David Rolfe

David Rolfe

Last Update: 05-15-2017

Number of Stocks: 37
Number of New Stocks: 3

Total Value: $3,883 Mil
Q/Q Turnover: 10%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

David Rolfe' s Profile & Performance

Profile

David Rolfe has been managing Wedgewood's portfolio for 18 years. He studied at University of Missouri and received a degree of B.S.B.A. in Finance/Economics in 1984.

Web Page:http://wedgewoodpartners.com/

Investing Philosophy

Wedgewood's underlying equity investment philosophy is predicated on a strong belief that significant long-term wealth will be created by investing as "owners" in companies. In our "Invest as Business Owners" approach, we seek companies that the following characteristics:

1. A dominant product or service that is practically irreplaceable or lacks substitutes.
2. A sustainable and consistent level of growing revenues, earnings and dividends.
3. A high level of profitability, measured by return on equity without the use of excessive debt.
4. A strong management team that is shareholder oriented.

This is the flow chart of their process:

Total Holding History

Performance of Wedgewood Partners

YearReturn (%)S&P500 (%)Excess Gain (%)
20164.5411.96-7.4
2015-6.491.38-7.9
20149.213.69-4.5
3-Year Cumulative6.7 (2.2%/year)29 (8.9%/year)-22.3 (-6.7%/year)
201329.8632.39-2.5
201221.75165.8
5-Year Cumulative68.8 (11%/year)98.2 (14.7%/year)-29.4 (-3.7%/year)
20115.612.113.5
201014.515.06-0.6
200960.8326.4634.4
2008-38.12-37-1.1
200715.045.499.6
10-Year Cumulative133.7 (8.9%/year)95.7 (6.9%/year)38 (2%/year)
2006-2.7715.79-18.6
20055.844.910.9
20049.6110.88-1.3
200342.2528.6813.6
2002-20.42-22.11.7
15-Year Cumulative198.4 (7.6%/year)164.2 (6.7%/year)34.2 (0.9%/year)
2001-7.72-11.894.2
2000-10.31-9.1-1.2
199956.9921.0436.0
199849.628.5821.0
199721.133.36-12.3
20-Year Cumulative602.3 (10.2%/year)339.2 (7.7%/year)263.1 (2.5%/year)
199623.5722.960.6
199542.5937.585.0
19943.781.322.5
1993-6.2110.08-16.3

