Markel (NYSE:MKL) is a Virginia-based specialty insurer and holding company where Gayner has managed investments since 1990. Gayner employs a value approach to stock selection, evaluating individual companies based on factors such as profitability, return on capital, management, reinvestment dynamics, capital management and valuation, according to the company’s 2012 investor letter.
Third quarter purchasing with a 2% turnover rate brought Gayner’s total stock holdings to 107, fair valued at $2.92 billion. He has positioned the portfolio primarily in three sectors: financial services representing 27.1%, consumer cyclical representing 18.6% and consumer defensive representing 17.7%.
Third Quarter Buys
Mosaic Co. (NYSE:MOS)
Gayner purchased 150,000 shares of Mosaic in the third quarter when the price averaged $47, a 0.22% portfolio weighting.
Mosaic is the world’s largest combined supplier of phosphates and potash. The Mosaic stock price is up 3% from the third quarter average, at $48.02 per share.
Mosaic had the following five-year growth rates: 5.6% for revenue, 7.8% for EBITDA, 1.2% for free cash flow and 14.6% for book value.
For the third quarter the company reported $1.9 billion in net sales, down from $2.6 billion for the second quarter 2012. Earnings declined to $124 million from $417 million.
Mosaic has a dividend yield of 2.1%, P/E ratio of 10.7, P/B of 1.5 and P/S of 2.1.
Apollo Global Management LLC (NYSE:APO)
Gayner bought 100,300 shares of Apollo Global Management in the third quarter when the price averaged $27, a 0.097% portfolio weighting. The price is near a three-year high at $25.81 on Wednesday after rising approximately 35% from the average.
Apollo Global Management is a global alternative investment manager with $112.7 billion in assets under management. The $4.31 billion market cap company began trading publicly in 2011.
For third quarter 2013 Apollo Global reported $1.15 billion in revenue, up 52% from $394.3 million in the third quarter 2012. Net income increased to $695.6 million from $197.8 million.
Apollo Global’s revenue and earnings history:
The company has a dividend yield of 0.9%, a P/E of 8 and P/B of 1.6. Its P/S of 1.16 is near a one-year high.
Potash Corporation of Saskatchewan Inc. (NYSE:POT)
Gayner purchased 70,000 shares of Potash Corporation of Saskatchewan in the third quarter when the price averaged $33, a 0.075% portfolio weighting. The price is $32.24 Wednesday after a 3% decline from the average.
Potash is the world’s largest fertilizer producer by capacity with three main products: potash, phosphate and nitrogen. It has a $28.02 billion market cap.
The five-year growth rates for Potash Corp. are 6.3% for revenue, 7.3% for EBITDA and 20.5% for book value.
It reported $1.52 billion in revenue for the third quarter 2013, down from $2.14 billion for the third quarter 2012. Earnings were $356 million, down from $645 million.
Potash’s revenue and earnings history:
Potash has a dividend yield of 3.7%, P/E of 14.3, P/B of 2.8 and P/S of 3.8.
Apollo Group Inc. (NASDAQ:APOL)
Gayner purchased 105,000 shares of Apollo Group in the third quarter when the price averaged $19, a 0.075% portfolio weighting. Shares have climbed 34% from the average to almost a one-year high of $25.81 on Wednesday.
Apollo group is a for-profit education company with a $2.98 billion market cap.
Apollo’s five-year growth rates are 6.4% for revenue and 4.5% for book value. EBITDA declined at a rate of 7.3% and free cash flow at a rate of 13.6% over five years.
For the third quarter Apollo reported $845 million in revenue, down from $996 million for the third quarter 2012. Earnings declined to $22 million from $75 million.
Apollo’s long-term revenue and earnings history:
Apollo has a P/E of 12 and P/B of 2.6. Its P/S of 0.8 is near a one-year high.
Copart Inc. (NASDAQ:CPRT)
Gayner bought 10,000 shares of Copart in the third quarter when the price averaged $33. Shares have declined 3% from average to almost a 52-week low of $31.72 on Wednesday.
Copart is a $3.97 billion market cap online vehicle sales company for a variety of cosignors and the public.
Over five years it had growth rates of 18.1% for revenue and 15.6% for EBITDA. Decline rates were 0.4% for free cash flow and 4.3% for book value.
Second quarter revenue for the company increased to $263.7 million from $226.6 million in second quarter 2012. Earnings declined to $41.3 from $44.9 million.
Copart’s revenue and earnings history:
The company has a P/E of 22.7 and P/S of 3.9. Its P/B at 5.13 is close to a two-year low.
See more Tom Gayner trades in his portfolio here. Also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Tom Gayner.