Chuck Akre

Chuck Akre

Last Update: 2014-08-13

Number of Stocks: 39
Number of New Stocks: 2

Total Value: $3,442 Mil
Q/Q Turnover: 11%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Chuck Akre' s Profile & Performance

Profile

Chuck Akre is the founder of Akre Capital Management LLC. As of 2007, his firm manages $2.6 billion. He has been in the securities business since 1968, and continues to be the primary person responsible for his firm's investment advisory services and investment selection. Akre also serves as sub-advisor of FBR Small Cap. He was named to Barron's "Top 100 Mutual Fund Managers" list from 2003-2006, one of only two small cap growth managers to make the list four consecutive years.

Web Page:http://www.akrecapital.com/

Investing Philosophy

Chuck Akre employs a classic value approach in selecting companies for his portfolio. He likes to buy companies with strong business model demonstrating consistent earnings growth, high return on equity or high compound growth rate in book value per share. He also looks at the quality of the management. Ackre likes companies with a return on equity above 15%, shareholder friendly management, and a price to free cash flow ration below 15. Chuck Akre's portfolio turnover is remarkably low. His portfolio is also concentrated, with about 40 stocks, and his top four holdings typically make up over 40% of assets.

Total Holding History

Performance of Akre Capital Private Asset Man

YearReturn (%)S&P500 (%)Excess Gain (%)
201111.532.089.4
201018.515.063.4
200937.5426.4611.1
3-Year Cumulative81.8 (22%/year)48.5 (14.1%/year)33.3 (7.9%/year)
2008-42.92-37-5.9
20076.535.610.9
5-Year Cumulative10.5 (2%/year)-1.2 (-0.2%/year)11.7 (2.2%/year)
200625.3815.799.6
20055.094.910.2
200446.021234.0
200340.2628.711.6
2002-3.49-22.118.6
10-Year Cumulative187.9 (11.2%/year)34.8 (3%/year)153.1 (8.2%/year)
20012.4-11.914.3
20005.57-9.114.7
19992.3821-18.6
199827.1428.6-1.5
199730.0533.4-3.4
15-Year Cumulative426.8 (11.7%/year)124.1 (5.5%/year)302.7 (6.2%/year)
199619.6923-3.3
199552.4737.614.9
19942.931.31.6
19936.310.1-3.8
199214.747.67.1
20-Year Cumulative1106.9 (13.3%/year)355.1 (7.9%/year)751.8 (5.4%/year)
199138.3230.57.8
1990-6.88-3.1-3.8
19890.3331.7-31.4

Top Ranked Articles

Chuck Akre: Investing in Compounding Machines
We had the honor to hear from Mr. Chuck Akre (Trades, Portfolio) from Akre Capital Management at the Value Investor Conference, which was held in Omaha on May 1-2, the days before the Berkshire Hathaway shareholder meeting. Mr. Akre’s topic is “Investing in Compounding Machines.” Below are the notes from his speech. Read more...
Value Ideas Contest: ARO Is a Recovery, Priced Like a Disaster
Aeropostale is a retailer of casual apparel for young men and women. The company went public in 2002 and has been growing sales and earning almost constantly ever since. Throughout the recession performance was excellent — net income for the year ended January 2010 was up 77.5% from the year ended January 2008. The “almost” comes over the TTM period, where net income has declined for the first time since 2006. Read more...
Answers from GuruFocus' Q&A with Chuck Akre; Discusses LAMR, AMT, MA, MKL, PENN, ARO
Recently, GuruFocus readers asked successful investor Chuck Akre their investing questions. In his comments, he discusses LAMR, AMT, MA, MKL, PENN, LEXG, ESV, ROST, TJX and ARO. Read more...
Don't Be Afraid to Pay a Little Bit More
“Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, a low dividend yield – are in no way inconsistent with a ‘value’ purchase.” Read more...
Chuck Akre Value Investing Conference Talk: 'An Investor's Odyssey: The Search for Outstanding Investments'
This is Chuck Akre's talk from 8th Annual Value Investor Conference in May 2011, Omaha, right before the annual shareholder meeting of Berkshire Hathaway. The upcoming 9th Annual Value Investor Conference will be held May 3 – 4, 2012, again in Omaha. The conference is organized by Bob Miles, author of several books including "The Warren Buffett CEO: Secrets of the Berkshire Hathaway Managers." Read more...
» More Chuck Akre Articles

Commentaries and Stories

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What About CarMax and Its 'Non-Conventional Strategies'?
In this article, let's take a look at CarMax Inc. (KMX),a $11.69 billion market cap company, which is the largest U.S. retailer of used vehicles. It owns and operates more than130 used car superstores in about 60 markets and sells new vehicles at five locations. More...

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Do You Understand the Business?
One of the key concepts in value investing is circle of competence. Warren Buffett (Trades, Portfolio) has always reminded us to stick to our circle of competence. Only investing in businesses that you can understand intuitively makes sense but what I’ve observed over the years is that the proper definition of understanding a business is often misconstrued. More...

CHUCK AKRE


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Chuck Akre Comments on MasterCard Corporation
MasterCard Corporation (“MasterCard”) (NYSE: MA) More...

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Chuck Akre Comments on Moody’s Corporation
Moody’s Corporation (“Moody’s”) (NYSE: MCO) More...

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Rating: 4.5/5 (2 votes)

Chuck Akre Comments on Colfax Corporation
Colfax Corporation (“Colfax”) (NASDAQ: CFX) More...