Top Ranked Articles

David Rolfe Comments on Stericycle Guru stock highlight
We liquidated Stericycle (NASDAQ:SRCL) from portfolios after we determined that the Company's competitive advantage in its core regulated medical waste (RMW) business was not as robust as we had seen during the past five years of our holding period. Prior to the erosion in the economics of their core RMW business, we remained optimistic about Stericycle’s business. Despite recent stumbles in their non-core hazardous waste business and slower than expected integration of newly acquired Shred-it, the RMW business continued to serve as the engine to double-digit growth in free cash flow. We previously believed that Stericycle's unrivaled scale had served to insulate its RMW profitability from competitive pressures, including customer push-back associated with consolidating end-markets, as many of Stericycle’s most profitable customers - particularly individual physician practices Read more...
David Rolfe Comments on Qualcomm Guru stock highlight
Qualcomm (NASDAQ:QCOM) was also a top contributor to performance over the past three months. We saw Qualcomm make meaningful progress on its technology licensing (QTL) front after several quarters of patiently waiting for the Company to capture unpaid royalties in China. Although Qualcomm’s chipset franchise (QCT) usually garners most of the attention for the Company, its high-margin QTL segment actually generates two-thirds to three-quarters of consolidated profitability. So while revenues at Qualcomm grew 4%, operating income grew almost 30%, year-over-year. Although it has taken several quarters to eventually materialize, we think that the “lumpy” nature of QTL revenues does not make Qualcomm’s long-term prospects for monetizing its prolific research and development spend (cumulative $16 billion over the past three years), any less attractive. In our opinion, Qualcomm shares remain underappreciated by the market, trading at just 14X next 12 month earnings. In addition, the Company maintains a fortress-like balance sheet with about $20 billion in net Read more...
David Rolfe Comments on Edwards Lifesciences Guru stock highlight
We established a new position in Edwards Lifesciences (NYSE:EW) in the first quarter. Edwards is a pioneer in heart valve surgery, with nearly 90% of its revenues tied to heart valve replacement, by virtue of its best-in-class portfolio of intellectual property, backed by a relatively lengthy history of clinical data and successful outcomes. Heart disease is the world’s leading killer, and the incidence of heart disease grows with age, meaning that the aging of populations across the developed world is directly leading to a rise in the occurrence of heart problems. Over half of the Company’s business is tied to the rapidly-growing TAVR, or Transcatheter Aortic Valve Replacement, category. TAVR—as opposed to SAVR, which is Surgical Aortic Valve Replacement, which is generally a type of open-heart surgery—is a fairly recent technological advancement, with the first human procedure occurring in 2002; the first market approval in Europe in 2007; and US approval in 2011. We view TAVR, which replaces a heart valve using a small incision, usually in a patient’s leg, as clearly superior to traditional open-heart surgery, with similar Read more...
New GuruFocus Podcast: Interview With John Buckingham and David Rolfe About Apple Two gurus discuss the stock as the company releases the iPhone 7 today
GuruFocus is introducing a new podcast today that will link members even closer to gurus, news, and intelligent discussion about investing. Read more...
David Rolfe Comments on Tractor Supply Guru stock highlight
Tractor Supply (NASDAQ:TSCO) was one of the largest detractors from our first quarter performance, as the stock retraced some of the gains it had posted after we purchased it last quarter. We think a large portion of both the Q4 spike and the Q1 decline in the stock can be attributed to political and energy-related noise, with the stock correctly viewed as a potential beneficiary from a possible reduction in U.S. corporate tax rates and a recovery in U.S. energy production. On the tax front, the Company’s business is entirely U.S.-based, leaving it with a relatively high tax rate in comparison to companies with multinational operations; this means that it would be a greater relative beneficiary than these other companies if the U.S. corporate tax rate were to decline. As the market quickly moved from optimism to pessimism on the potential for such a tax cut, the stock moved accordingly. Our stance is that we would be perfectly happy to see a lower tax rate for Tractor Supply, but that is not a tenet of our long-term thesis. On the energy front, we estimate a minority of TSCO’s end-markets are in regions exposed to the fortunes Read more...
» More David Rolfe Articles

Commentaries and Stories

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David Rolfe's Quest for 'Huge Winners' The guru behind the RiverPark/Wedgewood Fund counts on occasional big gains to maintain benchmark-beating returns David Rolfe - David Rolfe's Quest For 'Huge Winners'
David Rolfe (Trades, Portfolio) of Wedgewood Partners Inc. is one of the GuruFocus gurus who’s beaten the Standard & Poor's 500 on most cumulative returns over the past two decades. More...

GURUS, INVESTING GURUS, DAVID ROLFE, WEDGEWOOD PARTNERS, RIVERPARK FUNDS, RIVERPARK/WEDGEWOOD, LARGE CAP GROWTH, CONCENTRATED FUND, LONG-TERM, OWNERSHIP, HUGE WINNERS


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David Rolfe Gains 3 Holdings, Sells 2 Others in 1st Quarter Guru reports quarterly portfolio David Rolfe,Frank Sands,Spiros Segalas, - David Rolfe Gains 3 Holdings, Sells 2 Others In 1st Quarter
Wedgewood Partners’ David Rolfe (Trades, Portfolio) gained three new holdings during the first quarter and sold two others. His new positions are Edwards Lifesciences Corp. (NYSE:EW), Celgene Corp. (NASDAQ:CELG) and Boeing Co. (NYSE:BA). More...

ROLFE, WEDGEWOOD, BUYS, SELLS, 1Q


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Bargain Stocks With High Dividend Yields Companies with poor 12-month performances Charles Brandes,David Rolfe - Bargain Stocks With High Dividend Yields
According to the GuruFocus All-in-One Screener, the following stocks have high dividend yields but performed poorly over the past 12 months. More...

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David Rolfe Comments on Visa Guru stock highlight
Visa (NYSE:V) was a top performer during the Quarter, bouncing back after detracting during the 4th Quarter. Not much changed over that timeframe; however, constant-dollar payment volume growth and cross border volume growth continued accelerating across several key markets as Visa has gained share, which helped the Company post adjusted earnings per share growth of +23% during the December Quarter. We think the recent acquisition of Visa Europe should provide the Company with continued opportunities for growth, not only from a cost savings standpoint but also from a revenue perspective. Several European markets have card payment share that remains significantly under-penetrated relative to cash, when compared to the U.S., so the shift towards e-commerce should continue to aid Visa’s value proposition. The Company maintains a conservative balance sheet, with a substantial amount of offshore cash, and the stock’s valuation continues to be attractive, especially relative to the Company’s high-teen growth profile for the next several years. More...

