Tom Gayner (Trades, Portfolio) is the Executive Vice President and Chief Investment Officer Of Markel Corp and President of Markel Gayner Asset Management, Inc., the investment subsidiary of Markel Corp since December 1990. He thinks stock is part of a business and the business is worth what the present value of the future cash flows are. "We operate with a margin of safety in the investment portfolio." he has said. He has a relatively concentrated portfolio. He believes that he can earn the best returns by concentrating his focus and portfolio in promising areas where he has the best understanding and knowledge.
His portfolio is composed of 107 stocks with a total value of $3,790 million. 24.1% of shares are in Financial Services, 22.2% in Consumer Cyclical and 17.6% are from the Consumer Defensive sector.
During Q4 2014, he bought 6 new stocks of which CRR, WAIR, LBTYA, HAL have the higher impact on his portfolio.
1) He bought 61,000 shares of Carbo Ceramics Inc (CRR) with an impact of 0.06% on his portfolio. Since that buy, the price dropped -20%.
CRR has a market cap of $801 M and on the last 12 months the price dropped -67% and is now trading with a P/E of 11.30
Ratios: The company’s profitability is 8/10 with a ROE of 7%, a ROA of 6% and a ROC of 12%. These ratios are at the all-time lower levels but are still better then 75% of Global Oil & Gas Equipment & Services competitors.
Financially, the company has no debts and a financial strength rating of 7/10.
Growth: Over the last 5 years, the company revenue grew 18%, and the book value grew 14%
Dividend Yield: The company has a dividend yield of 3.56% with a growth ratio over the last 5 years of 10%.
Gurus:Ă‚ CRR is mostly held by Richard Snow (holding 5.58% of Outstanding Shares) and Chuck Royce (holding 1.92% of Outstanding Shares)
2) He bought 30,000 shares of Wesco Aircraft Holdings Inc. (WAIR) with an impact of 0.01% on his portfolio. Since that buy, the price dropped -13%.
WAIR has a market cap of $1,296 M and over the last 12 months the price dropped -33% and is now trading with a P/E of 13.70
Ratios: The company’s profitability is 7/10 with a ROE of 10%, a ROA of 4% and a ROC of 19%. These ratios are at the all-time lower levels but are still better then 75% of Global Industrial Distribution competitors.
Financially, the company has a Cash to Debt ratio of 0.10, lower then 61% of competitors, and a total Financial Strength rating of 6/10.
Growth: Over the last 5 years, the company revenue grew by 16%, and the Book Value grew 14%
Gurus:Ă‚ WAIR is mostly held by Chris Davis (holding 5.79% of Outstanding Shares) and Michael Dell (holding 5.57% of Outstanding Shares).
3) He bought 33,000 shares of Liberty Global PLC (LBTYA) with an impact of 0.04% on his portfolio. Since that buy, the price rose +5%.
LBTYA has a market cap of $36,088 M and over the last 12 months, the price rose +16% and is now trading P/B of 3.5.
Ratios: The company’s profitability is 7/10 with negative ratios and a very poor Cash to Debt of 0.02. Ratios are getting better year by year and now are almost flat. Despite this negative situation, LBTYA ratios are better then 70% of Global Pay Tv Competitors.
Growth: Over the last 5 years, the company revenue grew by 10%, and the Book Value grew 18%.
Gurus:Ă‚ LBTYA is mostly held by Dodge & Cox (holding 1.42% of Outstanding Shares) and Warren Buffett (holding 1.33% of Outstanding Shares).
4) He bought 33,000 shares of Halliburton Co (HAL) with an impact of 0.02% on his portfolio. From that buy, the price declined -10%.
HAL has a market cap of $34,007 M and over the last 12 months, the price lost -16% and is now trading P/E of 10.9.
Ratios: The company’s Profitability is 8/10 with positive returns such as a ROE of 23%, a ROA of 11% and a ROC of 27%. These ratios are better then 90% of Global Oil & Gas Equipment & Services competitors. The company had better ratios in its history.
Financial strength is 7/10 with a Cash to Debt ratio of 0.26
Growth: Over the last 5 years, the company revenue grew by 20%, and the Book Value grew 15%, Free Cash Flow grew 16%.
Gurus:Ă‚ HAL is mostly held by Tweedy Browne (holding 0.63% of Outstanding Shares) and David Tepper (holding 0.59% of Outstanding Shares).
