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If you buy individual stocks and are a beginner, you must be able to understand the relationship between price and value.
Price to Free Cash Flow is the best place to start.
Below is a quick breakdown ⬇️
Wow! What a great collection 👏👏. Going to keep me busy for a while 😁😁.
Tom | The Value Report
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7/7 Old Dominion's extensive network, service quality, technological innovation, financial strength, and industry expertise contribute to its resilient moat, positioning the company as a leader in the transportation and logistics sector.
6/7 Expertise and Experience: With decades of experience in the industry, $ODFL possesses deep knowledge, operational expertise, and longstanding customer relationships, solidifying its moat against competitors.
5/7 Strong Financial Position: $ODFL's robust financials and disciplined capital management provide stability and support for continued investment in its network, technology, and growth initiatives.
3/7 Superior Service Quality: With a focus on customer satisfaction, $ODFL delivers exceptional service, including on-time delivery, advanced tracking systems, and a commitment to cargo safety.
4/7 Technological Innovation: The company invests in advanced technologies, such as data analytics and automation, to optimize operations, enhance efficiency, and stay ahead in the evolving logistics industry.
2/7 Extensive Network: $ODFL's vast network of service centers and strategic terminals enables efficient and reliable transportation across the United States, giving them a competitive advantage.
15/16 Akre's success is attributed to his focus on compounding returns, investment research, and selecting businesses with high returns on capital. He highlights the importance of perseverance and independent thinking in investing.
14/16 Chuck Akre's investment strategy emphasizes quality, long-term value, and finding exceptional businesses. He believes in evaluating assets and investments, identifying above-average returns, and being patient in investing decisions.
13/16 Akre shares his thoughts on Moody's and S&P as businesses, noting their different outcomes with government agencies. He invested in Moody's after evaluating the company and highlights cultural differences between the two.
12/16 Akre advises against selling great long-term investment opportunities, even in the face of disappointment. He mentions Markel as an example and expresses faith in its long-term potential.
11/16 Akre emphasizes the importance of finding exceptional businesses that can compound free cash flow or book value in the mid-teens, bought at reasonable valuations. He cites American Tower as such a business.
10/16 Akre discusses his approach to family and raising children, emphasizing the value of struggle. He shares his favorite books and mentions Berkshire Hathaway and American Tower as his two 100-baggers.
9/16 Akre emphasizes the impact of starting valuation in investments and shares experiences with American Tower, Moody's, and Enstar. He cautions against getting distracted by external factors and encourages using own observations.
7/16 Akre highlights successful investments in International Speedway Corporation and Penn National Gaming, which yielded 10-20 times their initial investment. He also mentions the purchase of Mastercard in 2010 at an average price of $22.20.
8/16 Akre discusses three companies in their portfolio: Mastercard, Moody's, and Enstar. He describes Mastercard as an extraordinary business with high returns and emphasizes Moody's ability to generate strong returns.
6/16 Akre's investment philosophy focuses on long-term value, not short-term market fluctuations. He believes average returns are low due to the current interest rate environment. His accounts have outperformed the market by over 300 basis points.
5/16 Three factors Akre considers before investing: quality of the business enterprise, quality of the people running it, and reinvestment. Skilled operators with integrity who treat shareholders as partners are essential.
4/16 Akre uses a $10 stock example to explain how a lower valuation enhances the opportunity for higher compounding rates. He highlights Mastercard and Visa as exceptional businesses with returns on capital in the mid-30s.
3/16 Akre emphasizes measuring success by evaluating a company's assets and investments, not relying on public share price. Identifying investments with above-average rates of return is crucial.
2/16 Chuck Akre, Founder & CEO of Akre Capital Management, shares his successful investment strategy focusing on high-quality businesses with great returns on capital that can compound their free cash flow or book value in the mid-teens, bought at reasonable valuations.