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David Rolfe Comments on Treehouse Foods Guru stock highlight
Treehouse Foods (NYSE:THS) was one of our better performers in the first quarter. Remember that we added to our position on weakness in Q4, after what we viewed as a confluence of unfortunate, shorter-term events, plus we saw a lot of reassurance in the Company’s Q4 report that our long-term thesis remains intact. In the fourth quarter, revenues rebounded in the acquired Private Brands business; the Company continued to deliver on Private Brands synergies and cost savings; and the legacy Treehouse business continued to report healthy volume growth, which was well ahead of the broad industry, along with improving margins. Furthermore, there were several signs within the quarter that large retailers were aggressively culling their business with major brands and shifting more shelf space to private label programs, as traditional branded food players continue to struggle with declining volumes, and as established retailers face competition from alternative retailers such as Aldi and Trader Joe’s, both of which depend heavily on private label. This industry-wide shift to private label share has been trending for many years and remains More...

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David Rolfe Comments on Tractor Supply Guru stock highlight
Tractor Supply (NASDAQ:TSCO) was one of the largest detractors from our first quarter performance, as the stock retraced some of the gains it had posted after we purchased it last quarter. We think a large portion of both the Q4 spike and the Q1 decline in the stock can be attributed to political and energy-related noise, with the stock correctly viewed as a potential beneficiary from a possible reduction in U.S. corporate tax rates and a recovery in U.S. energy production. On the tax front, the Company’s business is entirely U.S.-based, leaving it with a relatively high tax rate in comparison to companies with multinational operations; this means that it would be a greater relative beneficiary than these other companies if the U.S. corporate tax rate were to decline. As the market quickly moved from optimism to pessimism on the potential for such a tax cut, the stock moved accordingly. Our stance is that we would be perfectly happy to see a lower tax rate for Tractor Supply, but that is not a tenet of our long-term thesis. On the energy front, we estimate a minority of TSCO’s end-markets are in regions exposed to the fortunes More...

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David Rolfe Comments on Schlumberger Guru stock highlight
Relative to the rest of the oil services industry, Schlumberger (NYSE:SLB) is less focused on North America (where they believe barriers to entry are lower) and are more focused on international E&P clients, particularly national oil companies (NOC). Schlumberger’s portfolio of vertically integrated assets increasingly allows the Company to become more competitively entrenched with their NOC clients. Increasingly, the Company is managing entire oilfields in exchange for performance incentives that result from increased production—byproducts of the Company’s decades of M&A and industry-leading R&D. More...

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David Rolfe Comments on Qualcomm Guru stock highlight
The stock was our worst relative performer during the first quarter. While the stock was up nicely (+35%) in 2016 (after a dismal -30% in 2015), it suffered sharp profit-taking following Apple’s lawsuit filed in February. Apple’s lawsuit was filed just days after the Federal Trade Commission, in one of its final acts under the Obama administration, announced that it would sue Qualcomm (NASDAQ:QCOM) for its purportedly anti-competitive practices. The FTC alleged that, in the U.S., Qualcomm used its unfair (dominant) supplier of smartphone modems to demand higher patent payments. Apple was specifically called out for allegedly entering into an exclusivity deal with Qualcomm in order to avoid its onerous terms. It’s never fun when your children are fighting amongst themselves, and the same can be said when two of your portfolio children are fighting each other—and quite publicly at that. We have owned Apple since 2005 and have cheered the Company on during their long (and expensive) efforts to protect their IP. We have done the same during our +10-year ownership with Qualcomm’s legal battles as well. To hear each side state More...

