Akre Capital Management released its quarterly 13F filing with the SEC on May 15th. After recent market losses, these are the stocks in the fund’s portfolio worth considering now.
Akre Capital Management’s Recent Price Pull-Back Stocks
To find stocks in the firm’s portfolio that may be unpopular at the moment and trading at cheap valuations, I ranked the firm’s holdings by price pullbacks. The ranking table below lists the stocks in Akre Capital Management’s portfolio by stock price performance over the last 30 days.
|Ticker||Name||Price 1-mo Ago||Current Price||% Change 1-mo|
|AMTD||TD AMERITRADE HLDG CORP||$60.13||$55.04||-8.5%|
|ALRM||ALARM COM HLDGS INC||$45.16||$41.41||-8.3%|
|BRK.B||BERKSHIRE HATHAWAY INC DEL||$192.23||$187.64||-2.4%|
|DHIL||DIAMOND HILL INVESTMENT GROU||$198.00||$194.49||-1.8%|
|BRK.A||BERKSHIRE HATHAWAY INC DEL||$289,200.00||$284,205.00||-1.7%|
|ROP||ROPER INDS INC NEW||$279.43||$275.79||-1.3%|
|DHR||DANAHER CORP DEL||$100.43||$99.28||-1.1%|
TD Ameritrade Holding Corporation (NASDAQ: AMTD) stock price has fallen by -8.5% over the last month. It may be worth taking a closer look at the stock, especially after this recent decline.
The next largest stock decline in Chuck Akre’s portfolio is Alarm.com Holdings, Inc. (NASDAQ: ALRM) which has seen its share price fall by -8.3% over the last month. Other notable holdings with a recent pull-back include Berkshire Hathaway Inc. (NYSE: BRK.B), Diamond Hill Investment Group, Inc. (NASDAQ: DHIL), Berkshire Hathaway Inc. (NYSE: BRK.A), Roper Technologies, Inc. (NYSE: ROP) and Danaher Corporation (NYSE: DHR).
Akre Capital prides itself on being extremely discerning when selecting stocks. The investment team obsesses over the quality of the people running a business and the rate of return. In a 2014 interview, Akre said he looks for companies that he thinks are ‘compounding machines.’ At the time the firm owned Mastercard Inc (NYSE: MA) and Visa Inc (NYSE: V) which he pointed out have margins of over 30%, which is around three times that of the average US company.
Akre and his colleagues also refer to what they call the ‘three-legged stool’ approach to finding compounding machines. The three requirements are exceptional people running the business, reinvestment acumen and opportunities for reinvestment. The last point is important because even if the management team is good at allocating capital, they can’t generate returns if there are no opportunities.
In 2015, Akre wrote an article in which he asserts that rate of return is the most important metric to use when evaluating an investment. He said that in most cases this can be measured by the growth in the book value of a share.
Akre capital often holds positions for over ten years. As long as a company is able to keep increasing its economic value, the firm will hold a stock. Although the firm is a long-term investor, Akre doesn’t attribute its success to ‘buy and hold’ investing, but to the quality of the companies they buy.
The ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed above at the Akre Capital Management page.
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.