David Rolfe

David Rolfe

Last Update: 02-14-2017

Number of Stocks: 36
Number of New Stocks: 2

Total Value: $4,096 Mil
Q/Q Turnover: 6%

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

David Rolfe' s Profile & Performance

Profile

David Rolfe has been managing Wedgewood's portfolio for 18 years. He studied at University of Missouri and received a degree of B.S.B.A. in Finance/Economics in 1984.

Web Page:http://wedgewoodpartners.com/

Investing Philosophy

Wedgewood's underlying equity investment philosophy is predicated on a strong belief that significant long-term wealth will be created by investing as "owners" in companies. In our "Invest as Business Owners" approach, we seek companies that the following characteristics:

1. A dominant product or service that is practically irreplaceable or lacks substitutes.
2. A sustainable and consistent level of growing revenues, earnings and dividends.
3. A high level of profitability, measured by return on equity without the use of excessive debt.
4. A strong management team that is shareholder oriented.

This is the flow chart of their process:

Total Holding History

Performance of Wedgewood Partners

YearReturn (%)S&P500 (%)Excess Gain (%)
201329.8632.39-2.5
201221.75165.8
20115.612.113.5
3-Year Cumulative67 (18.6%/year)56.8 (16.2%/year)10.2 (2.4%/year)
201014.515.06-0.6
200960.8326.4634.4
5-Year Cumulative207.5 (25.2%/year)128.2 (17.9%/year)79.3 (7.3%/year)
2008-38.12-37-1.1
200715.045.499.6
2006-2.7715.79-18.6
20055.844.910.9
20049.6110.88-1.3
10-Year Cumulative146.9 (9.5%/year)104.2 (7.4%/year)42.7 (2.1%/year)
200342.2528.6813.6
2002-20.42-22.11.7
2001-7.72-11.894.2
2000-10.31-9.1-1.2
199956.9921.0436.0
15-Year Cumulative263.2 (9%/year)98.5 (4.7%/year)164.7 (4.3%/year)
199849.628.5821.0
199721.133.36-12.3
199623.5722.960.6
199542.5937.585.0
19943.781.322.5
20-Year Cumulative1103.1 (13.2%/year)483.4 (9.2%/year)619.7 (4%/year)
1993-6.2110.08-16.3

Top Ranked Articles

David Rolfe's Lengthy Analysis of Berkshire Hathaway Berkshire Hathaway is Wedgewood Partners' largest holding
Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B)

"We want to do business in times of pessimism, not because we like pessimism but because we like the prices it produces. It's optimism that’s the enemy of the rational buyer. We do not measure the progress of our investments by what their market prices do during any given year. Rather, we evaluate their performance by the two methods we apply to the businesses we own. The first test is improvement in earnings, with our making due allowance for industry conditions. The second test is whether their moats (competitive advantages) have widened during the year."

Warren Buffett (Trades, Portfolio)

We have owned shares of Berkshire Hathaway nearly continuously since the end of December Read more...
David Rolfe Comments on Stericycle Guru stock highlight
We liquidated Stericycle (NASDAQ:SRCL) from portfolios after we determined that the Company's competitive advantage in its core regulated medical waste (RMW) business was not as robust as we had seen during the past five years of our holding period. Prior to the erosion in the economics of their core RMW business, we remained optimistic about Stericycle’s business. Despite recent stumbles in their non-core hazardous waste business and slower than expected integration of newly acquired Shred-it, the RMW business continued to serve as the engine to double-digit growth in free cash flow. We previously believed that Stericycle's unrivaled scale had served to insulate its RMW profitability from competitive pressures, including customer push-back associated with consolidating end-markets, as many of Stericycle’s most profitable customers - particularly individual physician practices Read more...
David Rolfe Comments on Charles Schwab Guru stock highlight
Charles Schwab (NYSE:SCHW)
Read more...
David Rolfe Comments on Charles Schwab Guru stock highlight
Charles Schwab (NYSE:SCHW) was a top performer in the quarter as the company stands to benefit from the continued normalization of U.S. monetary policy. Despite a single federal funds rate hike during calendar year 2016, market expectations for further rate hikes have dramatically risen in the face of potential fiscal stimulus and higher inflation expectations. Read more...
David Rolfe Comments on Apple Inc. Guru stock highlight
We should note successful examples of the use of outsized debt by our own invested companies. Consider Apple. Apple (NASDAQ:AAPL) generates enough cash ($65 billion in operating cash TTM) that even after spending $10 billion in R&D in fiscal 2016, the Company’s balance sheet liquidity grew almost $10 billion, to over $250 billion. This trove is trapped overseas awaiting a change in U.S. repatriation laws - a potentially significant bullish event for shareholders. In the meantime, in order to return this cash back to shareholders, the Company has issued over $75 billion in debt. Read more...
» More David Rolfe Articles

