I like how the interviewer makes it sound like the concentrated nature of the portfolio makes it harder.
Like Buffett, Akre doesn’t see much sense in putting much money in your 25th best idea, instead choosing to run a concentrated, carefully selected portfolio.
- Akre says he can’t predict when the market will recognize the value of the stocks that he owns, but he is currently sitting on a portfolio trading at 10 to 15 times cash flow and growing that cash flow in the teens
- Bought Mastercard (MA, Financial) a year ago during the Dodd Frank discussions when the stock sold off. He prefers Mastercard to Visa because Mastercard has less exposure to the Durban amendment.
- Believes that Mastercard has an enormous tailwind as the movement internationally away from paper money and cheques to electronic will continue.
- Also likes Dollar Tree (DTR, Financial) which has a net debt-free balance sheet and can grow at 15% plus.
- Akre looks at the rate at which owner’s equity compounds when assessing investments.
Like Buffett, Akre doesn’t see much sense in putting much money in your 25th best idea, instead choosing to run a concentrated, carefully selected portfolio.
- Akre says he can’t predict when the market will recognize the value of the stocks that he owns, but he is currently sitting on a portfolio trading at 10 to 15 times cash flow and growing that cash flow in the teens
- Bought Mastercard (MA, Financial) a year ago during the Dodd Frank discussions when the stock sold off. He prefers Mastercard to Visa because Mastercard has less exposure to the Durban amendment.
- Believes that Mastercard has an enormous tailwind as the movement internationally away from paper money and cheques to electronic will continue.
- Also likes Dollar Tree (DTR, Financial) which has a net debt-free balance sheet and can grow at 15% plus.
- Akre looks at the rate at which owner’s equity compounds when assessing investments.
