1/ Akre Capital Management says the essence of their investment approach captured by 3-legged stool:
1) Extraordinary business
2) Talented management
3) Great reinvestment opportunities and history
If you could add a fourth leg, what would it be?
1) Extraordinary business
2) Talented management
3) Great reinvestment opportunities and history
If you could add a fourth leg, what would it be?
2/ Akre's track record is enviable. The firm's mutual fund has crushed the S&P 500 since inception.
3/ Akre's current top holdings as of 3/31/20: $AMT $MA $MCO $V $SBAC $ORLY $ROP $MKL $KMX $ADBE
This quarter, Akre started new positions in $ADBE $LYV and $MAR
Added to $CSGP $ANSS $OLLI
Trimmed $ORLY $DLTR $MKL $MCO $BRK.B
This quarter, Akre started new positions in $ADBE $LYV and $MAR
Added to $CSGP $ANSS $OLLI
Trimmed $ORLY $DLTR $MKL $MCO $BRK.B
4/ If you want to learn more about Chuck Akre and his investing style, this hour-long Talk at Google presentation is excellent.
5/ A few highlights from the talk:
* I didn't get [compounding] until I experienced it. I have never been able to learn from other people's mistakes. I have to make my own.
* Volatility is a risk only in the short run.
(cont)
* I didn't get [compounding] until I experienced it. I have never been able to learn from other people's mistakes. I have to make my own.
* Volatility is a risk only in the short run.
(cont)
6/ Google Talk Highlights (cont)
* Bought $MA in 2010 at ~$22 with regulatory worries wrt Durbin amendment. Now 10-bagger in 10 yrs:
"Their returns are so high they can't possibly find a place to reinvest their money, so our compounding is diminished modestly because of that"
* Bought $MA in 2010 at ~$22 with regulatory worries wrt Durbin amendment. Now 10-bagger in 10 yrs:
"Their returns are so high they can't possibly find a place to reinvest their money, so our compounding is diminished modestly because of that"
7/ Google Talk Highlights (cont)
Has had 2 100-baggers, $BRK.B and $AMT
"You really only need to have one great success."
$AMT was at center of wireless connectivity the same way $MSFT was at center of PCs. Initial purchase in '99 when it had presence in 3 countries, now in 15
Has had 2 100-baggers, $BRK.B and $AMT
"You really only need to have one great success."
$AMT was at center of wireless connectivity the same way $MSFT was at center of PCs. Initial purchase in '99 when it had presence in 3 countries, now in 15
8/ "Allowing our investments to compound uninterrupted is our North Star." - Chris Cerron, Akre Capital partner
This means not even selling during times of overvaluation.
Longer I invest, the more I agree with this.
Business quality > valuation
From akrecapital.com/the-art-of-not…
This means not even selling during times of overvaluation.
Longer I invest, the more I agree with this.
Business quality > valuation
From akrecapital.com/the-art-of-not…
