Insight into the Value-Driven Portfolio Changes of a Seasoned Investment Guru
Glenn Greenberg (Trades, Portfolio), a seasoned investment guru known for his concentrated investment approach, has made notable changes to his portfolio in the third quarter of 2023. Co-founding Chieftain Capital Management in 1984 and later leading Brave Warrior Advisors, Greenberg has a history of outperforming the S&P 500 by focusing on companies with strong competitive advantages and high returns on invested capital. His philosophy is to invest heavily in a select few businesses he understands deeply, thereby reducing the risk of costly mistakes driven by fear and greed.
New Additions to the Portfolio
Greenberg's Brave Warrior Advisors has strategically added three new stocks to its portfolio:
- Discover Financial Services (DFS, Financial) stands out as the most significant new addition with 2,381,258 shares, representing 5.15% of the portfolio and a total value of $206.29 million.
- Louisiana-Pacific Corp (LPX, Financial) was the second-largest addition, comprising 231,070 shares or 0.32% of the portfolio, valued at $12.77 million.
- Enterprise Products Partners LP (EPD, Financial) was a smaller addition with 10,000 shares, accounting for 0.01% of the portfolio and a total value of $273,700.
Key Position Increases
Greenberg also bolstered positions in several existing holdings:
- Elevance Health Inc (ELV, Financial) saw a substantial increase of 306,326 shares, bringing the total to 1,627,598 shares. This represents a 23.18% increase in share count and a 3.33% impact on the current portfolio, with a total value of $708.69 million.
- Lennar Corp (LEN, Financial) experienced a 40.22% increase in share count with an additional 290,822 shares, now totaling 1,013,938 shares valued at $113.79 million.
Complete Exits
Greenberg's firm completely exited one holding in the third quarter:
- Comerica Inc (CMA, Financial) was sold off entirely, with 7,500 shares liquidated, impacting the portfolio by -0.01%.
Significant Position Reductions
Position reductions were also part of the quarter's strategy:
- Apollo Global Management Inc (APO, Financial) was reduced by 1,084,087 shares, a -13.77% decrease, impacting the portfolio by -2.2%. The stock traded at an average price of $84.06 during the quarter.
- Lithia Motors Inc (LAD, Financial) saw a -23.04% reduction of 264,351 shares, affecting the portfolio by -2.12%. The stock's average trading price was $304.77 during the quarter.
Portfolio Overview
As of the third quarter of 2023, Glenn Greenberg (Trades, Portfolio)'s portfolio comprised 34 stocks. The top holdings were 17.69% in Elevance Health Inc (ELV, Financial), 15.22% in Apollo Global Management Inc (APO), 10.25% in Primerica Inc (PRI, Financial), 9.79% in Fidelity National Financial Inc (FNF, Financial), and 6.51% in Lithia Motors Inc (LAD). The investments are primarily concentrated across seven industries: Financial Services, Healthcare, Consumer Cyclical, Industrials, Energy, Communication Services, and Technology.
Greenberg's latest moves reflect his unwavering commitment to a value investing philosophy, with a focus on companies that offer sustainable competitive advantages and robust returns on capital. His recent adjustments serve as a testament to his belief in understanding a few businesses deeply rather than spreading investments thinly across many. For value investors and potential GuruFocus.com members, these insights into Greenberg's strategies offer a glimpse into the thought process of a successful value investor.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
