Lou Simpson

Last Update: 2014-11-14

Number of Stocks: 13
Number of New Stocks: 1

Total Value: $2,589 Mil
Q/Q Turnover: 10%

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

Lou Simpson' s Profile & Performance

Profile

Buffett met Simpson in 1996 when he was CEO of Geico's capital operations and Buffett was completing his purchase of Geico. Impressed with his track record, Buffett kept Simpson on as chief investment officer.

At his retirement from Berkshire subsidiary Geico in 2010, Simpson managed more than $4 billion worth of stocks. Throughout his time with Berkshire, Simpson and Buffett’s stock picks overlapped sometimes due to similarities in their thinking, but both men clearly had independent processes and disagreed with each other sometimes as well.

Before joining GEICO in 1979 as senior vice president and chief investment officer, Simpson was president and CEO of Western Asset Management, a partner at Stein Roe and Farnham, and an economics instructor at Princeton University.

Investing Philosophy

Buffett frequently sang the praises of Lou Simpson. Once, in his 2004 investor letter, Buffett called him “a cinch to be inducted into the investment Hall of Fame” based on his return performance history. From 1980 to 2004, Simpson produced an average annual gain of 20.3%, compared to 13.5% for the S&P 500. In that time, he had only three negative years, and only four years of less than double-digit returns.

Later, in 2006, Buffett intimated that Simpson, “a top-notch investor with an outstanding long-term record,” would be the natural replacement for him as CEO of Berkshire, were Simpson not a mere six years younger than him.

In a rare interview, Simpson in 2010 told the Chicago Tribune upon his retirement: "My approach is eclectic. I try to read all company documents carefully. We try to talk to competitors. We try to find people more knowledgeable about the business than we are. We do not rely on Wall Street-generated research. We do our own research. We try to meet with top management."

Total Holding History

Top Ranked Articles

How Does Lou Simpson's Stock Portfolio Compare to Warren Buffett's Stock Portfolio?
Lou Simpson is the only person at Berkshire Hathaway (BRK.B) other than Warren Buffett who buys and sells stocks. Buffett makes all investment decisions for Berkshire’s insurance companies with the exception of GEICO. Lou Simpson runs GEICO’s stock portfolio. Simpson, 73, will retire in December. Buffett, 79, will take over GEICO’s portfolio. Until then, the two stock portfolios are kept separate. Media reports confuse which man bought which stocks. As I explained in yesterday’s article, there’s no reason to make that mistake. Berkshire’s 13F report to the SEC shows which investments are GEICO’s and which investments are not. Read more...
What Stocks Does Lou Simpson Own? And What Stocks Does Warren Buffett Own?
Over the weekend, The Chicago Tribune reported that Lou Simpson, the man who manages GEICO’s investment portfolio for Berkshire Hathaway (BRK.B), is retiring. Simpson, 73, is the only person at Berkshire Hathaway other than Warren Buffett who picks stocks. Buffett makes all investment decisions for Berkshire’s other insurance companies. Buffet does not, however, buy or sell stocks in GEICO’s portfolio. Only Simpson does that. In December, that will change. Simpson will retire. And Buffett will take over GEICO’s portfolio. Read more...
Meet Lou Simpson, Former Investment Star at Berkshire and New GuruFocus Guru
Many people connect Warren Buffett with his right-hand man, Charlie Munger. Fewer know, however, that up until a few years ago, a third mastermind made investing decisions at Berkshire Hathaway (BRK.A)(BRK.B), Lou Simpson. Now that Simpson has founded his own firm, SQ Advisors LLC, GuruFocus today began to track the investor as its latest Guru. Read more...
'We do not rely on Wall Street-generated research' - A Look at Former Buffett Stock Picker Lou Simpson's Historical Success
"My approach is eclectic. I try to read all company documents carefully. We try to talk to competitors. We try to find people more knowledgeable about the business than we are. We do not rely on Wall Street-generated research. We do our own research.” Read more...
Former Berkshire Stock Picker Lou Simpson Opens Own Shop
Louis Simpson, the investor who picked stocks on behalf of billionaire Warren Buffett’s Berkshire Hathaway Inc. for more than a decade before stepping down, is going into business for himself. Read more...
» More Lou Simpson Articles

Commentaries and Stories

  • Currently 1.00/5

Rating: 1.0/5 (1 vote)

Former Warren Buffett CIO Lou Simpson Buys Liberty Global, Valeant, U.S. Bancorp, Sells TE Connectivity
If you don’t know Lou Simpson (Trades, Portfolio), you should. He was the former investment manager at GEICO and Warren Buffett (Trades, Portfolio) spoke highly about him many times. Mr. Simpson just reported his third quarter portfolio. He buys Liberty Global PLC, Valeant Pharmaceuticals International Inc, U.S. Bancorp, Charles Schwab Corp, Brookfield Asset Management Inc, Oracle Corporation, Wells Fargo & Co, Berkshire Hathaway Inc, Crown Holdings Inc, sells TE Connectivity Ltd during the 3-months ended 09/30/2014, according to the most recent filings of his investment company, SQ Advisors, LLC. As of 09/30/2014, SQ Advisors, LLC owns 13 stocks with a total value of $2.6 billion. These are the details of the buys and sells. More...

