David Rolfe

David Rolfe

Last Update: 11-16-2015

Number of Stocks: 24
Number of New Stocks: 2

Total Value: $6,869 Mil
Q/Q Turnover: 9%

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

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. Read more...
Wedgewood Partners Comments on Qualcomm Guru stock highlight
Of note regarding our continued conviction to hold onto Qualcomm (NASDAQ:QCOM), we think Qualcomm's underperformance during the quarter was largely attributed to customer compliance issues and increasing regulatory scrutiny. Both pertain to Qualcomm's lucrative licensing segment, which accounts for the majority of the Company's profitability. Qualcomm continues to represent an excellent risk-reward trade-off, with shares trading at historically low multiples. Ample growth catalysts include management's aggressive investment in increasing customer compliance with respect to signing licensing agreements, as well as retaking market share in its still-dominant chipset business. Read more...
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. Read more...
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. Read more...
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. Read more...
» More David Rolfe Articles

Commentaries and Stories

  • 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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

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...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Wedgewood Partners Comments on Qualcomm Guru stock highlight
Of note regarding our continued conviction to hold onto Qualcomm (NASDAQ:QCOM), we think Qualcomm's underperformance during the quarter was largely attributed to customer compliance issues and increasing regulatory scrutiny. Both pertain to Qualcomm's lucrative licensing segment, which accounts for the majority of the Company's profitability. Qualcomm continues to represent an excellent risk-reward trade-off, with shares trading at historically low multiples. Ample growth catalysts include management's aggressive investment in increasing customer compliance with respect to signing licensing agreements, as well as retaking market share in its still-dominant chipset business. More...

  • Currently 4.50/5

Rating: 4.5/5 (4 votes)

Wedgewood Partners 4th Quarter Client Letter: 'Back to Our Regularly Scheduled Stock Market' From David Rolfe David Rolfe - Wedgewood Partners 4th Quarter Client Letter: 'Back To Our Regularly Scheduled Stock Market'
Back To Our Regularly Scheduled Stock Market More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Why David Rolfe Sees Value in Apple Rolfe believes some have overly bearish assumptions on iPhone usage David Rolfe - Why David Rolfe Sees Value In Apple
More...

TECH


  • Currently 3.00/5

Rating: 3.0/5 (1 vote)

David Rolfe Trims Stakes in Visa, M&T Bank Guru significantly reduces his holdings in both companies David Rolfe - David Rolfe Trims Stakes In Visa, M&T Bank
David Rolfe (Trades, Portfolio) significantly trimmed his holdings in Visa Inc. (NYSE:V) and M&T Bank Corp. (NYSE:MTB) in the third quarter, reducing his position by 516,412 shares in Visa and 220,344 shares in M&T Bank. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Rolfe's Holdings Trading With Wide Margin of Safety National Oilwell Varco and Apple offer cheap prices David Rolfe - David Rolfe's Holdings Trading With Wide Margin Of Safety
David Rolfe (Trades, Portfolio) has been managing Wedgewood Partners' portfolio for 18 years. 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. More...

  • Currently 5.00/5

Rating: 5.0/5 (2 votes)

Oil Stocks the Most Gurus Are Buying What looks attractive to gurus in a battered industry David Rolfe,Martin Whitman - Oil Stocks The Most Gurus Are Buying
As crude oil prices continue their descent to almost their lowest point since 2009, many value investors have contemplated whether oil stocks offer a compelling value. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Rolfe Trims Holdings in Alphabet, Visa in 3rd Quarter A look at Wedgewood Partners' largest sales David Rolfe - David Rolfe Trims Holdings In Alphabet, Visa In 3rd Quarter
Wedgewood Partners Inc. was founded in 1988 with the goal of providing investors with a superior approach to managing investment portfolios. David Rolfe (Trades, Portfolio) has been Wedgewood's CIO for 18 years. More...

  • Currently 3.00/5

Rating: 3.0/5 (1 vote)

David Rolfe Buys Stake in Newly Trading Kraft Heinz, PayPal Rolfe outlines both stocks' competitive advantages David Rolfe,Carl Icahn - David Rolfe Buys Stake In Newly Trading Kraft Heinz, PayPal
During the third quarter, David Rolfe (Trades, Portfolio) of Wedgewood Partners initiated two new holdings in companies with recent IPOs and sold an oil and gas-related stock, according to data reported by GuruFocus Real Time Picks. More...

