David Rolfe

David Rolfe

Last Update: 05-16-2016

Number of Stocks: 37
Number of New Stocks: 14

Total Value: $5,515 Mil
Q/Q Turnover: 7%

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

Tom Gayner Sells Out of Coach A decrease in international revenue and multiple warning signs may have influenced guru
Guru Tom Gayner (Trades, Portfolio), CEO of Markel (NYSE:MKL), sold his 54,000-share stake in Coach Inc. (NYSE:COH) in the first quarter. Read more...
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 LKQ Corp Guru stock highlight
LKQ Corp (NASDAQ:LKQ)

During the quarter, LKQ continued to execute on its mid-single digit organic growth plus M&A strategy. In addition, the Company provided a convincing case for its continued execution at their first-ever Investor Day. The Company also announced the acquisition of Pittsburgh Glass Works for $635 million in enterprise value and finalized the acquisition of the RHIAG group of Italy.

LKQ is both the largest distributor of aftermarket collision parts in North America and the largest distributor of mechanical aftermarket parts in Europe. We think scale is critically important to most distribution businesses, and LKQ is no exception. In North America, LKQ’s primary customers are collision repair shops that often participate in volume programs organized by casualty insurers looking for low-cost but high-quality repair parts. These collision repair shops must turn their repair jobs over relatively quickly or risk losing out on volume business. As such, LKQ’s unmatched product availability and fulfillment Read more...
David Rolfe Comments on Perrigo Guru stock highlight
Perrigo (NYSE:PRGO)

Perrigo was a bottom performance contributor in the quarter, as the company reported a miss in its Branded Consumer Healthcare (BCH) segment. Management attributed the miss to execution issues and dedicated themselves to solving these problems over the coming quarters. We are willing to be patient; in the meantime, as we think that Perrigo’s core, private label OTC business is unique and should remain a healthy and sustainable source of internal capital.

Perrigo’s BCH segment was established after closing on the acquisition of Omega Pharma (Belgium) in March 2015. Mylan’s hostile bid for Perrigo was launched a few weeks later, and did not conclude until mid-November. We think that Perrigo’s BCH execution issues are understandable (if not predictable), as management was admittedly distracted by fending off Mylan’s hostile bid for the Company during much of 2015. Over the next several quarters, we expect BCH to post improved results, as it is better Read more...
David Rolfe Comments on M&T Bank Guru stock highlight
M&T Bank (NYSE:MTB)

Our growth thesis for M&T Bank was predicated on the company’s ability to maintain its historically successful inorganic growth strategy. We purchased the stock in mid-2013 as the Company moved forward with it’s acquisition of Hudson City Bank (announced in August 2012). More than three years later, after extensive AML/BSA expenses (the company spent over $150 million to improve these systems in 2014 alone) and four extensions to the closure date, regulatory approval was finally granted and the acquisition was complete. Of note in the Fed’s approval, however, was a restriction stipulating that M&T Bank must fully integrate the Hudson City deal and cure all BSA deficiencies fully before pursuing further growth through acquisition. We fully expect the Company to follow through on the Fed’s requirements, but given how cumbersome and expensive it has been to integrate this acquisition, we are not convinced that future acquisitions will be any less cumbersome. Furthermore, we are concerned that Read more...
» More David Rolfe Articles

Commentaries and Stories

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Tom Gayner Sells Out of Coach A decrease in international revenue and multiple warning signs may have influenced guru Tom Gayner,David Rolfe - Tom Gayner Sells Out Of Coach
Guru Tom Gayner (Trades, Portfolio), CEO of Markel (NYSE:MKL), sold his 54,000-share stake in Coach Inc. (NYSE:COH) in the first quarter. More...

  • Currently 4.87/5

Rating: 4.9/5 (15 votes)