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David Rolfe Comments on Priceline Group Guru stock highlight
Priceline Group (NASDAQ:PCLN) was a top contributor during the first quarter as they continue to execute their strategy of connecting the supply of heavily fragmented, independent hospitality providers—primarily in international markets—with demand from the Company's rapidly expanding user base. While we recognize that the online travel agency (OTA) market in the U.S. has matured, there remains a sizable addressable international market in which Priceline continues to aggressively reinvest, primarily, in organic growth opportunities. From a supply perspective, Priceline Group's Booking.com site has amassed listings on over 500,000 "alternative" properties—all of which are available for online booking-in addition to well over 600,000 conventional hospitality properties. We believe the value proposition of renting a private residence (i.e., alternative property) is still substantially different from traditional hospitality services, and represents an incremental revenue opportunity for Booking.com. Last, while the multiple on the stock has expanded over the past few quarters, we continue to view Priceline’s valuation as one More...

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David Rolfe Comments on Mead Johnson Guru stock highlight
During the quarter, we liquidated our position in Mead Johnson (NYSE:MJN) after we determined the growth and competitive positioning of the business would be challenged for the next several years. In addition, the Company reached an agreement to be acquired by the European CPG firm, Reckitt Benckiser. A substantial portion of Mead Johnson’s growth in revenues and profits is derived from China, where a confluence of factors over the past few years have blunted the Company’s competitive advantage. First, the barriers to entry for Mead’s competition in China have fallen. While Mead has a well-established position in China’s traditional distribution channels, the Country’s emerging e-commerce channel has facilitated a booming “gray” market with Europe, where the Company has very little presence. Mead’s competitors in Europe have a much stronger value proposition than Chinese-based competitors. Second, China has become much less hospitable from a competitive standpoint. The rules and regulations that the NDRC (National Development and Reform Commission) have erected to prevent gray market expansion were, ostensibly, put More...

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David Rolfe Comments on Edwards Lifesciences Guru stock highlight
We established a new position in Edwards Lifesciences (NYSE:EW) in the first quarter. Edwards is a pioneer in heart valve surgery, with nearly 90% of its revenues tied to heart valve replacement, by virtue of its best-in-class portfolio of intellectual property, backed by a relatively lengthy history of clinical data and successful outcomes. Heart disease is the world’s leading killer, and the incidence of heart disease grows with age, meaning that the aging of populations across the developed world is directly leading to a rise in the occurrence of heart problems. Over half of the Company’s business is tied to the rapidly-growing TAVR, or Transcatheter Aortic Valve Replacement, category. TAVR—as opposed to SAVR, which is Surgical Aortic Valve Replacement, which is generally a type of open-heart surgery—is a fairly recent technological advancement, with the first human procedure occurring in 2002; the first market approval in Europe in 2007; and US approval in 2011. We view TAVR, which replaces a heart valve using a small incision, usually in a patient’s leg, as clearly superior to traditional open-heart surgery, with similar More...

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David Rolfe Comments on Core Labs Guru stock highlight
Both of our oil service stocks corrected from recent January highs during the first quarter. Recall that from late January 2016 lows (remember fears of “ $20 oil?”), SLB rallied from $61 to $87 in mid-January 2017; a +43% gain. CLB (NYSE:CLB) rallied from $89 to $125 in early January 2017; a gain of +40%. (Note the stock raced to $135 in May last year, too.) The profit-taking was not too surprising after sharp stock price advances over the past year. The cause was two-fold. First, an unusually weak seasonally (winter maintenance) refinery pause. Second, the unusually large build-up of OPEC inventories before the commencement date of agreed-upon supply cuts. On the demand front, global oil-demand estimates continue to be revised upward, continuing a 7-year trend. Our thesis in these two stocks continues to play out as expected. Supply/demand continues to come into balance after the recent depression in the oil patch. Oil is back to over $50 again. Oil service activity is quite robust in North America. Oil service company pricing inflation has snapped back after recent deflation. International spending remains at depressed levels. Net, net, the oil service industry remains More...

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David Rolfe Comments on Apple Guru stock highlight
Apple (NASDAQ:AAPL) was a top relative and absolute contributor to performance during the quarter. The Company's iPhone franchise continues to dominate profitability share within the smartphone OEM market, after the next most profitable competitor (Samsung) incurred sizable losses from a product recall. Apple continues its long history of maintaining a focused hardware portfolio (relative to competitors), while aggressively innovating its in-house software and services capabilities which enables the narrow hardware portfolio to "act" much wider. For example, Apple's revenue from software and services grew almost 20%, to over $24 billion during fiscal 2016. We think Apple's software and services revenue stream has a very attractive profitability profile that should help offset the financial ebbs and flows inherent in the Company's well-established hardware product cycles. Apple exited the most recent quarter with a fortress-like balance sheet, a byproduct of their prodigious free cash flow generation of about $50 billion or more in each of the last three fiscal years. Rumors of the iPhone’s demise have once again been greatly exaggerated. More...