DAVID ROLFE, WEDGEWOOD


  • Currently 5.00/5

Rating: 5.0/5 (3 votes)

Korean Value Investor Will Speak for 2016 GuruFocus Value Conference, Omaha Ms. Inhee Park, CFA, Shinyoung Asset Management in Korea, will join us to speak at 2016 GuruFocus Value Conference David Rolfe,Donald Yacktman - Korean Value Investor Will Speak For 2016 GuruFocus Value Conference, Omaha
We are excited to announce that Inhee Park, CFA, Shinyoung Asset Management in South Korea, will join our List of Speakers for the 2016 GuruFocus Value Conference. You can learn more about the conference here. Now only seven days for Early Bird Registration. More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on Schlumberger Guru stock highlight
As oil prices entered their third bear market in 15 months, Schlumberger (NYSE:SLB) shares continued to underperform relative to the broad equity indices. We continue to see SLB as a best-in-class service provider that is aggressively investing in its integrated services offerings. We think SLB's unique advantage, which includes its industry leading army of oil and gas engineers, allows them to perform roles usually more associated with asset managers - not necessarily growing by quantity of services rendered, but by increasing the performance and output of the assets under management of their clients (in SLB's case, oil and gas wells), then capturing a fee for driving that performance. In-line with this shift, SLB recently announced the acquisition of Cameron International for close to $15 billion in total consideration. We see Cameron's core competency as being focused on "surface" equipment and services. This complements what we think is SLB's market share leadership in "down hole" services, providing SLB with more resources to continue their shift towards more fully managing E&P client assets. As oil service industry consolidation continues apace, More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Rolfe Comments on Qualcomm Guru stock highlight
We incrementally added to our positions in Qualcomm (NASDAQ:QCOM) at the beginning of the quarter as we believe a slowdown in the Company’s chipset franchise (“QCT”) is more than discounted by the market. Further, we think QCT is at an earnings trough, as cost-containment efforts as well as restoration of socket share at key customers (e.g. Samsung) should restore the segment to mid-teen margins. We think Qualcomm’s licensing business (“QTL”) is also being dramatically undervalued. We expect “GDP-plus” revenue growth prospects and monopolistic operating margins well above 80% at QTL, and surmise that the market is assigning this business a single-digit, 2016 EV/EPS multiple, which is particularly attractive relative the “average” S&P 500 business trading in the mid to high teens multiples. We concluded that while the negative fundamental news on Qualcomm has lasted around 12 to 18 months, we think this is more than discounted in the current price and that this Company continues to have secular opportunities to grow earnings in the double-digit More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

David Rolfe Comments on Priceline Guru stock highlight
During the quarter, Priceline (NASDAQ:PCLN)’s prolific growth continued unabated as total bookings grew 26% year-over-year, on a constant currency basis. We continue to think Priceline is doing an excellent job getting returns on shareholder funds, reinvesting in travel service demand, particularly through its industry leading, $2.6 billion online marketing budget, which grew slightly less than bookings9. While Priceline’s business model revolves around connecting travel industry asset owners (e.g. hotels, rental cars, restaurants) with travelers, we think the Company’s competitive advantage comes from being a highly-efficient, and therefore low -cost provider focused on serving smaller, more fragmented asset owners that lack the scale and marketing reach of Priceline’s global, online properties. In spite of this, the vast majority of Priceline’s profits are generated outside of the US, so recent currency headwinds have had a significant, albeit purely translational, effect on the Company’s “headline” fundamental results. We do not have much of More...

  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

David Rolfe Comments on PayPal Holdings Guru stock highlight
During the quarter, we initiated positions in PayPal Holdings (NASDAQ:PYPL), a leading provider of digital payment acceptance and merchant payment solutions. Recently spun out from long-time parent, eBay Inc., PayPal operates in over 200 markets with over 50% of net revenues derived from non-US markets. More...

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