  • Currently 3.00/5

Rating: 3.0/5 (2 votes)

Motley Fool's Top Positions in the Financial Sector Warren Buffett,Lou Simpson,Tom Russo,Chuck Akre,Ar - Motley Fool's Top Positions In The Financial Sector
Recently, hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission. In this article, let´s concentrate in one particular hedge fund and try to see the principal holdings in its portfolio. I will look into Motley Fool Asset Management. More...

Motley Fool, Financials, Berkshire Hathaway, Markel, Banco Latinoamericano de Comercio Exterior


  • Currently 5.00/5

Rating: 5.0/5 (11 votes)

Notes From Charlie Munger's DJCO 2014 Shareholder Meeting Charlie Munger,Lou Simpson - Notes From Charlie Munger's DJCO 2014 Shareholder Meeting
“Welcome to the largest DJCO shareholder meeting not counting shareholders. We have a few shareholders and lots of groupies. More...

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Rating: 0.0/5 (0 votes)

Former Warren Buffett CIO Lou Simpson Buys Berkshire Hathaway, Wells Fargo, U.S. Bancorp, Oracle, Crown Holdings
Former Warren Buffett (Trades, Portfolio) CIO Lou Simpson (Trades, Portfolio) Buys Berkshire Hathaway, Wells Fargo, U.S. Bancorp, Oracle, Crown Holdings More...

  • Currently 5.00/5

Rating: 5.0/5 (8 votes)

'We do not rely on Wall Street-generated research' - A Look at Former Buffett Stock Picker Lou Simpson's Historical Success Lou Simpson - 'We Do Not Rely On Wall Street-generated Research' - A Look At Former Buffett Stock Picker Lou Simpson's Historical Success
"My approach is eclectic. I try to read all company documents carefully. We try to talk to competitors. We try to find people more knowledgeable about the business than we are. We do not rely on Wall Street-generated research. We do our own research.” More...

  • Currently 4.20/5

Rating: 4.2/5 (5 votes)

Lou Simpson’s Top Five Stocks at Year End Lou Simpson - Lou Simpson’s Top Five Stocks At Year End
Lou Simpson (Trades, Portfolio) did not make any new buys or sell outs over the past quarter, but he was very active in increasing and decreasing the positions he holds. As of the most recent quarter Simpson holds on to 13 stocks valued at over $2.1 billion. The following five companies represent the guru’s top holdings as of the close of the fourth quarter. More...

  • Currently 4.57/5

Rating: 4.6/5 (7 votes)

Buffett’s Former Stock Picker Lou Simpson’s Q3 Portfolio Increases Lou Simpson,Warren Buffett - Buffett’s Former Stock Picker Lou Simpson’s Q3 Portfolio Increases
Lou Simpson is an investor with an outstanding track record: He returned 24.7% on average annually in his 17 years at GEICO before it was purchased by Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B). Simpson stayed on working for Buffett for another decade following the acquisition before retiring in 2011 and opening his own investment-advisory firm, SQ Advisors LLC. More...

  • Currently 4.61/5

Rating: 4.6/5 (28 votes)

The Evolution of Warren Buffett’s Career from 1936 to 2013 Warren Buffett,Lou Simpson - The Evolution Of Warren Buffett’s Career From 1936 To 2013
I have always been curious to know about all the investments Warren Buffett made in his career. More...

  • Currently 3.33/5

Rating: 3.3/5 (3 votes)

Former Berkshire Investor Lou Simpson, Top Holdings Update from Second Quarter
“Portfolio manager for Warren Buffett” looks great on the vita. More...

INSURANCE – DIVERSIFIED, PAY TV, ELECTRONIC COMPONENTS, CAPITAL MARKETS, SOFTWARE – INFRASTRUCTURE, BANKS – REGIONAL - US


  • Currently 3.18/5

Rating: 3.2/5 (11 votes)

Former Warren Buffett CIO Lou Simpson Buys UPS, BAM, Sells LOW, FISV
Lou Simpson was the former Warren Buffett CIO who managed the investment portfolios of Geico and Buffett spoke very highly about him multiple times. He is now running his own shop SQ Advisors. Mr. Simpson runs a concentrated portfolio of $1.7 billion in 15 stocks. This is his second quarter portfolio update. More...

