Lou Simpson

Last Update: 08-15-2016

Number of Stocks: 14
Number of New Stocks: 2

Total Value: $2,363 Mil
Q/Q Turnover: 6%

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

Lou Simpson Increases 7 Stakes in 3rd Quarter Ametek was the largest addition with an impact of 11.3% on portfolio
Warren Buffett met Lou Simpson in 1996 when he was CEO of Geico's capital operations and Buffett was completing his purchase of the insurance company. Buffett kept Simpson on as chief investment officer. At his retirement from Geico in 2010, Simpson managed more than $4 billion worth of stocks. Read more...
Valeant: Heads I Win, Tails I Don't Lose Much Though it has many obstacles, Valeant is too cheap to ignore
There are several reasons to dislike Valeant Pharmaceuticals (NYSE:VRX). Lack of management credibility, accounting irregularities and other legal investigations related to a price increase on a couple of drugs have caused its share price to fall from the high of $260 to $28.95. Investors in the company, including me, had a stomach-churning experience. Read more...
Buffett-Endorsed Investor Lou Simpson's Top 5 Stock Increases Simpson's adds resulted in 2 new top holdings
Lou Simpson (Trades, Portfolio), an investor with Warren Buffett (Trades, Portfolio) connections, disclosed Monday he boosted stakes in his largest holdings during the third quarter and purchased no new stocks. Read more...
Lou Simpson Buys Berkshire, Wells Fargo, US Bancorp Former Geico CIO bets on Buffett-owned stocks
Lou Simpson (Trades, Portfolio) manages a portfolio composed of 12 stocks with a total value of more than $3 billion. During the fourth quarter, he increased his stakes in the following seven stocks. Read more...
In Vast Difference From Berkshire Style, Lou Simpson Adds to Valeant Position Former CIO of Geico demonstrates unique value strategy in 4th quarter
Former Geico CIO Lou Simpson (Trades, Portfolio) is well known for having been a trusted manager of the Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) subsidiary, of whom Warren Buffett often sang the praises in his annual shareholder letters. As demonstrated in his fourth-quarter trades, however, Simpson can also have vastly different investment ideas than what can be considered a classic Buffett company. Read more...
» More Lou Simpson Articles

Commentaries and Stories

  • Currently 4.33/5

Rating: 4.3/5 (3 votes)

Valeant: Heads I Win, Tails I Don't Lose Much Though it has many obstacles, Valeant is too cheap to ignore Bill Ackman, Lou Simpson - Valeant: Heads I Win, Tails I Don't Lose Much
There are several reasons to dislike Valeant Pharmaceuticals (NYSE:VRX). Lack of management credibility, accounting irregularities and other legal investigations related to a price increase on a couple of drugs have caused its share price to fall from the high of $260 to $28.95. Investors in the company, including me, had a stomach-churning experience. More...

  • Currently 4.00/5

Rating: 4.0/5 (1 vote)

Lou Simpson Buys Berkshire, Wells Fargo, US Bancorp Former Geico CIO bets on Buffett-owned stocks Warren Buffett, Lou Simpson - Lou Simpson Buys Berkshire, Wells Fargo, US Bancorp
Lou Simpson (Trades, Portfolio) manages a portfolio composed of 12 stocks with a total value of more than $3 billion. During the fourth quarter, he increased his stakes in the following seven stocks. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Is Valeant a Good Buy Now? Investors may want to follow Lou Simpson into the stock Lou Simpson - Is Valeant A Good Buy Now?
Valeant Pharmaceuticals (NYSE:VRX) has been on a wild ride over the past several years. It was once the stock market darling when its stock price jumped from $40 per share in 2012 to $250 per share in July last year. Then it plunged to only $87 at the time of this writing. Investors have been in doubt about the company’s business model and accounting practices. However, value investors such as Lou Simpson (Trades, Portfolio) and T Rowe Price Associates have been buying its shares. Should we follow them into this stock? Let’s dig deeper. More...

LONG


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Rating: 0.0/5 (0 votes)

In Vast Difference From Berkshire Style, Lou Simpson Adds to Valeant Position Former CIO of Geico demonstrates unique value strategy in 4th quarter Lou Simpson,Warren Buffett,Charlie Munger - In Vast Difference From Berkshire Style, Lou Simpson Adds To Valeant Position
Former Geico CIO Lou Simpson (Trades, Portfolio) is well known for having been a trusted manager of the Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) subsidiary, of whom Warren Buffett often sang the praises in his annual shareholder letters. As demonstrated in his fourth-quarter trades, however, Simpson can also have vastly different investment ideas than what can be considered a classic Buffett company. More...