Commentaries and Stories

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David Rolfe Invests in Tractor Supply, Fastenal Guru investor sold Stericycle in 4th quarter David Rolfe,Steven Cohen,Ruane Cunniff - David Rolfe Invests In Tractor Supply, Fastenal
Wedgewood Partners’ David Rolfe (Trades, Portfolio) gained two new holdings and divested another in the final quarter of 2016. He established positions in Tractor Supply Co. (NASDAQ:TSCO) and Fastenal Co. (NASDAQ:FAST). He sold out of Stericycle Inc. (NASDAQ:SRCL). More...

ROLFE, WEDGEWOOD, BUYS, SELLS, 4Q


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If Only Ross' Shares Were as Discounted as Its Merchandise This off-price retailer has carved out a solid niche for itself and should deliver capital gains to the right kind of investors David Rolfe,Pioneer Investments - If Only Ross' Shares Were As Discounted As Its Merchandise
Ross Stores Inc. (NASDAQ:ROST) is a growth story in retail despite no online presence. The company uses buying and merchandising expertise to sell name-brand and designer goods for up to 70% less than conventional retailers. More...

RETAIL, OFF-PRICE, DISCOUNT MERCHANDISE, FASHION, 5-STAR PREDICTABILITY, UNDERVALUED PREDICTABLE


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Rating: 5.0/5 (1 vote)

David Rolfe Comments on Visa Guru stock highlight
Visa (NYSE:V)'s valuation came under pressure following the election early November as the market saw a rotation out of higher-multiple tech and financial securities and into more cyclical names. We used this opportunity to increase weightings across accounts as valuation levels became more attractive. More...

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David Rolfe Comments on Tractor Supply Company Guru stock highlight
Like Fastenal, Tractor Supply Company (NASDAQ:TSCO) is a company we have long admired. Management has executed a disciplined retailing strategy where they have carved out a niche, serving rural land owners with higher than average incomes. The Company has very deliberately positioned itself to be distinct from its competitors, namely Home Depot, Lowe’s, and, to a lesser extent, Wal-Mart, primarily by locating itself in more rural locations and focusing on merchandise that caters to the maintenance needs of a rural lifestyle, in a one-stop shop format (i.e. all-terrain vehicle replacement parts and feed for livestock as pets). More...

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David Rolfe Comments on TreeHouse Foods Guru stock highlight
TreeHouse Foods (NYSE:THS) was a relative detractor from performance during the quarter after a confluence of a few unfortunate, though we think transient, events. The Company unexpectedly missed its quarterly earnings estimates and reduced 2016 guidance, despite having had a few wins earlier in the year not long after closing the Private Brands acquisition in January. The Company reiterated, however, its long-term accretion guidance for Private Brands. From the time the merger was announced (late 2015), we had seen multiple areas where we think this longer-term guidance is still understated. Because of our belief in this cushion management built into their original guidance, we remain comfortable that they will be able to hit their long-term growth expectations, despite these shorter-term issues. More...

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Rating: 5.0/5 (2 votes)

David Rolfe Comments on Stericycle Guru stock highlight
We liquidated Stericycle (NASDAQ:SRCL) from portfolios after we determined that the Company's competitive advantage in its core regulated medical waste (RMW) business was not as robust as we had seen during the past five years of our holding period. Prior to the erosion in the economics of their core RMW business, we remained optimistic about Stericycle’s business. Despite recent stumbles in their non-core hazardous waste business and slower than expected integration of newly acquired Shred-it, the RMW business continued to serve as the engine to double-digit growth in free cash flow. We previously believed that Stericycle's unrivaled scale had served to insulate its RMW profitability from competitive pressures, including customer push-back associated with consolidating end-markets, as many of Stericycle’s most profitable customers - particularly individual physician practices More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on Charles Schwab Guru stock highlight
Charles Schwab (NYSE:SCHW) was a top performer in the quarter as the company stands to benefit from the continued normalization of U.S. monetary policy. Despite a single federal funds rate hike during calendar year 2016, market expectations for further rate hikes have dramatically risen in the face of potential fiscal stimulus and higher inflation expectations. More...

