Irving Kahn (born December 19, 1905 ) is an American value investor and, with over 77 years experience in the investment business, one of the oldest financial analysts on Wall Street. He is currently chairman of Kahn Brothers Group, Inc., the privately owned investment advisory and broker-dealer firm that he founded with his sons, Alan and Thomas, in 1978. The firm has approximately $372 million in equities under management according to the Form 13-F filed with the SEC in August, 2009. Kahn still performs an active role at the company at the age of 103.
The entry goes on discussing Kahn’s career and how did he get into a career of investing:
Educated at the City College of New York, Kahn served as the second teaching assistant to Benjamin Graham at the Columbia Business School. At the time, other notable students and/or teaching assistants to Graham included future Berkshire Hathaway chairman Warren Buffett and future value investors William J. Ruane,Walter J. Schloss and Charles Brandes, among others.
Columbia University, the origin and capital of value investing back then, still carries the banner for value investing today.
Back to Irving Kahn, I found this article in http://www.financialweek.com/ entitled: “There are old-school investors, and then there's Irving Kahn” on Irving Kahn’s investment style and his performance . It was published on Oct. 19, 2008
Kahn Brothers adheres strictly to Mr. Graham's value-investing principles: Buy stocks at cheap prices relative to earnings, and then hold on for the long term. Kahn Brothers holds its investments for a minimum of three to five years, but often much longer; that's compared with a typical U.S. equity fund, which has about 85% turnover annually, according to Morningstar. The firm has returned about 16% annually from year-end 1994 to June 30, 2008, compared with almost 10% for Standard & Poor's 500-stock index over the same period.
What are his top holdings? Given the slow turnover ratio of his portfolio, his top holdings have not changed since last quarter, and they are:
No. 1: New York Community Bancorp Inc. (NYB), Weightings: 10.52% - 4,098,061 Shares
New York Community Bancorp, Inc. is a leading producer of multi-family loans in New York City, with an emphasis on apartment buildings that feature below-market rents. New York Community Bancorp Inc. has a market cap of $3.85 billion; its shares were traded at around $11.14 with a P/E ratio of 10.6 and P/S ratio of 2.3. The dividend yield of New York Community Bancorp Inc. stocks is 9%. New York Community Bancorp Inc. had an annual average earning growth of 20.5% over the past 10 years. GuruFocus rated New York Community Bancorp Inc. the business predictability rank of 2.5-star.
No. 2: BristolMyers Squibb Company (NYSE:BMY), Weightings: 8.8% - 1,738,102 Shares
Bristol-Myers Squibb Company is a global leader in the research and development of innovative lifesaving and life-enhancing treatments for heart disease; high blood pressure; stroke; diabetes; cancer; HIV/AIDS and other infectious diseases; depression, schizophrenia and other mental disorders; pain; and other conditions. Bristolmyers Squibb Company has a market cap of $46.23 billion; its shares were traded at around $23.34 with a P/E ratio of 11.5 and P/S ratio of 2.2. The dividend yield of Bristolmyers Squibb Company stocks is 5.3%.
No. 3: Pfizer Inc (NYSE:PFE), Weightings: 8.25% - 2,218,062 Shares
Pfizer Inc is a research-based, global pharmaceutical company that discovers and develops innovative, value-added products that improve the quality of life of people around the world and help them enjoy longer, healthier, and more productive lives. Pfizer Inc has a market cap of $118.51 billion; its shares were traded at around $17.56 with a P/E ratio of 8.1 and P/S ratio of 2.4. The dividend yield of Pfizer Inc stocks is 3.7%. Pfizer Inc had an annual average earning growth of 11% over the past 10 years. GuruFocus rated Pfizer Inc the business predictability rank of 2.5-star.
No. 4: ScheringPlough Corp. (SGP), Weightings: 7.08% - 1,114,093 Shares
Schering-Plough Corporation and its subsidiaries are engaged in the discovery development manufacturing and marketing of pharmaceutical products worldwide. The company operates primarily in the prescription pharmaceutical marketplace. However where appropriatethe company has sought regulatory approval to switch prescription products to over-the-counter status as a means of extending a product's life cycle..
SGP has been bought out by Merck & Company (NYSE:MRK) early this month. Irving Kahn owns a lot of Merck as well.
No. 5: Old Republic International Corp. (NYSE:ORI), Weightings: 6.59% - 2,406,358 Shares
Old Republic International Corporation is Chicago-based and is an insurance holding company whose subsidiaries market, underwrite and provide risk management services for a wide variety of coverages in the property and liability, mortgage guaranty, title and life and health insurance fields. Old Republic International Corp. has a market cap of $2.64 billion; its shares were traded at around $10.97 with and P/S ratio of 0.7. The dividend yield of Old Republic International Corp. stocks is 6.2%. Old Republic International Corp. had an annual average earning growth of 5% over the past 10 years.
No. 6: Merck & Co. Inc. (NYSE:MRK), Weightings: 6.42% - 903,102 Shares
Merck & Co., Inc. is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service. Merck & Co. Inc. has a market cap of $70.88 billion; its shares were traded at around $33.61 with a P/E ratio of 10.1 and P/S ratio of 3. The dividend yield of Merck & Co. Inc. stocks is 4.5%.
Looking for a steadfast believer in values in Pharmaceuticals? You can find one in the 104 years old Irving Kahn. His holding in this sector is long term and concentrated.
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