Tom Gayner (Trades, Portfolio) is the executive vice president and chief investment officer of Markel Corp. (MKL, Financial) and president of Markel Gayner Asset Management Inc., Markel's investment subsidiary since December 1990. From the114 stocks in his portfolio, the following are the holdings that are trading with a wider margin of safety, according to the Peter Lynch Value.
Graham Holdings Co. (GHC) is trading at $575, and the Peter Lynch value gives the stock a fair price of $1,676.4, giving the stock a margin of safety of 66%.
The stock is trading with a PE ratio of 6.80, higher than 92% of companies in the Global Education and Training Services industry, and is currently 20.55% below its 52-week high and 26.88% above its 52-week low.
It is an education and media company. Kaplan Inc., a subsidiary of the company, provides educational services for students and professionals, both domestically and outside the U.S. Kaplan's businesses comprise Higher Education, Test Preparation and Kaplan International.
For the second quarter the company reported an increase of 1% for revenue. GHS and Berkshire Hathaway Inc. (BRK.A) (BRK.B) during this quarter completed a transaction in which Berkshire acquired a wholly owned subsidiary of Graham Holdings.
Mason Hawkins (Trades, Portfolio) is the company's leading shareholder among the gurus with a stake 11.59% of outstanding shares, followed by Warren Buffett with 1.84% and Jim Simons (Trades, Portfolio) with 0.51%. Gayner has 0.09% of outstanding shares.
Travelers Companies Inc. (TRV) is trading at $114.21, and the Peter Lynch value gives the stock a fair price of $254.36, giving the stock a margin of safety of 55%.
The stock is trading with a PE ratio of 10.16, higher than 74% of companies in the Global Insurance - Property and Casualty industry, and is currently 0.29% below its 52-week high and 19.99% above its 52-week low.
The company through its subsidiaries provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. The company's business segments are Business and International Insurance, Bond and Specialty Insurance and Personal Insurance. At 86.9%, its combined ratio reflects very strong performance across all of its business segments, and its investment portfolio continued to deliver solid returns in the continuing low interest rate environment. The company reported a 12% year-over-year increase for operating income per diluted share, and return on equity and operating return on equity were 15.4% and 16.2%.
Pioneer Investments (Trades, Portfolio) is the main firm holding shares of the company with a stake of 0.33% of outstanding shares, followed by James Barrow (Trades, Portfolio) with 0.29% and Jim Simons (Trades, Portfolio) with 0.23%. The investor holds 0.09% of outstanding shares of the company.
Harley-Davidson Inc. (HOG) is trading at $47.93, and the Peter Lynch value gives the stock a fair price of $89.14, giving the stock a margin of safety of 44%.
The stock is trading with a PE ratio of 12.85, higher than 62% of companies in the Global Recreational Vehicles industry, and is currently 31.91% below its 52-week high and 3.16% above its 52-week low.
The company produces and sells heavyweight motorcycles as well as motorcycle parts, accessories and related services. It operates in two reportable segments: the Motorcycles and Related Products (Motorcycles) reportable segment and the Financial Services reportable segment. During the third quarter Harley-Davidson reported diluted earnings per share of 69 cents compared to EPS of 69 cents a year ago. Even so dealer new motorcycle sales were down 1.4% compared to the same quarter of a year before, but they expect a heightened competitive environment to continue for the foreseeable future.
The company's leading shareholder among the gurus is Bill Nygren (Trades, Portfolio) with a stake 1.05% of outstanding shares, followed by the firm HOTCHKIS & WILEY with 0.96% and Joel Greenblatt (Trades, Portfolio) with 0.18%. Gayner has a small stake 0.02% of outstanding shares.
Apple Inc. (AAPL) is trading at $118.67, and the Peter Lynch value gives the stock a fair price of $216.54, giving the stock a margin of safety of 44%.
The stock is trading with a PE ratio of 13.80, higher than 60% of companies in the Global Consumer Electronics industry, and is currently 11.83% below its 52-week high and 28.94% above its 52-week low.
The company designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players and sells a variety of related software, services, accessories, networking solutions and third-party digital content and applications.
Apple had an amazing quarter, with iPhone revenue growth of 59% over last year, strong sales of Mac, all-time record revenue from services, driven by the App Store, and a great start for Apple Watch. Gross margin was 39.7% compared to 39.4% a year ago, and international sales grew by 64% of the quarter’s revenue.
The company's leading shareholder among the gurus is Carl Icahn (Trades, Portfolio) with a stake 0.93% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.2% and David Einhorn (Trades, Portfolio) with 0.13%.
Investors Title Co. (ITIC) is trading at $74.5, and the Peter Lynch value gives the stock a fair price of $123.98, giving the stock a margin of safety of 40%.
The stock is trading with a PE ratio of 13.54, lower than 64% of in the Global Insurance - Specialty industry, and is currently 8.87% below its 52-week high and 11.95% above its 52-week low.
The company is a holding company that operates through its subsidiaries. The company's primary business activity, and its only reportable operating segment, is the issuance of residential and commercial title insurance through ITIC and NITIC.
Investors Title reported an increase of 22.1% for net income compared to the prior year quarter and due to net realized gains on investments and increases in other revenues, revenues grew 6.8%.
Tom Gayner (Trades, Portfolio) is the company's main shareholder among the gurus with a stake of 10.67% of outstanding shares, which is 0.38% of his total assets. The second one is Jim Simons (Trades, Portfolio) with 0.65% and Chuck Royce (Trades, Portfolio) with 0.04%.
Colfax Corp. (CFX) is trading at $27.04, and Peter Lynch value gives the stock a fair price of $40.75, giving the stock a margin of safety of 34%.
The stock is trading with a PE ratio of 16.61, higher than 53% of companies in the Global Diversified Industrials industry, and is currently 51.11% below its 52-week high and 8.03% above its 52-week low.
Colfax designs, manufactures, installs and maintains gas- and fluid-handling products for use in a wide range of markets, including power generation, oil, gas and petrochemical, mining, marine (including defense) and general industrial and other.
Colfax had a weak performance for the third quarter, falling short of expectations. Colfax’s Fabrication Technology segment continued to face weak end markets, and the declining volume and volatile market and currency movements in Latin America depressed margins. The company reported a decrease of 16.8% from the prior year for the net sales and a 6.5% decrease compared to the third quarter of 2014.
Chuck Akre (Trades, Portfolio) is the main shareholder of the company with a stake 4.69% of outstanding shares, followed by Ron Baron (Trades, Portfolio) with 2.85% and the firm Diamond Hill Capital (Trades, Portfolio) with 0.99%.