David Rolfe's Lengthy Analysis of Berkshire Hathaway Berkshire Hathaway is Wedgewood Partners' largest holding David Rolfe - David Rolfe's Lengthy Analysis Of Berkshire Hathaway
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 More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on Charles Schwab Guru stock highlight
Charles Schwab (NYSE:SCHW) More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on M&T Bank Guru stock highlight
M&T Bank (NYSE:MTB)Our growth thesis for M&T Bank was predicated on the company’s ability to maintain its historically successful inorganic growth strategy. We purchased the stock in mid-2013 as the Company moved forward with it’s acquisition of Hudson City Bank (announced in August 2012). More than three years later, after extensive AML/BSA expenses (the company spent over $150 million to improve these systems in 2014 alone) and four extensions to the closure date, regulatory approval was finally granted and the acquisition was complete. Of note in the Fed’s approval, however, was a restriction stipulating that M&T Bank must fully integrate the Hudson City deal and cure all BSA deficiencies fully before pursuing further growth through acquisition. We fully expect the Company to follow through on the Fed’s requirements, but given how cumbersome and expensive it has been to integrate this acquisition, we are not convinced that future acquisitions will be any less cumbersome. Furthermore, we are concerned that More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on Perrigo Guru stock highlight
Perrigo (NYSE:PRGO)Perrigo was a bottom performance contributor in the quarter, as the company reported a miss in its Branded Consumer Healthcare (BCH) segment. Management attributed the miss to execution issues and dedicated themselves to solving these problems over the coming quarters. We are willing to be patient; in the meantime, as we think that Perrigo’s core, private label OTC business is unique and should remain a healthy and sustainable source of internal capital.Perrigo’s BCH segment was established after closing on the acquisition of Omega Pharma (Belgium) in March 2015. Mylan’s hostile bid for Perrigo was launched a few weeks later, and did not conclude until mid-November. We think that Perrigo’s BCH execution issues are understandable (if not predictable), as management was admittedly distracted by fending off Mylan’s hostile bid for the Company during much of 2015. Over the next several quarters, we expect BCH to post improved results, as it is better More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on LKQ Corp Guru stock highlight
LKQ Corp (NASDAQ:LKQ)During the quarter, LKQ continued to execute on its mid-single digit organic growth plus M&A strategy. In addition, the Company provided a convincing case for its continued execution at their first-ever Investor Day. The Company also announced the acquisition of Pittsburgh Glass Works for $635 million in enterprise value and finalized the acquisition of the RHIAG group of Italy.LKQ is both the largest distributor of aftermarket collision parts in North America and the largest distributor of mechanical aftermarket parts in Europe. We think scale is critically important to most distribution businesses, and LKQ is no exception. In North America, LKQ’s primary customers are collision repair shops that often participate in volume programs organized by casualty insurers looking for low-cost but high-quality repair parts. These collision repair shops must turn their repair jobs over relatively quickly or risk losing out on volume business. As such, LKQ’s unmatched product availability and fulfillment More...

  • Currently 5.00/5

Rating: 5.0/5 (3 votes)

David Rolfe's Wedgewood Partners 1st Quarter 2016 Client Letter Letter includes a lengthy discussion of Berkshire Hathaway David Rolfe - David Rolfe's Wedgewood Partners 1st Quarter 2016 Client Letter
Review and Outlook More...

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Rating: 0.0/5 (0 votes)

Jana Partners Trims Qualcomm Holding by 67% Event-driven firm's top trades in 4th quarter Ken Fisher, David Rolfe, Jana Partners - Jana Partners Trims Qualcomm Holding By 67%
Jana Partners LLC is an investment manager specializing in event-driven investing and was founded in 2001 by Barry Rosenstein, Jana’s managing partner and co-portfolio manager. Jana typically applies a fundamental value discipline to identify undervalued companies that have one or more specific catalysts to unlock value. More...

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David Rolfe Sells More Than 98% of 4 Stakes in His Portfolio Guru reduces holdings in Coach, National Oilwell Varco, Cummins, Varian Medical Systems David Rolfe - David Rolfe Sells More Than 98% Of 4 Stakes In His Portfolio
David Rolfe (Trades, Portfolio) of Wedgewood Partners sold nearly all of his holdings in four existing stakes in his portfolio in the fourth quarter. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Rolfe Sells Coach, Alphabet Wedgewood investor's largest trades of 4th quarter David Rolfe - David Rolfe Sells Coach, Alphabet
David Rolfe (Trades, Portfolio) has been managing Wedgewood Partners' portfolio for 18 years. The following were his most heavily weighted trades during the fourth quarter. More...

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David Rolfe Nearly Doubles His Stake in Perrigo Rolfe adds 1,297,542 shares of Perrigo to Wedgewood Partners' portfolio David Rolfe - David Rolfe Nearly Doubles His Stake In Perrigo
Missouri native David Rolfe (Trades, Portfolio) became passionately interested with investing in 1984 after he signed up for an investments class at the University of Missouri, St Louis. Rolfe entered the class called Investments 334 and began to fall in love with the thought of investing in the stock market. He became so interested that he and another student alongside his professor Dr. Ken Lock founded “The Student Investment Club.” The club started out as a paper portfolio and it still continues to run today, competing against schools across the U.S. More...

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Walt Disney, Union Pacific: Undervalued With Predictable Business Popular guru stocks with stable business results Tom Gayner, David Rolfe, David Tepper, Mario Gabel - Walt Disney, Union Pacific: Undervalued With Predictable Business
According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating, and at least five gurus are shareholders in the companies. More...

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Robert Karr Sells Stake in Mead Johnson Nutrition Guru purchases 4 new stakes in 4th quarter Robert Karr, David Rolfe, Howard Marks, Chuck Royc - Robert Karr Sells Stake In Mead Johnson Nutrition
Guru Robert Karr (Trades, Portfolio), founder of Joho Capital, bought four new stakes in the fourth quarter, but his biggest deal was a divestiture. More...

