shares bought at an average price of $73.57.



Historical pricing:

1375305857996.png

Up 7% over 12 months[/b]

[b]No. 3: Baidu Inc. (BIDU)


Weighting: 13.7%

Shares Owned: 1,407,050

Share Price: $132.31

Incorporated in the Cayman Islands in January 2000, Baidu Inc. (BIDU) has a market cap of $45.45 billion; its shares were traded at around $132.31 with a P/E ratio of 26.80 and P/S ratio of 16.20. The leading Chinese language internet search provider had an annual average earnings growth of 79.9% over the past five years.

Karr’s trading history shows massive gains in the first, second and third quarters of 2007 in which he gained 1082.3%, 947.7% and 518.3%, respectively. Karr has averaged a 37% gain on 1,407,050 shares bought at an average price of $97.02.

Historical pricing:

1375306010766.png

Up 25% over 12 months

No. 4: Estee Lauder Cos. Inc. (EL)

Weighting: 11.3%

Shares Owned: 1,599,054

Share Price: $65.65

Founded in 1946, Estee Lauder Cos. Inc. (EL) is a manufacturer and marketer of quality skin care, makeup, fragrance and hair care products. Estee Lauder has a market cap of $25.62 billion; its shares were traded at around $65.65 with a P/E ratio of 26.40 and P/S ratio of 2.60. The dividend yield of Estee Lauder stocks is 1.60%. The company had an annual average earnings growth of 9.6% over the past 10 years. GuruFocus rated Estee Lauder Cos. Inc. the business predictability rank of 4-star.

Averaging 94% on 2,700,616 shares bought at an average price of $34.01, Karr also gained 35% on 1,101,562 shares sold at an average price of $48.75.



Historical pricing:

1375309579140.png

Up 111% over 12 months

No. 5: Micron Technology Inc. (MU)

Weighting: 9.4%

Shares Owned: 8,536,697

Share Price: $13.24

A new holding for Karr as of the first quarter 2013, he bought 8,536,697 shares of Micron Technology Inc. (MU) at an average price of $8.24 for a gain of 58.1%.

Incorporated in 1978, Micron Technology Inc. has a market cap of $13.61 billion; its shares were traded at around $13.24 with a P/S ratio of 1.90. Micron Technology Inc. had an annual average earnings growth of 21.1% over the past 10 years. GuruFocus rated Micron Technology Inc. the business predictability rank of 2-star.

Historical pricing:

1375308929092.png

Up 122% over 12 months

No. 6: Yelp Inc. (YELP)

Weightings: 4.5%

Shares Owned: 1,722,008

Share Price: $41.80

Incorporated in 2004, Yelp Inc. (YELP) has a market cap of $2.71 billion; its shares were traded at around $41.80 with a P/S ratio of 16.20.

In two quarters of recent trading, Karr averaged a gain of 89% on 1,722,008 shares bought an average price of $21.62.

Historical pricing:

1375309112098.png

The portfolio of Robert Karr’s Joho Capital currently lists 14 stocks, 2 of them new, a total value of $902 million, and a quarter-over-quarter turnover of 26%.

Here is the complete portfolio of Robert Karr.



1. Robert Karr's Undervalued Stocks

2. Robert Karr's Top Growth Companies

3. Robert Karr's High Yield stocks

4. Stocks that Robert Karr keeps buying

Check out the GuruFocus Score Board of Gurus to track performance numbers for all the investor Gurus and their companies.

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (5 votes)

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