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Chuck Akre Comments on American Tower Corporation
American Tower Corporation (“American Tower”) (NYSE: AMT) More...

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Chuck Akre 2nd 2014 Quarter Commentary
AKRE FOCUS FUND 2nd QUARTER 2014 COMMENTARY More...

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Don't Be Afraid to Pay a Little Bit More Chuck Akre - Don't Be Afraid To Pay A Little Bit More
“Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, a low dividend yield – are in no way inconsistent with a ‘value’ purchase.” More...

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Chuck Akre's Focus Fund First Quarter 2014 Commentary
From our perch in Middleburg it looks to us like the market continues to absorb the often unpleasant news from around the world. Every so often the market has indigestion. With the attendant back and forth of emotions, it follows that investment outcomes for the first quarter were fairly benign. The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 1.10% and 1.19% net of fees and expenses, respectively in the first quarter of 2014 versus the S&P 500 with a return of 1.81%. More...

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Chuck Akre: Investing in Compounding Machines Chuck Akre - Chuck Akre: Investing In Compounding Machines
We had the honor to hear from Mr. Chuck Akre (Trades, Portfolio) from Akre Capital Management at the Value Investor Conference, which was held in Omaha on May 1-2, the days before the Berkshire Hathaway shareholder meeting. Mr. Akre’s topic is “Investing in Compounding Machines.” Below are the notes from his speech. More...

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Quality and Good Prices Are the Foundations of Expansion Plans for CarMax
CarMax Inc. (KMX) is engaged as a retailer of used vehicles. The company operates in two segments: CarMax Sales Operations, which consist of auto merchandising and service operations, excluding financing provided by CarMax AutoFinance (CAF); and CAF, which consists of finance operation that provides vehicle financing to customers through its superstores. Let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment. More...

LONG, RETAIL, VEHICLES, USED


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Chuck Akre Comments on Colfax Corp.
The only other business included in the top ten which we have not previously mentioned is Colfax Corp. (CFX). This is a manufacturing company whose business model is to acquire other manufacturing business and rationalize them in such a way as to importantly improve their operating results. The management of Colfax Corp. has demonstrated this skill at another company with which we are familiar, and we believe we have an important opportunity here, hence a top ten holding. More...

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Chuck Akre Comments on Markel Corp.
The last, Markel Corp. (MKL), is a specialty property and casualty insurer which we believe is positioned exceptionally well for what lies ahead, including the possibility of higher interest rates, firming of insurance pricing, growing free cash flow from its Markel Ventures segment, and lastly the opportunity for a more robust management of its balance sheet. In other portfolios we manage, we have owned shares of Markel Corp. for more than twenty years. More...

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Akre Focus Fund Semi-Annual Report
Semi-Annual Letter More...

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Discount Retailer Ross Stores Proves to Be a Recession-Proof Business
While 2009’s economic recession was a serious problem for many businesses, particularly in the retail area, off-price retailers were some of the few which actually benefitted from the crash and weak recovery phase. Ross Stores Inc. (ROST) was one of the retailers that gained market share thanks to consumer’s price oriented behaviour. However, the company’s large buyer fleet has also contributed significantly to its past growth. With 600 merchants and 8,000 vendors at hand, the firm has strong pricing power and has used it in the past to obtain trendy designer wear at the lowest prices possible. More...

LONG, RETAIL, APPAREL, EARNINGS, PROFIT


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Outdoor Advertising in the Midsize Market: A Profitable Business
The outdoor advertising industry in the U.S. is dominated mainly by three major companies, which generate 75% of all billboard revenue. However, only one of these companies, Lamar Advertising Co. (LAMR) focuses on midsized markets, where it holds a 70% market share. As such, the firm operates 150,000 billboards, 100,000 logo advertising displays and over 27,000 transit displays throughout the country, which account for a total of 75% of sales. Last quarter, investment gurus Chuck Akre (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) bought this company’s shares at an average price of $48.8. Let’s see why. More...

ADVERTISING,OUTDOOR ADVERTISEMENT,MARKETING,BILLBOARDS,HIGHWAY BEAUTIFICATION ACT,DIGITAL BILLBOARDS,


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Follow Chuck Akre Latest Buys
Chuck Akre (Trades, Portfolio) is one of those outstanding mangers that have performed exceptionally well over the long term with a focused, low turnover portfolio construction approach. It is great for us individual investors to be able to get ideas from his every quarter as he is a long-term value investor we can follow intelligently to higher returns. More...

AKRE,TOP BUYS


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Chuck Akre's Fourth Quarter Letter to Clients
January 14, 2014 More...

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Akre Focus Fund 4th Quarter 2013 Commentary
The Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 9.38% and 9.41% net of fees and expenses, respectively in the fourth quarter ending December 31, 2013 versus the S&P 500 Index with a return of 10.51% for the same period. For the year 2013, the Akre Focus Fund Retail Shares (AKREX) and Institutional Shares (AKRIX) returned 39.19% and 38.90% net of fees and expenses, respectively versus the S&P 500 Index with a return of 32.39% for the year.  More...

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Weekly CEO Buys Highlight: MITT, NLY, OPK, ARCP, HTA
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below: More...

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User Comments

Davecvet
ReplyDavecvet - 10 months ago
I am a friend of Pat Lewis and he told me to contact Mr Akre regarding investments. How do I make contact with Mr Akre other than this site to discuss investmenting?

thank you

dave capraro

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