Berkshires McLane Unit Buys Spirits Distributor Kahn

Berkshire Hathaway ($BRKB) subsidiary McLane Co. which is a 32 billion supply chain services provider is buying Kahn Ventures LLC which owns Empire Distributors, a wholesale alcoholicbeverage distributor based in Atlanta Georgia with operations in Georgia and North Carolina. Buffett likes buying private family run businesses and this one seems to fit the bill. As of this writing the price of the deal was not disclosed. Here again Buffett buys another simple to understand business, nothing fancy. According to other wire services its noted that Buffett might be using this as a base for further ventures in this field.

• Family run operation lead by Michael and David Kahn

• Empire has been in business since 1940

• According to industry analysts its the nation’s 15th largest beer and wine distributor.

• Over 650 employees

• Revenue of 350 million a year(2006) according to latest figures I can come by

• They have eight facilities totaling over 850,000 square feet of operating space equipped with high-tech equipment, including bottle scanning and GPS routing, to help them operate efficiently.

Author currently long BRKB

Buffetts Latest Move!

Warren Buffett's Berkshire Hathaway Inc subsidiary International Dairy Queen, the ice cream retailer is planning in 2010 to open its first stores in Egypt and Macau. Berkshire bought Dairy Queen in 1998. Buffett frequently snacks on DQ desserts followed by an ice cold Cherry Coke. Coca Cola (KO) is Buffetts largest publicly traded equity posistion.

Update On Thor Industries

Thor Industries $THO is the world's largest manufacturer of recreation vehicles and a major builder of commercial buses. I first mentioned Thor back in January 2009 when it was trading at $13.50 per share. The stock was used as an example of a company that the seasoned value investor Walter Schloss might pick if he were still picking stocks on a professional basis. Schoss had a very impressive track record during his years managing money. He was also a part of Ben Graham's alumni. The stock has had an impressive run this year. I believe the stock price has gotten a little ahead of itself. They just announced today that they were making a special one time payout of 50 cents per share on their dividend. This is in addition to their quarterly payout of 7 cents per share. This is probably why the stock price ran up today. 10 months ago this stock traded at around 1X book value, where as now it trades for 2.3 book. Management still holds a big stake in this company at 39%, which is a plus, and aligns them with shareholders. The company still has a nice cash cushion of over 328 million with NO debt and free cash flow. All good looking figures for any value investor on the lookout for a new business to allocate money in. In fact Warren Buffett bought a similar business Forest River back in 2005, it to had NO debt. It would not suprize me if Buffett or another company would come in and buy this company outright. While I still feel that this is a very well managed company and things are looking up, the margin of safety is not where it was 10 months ago. *Author does not currently have position in $THO

Posted via email from stockmanmarc's posterous

4 Of Warren Buffett's Smaller Holdings

Four of Warren Buffett's smaller holdings have made some big gains off the bottom, along with the overall market. What's interesting is that most focus on his largest holdings which are Coca Cola $KO, Wells Fargo $WFC, American Express $AXP, Burlington Northern $BNI, Johnson & Johnson $JNJ, Procter & Gamble $PG, and Kraft Foods $KFT. Below in the graph's you see 4 smaller positions that Berkshire Hathaway owns. Three of these companies IR, NRG & KMX have gained 100% or better off their lows, while ETN has gained 76%, all four far out pacing the market averages, with the Dow Jones Industrial returning 44% and the S&P returning 50%.

Looking at some of his smaller holdings might give us a glimpse at what he is buying in his personal account which is not published anywhere. All-in-all Buffett owns over 90 different companies in which over half of these are wholly owned by Berkshire Hathaway $BRKA, $BRKB.