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David Rolfe's Wedgewood Partners 1st Quarter 2017 Letter: Happy 8th Anniversary Mr. Market Rolfe comments on holdings like Apple and the markets David Rolfe - David Rolfe's Wedgewood Partners 1st Quarter 2017 Letter: Happy 8th Anniversary Mr. Market
Review and Outlook More...

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David Rolfe Invests in Tractor Supply, Fastenal Guru investor sold Stericycle in 4th quarter David Rolfe,Steven Cohen,Ruane Cunniff - David Rolfe Invests In Tractor Supply, Fastenal
Wedgewood Partners’ David Rolfe (Trades, Portfolio) gained two new holdings and divested another in the final quarter of 2016. He established positions in Tractor Supply Co. (NASDAQ:TSCO) and Fastenal Co. (NASDAQ:FAST). He sold out of Stericycle Inc. (NASDAQ:SRCL). More...

ROLFE, WEDGEWOOD, BUYS, SELLS, 4Q


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If Only Ross' Shares Were as Discounted as Its Merchandise This off-price retailer has carved out a solid niche for itself and should deliver capital gains to the right kind of investors David Rolfe,Pioneer Investments - If Only Ross' Shares Were As Discounted As Its Merchandise
Ross Stores Inc. (NASDAQ:ROST) is a growth story in retail despite no online presence. The company uses buying and merchandising expertise to sell name-brand and designer goods for up to 70% less than conventional retailers. More...

RETAIL, OFF-PRICE, DISCOUNT MERCHANDISE, FASHION, 5-STAR PREDICTABILITY, UNDERVALUED PREDICTABLE


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David Rolfe Comments on Visa Guru stock highlight
Visa (NYSE:V)'s valuation came under pressure following the election early November as the market saw a rotation out of higher-multiple tech and financial securities and into more cyclical names. We used this opportunity to increase weightings across accounts as valuation levels became more attractive. More...

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David Rolfe Comments on Tractor Supply Company Guru stock highlight
Like Fastenal, Tractor Supply Company (NASDAQ:TSCO) is a company we have long admired. Management has executed a disciplined retailing strategy where they have carved out a niche, serving rural land owners with higher than average incomes. The Company has very deliberately positioned itself to be distinct from its competitors, namely Home Depot, Lowe’s, and, to a lesser extent, Wal-Mart, primarily by locating itself in more rural locations and focusing on merchandise that caters to the maintenance needs of a rural lifestyle, in a one-stop shop format (i.e. all-terrain vehicle replacement parts and feed for livestock as pets). More...

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David Rolfe Comments on TreeHouse Foods Guru stock highlight
TreeHouse Foods (NYSE:THS) was a relative detractor from performance during the quarter after a confluence of a few unfortunate, though we think transient, events. The Company unexpectedly missed its quarterly earnings estimates and reduced 2016 guidance, despite having had a few wins earlier in the year not long after closing the Private Brands acquisition in January. The Company reiterated, however, its long-term accretion guidance for Private Brands. From the time the merger was announced (late 2015), we had seen multiple areas where we think this longer-term guidance is still understated. Because of our belief in this cushion management built into their original guidance, we remain comfortable that they will be able to hit their long-term growth expectations, despite these shorter-term issues. More...

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David Rolfe Comments on Stericycle Guru stock highlight
We liquidated Stericycle (NASDAQ:SRCL) from portfolios after we determined that the Company's competitive advantage in its core regulated medical waste (RMW) business was not as robust as we had seen during the past five years of our holding period. Prior to the erosion in the economics of their core RMW business, we remained optimistic about Stericycle’s business. Despite recent stumbles in their non-core hazardous waste business and slower than expected integration of newly acquired Shred-it, the RMW business continued to serve as the engine to double-digit growth in free cash flow. We previously believed that Stericycle's unrivaled scale had served to insulate its RMW profitability from competitive pressures, including customer push-back associated with consolidating end-markets, as many of Stericycle’s most profitable customers - particularly individual physician practices More...

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