Tom Gayner (Trades, Portfolio) is co-CEO of Markel Corp. During the fourth quarter, the guru made the following trades.Â
The investor exited his stake in Harley-Davidson Inc. (HOG, Financial) with an impact of -0.41% on the portfolio.
The company produces and sells heavyweight motorcycles, motorcycle parts and accessories. It also provides related services. It operates in two segments: Motorcycles and Related Products and Financial Services. Fourth-quarter diluted EPS increased 22.7% from the same quarter a year ago. Net income was $47.2 million on consolidated revenue of $1.11 billion compared to net income of $42.2 million on consolidated revenue of $1.18 billion in the year-ago period.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 35.80% and return on assets (ROA) of 6.80% are outperforming 73% of the companies in the Global Recreational Vehicles industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.11 is below the industry median of 0.70.
The largest shareholder of the company among the gurus is Dodge & Cox with 5.04% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 1.99%, Hotchkis & Wiley with 0.88%, Jim Simons (Trades, Portfolio) with 0.22%, Joel Greenblatt (Trades, Portfolio) with 0.17% and Caxton Associates (Trades, Portfolio) with 0.11%.
The guru increased his Amazon.com Inc. (AMZN, Financial) holding by 35.29%, with an impact of 0.22% on the portfolio.
The company is an online retailer. Operating cash flow increased 38% in the fourth quarter and net sales grew 22%. The company reported a 13% increase for operating income and $1.54 per diluted share for net income compared to $1 per diluted share in fourth-quarter 2015.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 14.50% and ROA of 3.43% are outperforming 58% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.71 is above the industry median of 0.84.
Frank Sands (Trades, Portfolio) is the largest shareholder of the company among the gurus with 0.48% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 0.46%, Ken Fisher (Trades, Portfolio) with 0.42%, Chris Davis (Trades, Portfolio) with 0.4%, Andreas Halvorsen (Trades, Portfolio) with 0.34%, Chase Coleman (Trades, Portfolio) with 0.29% and Steve Mandel (Trades, Portfolio) with 0.27%.
The guru exited his stake in Emerson Electric Co. (EMR, Financial) with an impact of -0.22% on the portfolio.
The company is engaged in designing and supplying products and technology, and delivering engineering services and solutions in industrial, commercial and consumer markets.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 20.81% and ROA of 7.62% are outperforming 81% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 1.02 is above the industry median of 0.97.
The largest shareholder of the company among the gurus is T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.63% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.61%, Charles Brandes (Trades, Portfolio) with 0.39%, Mairs and Power (Trades, Portfolio) with 0.29%, Simons with 0.25%, Tweedy Browne (Trades, Portfolio) with 0.22%, Greenblatt with 0.15% and Charles de Vaulx (Trades, Portfolio) with 0.12%.
Gayner added to his postion in Alphabet Inc. (GOOG, Financial) by 24.247%, with an impact of 0.22% on the portfolio.
The technology company is engaged in improving the ways people connect with information and products, including Search, Android, YouTube, Apps, Maps and Ads. It also produces internet-connected home devices and provides internet services. Fourth-quarter revenue grew 22% year over year and 24% on a constant currency basis. The GAAP operating margin increased 25%. The company reported a 33% increase for non-GAAP operating margin.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 15.10% and ROA of 12.50% are outperforming 72% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 9 out of 10. The cash-debt ratio of 21.94 is above the industry median of 4.48.
Dodge & Cox is the largest shareholder of the company among the gurus with 0.45% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.35%, Davis with 0.19%, Halvorsen with 0.16%, Mason Hawkins (Trades, Portfolio) with 0.14% and Sands with 0.12%.
Gayner added to his stake in Texas Instruments Inc. (TXN, Financial) by 25.76%, with an impact of 0.15% on the portfolio.
The company designs and manufactures semiconductors that it sells to electronics designers and manufacturers. During the fourth quarter, revenue increased 7% from the same quarter of a year ago and the gross margin was 62.5%. In 2016, the company returned $3.8 billion to shareholders through stock repurchases and dividends.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10. The ROE of 35.63% and ROA of 22.40% are outperforming 99% of the companies in the Global Semiconductors industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 0.97 is below the industry median of 1.66.
The largest shareholder among the gurus is PRIMECAP Management with 4.59% of outstanding shares, followed by Davis with 0.61%, Nygren with 0.6%, First Eagle Investment (Trades, Portfolio) with 0.53%, Barrow, Hanley, Mewhinney & Strauss with 0.5%, T Rowe Price Equity Income Fund with 0.39%, Grantham with 0.15% and Greenblatt with 0.06%.
The guru investor sold out of Cummins Inc. (CMI, Financial) with an impact of -0.12% on the portfolio.
The company designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products. Fourth-quarter revenues decreased 6%. Net income was $378 million or $2.25 per diluted share, up from $161 million or 92 cents per diluted share a year ago.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of 19.92% and ROA of 9.28% are outperforming 87% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 7 out of 10. The cash-debt ratio of 0.74 is below the industry median of 0.97.
The largest shareholder of the company among the gurus is Hotchkis & Wiley with 2.26% of outstanding shares, followed by Nygren with 1.62%, First Eagle Investment with 1.14%, T Rowe Price Equity Income Fund with 0.64%, Greenblatt with 0.16%, Steven Cohen (Trades, Portfolio) with 0.09%, Paul Tudor Jones (Trades, Portfolio) with 0.03%, Grantham with 0.03% and John Buckingham (Trades, Portfolio) with 0.03%.
The guru increased his holding of Walt Disney Co. (DIS, Financial) by 1.79%, with an impact of 0.07% on the portfolio.
The company is a diversified entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive. During the first quarter, driven by a 13-cent per share gain in the prior year, diluted EPS for the quarter fell 10% to $1.55 from $1.73 in the prior-year quarter and earnings per share declined 5%.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 20.55% and ROA of 9.88% are outperforming 85% of the companies in the Global Media – Diversified industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.18 is below the industry median of 1.27.
The largest shareholder of the company among the gurus is Fisher with 0.55% of outstanding shares, followed by PRIMECAP Management with 0.36%, Segalas with 0.3%, Simons with 0.23%, Pioneer Investments (Trades, Portfolio) with 0.2%, Halvorsen with 0.15% and Diamond Hill Capital (Trades, Portfolio) with 0.15%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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