Akre On Finding "Compounding Machines"

Chuck Akre’s focused fund has been an excellent long term performer, and he recently talked with WealthTrack’s Consuelo Mack about how he targets “compounding machines” — companies that generate high returns on capital and then reinvest their free cash flow back into their businesses and continue to generate those high returns.

How — And Where — Chuck Akre Finds Value

Top fund manager Chuck Akre has been finding a lot of value in both the financial services industry and the discount retail industry, according to a Wall Street Journal piece that also delves into Akre’s broader strategy. Akre focuses on companies with “skilled and honest managers who can earn high returns on capital and reinvest their free cash to generate continued above-average returns,” and he wants to get a good price, too, writes the Journal’s… Read More

Why Akre Sees Stagflation Ahead

Top fund manager Chuck Akre says a constrained consumer will mean continued slow growth for the U.S. — part of why he sees stagflation coming. Akre tells Bloomberg that robust growth can’t occur in a consumer-driven economy like the U.S. when unemployment is as high as it is right now. Credit also isn’t flowing as freely as it did in the 1990s or 2000s, he says, and the scars of the 2008 financial crisis have… Read More

Akre Likes Discounters

Top value investor Chuck Akre  has built on his excellent long-term track record this year, and now he’s high on discount retailers and at least one cell phone tower company. In an interview with Financial Planning magazine, Akre talks about how the 2008-09 financial crisis caused him to incorporate macroeconomic factors more into his investment decisions. “I’m trying to make sure we’re constantly integrating our worldview with our portfolio,” he says, and right now  his macroeconomic… Read More

Akre: Focus on Pricing Power

Top value fund manager Chuck Akre says that amid an uncertain economic environment and with inflation looming as a possible issue, companies with pricing power are attractive investments. “At the end of the day it turned out that the best investments to own in the ’70s [when inflation at times raged] were businesses that have pricing power,” Akre tells the Associated Press. “And they’re probably the best things to own now. That’s the single best… Read More

Akre: Fundamental Analysis Is Critical

Top value investor Chuck Akre says that, while the 2008 financial crisis has led him to incorporate more of his macroeconomic views into his investment decisions, fundamental analysis remains the key to good investing. “Fundamental analysis is the most important,” Akre said when asked whether technical analysis, due diligence, or news items were most important to him in a recent Q&A with GuruFocus.com readers. “One needs to know what one owns as an investor. Of… Read More

Akre Cautious, But Finding Values

Top value investor Chuck Akre says he’s remaining cautious on the stock market, though he’s finding a number of picks that he says are low-risk, high-reward options. “The US is in a slow recovery,” Akre recently told Louis Rukeyser’s Wall Street (a tip of the cap to Nasdaq.com’s Jim Fink for highlighting the interview). “I’m an optimist, a quality that’s essential to being a successful investor. That being said, it’s best to remain cautious. That… Read More

Akre Looks to Bargain Retailers

Top value fund manager Chuck Akre says he’s holding the lowest level of cash in his new fund since it launched more than a year ago. Akre tells Bloomberg that he’s high on off-price retailers, in part because of his view that the U.S. consumer is constrained and won’t spend as freely as he or she had before the recession and financial crisis. [youtube=http://www.youtube.com/watch?feature=player_profilepage&v=sJRWyinXQ9Y]

The Macro Debate

Macroeconomic factors have been a driving force behind stock market moves in the past couple years. But how much should the recent increase in the impact of macro factors on the market affect stock investors’ strategies? Some of the world’s top managers are expressing different opinions, according to a Bloomberg article. Chuck Akre, for example, is holding more cash than he previously had because of the financial crisis. “It’s not clear how our economic and… Read More