Biglari & Co. Find Value In Those Famous Steakburgers

Steak n Shake (SNS) long known for their signature Steakburgers, Crispy Fries and Hand- dipped real- milk Milk Shakes is still offering a value in more ways than one. Since current CEO Sardar Biglari has taken over the helm from the struggling food chain Biglari & Company have acted quickly to instigate a turnaround. While the stock price is well below its 5 year high of nearly $22 per share the business itself represents a company that is being overlooked by the investment community. At the end of 2008 Steak n Shake put in place their 4 meals for under $4 in hopes of driving traffic to their stores. Is this working? Well according to their latest 10-Q they earned .08 cents a share or almost 2.3 million dollars versus a -.14 cent loss from the previous year I would say that their headed in the right direction. However, I do not want to focus on what they earned but the VALUE in the shares of the business.

Like Warren Buffett has often quoted "Price is what you pay and VALUE is what you get."

"We must first cut the knowable, the COSTS, and then invest to increase the unknowable, the sales." Sardar Biglari.

Biglari & Company have whittled down the capital expenditures from 69 million at the end of 2007 to 31.4 million at the end of 2008. Currently the trailing twelve month CapEx is 10.2. The trailing twelve month cash from operations is 36.4 less the current CapEx of 10.2 mil. gives them a Free Cash Flow of 26.2 million. Their current book value is $9.88 per share and the stock is trading around the $8.75 range. At the end of 1999 book value was $4.71 per share while the stock price was $10.13 per share. Most of the property they sit upon is company owned with a value of $413 mil. which equates to $14.35 per share. As of the end of 2008 the company had 415 company owned stores and 75 franchised stores. Recently the stock was ranked in the top 10% in year to date performance of small cap stocks.

While this might not represent a company that is growing at hyper growth rates like many of your social media companies today, this is a company who has been in business since 1934 and has stayed close to their core product line - burgers, fries, and shakes. As you can see by some of the numbers, this stock is trading at a cheaper valuation, than where it was ten years ago. Here is a company who is run by a young man who seems to find undervalued situations much like Ben Graham did through out his career and also like Warren Buffett'S early years when he ran a partnership.

Relevent Articles

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The Author suggests further research before investing.

Author is long SNS

Buffettfest The Woodstock Of Capitalism

Well it is that time of year again. The Woodstock of Finance or Buffettfest which is Berkshire Hathaway's $BRKA annual meeting. Unlike most shareholder annual meetings that seem to be rather boring Berkshire Hathaway's annual meeting is anything but. Over the years it has grown exponentially. Its like going to see your favorite rock band in concert but even better. The Rolling Stones Mick Jagger and Keith Richards don't have anything over Berkshire's Warren Buffett and Charlie Munger. In years past Buffett has strummed a few licks on his ukulele while up up on stage. He has even been seen on a $HOG- that's A Harley-Davidson in case your wondering.

This is basically a weekend long event where a legion of Berkshire loyalist(shareholders) make the annual trek to their Guru's headquarters and home town Omaha Nebraska. From what I am hearing through other news sources is that this year might be a bit somber instead of the usual financial lovefest that its been in years past. You see Berkshire shareholders are not use to loosing money and 2008 was one they would like to put behind them as would most investors.

What makes this so unique is that Buffet is unlike other CEO's of company's. For one he pays himself a low salary in comparison to most CEO's, and his interests have always been aligned with the shareholders of the company. Unlike many annual meetings where the board will make up excuses for short falls or spend half the time talking about electing board members, dolling out stock options or pay raises Buffett shoots straight from the hip. So for the better part of a day Buffett will field question after question. Also unlike other shareholder meetings Buffett and his finance-flower children will have a chance to have some fun and spend money like their on vacation.

The Buffettfest expects a record crowd of 35,000 people this year up from 32,000 last year. While Buffett is coming off his worst year ever, his popularity has rose to new heights. This might be because of the tough times we are in and who better to smooth things over than the Greatest Investor of all time The Guru of Value Investing Warren Buffett.

Below are a few good reads, so enjoy!

