Glenn Greenberg

Last Update: 2014-11-14

Number of Stocks: 12
Number of New Stocks: 1

Total Value: $2,699 Mil
Q/Q Turnover: 15%

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

Glenn Greenberg' s Profile & Performance

Profile

Glenn Greenberg and partner John Shapiro founded Chieftain Capital Management in 1984. By pursuing a disciplined investment strategy, Chieftain compounded its accounts at 22.5% (before management fees) during the period from 1984 through 2004 versus 12.9% for the S&P 500. Update: Chieftain Capital, founded by Glenn Greenberg and John Shapiro in 1984, has now divided into two separate entities. Mr. Shapiro and two Chieftain partners, Tom Stern and Joshua Slocum, plan to launch a new investment firm in 2010 that will keep the name Chieftain Capital Management. The existing Chieftain will be renamed Brave Warrior Advisors and will be run by Mr. Greenberg.

Investing Philosophy

Glenn Greenberg maintains a highly concentrated portfolio that he describes as a "defense against ignorance." He believes that the more companies you own, the less you will know about each, and the less you know about a business, the more likely you are to make mistakes due to fear and greed. He usually owns less than 10 stocks. Greenberg invests in companies with little competition, and places a great deal of emphasis on Return On Invested Capital.

Greenberg was an English major in college and never contemplated going into investing. He ended up going to Columbia business school with no real career objective. He went to work for J.P. Morgan after b-school. A light bulb went off for Greenberg when he was asked to analyze a company that owned land with redwoods growing on it. He made some enquiries and discovered that the land was worth three times the price at which the company was trading. That shaped his thinking because he learned that there are situations out there where you don’t need to be a genius to figure them out.

He does feel that there are fewer such opportunities today because schools are turning out large numbers of value investors who are competing against each other.

Greenberg worked for five years at J.P. Morgan but was dissatisfied because he did not think he was being trained to be a good money manager. He left and went to work for a small money management firm where he spent five years doing research. He then started his own firm, ten years after leaving school. He believes he profited from the ten years of experience and cautioned audience members about starting their own firm without adequate preparation.

At the small firm where he worked, he was trained to internalize the numbers of a potential investment so he could really think about the business. His boss, who was the only one who could buy and sell stocks, would bring Greenberg into his office and grill him about a potential investment. Greenberg was expected to know the business and its numbers inside out. He does not believe in using pre-made spreadsheets. The investor has to become intimate with the financials.

He started Chieftain in 1984 with $40 million, which was primarily family money. From the start, he chose to spend as little time on marketing as possible so he could focus on research. He also spent little time talking to clients which he views as non-productive. Those who need of a lot of hand holding are not a good fit for his firm. Since inception, he said he has beaten the market by an average of 8% annually.

He recently started a new firm called Brave Warrior Capital. He said he re-focused on reading the source material himself rather than relying on prepared data. He said that you should not use numbers prepared by others, but rather generate them yourself. This will also teach you what numbers you need to focus on. You need to boil it down to a small set of key drivers, because the performance of each business is typically driven by a set of key variables.

He first wants to know if a prospective investment is a good business, i.e. could it survive a severe downturn. He then looks to see if it is cheap enough. He again stressed how it is critically important to read the 10-K’s. He was using Capital IQ but decided to drop it because he found too many errors. But more importantly by using it, he and his analysts were not becoming personally immersed in the numbers.

Total Holding History

Top Ranked Articles

Glenn Greenberg at Columbia: How a Great Investor Thinks
The following notes are from a lecture given by investor Glenn Greenberg in the spring of 2010 at the Columbia Business School. Read more...
Glenn Greenberg at Columbia: How a Great Investor Thinks (Part 2)
What constitutes a good business? Read more...
Glenn Greenberg’s New Buys: Growth Stocks for Value Investors
Glenn Greenberg – formerly of Chieftain Capital now of Brave Warrior Capital – bought some new stocks last quarter. They were: Read more...
Vistaprint (VPRT): The Makings of a Moat?
Someone who reads my articles sent me this email: Read more...
Greenberg’s Portfolio: Lockheed Martin, Comcast, U.S. Bancorp, Ryanair, Laboratory Corp. of America, Varian Medical Systems, Dell, Precision Castparts, Waters Corp., Crosstex Energy Glenn Greenberg Has Been Selling Stocks, All of Them
We have not visited the investment activities and methodologies of Glenn Greenberg for quite some time. His unique approach to value investing is appealing to many individual investors who like to buy and hold. Read more...
» More Glenn Greenberg Articles