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David Rolfe Comments on Fastenal Guru stock highlight
Fastenal (NASDAQ:FAST) is a company we have followed and admired for many years. The Company is a distributor of manufacturing and construction supplies - generally consumable parts and products such as fasteners (i.e., screws, nuts/bolts) and various items used in the maintenance, repair, and operations (MRO) of customers’ plants. The company has established a differentiated position in its industry by investing heavily to get itself as close as possible to a generally smaller, less urban customer base than its competitors. This is most evident in its extensive network of more than 2,500 branch locations, which the company effectively uses as selling and distribution outposts to serve its customer base. We contrast this with Fastenal’s largest competitor, Grainger, for example, which has only 300-odd branch locations (and shrinking) despite having twice the revenues as Fastenal. We believe this has led to a fairly healthy segmentation between the Company and its competitors: Fastenal has specialized in smaller, geographically dispersed clients who are more heavily reliant on the Company’s local distribution capabilities, sales More...

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David Rolfe Comments on Berkshire Hathaway Guru stock highlight
Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) continues to carry an outsized weighting in portfolios – in fact, the stock continues to be one of our largest holdings. We believe the Company maintains a long-term competitive advantage, evidenced in its below-average cost of capital, which should become more valuable in an environment of both heightened equity market volatility and/or higher cost of borrowing. 2016 operating results were quite impressive given the headwinds in the bull market-laden, over crowded reinsurance business, plus the stagnant growth at Burlington Northern. The stock did enjoy a post -Trump election pop of nearly 15%. Mr. Market's early enthusiasm for Trump's fiscal proposals of lower corporate tax rates, if enacted, would certainly benefit Berkshire's bottom line. The Company could potentially be a huge beneficiary of meaningfully lower corporate tax rates. If enacted, lower corporate tax rates would have an out-sized impact by reducing Berkshire’s deferred tax liability by boosting the Company’s book value. The Company currently has amassed a massive More...

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David Rolfe Comments on Kraft Heinz Guru stock highlight
Kraft Heinz (NASDAQ:KHC) is a rare example of a company that has issued sizable debt with the goal of increasing sales and earnings - particularly earnings, in the case of Kraft Heinz. The unique, hard-to-copy management style of 3G (entrepreneurial, zero-base budgeting), coupled with low-cost debt, has proven to be quite a powerful combination for driving higher profitability well beyond industry peers. More...

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David Rolfe Comments on Apple Inc. Guru stock highlight
We should note successful examples of the use of outsized debt by our own invested companies. Consider Apple. Apple (NASDAQ:AAPL) generates enough cash ($65 billion in operating cash TTM) that even after spending $10 billion in R&D in fiscal 2016, the Company’s balance sheet liquidity grew almost $10 billion, to over $250 billion. This trove is trapped overseas awaiting a change in U.S. repatriation laws - a potentially significant bullish event for shareholders. In the meantime, in order to return this cash back to shareholders, the Company has issued over $75 billion in debt. More...

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Rating: 5.0/5 (2 votes)

David Rolfe's Wedgewood Partners 4th Quarter Letter: Changing of the Guard Many shall be restored that now are fallen, and many shall fall that now are in honor.Horace, Ars Poetica David Rolfe - David Rolfe's Wedgewood Partners 4th Quarter Letter: Changing Of The Guard
Review and Outlook More...

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David Rolfe Buys 1, Sells 1 in 3rd Quarter Guru trades one consumer packaged goods company for another David Rolfe,Paul Tudor Jones,John Burbank,Donald Y - David Rolfe Buys 1, Sells 1 In 3rd Quarter
Wedgewood Partners’ David Rolfe (Trades, Portfolio) acquired one new holding and sold another in the third quarter. More...

ROLFE, WEDGEWOOD, TRADES


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Robert Olstein Invests in Waste Management, Outdoor Sports, Lab Products The guru’s top 3 new holdings for the 3rd quarter Robert Olstein,David Rolfe,Meridian Funds,David Ca - Robert Olstein Invests In Waste Management, Outdoor Sports, Lab Products
Olstein Capital Management’s Robert Olstein (Trades, Portfolio) bought eight new holdings in the third quarter. His top three new holdings are Stericycle Inc. (NASDAQ:SRCL), Vista Outdoor Inc. (NYSE:VSTO) and VWR Corp. (NASDAQ:VWR). More...