Berkshire Is Still A Brand Name New York Times

Buffett Fans Set For 'capitalist Woodstock' CNNMoney/Fortune

Here's the Story on Berkshire's Mungar WSJ Online

Invetors Flock To Capitlism 'Woodstock' After Buffett's Bad Year Barron's

Also check out the Ultimate 2009 Berkshire Hathaway Annual Meeting Guide @ Fat Pitch Financials

Ignore The Headlines And Concentrate On Value

Ignore the headlines and concentrate on the fundamentals. The market has had a nice run the last two weeks bouncing up over 20%. Hey this is great but don't get caught in the hype. Sure you want the market to go up just like most everyone else, however to many people get caught up in the NOW, that is, what the Stock Market is doing today, this week or next month. Forget that crap and concentrate on investing in businesses. As an Independent Investor one needs to focus on the true worth or the actual value of the business. Its the same thing as if you were to buy a pizza parlor. How much does the business make? How long will it take to get my money out of it? How much debt do they have? Is this business located in the right place? Is this a dying business or a growing one? These are some of the things you would ask if you were buying an existing establishment. Well the same rules apply to the stock market, except most individuals and institutions do not adhere to these principals. Of course their is no sure fire way but if you focus on a few basic fundamentals such as book value or free cash flow this will help in whittling down some prospective investments. For those that might be new, book value is defined as the total value of the company's assets that shareholders would theoretically receive if a company were liquidated. Warren Buffett uses the book value as a measuring stick, often looking at the growth in book value. Free Cash Flow represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base. Currently Wellpoint $WLP is a good example of a business with excellent free cash flow.

An Off Shoot Of Buffett's Partnership: The Sequoia Fund

Here is an interesting link on The Sequoia Fund. Sequoia is a value oriented mutual fund managed by Ruane, Cunniff, & Goldfarb. The Seqouia Fund $SEQUX has a large number of companies in their portfolio however Sequoia concentrates a large percentage of its dollars to a hand full of companies. Warren Buffett's Berkshire Hathaway $BRKA, $BRKB currently is their largest holding followed by Martin Marietta Materials $MLM, Fastenal $FAST, IDEXX Labs $IDXX, and Mohawk Industries $MHK. Sequoia has an excellent track record stretching back to 1970. The Sequoia Fund is not really an off shoot of Berkshire Hathaway, however they have a long history together. Bill Ruanne who was the founder of the fund was one of a small group of investors along with Warren Buffett that trace their roots back to the Father of Security Analysis Ben Graham. It seems back in 1969 Buffet ended his Buffett Partnership after a 13 year run. Buffett steered his partners over to Ruane who in turn started the Sequoia Fund. The Fund was closed off to new investors for 26 years and reopened in 2008.

Relevent Article

Buffett And Reopened Seuoia Fund Still Intertwined After Decades

A Stock Canidate That Walter Schloss Might Like!

Plenty Of Stocks To Fit Warren Buffett's Criteria!!!

With over $25 billion in cash to deploy it looks as if the worlds greatest investor Warren Buffet could put some of that to work according to a recent Bloomberg article. Buffett looks for companies who have high returns on equity(ROE), low debt/equity ratio, competent management and stable cash flow. This is only the second time since 1965 that the book value of Berkshire Hathaway $BRKA has wound up in the negative column. Even after one of the worst years in recent history, Buffett's Berkshire Hathaway has still managed to compound its book value at over 20% per year annually during the course of the last 44 years. Three stocks high lighted in the article are Sysco $SYY, VF Corp. $VF, and Danaher $DHR. However there are over 50 stocks mentioned here which gives the value investor a good starting point to further research and possibly invest in some of the same stocks as Buffett himself.