Commentaries and Stories

  • Currently 4.78/5

Rating: 4.8/5 (18 votes)

The Stock Market: A Look at the Last 200 Years Glenn Greenberg - The Stock Market: A Look At The Last 200 Years
I spend virtually zero energy thinking about the overall stock market. I'm always aware of what the indices are doing, but I really don't pay attention to where I think they are headed or where they've been recently. As Munger has said, sometimes the tide will be with us and sometimes it will be against us, but the best thing to do is to just continue to focus on swimming forward. More...

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Rating: 0.0/5 (0 votes)

Morning Coffee: Real-Time Picks Chase Coleman,Glenn Greenberg - Morning Coffee: Real-Time Picks
Here are some of the latest Real-Time Picks from the gurus: More...

  • Currently 4.57/5

Rating: 4.6/5 (7 votes)

Great Investor Glenn Greenberg Discusses His Investment Philosophy Glenn Greenberg - Great Investor Glenn Greenberg Discusses His Investment Philosophy
I recently watched a video lecture at Columbia from 2010 with Glenn Greenberg of Brave Warrior Advisors, and thought I’d share some thoughts. More...

GLENN GREENBERG, INVESTMENT PHILOSOPHY


  • Currently 4.14/5

Rating: 4.1/5 (7 votes)

Five Gurus Trade ONE - Ranked on Fast 500
Reporting third quarter revenue at $57.1 million, an 11.5% increase year-over-year, Higher One Holdings Inc. (ONE) provides financial services and data analytics to more than 1,600 college and university campuses in the U.S. Achieving more than 340% revenue growth over five years, the company recently received recognition, ranking 259th on Deloitte’s Technology Fast 500, a list of the 500 fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. The Fast 500 winners were chosen based on percentage fiscal year revenue growth from 2008 to 2012. More...

BUSINESS SERVICES


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Digital Age - Glenn Greenberg Discusses Comcast Disney
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Oracle Corporation (ORCL) Analysis Glenn Greenberg,Meryl Witmer - Oracle Corporation (ORCL) Analysis
ORCL is now the most-bought S&P 500 stock of gurus as shown on GuruFocus.com. From the latest guru trades of the second quarter in 2013, we can see Donald Yacktman bought it as new position, Charles de Vaulx, Meryl Witmer, Steven Romick, Glenn Greenberg and so on also added more shares to their portfolio. These trades make me wonder, is it a good buy or not? More...

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Rating: 3.7/5 (10 votes)

Looking For a Few Good Businesses
“We are looking for good businesses where the fortunes of those businesses don’t turn on slight changes in GNP statistics, where there is substantial free cash generated and put into the hands of extremely capable managements which will not go out and spend that money foolishly by over-expanding plant capacity, or paying too much for an acquisition to get into somebody else’s difficult business. We look for people who have a vision of building something, building their business into a great company.” More...

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Rating: 3.3/5 (3 votes)

Latest Picks from Hedge Fund Manager Glenn Greenberg: ORCL, VRX, GOOG, ADBE, VPRT, FISV, MSI, ONE, PRI
Hedge fund manager Glenn Greenberg is very confident in his stock picking. That is why he puts billions of dollars into only 12 stocks. He started out in hedge fund Chieftain Capital Management. Then he went on his own with Brave Warrior Capital. As of 06/30/2012, Brave Warrior Capital owns 12 stocks with a total value of $1.4 billion. Greenberg was an English major in college and never contemplated going into investing. He ended up going to Columbia business school with no real career objective. He went to work for J.P. Morgan after b-school. A light bulb went off for Greenberg when he was asked to analyze a company that owned land with redwoods growing on it. He made some enquiries and discovered that the land was worth three times the price at which the company was trading. That shaped his thinking because he learned that there are situations out there where you don’t need to be a genius to figure them out. More...

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Rating: 4.1/5 (13 votes)

What to Expect from U.S. Bancorp
Years ago, Warren Buffett said at the annual shareholders meeting that what he and Charlie try to do is figure out what a company’s Value Line sheet will look like in ten years. Of course, this can only be done in stable businesses with a good long-term record of performance. It is in that spirit that I made a 5-year projection for U.S. Bancorp (USB) a la Value Line. More...

