Portfolio manager David Rolfe (Trades, Portfolio) is taking GuruFocus reader questions now.
Rolfe, chief investment officer of $4 billion Wedgewood Partners, is an accomplished investor who spoke at the GuruFocus Value Conference in Omaha.
In his strategy, Rolfe seeks both value and growth. He takes advantage of short-term price volatility to find underpriced securities according to classic value principles, enabling him to achieve superior results over the long term. Mitigation of risk is also paramount throughout the investing process. Rolfe thinks like a business owner and is invested in only 34 stocks.
The result has been market-beating returns over the long term. Since inception in 1992, Wedgewood Partners has delivered an 11.40% return compared to the 9.67% return in the S&P 500.Ă‚
One of Rolfe’s most stellar recent investments has been Apple, his second-largest pick as of first quarter-end. He spotted its value potential early and began purchasing in 2005 – years before Warren Buffett (Trades, Portfolio) lighted on the stock – when the price was around $5.
“In sum, we hope to convey that the State of Apple is quite healthy – and growing,” he said in a fourth-quarter shareholder letter. “Recall that the Company’s recent financial peak was fiscal 2015 when the Company generated $81.3 billion in operating cash flow. We expect that level to be breached in the next couple of years.”
Five of Rolfe’s six top picks have posted double-digit gains year to date. His largest positions are: Berkshire Hathaway (BRK.B, Financial), Apple (AAPL, Financial), Ewards Lifesciences Corp. (EW, Financial), Visa (V, Financial), Booking Holdings Inc. (BKNG, Financial). Facebook (FB, Financial), his sixth-largest position, was a new buy in the first quarter.
Rolfe also sold PepsiCo (PEP, Financial), TJX Companies (TJX, Financial) and Express Scripts Holding (ESRX, Financial) in the first quarter. His largest portfolio weights are: 29% technology, 24% financial services and 17% health care.
See Rolfe’s portfolio here. Learn more about him in one of his prolific quarterly letters here.
We are happy to bring you this chance to learn from a guru of investing!
To ask Rolfe anything about investing, your portfolio or the markets, post your question in the comments section below. Look out for an article with his answers in the coming week.
Many thanks!