The Many Facets of A Value Investor

What defines a value investor? Many think that value investing is about picking stocks with low PE ratios or stocks trading under book value. While this is certainly true it is only a small part of the equation. It has been 75 years since Benjamin Graham and David Dodd published their book Security Analysis which was in a time of economic uncertainty, much like, what we are experiencing today. I think any Great or even good investor is a value investor. A value investor can come in different make up. For example, Warren Buffett who is considered by many the best investor of all time, chooses his companies differently than say his contemporary Walter Schloss would. Schloss worked and studied under Ben Graham in the 1950's. Both use the same set of principles that were laid out by Graham, but if you study or listen to these men, these valuing techniques may vary. One reason for these varying in techniques, is Berkshire Hathaway's (Buffett's Holding company), shear size. You won't find many of Buffett's companies trading at Graham prices. Nowadays you here Buffett talk about businesses with economic moats. A good example might be Coca Cola $KO or Burlington Northern Railway $BNI. A economic moat is a business that may have a good brand or name recognition, pricing power or trademarks making it more difficult for rivals to compete effectively. Buffett also searches for companies with plenty of free cash flow. Where as Schloss stuck mainly to Grahams original set of principles, looking for cheap stocks trading at or near NCAV. Another investor who has applied these techniques but also added to the screening process is Joel Greenblatt. Greenblatt uses many of Grahams techniques but applied the Earnings Yield. The earnings yield is a inverted PE ratio. Many value investors take large stakes in companies (controlled or focus investing) which gives them an edge. This allows them to have more influence on day-to- day operations. We have witnessed this through Eddie Lampert's investment in Sears Holdings $SHLD or more recently Sardar Biglari's stake in Steak n Shake $SNS.

Some (Value)Investor Terminology

• low PE ratio
  
• dividend yield
  
• earnings yield
  
• low debt-to-equity ratio
  
• free cash flow
  
• managements stake
  
• earnings growth
  
• NCAV or Net-Nets
  
• assets/liabilities
  
• current ratio
  
• economic moats
  
• intrinsic value
  
• margin of safety
  
• book value
• controlled investing
• return on equity

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Has Value Investing Worked To Protect The Downside

Buffett's Other Companies

We here plenty about Warren Buffett and the large publicly traded companies that are major investments of his holding company Berkshire Hathaway(BRKA,BRKB). However we rarely here anything about the many companies that are partially or wholly owned subsidiaries, which total around fifty in all. They range from a candy maker, boot company, paint manufacturer, to the worlds largest carpet company. In fact Buffett prefers to buy the whole company because it permits him in influencing the most critical part of the business: capital allocation.  Over the last 40 years Buffett has bought entire businesses as well as his huge stakes in $AXP, $WFC, $KO, $JNJ and $PG. One interesting company that Berkshire bought into within the last year and a half is The Marmon Group, which into itself is a holding company that runs 130 business units that operate independently within diverse business sectors.  As Buffet has stated many times before:

 I buy businesses, not stocks, businesses I would be willing to own forever.

I am a better investor because I am a businessman and a better businessman because I am an investor.

Here is a further list of Berkshire Hathaway's subsidiaries 

Can Kraft Feed Buffett's Appetite?

One of Warren Buffett's stocks takes it on the chin this morning by posting a 72% decline in profits and trimming forecast for 2009. Kraft Foods(KFT) is trading down -$2.49 to $26.25 in pre-market this morning 2/4/2009. Kraft is the #2 food maker in the WORLD! Buffett usually makes Few but BIG bets and says his holding time frame is forever. I guess when you get to be the size of Berkshire Hathaway(BRKA,BRKB) you do have to hold a long time. Buffet likes companies with good steady cash flows which Kraft has and seems to be passing this on to shareholders in dividends which have been growing steadily. The current dividend is yielding over 4%. Keep in mind WALL STREET likes to focus on earnings, however the Intelligent Investor should focus on the the underlying business and its cash flows. Organic revenue for the 4 quarter and the year 2008 just ended grew 4.4% and 6.6% respectively. Here's a look at Kraft's(KFT) RECENT REPORT dated February 4th 2009.

Author long KFT

Billionaires Buffett & Gates Up Stakes In RailRoad & Waste

Again the Oracle of Omaha, Warren Buffet bought Burlington Northern Santa Fe Corp. (BNI) bringing his total share count to over 74 million and giving him the largest stake with 22% of company . Prices ranged between $61.65-$$63.43.While fellow billionaire buddy Bill Gate's Cascade Investments ups its stake in Republic Services (RSG) bringing the total to over 39 million shares and 10 1/2% ownership. Prices ranged between $22.97-$25.43. Cascade Investments which is gate's Investment arm also has large stake in Canadian National Railway Company (CNI).