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Rating: 3.6/5 (22 votes)

Vistaprint (VPRT): The Makings of a Moat?
Someone who reads my articles sent me this email: More...

GLENN GREENBERG


  • Currently 3.91/5

Rating: 3.9/5 (23 votes)

Glenn Greenberg’s New Buys: Growth Stocks for Value Investors
Glenn Greenberg – formerly of Chieftain Capital now of Brave Warrior Capital – bought some new stocks last quarter. They were: More...

GLENN GREENBERG


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Rating: 3.0/5 (8 votes)

Top 5 Conviction Picks from Glenn Greenberg
Glenn Greenberg and partner John Shapiro founded Chieftain Capital Management in 1984. Now they divided into two separate entities. Mr. Shapiro and two Chieftain partners, Tom Stern and Joshua Slocum, launched a new investment firm in 2010 that will keep the name Chieftain Capital Management. More...

PORTFOLIO, VALUE INVESTING, GURU, MOTOROLA GOOGLE


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Hedge Fund Manager Glenn Greenberg Buys MSI, PRI, WFC, V, VRX, AON, CMCSK, USB, Sells MA
Hedge Fund Glenn Greenberg just reported his Q3 portfolio at Brave Warrior Capital. Before he started Brave Warrior, he has built great performance at portfolio at Chieftain Capital. Glenn Greenberg runs a highly concentrated portfolio. Sometimes he put 40% of portfolio on one stock. The most important rule for Mr. Greenberg is that if they lacked the confidence to put five percent of their portfolio in a company's stock, they would not buy any. Therefore he has a very concentrated portfolio. Due to this excess concentration he typically has less than ten securities in their portfolio. The most number of securities he has held is twelve and the least, six, while maintaining a 30% cash position. More...

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Rating: 2.9/5 (9 votes)

The Manual of Ideas: The Model Portfolio Issue, October 2011
This is an overview of the 111-page October 2011 monthly issue of The Manual of Ideas, entitled The Model Portfolio Issue. More...

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Rating: 2.3/5 (10 votes)

Hedge Fund Manager Glenn Greenberg Reports Q2 Portfolio
Hedge Fund Manager Glenn Greenberg built a great track record while he was at his former firm, Chieftain Capital Management. He split with his partner at Chieftain, and started a new firm by himself, Brave Warrior Capital. Glenn Greenberg runs a concentrated portfolio. He wants to buy companies that are deeply undervalued. More...

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Rating: 2.7/5 (6 votes)

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Hedge Fund Manager Glenn Greenberg’s Q1 Portfolio Update
Hedge Fund Manager Glenn Greenberg built a great track record while he was at his former firm, Chieftain Capital Management. He split with his partner at Chieftain, and started a new firm by himself, Brave Warrior Capital. Glenn Greenberg runs a concentrated portfolio. He wants to buy companies that are deeply undervalued. More...

  • Currently 2.46/5

Rating: 2.5/5 (13 votes)

Glenn Greenberg’ Brave Warrior Capital Buys HPQ, FISV, BR, MA, ACGL, Sells DELL, XTEX, TDW, SGU, CMCSA, NICK, BAC
Glenn Greenberg of Brave Warrior Capital, Inc. reported his Q4 portfolio. As of 12/31/2010, Brave Warrior Capital, Inc. owns 11 stocks with a total value of $1.1 billion. These are the details of the buys and sells. More...

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Rating: 2.1/5 (15 votes)

Hedge Fund Manager Glenn Greenberg Buys FISV, MA, GOOG, LMT, DELL and AREX, Sells Visa, XTXI
Hedge Fund Glenn Greenberg just reported his Q3 portfolio. He split with his portfolio at Chieftain Capital, and is now on his own at Brave Warrior Capital. More...

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Rating: 4.1/5 (32 votes)

Glenn Greenberg at Columbia: How a Great Investor Thinks (Part 2)
What constitutes a good business? More...

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User Comments

Gurufocus
ReplyGurufocus - 10 months ago
hi Waterats, it is fixed.
Waterats
ReplyWaterats - 10 months ago
if you go to any guru stock picks in their fund the dates of purchases are not in order. You can't tell when the last time a guru bought a stock because they are not in chronological order...thanks

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