  • Currently 4.00/5

Rating: 4.0/5 (2 votes)

Qualcomm Is Generating, Returning Cash to Shareholders Several gurus have recently bought Qualcomm because of its strong licensing cash flow David Rolfe, - Qualcomm Is Generating, Returning Cash To Shareholders
Qualcomm (NASDAQ:QCOM) is a chipmaker, but even more importantly, it is a royalty company. Qualcomm owns the IP that is required to hook up phones to 3G networks and the chipmaker receives between 3% and 5% of the price of every handset sold. LTE technology is emerging and Qualcomm's take on those phones may not be as outsized, but they own a lot of patents required for it as well. When the Chinese government began questioning whether what Qualcomm was doing was really valid, the stock took a big hit. Although U.S. and Western European markets are somewhat mature in terms of 3G penetration, future 4G and 5G phones will still likely be compatible and there is a solid runway for growth in emerging markets. The IDC predicts solid growth. More...

TECH, LONG,


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Wedgewood Partners Comments on Perrigo Guru stock highlight
Perrigo (NYSE:PRGO) is another position that we added to during the quarter. We had previously pared positions at materially higher levels after Mylan’s hostile bid for Perrigo became public information. Upon the recent expiration of the hostile offer, shares traded down to valuation levels not seen since 2008-2009, at which time we added back to our position. Management has guided to solid future growth, driven by the Company’s leading position in manufacturing and distributing private label over-the-counter (OTC) drugs to U.S. retailers, as well as its relatively new and rapidly expanding European OTC platform. More...

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Wedgewood Partners Comments on Stericycle Guru stock highlight
We added to positions in Stericycle (NASDAQ:SRCL) after the stock sold off on what we view was an over-reaction to weakness in the Company’s non-core, industrial waste business. Albeit a surprise, we think this weakness is limited to a mid-single digit percent of the Company’s revenue. In our view, the rest of Stericycle’s business, including the recently acquired Shred-It, is a very high-quality, steady growth model. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Wedgewood Partners Comments on Coach Guru stock highlight
We also exited our positions in Coach (NYSE:COH) as we have seen the Company’s international unit, particularly in China, dramatically slow (on a constant currency basis). Relatively speaking, their results in China are still exceptional. Coach competes well below the price points of higher-end luxury players, and therefore has avoided the negative side effects of the Chinese Government’s corruption crackdown that has curtailed a wide swath of demand for higher-end luxury goods. However, on an absolute basis, we find it marginally more difficult to make the case for Coach’s long-term, double-digit earnings per share growth rate. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Wedgewood Partners Comments on Cummins Guru stock highlight
We also sold Cummins (NYSE:CMI) during the quarter. We typically tolerated Cummins’ more cyclical end-market exposure due to their superior competitive positioning and continuous share-take. Much of this has been attributed to the Company’s technological leadership, which drove some key competitors out of the market since 2008. However, as the NAFTA truck cycle slows, management guided decremental margins to levels that we were disappointed with, given their superior competitive positioning. The Company has executed well, at least in its critical Components, and Engines businesses, but we worry it is the recent re-entry of competitors that might be causing their profitability to moderate at a difficult point in their product cycle. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Wedgewood Partners Comments on Varian Medical Systems Guru stock highlight
We sold Varian Medical Systems (NYSE:VAR) early in the quarter. The Company maintains its position as the dominant supplier of radiotherapy equipment and software, worldwide. We see Varian’s core business growing earnings per share at a steady, low to mid-single digit rate, as developed markets have reached maturity. In addition, the dramatic devaluation of the Japanese yen relative to the U.S. Dollar has caused some competitive pressures in its non-core Imaging and Components segment, further pressuring growth. While Imaging Components might regain competitiveness over the next few years, we do not think it will be enough to drive earnings growth to our required rate. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

Wedgewood Partners Comments on National Oilwell Varco Guru stock highlight
During the quarter, we exited our investments in National Oilwell Varco (NYSE:NOV) (Varco). Varco continues to dominate the market for supplying offshore rigs with comprehensive drilling packages and equipment. However, over the past few years we have seen dual industry headwinds hit Varco's customers particularly hard in the form of prohibitively high offshore development costs, combined with a continuous flood of OPEC’s low-cost oil supply. We concluded that the Company's customers - offshore drilling contractors, national oil companies and international oil companies - were systematically shifting their budgets away from offshore, towards onshore development, increasing the risk of another three to maybe even five years of low or negative earnings growth. In addition, while the company continues to have dominant market share, particularly in providing new and aftermarket equipment to offshore drilling rigs, we think this addressable market has the potential to contract for several years as cheap oil from OPEC countries crowds out higher-cost sources of marginal production, especially for non-OPEC offshore producers. More...

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