Author is currently long BNI

Sears, AutoNation, & Savy Billionaires: Gates & Lampert

While many analyst and investors seem to be beating up on companies such as Sears Holdings(SHLD) and AutoNation(AN) investors Eddie Lampert and Bill Gates continue to buy shares. Why? The economy has not been this bad in at least one or maybe two generations. Sears is a retailer who seems to be out played by competitors WalMart(WMT), Target(TGT) and Best Buy(BBY). Then their is AutoNation that is caught up in the Big Three Auto Debacle of Ford(FD), General Motors(GM) and Chrysler. Why are these Billionaires pouring money into these companies? Do they see something that the majority does not see?

"Just recently UBS initiated coverage of the stock with a ‘’sell” rating Thursday, Sears needs to come up with a solution for its operating problems. Many of them involve the basics of retailing: growing comps, executing on merchandising, improving marketing. Without a strategic operating initiative, Sears won’t be able to distinguish itself from the competition in the crowded and stagnant retailing sector, and thus won’t be in a position to reverse a steep sales decline. Also short sellers have also taken an extremely bearish stance on the retailer, as more than 19 million SHLD shares have been sold short. This accumulation of bearish bets accounts for 17.6% of the company's total float, and is 8.5 times the stock's average daily trading volume. Should the equity continue its downtrend, these bears could add to their winning short positions, pushing SHLD even lower."

So what is it that is going on with these two companies? Basically Wall Street is saying these companies suck. In the case of Sears their saying that Sears has a flawed business model and that it is NO SPECIAL retailer. In the case of AutoNation, Wall Street is saying with all the negative press on the auto manufacturers we don't want this one either. Does any of this hold true? Maybe, at least in the short term it does. But for the shrewd business men that I think Gates and Lampert are the answer is a NO!

Is their something more going on here? Well in my humble opinion I think their is. In the case of Sears, yes it is a retailer that does not shine as bright as WalMart or Target, however as I have stated in earlier posts that it sits on alot of untapped Real Estate as well as BRANDED names- Kenmore, Craftsman, Diehard and LandsEnd. Most investors already recognize this and it is talked up in the media over and over. However, I think their is a bigger picture going on with these companies than meets the eye. WallStreet has ALWAYS been short term oriented, their job is to play salesman and to constantly make that commission dollar. While Lampert and Gates are making a bigger play which may take several years to pan out. Can the passive investor make money here? I think he/she can if they have patience and due their own research.

This is an interesting case to study because I think it is more than just a rich guy buying a stock and making 20 or 30%.

related links:

http://stockmanmarc.blogspot.com/2008/10/sears-not-just-your-average-retailer.html

http://stockmanmarc.blogspot.com/2008/11/sears-holdings-esl-investments-mr-eddie.html

http://finance.yahoo.com/news/Gates-Lampert-keep-buying-apf-13871819.html

The author suggest further research before investing.

Author is long SHLD

Ben Graham Nuggets Part 2

The Market Crash of 2008 has created many opportunities for the investor especially the most prudent of investors- the Value Investor. While many stocks look like bargains not all are. Many are value traps however many might be diamonds in the rough. One of Ben Grahams strategies while managing money during his 30 years of running "Graham-Newman Partnership" was to buy a basket of beaten down stocks . While there are many stocks currently that fit in the mold or come close to Grahams strategy here is the latest list:

All issues mentioned have a current ratio better than 1.5, a book value under 1.5, a p/e ratio under 15, positive eps growth over last 5 years, very low or no debt, and pay a dividend of at least 2 percent or better.

7 Ben Graham Nuggets

Williams Pipeline LP(WMZ)- Williams Pipeline Partners L.P. owns and operates natural gas transportation and storage assets in the United States.