  • Currently 4.85/5

Rating: 4.8/5 (13 votes)

Former Berkshire Stock Investor Lou Simpson’s 15 Stock Portfolio
One would think that it investing cash in equities on behalf of Warren Buffett would be a very stressful job. I mean you are entrusted with cash that could be invested by Buffett himself. More...

  • Currently 3.00/5

Rating: 3.0/5 (4 votes)

  • Currently 3.33/5

Rating: 3.3/5 (6 votes)

Lou Simpson Buys Moody's Corp, Oracle Corp, Brookfield Asset Management, Sells Fiserv, Dell, Lowe's Companies
Lou Simpson, an investor that Warren Buffett trusts, just reported his fourth quarter portfolio. Lou Simpson buys Moody's Corporation, Oracle Corporation, Brookfield Asset Management Inc., Valeant Pharmaceuticals International Inc., Charles Schwab Corp, sells Fiserv Inc., Dell Inc., Lowe's Companies Inc. during the three months ended 12/31/2012, according to the most recent filings of his investment company, SQ Advisors LLC. As of 12/31/2012, SQ Advisors LLC owns 16 stocks with a total value of $1.2 billion. These are the details of the buys and sells. More...

  • Currently 3.33/5

Rating: 3.3/5 (9 votes)

New Guru Lou Simpson’s Top-Yielding Stocks
SQ Advisors head and Buffett comrade Lou Simpson runs a pretty concentrated portfolio, with only 15 stocks, the majority weighted in the financial sector. Valued about $1.2 billion, with a quarter-over-quarter turnover rate of 9 percent, about 10 of Simpsons’ stocks pay dividends. More...

  • Currently 3.94/5

Rating: 3.9/5 (16 votes)

Meet Lou Simpson, Former Investment Star at Berkshire and New GuruFocus Guru
Many people connect Warren Buffett with his right-hand man, Charlie Munger. Fewer know, however, that up until a few years ago, a third mastermind made investing decisions at Berkshire Hathaway (BRK.A)(BRK.B), Lou Simpson. Now that Simpson has founded his own firm, SQ Advisors LLC, GuruFocus today began to track the investor as its latest Guru. More...

  • Currently 3.50/5

Rating: 3.5/5 (8 votes)

Former Berkshire Investor Lou Simpson Is Buying Chesapeake Energy – Chesapeake CEO Explains Why You Should Too
I’m long Chesapeake Energy (CHK). I think at current commodity prices it is a good investment. If natural gas ever rebounds to $6 I think it is a giant home run. More...

  • Currently 3.58/5

Rating: 3.6/5 (12 votes)

Former Berkshire Stock Picker Lou Simpson Opens Own Shop
Louis Simpson, the investor who picked stocks on behalf of billionaire Warren Buffett’s Berkshire Hathaway Inc. for more than a decade before stepping down, is going into business for himself. More...

  • Currently 4.66/5

Rating: 4.7/5 (29 votes)

How Does Lou Simpson's Stock Portfolio Compare to Warren Buffett's Stock Portfolio?
Lou Simpson is the only person at Berkshire Hathaway (BRK.B) other than Warren Buffett who buys and sells stocks. Buffett makes all investment decisions for Berkshire’s insurance companies with the exception of GEICO. Lou Simpson runs GEICO’s stock portfolio. Simpson, 73, will retire in December. Buffett, 79, will take over GEICO’s portfolio. Until then, the two stock portfolios are kept separate. Media reports confuse which man bought which stocks. As I explained in yesterday’s article, there’s no reason to make that mistake. Berkshire’s 13F report to the SEC shows which investments are GEICO’s and which investments are not. More...

  • Currently 4.17/5

Rating: 4.2/5 (18 votes)

What Stocks Does Lou Simpson Own? And What Stocks Does Warren Buffett Own?
Over the weekend, The Chicago Tribune reported that Lou Simpson, the man who manages GEICO’s investment portfolio for Berkshire Hathaway (BRK.B), is retiring. Simpson, 73, is the only person at Berkshire Hathaway other than Warren Buffett who picks stocks. Buffett makes all investment decisions for Berkshire’s other insurance companies. Buffet does not, however, buy or sell stocks in GEICO’s portfolio. Only Simpson does that. In December, that will change. Simpson will retire. And Buffett will take over GEICO’s portfolio. More...

  • Currently 3.57/5

Rating: 3.6/5 (7 votes)

You Might Think You're Copying Buffett...
Recently, Berkshire filed its mandatory disclosures detailing its positions in various securities. As a result, you will undoubtedly see headlines beginning "Buffet Buys X Stock" and "Buffett Sells Y Stock". And when word gets out that Buffett has bought a particular stock, its shares jump immediately. After all, if the Oracle of Omaha wants into a company, surely it has a bright future, right? Unfortunately, determining whether Buffett has actually bought a company is not so easy. More...

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Louienosuke
ReplyLouienosuke - 8 months ago
the avg cost for DTV is way off

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