Tom Russo’s investment theme can be summarized by “eat, drink, smoke, watch TV and be merry”. Indeed, for about 30 years, he has been sort of staying in his “circle of competence” food, tobacco, media, and beverage companies. It has been reported that his performance for the past ten years has been around 8% while S&P 500 had a down decade.
Too bad of the investors in the US markets, as in a recent conversation with GuruFocus, he indicates that he invest about 70% of his money overseas, mostly in Europe. Here are the reasons he discussed:
Tom Russo filed 13F and disclosed his top holdings. Nothing dramatically changed from a quarter ago since he is a buy-n-hold type of guy.
No. 1: Berkshire Hathaway Inc. (BRK.A, Financial), Weightings: 17.74% - 3,392 Shares
Berkshire Hathaway Inc. is company that Warren Buffett controls. Berkshire Hathaway Inc. has a market cap of $198.72 billion; its shares were traded at around $120655 with a P/E ratio of 22.7 and P/S ratio of 2.2. Berkshire Hathaway Inc. had an annual average earning growth of 3.7% over the past 10 years.
No. 2: PHILIP MORRIS INTERNATIONAL INC (PM, Financial), Weightings: 17.71% - 7,523,040 Shares
Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris International Inc has a market cap of $105.67 billion; its shares were traded at around $58.98 with a P/E ratio of 15.6 and P/S ratio of 1.7. The dividend yield of Philip Morris International Inc stocks is 4.4%.
No. 3: Unilever N.V. New York Registry (UN, Financial), Weightings: 6.67% - 5,315,736 Shares
Unilever is one of the world's largest consumer products companies. Unilever N.v. New York Registry has a market cap of $82.17 billion; its shares were traded at around $29.35 with a P/E ratio of 13.8 and P/S ratio of 1.5. The dividend yield of Unilever N.v. New York Registry stocks is 3.5%.
No. 4: Altria Group Inc. (MO, Financial), Weightings: 6.62% - 6,564,151 Shares
Altria Group is the parent company of Philip Morris USA, U. Altria Group Inc. has a market cap of $52.04 billion; its shares were traded at around $25.11 with a P/E ratio of 13.5 and P/S ratio of 2.2. The dividend yield of Altria Group Inc. stocks is 6.1%.
No. 5: Wells Fargo & Company (WFC, Financial), Weightings: 6.54% - 6,193,137 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $136.8 billion; its shares were traded at around $25.75 with a P/E ratio of 15.1 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
Tom Russo is apparently an admirer for Warren Buffett as he owns larg position in Berkshire Hathaway stocks. Aside, he also own Wells Fargo, a bank that Buffett likes. Apparently he does not have the restraints that Buffett has, as he owns tobacco companies that Buffett shies away.
Perhaps the biggest difference between Buffett and Russo is the foreign holdings. Unfortunately, aside from companies such as Unilever, which are traded in the US market, Russo is not required to report on the foreign holdings.
For the other domestic companies that Tom Russo holds, click on the his name.
Too bad of the investors in the US markets, as in a recent conversation with GuruFocus, he indicates that he invest about 70% of his money overseas, mostly in Europe. Here are the reasons he discussed:
GuruFocus: You have a lot of investment in foreign companies, why is that?
Tom Russo: We have more than 70% of the fund in foreign companies. The reason is because we are long term investors, and we feel that foreign companies are usually family run, and they are long term minded. These companies usually have huge name recognition. They have the brands that have hundreds of years of history. This gives them huge competitive advantages. Their consumers are loyal to these brands.
Also due to the recent economic worries of the PIGS, these companies are more undervalued. They are more shareholder friendly, do not pay that much to the managers, and they have good dividends.
Tom Russo filed 13F and disclosed his top holdings. Nothing dramatically changed from a quarter ago since he is a buy-n-hold type of guy.
No. 1: Berkshire Hathaway Inc. (BRK.A, Financial), Weightings: 17.74% - 3,392 Shares
Berkshire Hathaway Inc. is company that Warren Buffett controls. Berkshire Hathaway Inc. has a market cap of $198.72 billion; its shares were traded at around $120655 with a P/E ratio of 22.7 and P/S ratio of 2.2. Berkshire Hathaway Inc. had an annual average earning growth of 3.7% over the past 10 years.
No. 2: PHILIP MORRIS INTERNATIONAL INC (PM, Financial), Weightings: 17.71% - 7,523,040 Shares
Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris International Inc has a market cap of $105.67 billion; its shares were traded at around $58.98 with a P/E ratio of 15.6 and P/S ratio of 1.7. The dividend yield of Philip Morris International Inc stocks is 4.4%.
No. 3: Unilever N.V. New York Registry (UN, Financial), Weightings: 6.67% - 5,315,736 Shares
Unilever is one of the world's largest consumer products companies. Unilever N.v. New York Registry has a market cap of $82.17 billion; its shares were traded at around $29.35 with a P/E ratio of 13.8 and P/S ratio of 1.5. The dividend yield of Unilever N.v. New York Registry stocks is 3.5%.
No. 4: Altria Group Inc. (MO, Financial), Weightings: 6.62% - 6,564,151 Shares
Altria Group is the parent company of Philip Morris USA, U. Altria Group Inc. has a market cap of $52.04 billion; its shares were traded at around $25.11 with a P/E ratio of 13.5 and P/S ratio of 2.2. The dividend yield of Altria Group Inc. stocks is 6.1%.
No. 5: Wells Fargo & Company (WFC, Financial), Weightings: 6.54% - 6,193,137 Shares
Wells Fargo & Company is a diversified financial services company. Wells Fargo & Company has a market cap of $136.8 billion; its shares were traded at around $25.75 with a P/E ratio of 15.1 and P/S ratio of 1.4. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 5.1% over the past 10 years.
Tom Russo is apparently an admirer for Warren Buffett as he owns larg position in Berkshire Hathaway stocks. Aside, he also own Wells Fargo, a bank that Buffett likes. Apparently he does not have the restraints that Buffett has, as he owns tobacco companies that Buffett shies away.
Perhaps the biggest difference between Buffett and Russo is the foreign holdings. Unfortunately, aside from companies such as Unilever, which are traded in the US market, Russo is not required to report on the foreign holdings.
For the other domestic companies that Tom Russo holds, click on the his name.