OLSTEIN, BUYS, 3Q


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Rating: 3.0/5 (1 vote)

Apple Reports Strong Fiscal 4th Quarter Earnings Company service revenues reach all-time quarterly record as rival drops latest product David Rolfe,John Buckingham - Apple Reports Strong Fiscal 4th Quarter Earnings
During the fiscal quarter ended Sept. 25, Apple Inc. (NASDAQ:AAPL) reported $46.9 billion in net income and diluted earnings per share of $1.67. The company’s gross margin slightly declined compared to the corresponding quarter last year. More...

APPLE, EARNINGS, 4Q, FOURTH


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David Rolfe Comments on TreeHouse Foods Inc. Guru stock highlight
We initiated positions in TreeHouse Foods, Inc. (NYSE:THS) during the third quarter. TreeHouse is the largest private label food manufacturer and distributor in North America. An aphorism in the private label industry is that “a grocer is only as good as their private label.” As such, private label food has been growing its share of the North American food industry over the past several years, as consumers have sought value in comparison with branded food, and as grocery retailers and other food vendors have pursued the greater profitability to themselves of private label products. This trend primarily began in national-brand equivalents, in which TreeHouse and other private label manufacturers offer products of comparable quality to brand names but at better prices. However, much of TreeHouse’s growth in recent years has come from premium products, which often might be natural/organic/healthy choices and possibly of even greater quality or featuring greater innovation (flavors/recipes) than competing branded products. Having evolved from simply offering retail customers a "good/better/best" option of national brand equivalents, More...

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David Rolfe Comments on Cognizant Guru stock highlight
Cognizant (NASDAQ:CTSH) also detracted from overall performance during the quarter, due to management’s cautious commentary related to the demand environment in two of their core customer verticals. Management’s caution about IT spend in Cognizant’s BFS (Banking and Financial Services) segment trace back to the prolonged low interest rate environment along with increased uncertainty in the macro environment—particularly attributed to the “Brexit” vote, which was relatively fresh news at the time of management’s comments. We do not think this weakness has materialized in the near-term, at least to the extent that management was implying. In addition, but not necessarily new, Cognizant has four clients in the HMO (health-maintenance organization) industry, all attempting to merge with or acquire the other. Though the extended timeline of these M&A deals likely pushes out the timing of expected work for Cognizant at each of these four clients, we think Cognizant’s longer-term positioning as a key partner at all four HMOs will continue to allow More...

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David Rolfe Comments on Core Labs Guru stock highlight
Core Labs (NYSE:CLB) was the third largest detractor from our relative performance during the third quarter. While “energy” continues to be a four-letter word at this point in the cycle of U.S. growth investing,5 we continue to think that Core Labs’ value proposition is worthy of multi-cycle consideration. We estimate that roughly 85% of the Company’s revenues are generated by providing equipment and services for the upkeep of their customers’ existing carbon producing fields. As such, the majority of the value that Core Labs provides its customers is not directly predicated on the activity of drillings rigs, or even on the short-term price of oil. For instance, the Company’s Reservoir Description business generated over 60% of consolidated revenues during the trailing 12 months. Reservoir Description revenues have declined just -16% from their trailing 12-month peak (set during late 2013 through mid 2014 – when oil traded at twice today’s levels). A significant portion of Core Labs’ revenues are More...

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David Rolfe Comments on Stericycle Guru stock highlight
Stericycle (NASDAQ:SRCL) underperformed during the quarter as headwinds related to their core, regulated medical waste (RMW) segment began to emerge. Prior headwinds to the Company were limited to non-core businesses or are short-term issues that should be remedied over the next few quarters. While the stock has become cheap, historically and relatively, we did not add to positions during the quarter, as we continue to evaluate the extent of the pressure the Company is seeing in its RMW business. More...

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David Rolfe Comments on Qualcomm Guru stock highlight
Qualcomm (NASDAQ:QCOM) was also a top contributor to performance over the past three months. We saw Qualcomm make meaningful progress on its technology licensing (QTL) front after several quarters of patiently waiting for the Company to capture unpaid royalties in China. Although Qualcomm’s chipset franchise (QCT) usually garners most of the attention for the Company, its high-margin QTL segment actually generates two-thirds to three-quarters of consolidated profitability. So while revenues at Qualcomm grew 4%, operating income grew almost 30%, year-over-year. Although it has taken several quarters to eventually materialize, we think that the “lumpy” nature of QTL revenues does not make Qualcomm’s long-term prospects for monetizing its prolific research and development spend (cumulative $16 billion over the past three years), any less attractive. In our opinion, Qualcomm shares remain underappreciated by the market, trading at just 14X next 12 month earnings. In addition, the Company maintains a fortress-like balance sheet with about $20 billion in net More...

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