Lufkin Industries(LUFK)- Lufkin Industries, Inc. and its subsidiaries engage in the manufacture and sale of oil field pumping units, power transmission products, and highway trailers.

Bebe Stores(BEBE)- bebe stores, inc. engages in the design, development, and production of womens apparel and accessories. Management holds a large stake in this one.

Heidrick &Struggles(HSII)- Heidrick & Struggles International, Inc. provides executive search and leadership consulting services in the Americas, Europe, and the Asia Pacific.

Titanium Metals(TIE)- Titanium Metals Corporation produces titanium melted and mill products.

Williams-Sonoma(WSM)- Williams-Sonoma, Inc. operates as a specialty retailer of home products.

Intersil Corporation(ISIL)- Intersil Corporation is a global technology leader specializing in the design and manufacture of high performance analog semiconductors.

More Ben Graham Nuggets here:

http://stockmanmarc.blogspot.com/2008/10/few-more-ben-graham-nuggets.html

*These are not recommendations but ideas for further study before investing.

Warren Buffett Is Adding to His Train Set

At 78 years old Warren Buffet is still playing with CHOO CHOO TRAINS, but their no longer the Lionel Trains from childhood day's. Looks like the Oracle of Omaha is amassing a large position in his favorite railroad company Burlington Northern Santa Fe(BNI). Buffett has been acquiring a position in this company since early 2007 and buying it on dips in the $70-80 range. He has also used the tactic of selling puts on the stock which pays him  similar to getting a dividend. If the stock hits his strike price the stock is put to him . If the stock never hits his strike price he pockets the option premium. Earlier in the year the stock almost hit $115 per share but has fallen back with the over all market. Here is a link to Berkshire Hathaway's(BRKA,BRKB) current filing.

http://www.sec.gov/Archives/edgar/data/109694/000118143108065808/xslF345X03/rrd225536.xml

also be sure and check the link to Gurufocus:

http://www.gurufocus.com/news.php?id=39652

Leucadia National In The Shadows Of Berkshire?

 Leucadia National Corp.(LUK) is a publicly traded diversified holding company with investments ranging from telecoms, medical products, real estate, auto finance, investment banking, timber,mining, plastics, gaming entertainment, energy and  even a couple of wineries. Their current track record goes back almost 30 years with their roots being traced back even farther to the mid 1800's. Leucadia which is run by the duo Ian Cumming and Joseph Steinberg does not come up  in the media as much  as  the well known Berkshire Hathaway(BRKA)(BRKB) run by Warren Buffett. However, over the last 30 years these value players have quietly compounded an impressive track record which ranks highly amongst any peer group. Many of their investments are private companies in which they own a significant stake or the whole company. They currently hold positions in 8 publicly traded companies with the largest being the Jefferies Group(JEF).

Currently LUK  trades at $19.50 per share with a book value of $25.00 per share. Their debt/equity ratio is .38, with revenues slightly over 1 billion. Management currently owns 23% of the shares outstanding while large institutions such as, Fairholme(FAIRX), Morgan Stanley(MS) and others own 66%. At the end of September their net worth or stock holders equity came to $5.7 billion dollars. According to their last annual report they had an opportunity to make a large investment in a real estate, farming and ranching business in Argentina which they will give further details at the end of 2008.

Below is Leucadia National's Track Record For The Last 30 Years:

       Book Value    Equity

        Per Share

                                                                     

1978 ($0.04) (a) ($7,657) (a)
1979 0.11  22,945  
1980 0.12  24,917 
1981 0.14  23,997 
1982 0.36  61,178  
1983 0.43 73,498  
1984 0.74  126,097 
1985 0.83  151,033 
1986 1.27  214,587  
1987 1.12  180,408 
1988 1.28  206,912 
1989 1.64  257,735 
1990 1.97  268,567 
1991 2.65 365,495 
1992 3.69  618,161 
1993 5.43  907,856
1994 5.24  881,815 
1995 6.16  1,111,491 
1996 6.17  1,118,107 
1997 9.73  1,863,531 
1998 9.97  1,853,159 
1999 6.59(b) 1,121,988(b) 
2000 7.26 1,204,241 
2001 7.21 1,195,453 
2002 8.58  1,534,525 
2003 10.05  2,134,161 
2004 10.50  2,258,653 
2005 16.95  3,661,914(c)
2006 18.00  3,893,275 
2007 25.03  5,570,492(d)

                         21.7%  compound return on equity

(a) A negative number cannot be compounded; therefore, we have used 1979.

