Lou Simpson
Lou Simpson
SQ Advisors, LLC
Last update 2018-08-14 11 Stocks (0 new)
Value $2.95 Bil Turnover 7 %
Top Holdings: KMX (12.2%) ALSN (12.14%) BAM (12.07%) LBRDK (10.69%) SCHW (10.19%)
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Lou Simpson 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.

Lou Simpson 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."

Lou Simpson Total Holding History ($B)

Historical Allocation of Stock, Bonds, Cash

Performance of

Commentaries and Stories
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4 Companies Growing Their Book Value
Big Lots tops the list
0 Votes
110 Views    Tiziano Frateschi    2018-09-18 20:05
Apple Soars 3.8% on Record June Quarter Results
Buffett's top holding has 20% iPhone revenue growth
0 Votes
477 Views    Holly LaFon    2018-07-31 21:42
3 Stocks Warren Buffett and Lou Simpson Both Own
The 'Sage of Omaha' and his former CIO think alike on Apple and two pay TV companies
0 Votes
836 Views    James Li    2018-07-20 19:52
CarMax Soars on Strong 1st-Quarter Unit Sales Growth
Wholesale vehicle unit sales increased 9.6% year over year, stock zooms over 13% in the first hour of trading
0 Votes
665 Views    James Li    2018-06-22 16:53
Lou Simpson Sells Ametek, Reduces Hexcel, Berkshire
Guru's largest sales of the 4th quarter
0 Votes
88 Views    Tiziano Frateschi    2018-02-28 20:01
Warren Buffett’s Other Close Colleague: Lou Simpson
Meet the man behind Geico's investing prowess, and find out how he's doing after 7 years of running his own hedge fund
2 Votes
803 Views    Robert Abbott    2017-12-04 20:30
Lou Simpson Boosts 5 Positions in 3rd Quarter
Fund manager reports quarterly portfolio
0 Votes
513 Views    James Li    2017-11-14 20:40
Lou Simpson Sells Wells Fargo, Berkshire, Ametek
Guru's largest 1st-quarter sales
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324 Views    Tiziano Frateschi    2017-06-13 19:23
Jeff Ubben Buys 1, Sells 1 in 1st Quarter
ValueAct leader to step down from CIO role
0 Votes
397 Views    Sydnee Gatewood    2017-05-24 15:13

Top Ranked Articles
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Notes From Charlie Munger's DJCO 2014 Shareholder Meeting
12 Votes
4997 Views    Canadian Value    2014-09-15 21:31
Lou Simpson Increases 7 Stakes in 3rd Quarter
Ametek was the largest addition with an impact of 11.3% on portfolio
4 Votes
2144 Views    Tiziano Frateschi    2015-12-15 21:31
Lou Simpson Trims Berkshire Hathaway, Gains Apple in 4th Quarter
Guru reports quarterly portfolio
1 Votes
604 Views    James Li    2017-02-14 21:57