According to the website of Ariel Capital Management, patient Investor John Rogers likes Herman Miller Inc, Illinois Tool Works and Chittenden Corporation
With $16 billion under management, John Rogers does not have an email address. He said: “I don't even have a computer in my office. If I had e-mail, I'd never take the time to read research or absorb information.”
It seems that things work very well for John Rogers, the head of Ariel Capital Management. In the past decade his fund has earned nearly 14 percent a year, beating the market by more than five percentage points annually. He typically holds a stock for four or five years, an eternity compared with the 14-month holding period of the average mutual fund.
Herman Miller Inc
Herman Miller, Inc. engages in the research, design, manufacture, and distribution of interior furnishings for use in various environments, including office, healthcare, educational, and residential settings. Herman Miller Inc. has a market cap of $1.67 billion; its shares were traded at around $27.46 with P/E ratio of 13.15 and P/S ratio of 0.85. The dividend yield of Herman Miller Inc. stocks is 1.4%.
Ariel Funds thinks that Herman Miller has wide economic moat: “Beyond its many recognizable designs, Herman Miller possesses a number of other competitive advantages. For example, its $8 billion installed furniture base generates an enviable stream of recurring revenue as existing clients choose to expand or update existing Herman Miller set-ups. The company is also relentlessly focused on innovation, spending tens of millions of dollars each year on research and development. Its capital commitment not only builds a strong new product pipeline, but equally as important, has helped weather down markets. After the dotcom bust, Herman Miller’s business was practically slashed in half, yet leadership made the tough call to continue to plow dollars into R&D. A few years later, Herman Miller emerged as an even stronger company with more award-winning innovations—like novel LED lighting and a modernized cubicle design—not to mention a stronger balance sheet.”
Regarding the recent stock price decline, John Rogers thinks it is caused by the “Skepticism on The Street… We believe the industry and Herman Miller will outpace Wall Street’s low expectations for the foreseeable future.”
How much does Herman Miller worth? Ariel gives it a private market value of $39 per share, it is very close to the fair value votes of our readers, $40.
Beside John Rogers, hedge fund manager George Soros also owns Herman Miller.
Illinois Tool Works
Illinois Tool Works, Inc. (ITW, Financial) manufactures engineered products and specialty systems worldwide. Engineered products business offers plastic and metal components and fasteners, as well as specialty products. Illinois Tool Works Inc. has a market cap of $30.19 billion; its shares were traded at around $55.94 with P/E ratio of 16.98 and P/S ratio of 1.94. The dividend yield of Illinois Tool Works Inc. stocks is 2.1%.
What John Rogers likes about ITW are the company’s acquisitions and focus. He said that “Illinois Tool Works has effectively expanded its market share through numerous small acquisitions over the last 25 years. Unlike many firms that count on company headquarters to identify takeover targets, Illinois Tool Works requires the management of its distinct businesses to identify compelling acquisitions. Additionally, once acquisitions are made, business managers are responsible for successfully integrating newly purchased entities into their operations.” Furthermore, “… we anticipate Illinois Tool Works will benefit from today’s tightening credit environment. As liquidity becomes harder to come by, private equity firms should continue to scale back their bids for businesses. As a result, we are confident strategic buyers like Illinois Tool Works will face less competition for acquisition opportunities.”
Ariel thinks ITW is worth $71 share. Our users have voted an average fair value of $58.
ITW is owned by a number of Gurus. Besides John Rogers, it is the new position of George Soros and Robert Olstein. Tom Gayner added to his positions.
With $16 billion under management, John Rogers does not have an email address. He said: “I don't even have a computer in my office. If I had e-mail, I'd never take the time to read research or absorb information.”
It seems that things work very well for John Rogers, the head of Ariel Capital Management. In the past decade his fund has earned nearly 14 percent a year, beating the market by more than five percentage points annually. He typically holds a stock for four or five years, an eternity compared with the 14-month holding period of the average mutual fund.
Herman Miller Inc
Herman Miller, Inc. engages in the research, design, manufacture, and distribution of interior furnishings for use in various environments, including office, healthcare, educational, and residential settings. Herman Miller Inc. has a market cap of $1.67 billion; its shares were traded at around $27.46 with P/E ratio of 13.15 and P/S ratio of 0.85. The dividend yield of Herman Miller Inc. stocks is 1.4%.
Ariel Funds thinks that Herman Miller has wide economic moat: “Beyond its many recognizable designs, Herman Miller possesses a number of other competitive advantages. For example, its $8 billion installed furniture base generates an enviable stream of recurring revenue as existing clients choose to expand or update existing Herman Miller set-ups. The company is also relentlessly focused on innovation, spending tens of millions of dollars each year on research and development. Its capital commitment not only builds a strong new product pipeline, but equally as important, has helped weather down markets. After the dotcom bust, Herman Miller’s business was practically slashed in half, yet leadership made the tough call to continue to plow dollars into R&D. A few years later, Herman Miller emerged as an even stronger company with more award-winning innovations—like novel LED lighting and a modernized cubicle design—not to mention a stronger balance sheet.”
Regarding the recent stock price decline, John Rogers thinks it is caused by the “Skepticism on The Street… We believe the industry and Herman Miller will outpace Wall Street’s low expectations for the foreseeable future.”
How much does Herman Miller worth? Ariel gives it a private market value of $39 per share, it is very close to the fair value votes of our readers, $40.
Beside John Rogers, hedge fund manager George Soros also owns Herman Miller.
Illinois Tool Works
Illinois Tool Works, Inc. (ITW, Financial) manufactures engineered products and specialty systems worldwide. Engineered products business offers plastic and metal components and fasteners, as well as specialty products. Illinois Tool Works Inc. has a market cap of $30.19 billion; its shares were traded at around $55.94 with P/E ratio of 16.98 and P/S ratio of 1.94. The dividend yield of Illinois Tool Works Inc. stocks is 2.1%.
What John Rogers likes about ITW are the company’s acquisitions and focus. He said that “Illinois Tool Works has effectively expanded its market share through numerous small acquisitions over the last 25 years. Unlike many firms that count on company headquarters to identify takeover targets, Illinois Tool Works requires the management of its distinct businesses to identify compelling acquisitions. Additionally, once acquisitions are made, business managers are responsible for successfully integrating newly purchased entities into their operations.” Furthermore, “… we anticipate Illinois Tool Works will benefit from today’s tightening credit environment. As liquidity becomes harder to come by, private equity firms should continue to scale back their bids for businesses. As a result, we are confident strategic buyers like Illinois Tool Works will face less competition for acquisition opportunities.”
Ariel thinks ITW is worth $71 share. Our users have voted an average fair value of $58.
ITW is owned by a number of Gurus. Besides John Rogers, it is the new position of George Soros and Robert Olstein. Tom Gayner added to his positions.
