Ruane Cunniff

Ruane Cunniff

Last Update: 08-14-2017

Number of Stocks: 70
Number of New Stocks: 2

Total Value: $10,810 Mil
Q/Q Turnover: 7%

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

Ruane Cunniff Watch

  • Ruane, Cunniff & Goldfarb 3rd Quarter Commentary

    Dear Sequoia Shareholders and Clients:


  • Auto Parts Stores Are Looking Very Cheap

    While the last seven or eight months have been unkind to the stock prices of the three major auto parts stores, they have done extremely well over the long term.

    My overall thesis is as long as we have automobiles, whether operated by humans or autonomous, auto parts stores will be around. Cars, trucks, SUVs, RVs and other vehicles are not going to be rendered obsolete. People will still have to fix their self-driving car, or they will buy parts and let their robot to do it. In addition, this segment of retail seems to have a moat around it.


  • Ruane Cunniff's Sequoia Fund 2nd Quarter Shareholder Letter

    Dear Sequoia Shareholders and Clients:


  • 7 Negative Assets in Gurus' Portfolios

    While gurus hold positions in these companies, the stock price and returns continue to fall. These are the worst-performing stocks over the last three months with a long-term presence in more than four gurus’ portfolios.

    O'Reilly Automotive Inc. (ORLY) had a negative performance of 29.3% over the last six months. Three mutual funds hold the stock with a total weight of 1.95% on their portfolios.


  • Thoughts on Chipotle Mexican Grill's Earnings

    Chipotle Mexican Grill Inc. (NYSE:CMG) just released earnings after the closing bell on Wall Street and the numbers were better than expected. The stock is up over $10 in after-hours trading thanks to an earnings beat; however, revenue was soft and comps were 8.1% lower than expected. After 16 years, I have seen companies release numbers like this only to pull back to the closing price and actually open down the next day.

    If you have owned Chipotle stock for the last decade, you feel pretty good with 300% returns. That’s still five times better than the S&P 500. In 2012, the stock suffered a brief hiccup, dropping to a low of $250 from $440, and has since hit highs north of $750. Now that Chipotle is suffering from a new hiccup, the street has reacted negatively toward the stock because of recent norovirus outbreaks in Virginia.


  • Sequoia Fund Climbing Back Post-Valeant Saga

    Following three years of underperforming the index, the fund Warren Buffett (Trades, Portfolio) once endorsed is moving toward its best return since before a historic collapse at one of its largest portfolio companies.

    The Sequoia Fund, founded by luminaries Bill Ruane and Rick Cunniff, enjoyed high esteem from value investors for decades leading up to its bad bet on Valeant Pharmaceuticals (NYSE:VRX). In 2014, Sequoia boasted a five-year annualized return of 17.76% versus 15.45% in the S&P 500 index, and a 10-year annualized return of 9.21% versus 7.67% in the index. But a short-seller report and wave of investigations into its pricing practices hitting the fund’s largest position, Valeant, sent it plunging almost 40% from peak to trough in July 2015 through June 26, erasing three years of gains.


  • Peter Lynch Value to Find Undervalued Stocks

    According to the GuruFocus All-In-One Screener, several gurus are focusing on stocks whose Peter Lynch fair values are far above the current prices. The following stocks are trading with wide margins of safety and have positive performances over the past 12 months.

    Toll Brothers Inc. (TOL) is trading around $39.71 per share. The Peter Lynch value gives the stock a fair price of $60.50 so the stock is undervalued with a margin of safety of 34%. The stock started its positive upward trend three months ago; it now registers a positive performance of 10.3%.


  • CarMax Reports Fiscal 1st-Quarter Results

    CarMax Inc. (NYSE:KMX) – the biggest used vehicles dealer in the U.S. – released its first-quarter 2018 financial results on June 21. The quarter ended on May 31.

    CarMax closed the quarter reporting a net profit of $211.7 million and EPS – on a diluted basis – of $1.13, a 25.6% increase year over year, and beat analysts’ expectations on earnings by 15 cents. The difference between the actual EPS and forecasted EPS generated a positive surprise of 15.30%.


  • CarMax to Report 1st-Quarter Fiscal 2018 Results

    CarMax Inc. (NYSE:KMX) – the biggest used vehicles dealer in the U.S. – will release the first-quarter 2018 financial results on June 21 before the New York Stock Exchange opens.

    The first quarter of fiscal 2018 ended this year May 31.


  • 7 Stocks With High Business Predictability

    According to GuruFocus’ All-in-One Screener, the following stocks have high business predictability ratings and positive total returns since the beginning of the year.

    Bank of Nova Scotia (NYSE:BNS)


  • Ruane, Cunniff & Goldfarb 1st Quarter Commentary 2017

    Dear Shareholder:


  • Ruane Cunniff Sells Berkshire and Praxair, Exits Walmart

    Ruane, Cunniff & Goldfarb Inc. was founded by William Ruane, and Ruane Cunniff (TradesPortfolio)'s current investment committee is directed by Richard Cunniff. He manages a portfolio composed of 92 stocks with a total value of $10.642 billion. During the fourth quarter the guru sold shares in the following stocks:

    The guru reduced its holding in Berkshire Hathaway Inc. Class A (BRK.A) by 19.71% with an impact of -2.39% on the portfolio.