  • Currently 2.00/5

Rating: 2.0/5 (1 vote)

Lou Simpson Adds to Valeant Stake Former Geico CEO ups holding in 4th quarter Lou Simpson - Lou Simpson Adds To Valeant Stake
Guru Lou Simpson (Trades, Portfolio) ran the Geico insurance, a subsidiary of Berkshire Hathaway (BRK.A) (BRK.B) for more than three decades with outstanding returns. In his 2004 letters to shareholders, Warren Buffett (Trades, Portfolio) dedicated an entire section to Lou Simpson (Trades, Portfolio) called "Portrait of a Disciplined Investor." More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Lou Simpsons' High Quality Stocks Include Ametek, Berkshire Simpson's holdings with high business predictability Lou Simpson - Lou Simpsons' High Quality Stocks Include Ametek, Berkshire
Warren Buffett met Lou Simpson (Trades, Portfolio) in 1996 when he was CEO of Geico's capital operations and Buffett was completing his purchase of Geico. Throughout his time with Berkshire, Simpson and Buffett's stock picks sometimes overlapped due to similarities in their thinking, but both men clearly had independent processes and disagreed with each other sometimes as well. More...

  • Currently 5.00/5

Rating: 5.0/5 (4 votes)

Lou Simpson Increases 7 Stakes in 3rd Quarter Ametek was the largest addition with an impact of 11.3% on portfolio Warren Buffett, Lou Simpson - Lou Simpson Increases 7 Stakes In 3rd Quarter
Warren Buffett met Lou Simpson in 1996 when he was CEO of Geico's capital operations and Buffett was completing his purchase of the insurance company. Buffett kept Simpson on as chief investment officer. At his retirement from Geico in 2010, Simpson managed more than $4 billion worth of stocks. More...

  • Currently 1.00/5

Rating: 1.0/5 (1 vote)

Simpson and Greenberg Buy Brookfield Despite Negative Report Report raises serious allegations against Brookfield Asset Management, but several gurus keep buying Glenn Greenberg,Lou Simpson,Tom Gayner,Third Avenu - Simpson And Greenberg Buy Brookfield Despite Negative Report
Recently the Probes Reporter wrote a negative report on Brookfield Asset Management (NYSE:BAM) calling it "An Unanalyzable Black Box." In the report it discusses several government investigations, lack of disclosures about the investigations and Brookfield Asset Management's financial engineering. More...

  • Currently 3.67/5

Rating: 3.7/5 (3 votes)

Buffett-Endorsed Investor Lou Simpson's Top 5 Stock Increases Simpson's adds resulted in 2 new top holdings Lou Simpson - Buffett-Endorsed Investor Lou Simpson's Top 5 Stock Increases
Lou Simpson (Trades, Portfolio), an investor with Warren Buffett (Trades, Portfolio) connections, disclosed Monday he boosted stakes in his largest holdings during the third quarter and purchased no new stocks. More...

  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Lou Simpson Boosts Stake in Charles Schwab Lou Simpson - Lou Simpson Boosts Stake In Charles Schwab
Warren Buffett (Trades, Portfolio) once dedicated a section of his annual letter to shareholders to Lou Simpson (Trades, Portfolio), who was Buffett’s chief investment officer at Geico for more than a decade. The section about Simpson was titled “Portrait of a Disciplined Investor.” When Simpson retired in 2010, he managed more than $4 billion worth of stocks. More...

  • Currently 3.00/5

Rating: 3.0/5 (2 votes)

Simpson and Buffett BOTH own this wide moat stock.
Precision Castparts (NYSE:PCP) was founded in Portland, Oregon circa 1949. The company manufactures structural investment castings, forged components and airfoil castings for aircraft jet engines and power turbines. More...

BUFFETT, LOU SIMPSON, AIRCRAFT MARKET, ENERGY MARKET


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Lou Simpson Adds Precision Castparts to Portfolio in First Quarter Lou Simpson - Lou Simpson Adds Precision Castparts To Portfolio In First Quarter
Warren Buffett (Trades, Portfolio) has called Lou Simpson (Trades, Portfolio) “a cinch to be inducted into the investment hall of fame,” and he should know. Simpson was CEO of capital operations for GEICO when Buffett bought the company in 1996, and he remained with the company until 2010. More...

Lou Simpson, Precision Castparts


  • Currently 5.00/5

Rating: 5.0/5 (1 vote)

This Buffet-Munger Name Is More Growth Stock than Value Stock Lou Simpson,Murray Stahl - This Buffet-Munger Name Is More Growth Stock Than Value Stock
When pension funds and big money managers want value propositions beyond the stock and bond markets, they call on companies like Brookfield Asset Management Inc. (NYSE:BAM). More...

ASSET MANAGEMENT, REAL ESTATE, RENEWABLE ENERGY, INFRASTRUCTURE, PRIVATE EQUITY, LONG


  • Currently 0.00/5

Rating: 0.0/5 (0 votes)

Guru Stocks at 52-Week Lows: UPS, HST, KORS, FAST, TIF
According to GuruFocus' list of 52-week lows, these Guru stocks have reached their 52-week lows. More...

  • Currently 3.00/5

Rating: 3.0/5 (3 votes)

Dividend Yield Investing in American Financials Warren Buffett, Lou Simpson - Dividend Yield Investing In American Financials
Dividend Yield Investing in American Financials More...

  • 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...

  • Currently 0.00/5

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...

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