(b) Reflects a reduction resulting from dividend payments in 1999 totaling $811.9 million or $4.53 per share.

(c) Reflects the recognition of $1,135.1 million of the deferred tax asset or $5.26 per share.

(d) Reflects the recognition of $542.7 million of the deferred tax asset or $2.44 per share.

(Dollars in thousands, except per share amounts)

* All information is believed to be reliable but as usual you need to do further research

Omaha Oracle Taps a Medium on Wall Street(circa1999)

Omaha Oracle Taps a Medium on Wall Street

Thought this was an interesting article taken from the NY TIMES January 31st 1999, almost 10 years ago . Look at where Berkshire was trading at then, $65,000 a share, 2 months later it was trading at $73,000 a share. Whats really interesting is that its book value back then was $37,000 a share, which was close to 2x book value. Today it trades at book value which is $77,500 a share. 

anyones thoughts?

Bill Gates The Value Investor

It looks like Bill Gates  co-founder of Microsoft is also a value player. Gates controls a holding company named Cascade Investments which has been around for 14 years.  Currently Cascade Investments holds a diverse basket of 18 stocks. These businesses range from a railroad to a soft drink bottling company. It certainly looks like Cascade Investments is modeled in some ways like Warren Buffetts Berkshire Hathaway(BRKA,BRKB) excluding the insurance companies. In a recent 13F filing Gates added to his position in Republic Services(RSG) upping his stake to nearly 20% of the company. Republic Services is one of the United States leading waste providers. The largest holding in the portfolio is Canadian National Railway(CNI) which Gates owns about 7% of the common shares. He also upped his stake in Fomento Economico Mexicano,SAB de SV(FMX) which produces, markets, and distributes Coca-Cola trademark beverages as well as SOL Beer. He now holds 5.9% of the common shares of Fomento. His newest holdings which are rather small purchases include AutoNation(AN), Patriot Coal(PCX) and Strategic Hotels &Resorts(BEE).  Interesting to note is that Buffett and Gates own some significant stakes in the rails. It also looks like Gates took a page out of Peter Lynch's One Up On Wall Street and invested in a boring and disgusting business that being Republic Services. Whats next for the King of Software?

Relevent Articles

What Bill Gates Is Holding

Gates Finds Value For His Foundation And His Personal Portfolio

STOCKMANMARC

the Dhandho Investor: Mohnish Pabrai

For those of you that are not familiar with Mohnish Pabrai, he is a devout disciple on the teachings by Warren Buffett and Ben Graham. Mohnish runs a fund identical to Warren Buffett's original Buffett Partnership which was the predecessor of Berkshire Hathaway(BRKA,BRKB). Pabrai wrote a book about a year ago titled the Dhandho Investor. The word Dhandho which is pronounced dhun-doe is a Gujarati(a state in India) word. Dhan comes from the Sanskrit root word Dhana meaning wealth. Dhan-dho, literally translated, means "endeavors to create wealth".

Pabrai is a focus investor usually holding about 12-18 stocks in his portfolio. Pabrai likes to put no more than about 10% in each stock. Currently Pabrai holds about 16 stocks in his portfolio with about 320 million under management. Fairfax Financial(FFH), Harvest Natural(HNR), and Sears Holdings(SHLD) represent his 3 top holdings. The current 13F filings show that Pabrai increased his holdings by 52% in Wellcare(WCG) while selling most of his position in Jackson Hewitt(JTX).
For those of you that have not read the Dhandho Investor, you should, it is simple to understand and makes a lot of sense.