  • Valeant Pharmaceuticals Is a Potential Sell

    Valeant Pharmaceuticals Inc. (NYSE:VRX) reported a net loss of $515 million during fourth-quarter 2016 based on generally accepted accounting principles and an adjusted EBITDA of $1.05 billion. For full-year 2016, the company reported a GAAP net loss of $2.4 billion, which translates to a loss per share of approximately $6.94. These values suggest that Valeant has a weakening financial outlook for 2017.

    Brief summary of earnings report


  • David Rolfe Invests in Tractor Supply, Fastenal

    Wedgewood Partners’ David Rolfe (Trades, Portfolio) gained two new holdings and divested another in the final quarter of 2016. He established positions in Tractor Supply Co. (NASDAQ:TSCO) and Fastenal Co. (NASDAQ:FAST). He sold out of Stericycle Inc. (NASDAQ:SRCL).

    With over 29 years of portfolio management experience, Rolfe serves as the chief investment officer at Wedgewood. The firm believes significant long-term wealth is created by investing as “owners” in a company. Wedgewood seeks highly profitable companies that offer a dominant product or service, consistently grow earnings, revenues and dividends and have strong management teams that prioritize shareholders. The current portfolio is composed of 36 stocks and is valued at around $4.1 million.


  • Ruane Cunniff Comments on Liberty Media

    At the very end of the year, we found what we believe will be another good use for our dry powder when we joined a select group of investors in purchasing a stake in Liberty Media Group, a John Malone-affiliated company, as part of Liberty’s acquisition of the Formula One auto racing business. The deal closed on January 23, and Sequoia purchased 4.7 million shares at a discounted price of $25 per share.

    Recently, Liberty Media (NYSE:BATRR) has traded above our cost basis in the public market. Sequoia’s allocation will be restricted for several months, meaning we won’t be able to sell the shares. During that time, accounting rules require us to price the stock at a modest discount to its market price to reflect its illiquidity. Undoubtedly, the share price will fluctuate during the lock-up period, but we’re delighted to have acquired shares at what we believe is an attractive price. More importantly, we believe Formula One is a powerful global brand and Liberty will be an excellent manager. Our expectation is to own the shares for years.

    Formula One is the leading global automotive sport with an estimated 400 million fans around the world. While Formula One has grown considerably under the leadership of Bernie Ecclestone over the last three decades, we believe new management has significant opportunities to further improve and grow the sport. Liberty Chairman John Malone and CEO Greg Maffei have exceptional track records as capital allocators and value creators, and we believe they have found a superb manager in Chase Carey to run Formula One. Mr. Carey had successful tenures at Fox Broadcasting, DirecTV, News Corp. and 21st Century Fox and has particular expertise in sports businesses. We believe there is room to improve revenue from broadcast, advertising and sponsorship sources, while also developing a digital business that captures younger fans. Importantly, our return assumptions do not depend on the sport succeeding in immature markets such as the US and China.

    From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund 4th quarter shareholder letter.

  • Ruane Cunniff Comments on Amazon

    In the fall, we exited our small position in Walmart and replaced it with a similarly small position in Amazon (NASDAQ:AMZN). The company’s e-commerce operation ( and its cloud computing platform (Amazon Web Services) are two of the most advantaged businesses we’ve analyzed in quite some time. Both are growing fast and have miles of runway ahead of them. And they are run by arguably the most talented, customer-focused and long term-oriented businessman of his generation.

    At a consolidated level, Amazon produces very little in the way of reported profits. Amazon Web Services, whose financials are disclosed separately, earns very rich margins, but the larger e-commerce business reports scant earnings. Our research indicates that the company’s e-commerce business has substantial earnings power that is being masked by a variety of ambitious growth investments. The Fund purchased shares at what we believe to be a reasonable multiple of underlying earnings power excluding those investments. Estimating the long-term potential of Amazon’s many investments is an inherently imprecise exercise, which is why the investment thus far has been a small one.

    From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund 4th quarter shareholder letter.

  • Ruane Cunniff Comments on Chipotle

    Chipotle (NYSE:CMG) has been a weak performer, down 13% since purchase through the end of 2016. We knew Chipotle faced a long road to recovery after several outbreaks of food-borne illnesses frightened customers away, but we were attracted by the enormous potential of the business, which could grow for many years and generate high returns if the executive team manages the recovery adeptly. Chipotle is making changes to management and its board of directors, including adding a director who played a key role in the turnaround at McDonald’s a decade ago. Recently reported sales figures for December showed encouraging gains in customer traffic, but we are watching carefully, as the pace of recovery thus far has fallen short of our initial expectations.

    From Ruane Cunniff (Trades, Portfolio)'s Sequoia Fund 4th quarter shareholder letter.

  • Ruane, Cunniff & Goldfarb's Sequoia Fund 4th Quarter Shareholder Letter

    Dear Shareholder:


  • O’Reilly Automotive: Does Debt Diminish Its Value Stock Status?

    O’Reilly Automotive Inc. (NASDAQ:ORLY) currently holds a spot on the Undervalued Predictable screener list at GuruFocus due to a couple of recent dips in the share price:

    ORLY 3 month share price


  • John Rogers Boosts Berkshire, Rockwell Collins, Tiffany

    John Rogers (Trades, Portfolio) founded Ariel Investment LLC in 1983, and the firm now has a total value of $8.267 billion. During the third quarter the guru’s largest buys were the following:

    The investor raised his position in Berkshire Hathaway Inc. Class B (BRK.B) by 151.06% with an impact of 0.44% on the portfolio.


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