"Tracking Ruane, Cunniff, & Goldfarb’s Portfolio – Q3 2019 Update"
"Ruane, Cunniff, & Goldfarb’s 13F portfolio value increased from $7.43B to $7.62B this quarter. The number of positions increased from 37 to 40.They added Wayfair while reducing MasterCard and Visa during the quarter.The top three positions are Alphabet, Berkshire Hathaway, and CarMax and they add up to ~41% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Ruane, Cunniff & Goldfarb’s 13F portfolio on a quarterly basis. It is based on their regulatory  filed on 11/14/2019. Please visit our  article for an idea on their investment philosophy and our  for the moves during Q2 2019.This quarter Ruane, Cunniff, & Goldfarb’s 13F portfolio value increased from $7.43B to $7.62B. The number of holdings increased from 37 to 40. 16 of those stakes are significantly large (more than ~0.5% of the portfolio each) and they are the focus of this article. The top three positions are at ~41% while the top five are at ~55% of the 13F assets: Alphabet, Berkshire Hathaway, CarMax, Jacobs Engineering, and Liberty Media Formula One.The firm is best known as the investment advisor of the Sequoia Fund (SEQUX) which has a venerable ~49-year track record (July 15, 1970 inception, 13.53% annualized return compared to 10.91% for the S&P 500 index). YTD thru 12/20/2019, the fund is up 29.28%. After new management took over in Q1 2016, the portfolio has seen a significant shift to information & services businesses from asset-intensive manufacturing & retail. The following significant stakes in Sequoia’s portfolio are not in the 13F report as they are not 13F securities: Constellation Software (CNSWF), Naspers (NPSNY), Rolls-Royce Holdings plc (RYCEY), Vivendi (VIVHY), Hiscox Limited (HCXLF), a2Milk, and Melrose Industries plc (MLSPF). They trimmed Constellation Software while increasing Rolls-Royce during the quarter. Currently ~30% of the businesses held are domiciled outside the US. Bill Ruane was a Benjamin Graham pupil. To learn about Benjamin Graham's teachings, check out the classics  and .Stake Disposals:Altaba Inc. (AABA): The ~3% AABA stake as of Q1 2019 was established in Q1 2018 at prices between $69 and $80 and increased by around one-third next quarter at prices between $67.50 and $82. Last quarter saw the position almost sold out at prices between $59 and $79. The remainder stake was disposed this quarter.New Stakes:Wayfair Inc. (W): W is a fairly large 4.24% of the 13F portfolio stake purchased this quarter at prices between $106 and $152 and the stock currently trades well below that range at $84.01.Note: Wayfair has seen a previous roundtrip. It was a very small 0.76% of the portfolio position purchased in Q1 2019 at prices between $85 and $172 and disposed last quarter at prices between $138 and $164.Stake Increases:Alphabet Inc. (GOOG) (GOOGL): GOOG is the largest 13F stake at ~17% of the portfolio. It was first purchased in 2008 and that original stake was almost sold out the following year. In 2010, a much larger position was built in the mid-200s price-range. Recent activity follow: The four quarters thru Q1 2019 had seen minor trimming and last quarter saw a one-third reduction at prices between $1036 and $1288. The stock currently trades at $1350. There was a marginal increase this quarter.Facebook Inc. (FB): The FB position saw a whopping ~600% stake increase in Q1 2018 at prices between $152 and $193. The next two quarters had seen another ~27% increase at prices between $155 and $218. Q1 2019 saw an about turn: ~23% reduction at prices between $124 and $173. The stock currently trades at ~$206 and the stake is at 5.41% of the portfolio.  There was minor trimming last quarter while this quarter there was a ~10% stake increase.Stake Decreases:Berkshire Hathaway (BRK.A) (BRK.B): BRK.B is the second-largest position at ~15% of the portfolio. It is a very long-term stake that was already their largest stake in their first 13F filing in 1999. Recent activity follow:  Q1 2018 saw a one-third selling at prices between $191 and $217. The pattern reversed next quarter: ~10% increase at prices between $185 and $201. The stock is now at ~$226. Last five quarters have seen a combined ~5% trimming.CarMax Inc. (KMX): KMX is a top-three ~11% of the portfolio position. It was purchased in Q2 2016 at prices between $46 and $56 and increased by ~70% in Q4 2016 at prices between $48.50 and $66. Q4 2017 saw a ~30% selling at prices between $64 and $77 while next quarter there was a ~80% increase at prices between $59 and $72. The stock is now well above their purchase price ranges at $92.71. Last six quarters have seen a combined ~18% trimming.Note: They have a ~6% ownership stake in the business.Jacobs Engineering Group (J): J is a ~7% long-term stake first purchased in 2012. Recent activity follow: Q2 2018 saw a ~20% increase at prices between $56.50 and $67 while the last five quarters saw minor trimming. The stock currently trades at ~$90.Liberty Media Formula One (FWONA) (FWONK): Sequoia’s Q4 2016 letter disclosed a new stake in Liberty Media Formula One. They participated in Liberty’s acquisition of Formula One and acquired the shares at a discounted price of $25. There was a 24% stake increase in Q2 2017 at prices between $30.50 and $37. The stock is now at ~$46 and the stake is at 6.79% of the portfolio. Last six quarters have seen a ~18% selling at prices between $28.50 and $43.Note: they have a ~6% ownership stake in Liberty Media Formula One.Credit Acceptance Corp. (CACC): CACC is a large 6.53% stake established in Q1 2017 at prices between $185 and $221. The stock has doubled in the two-year holding period and currently trades at ~$444. There have only been very minor adjustments in the last few quarters.Note: They have a ~5.5% ownership stake in Credit Acceptance Corp.Liberty Broadband (LBRDK): LBRDK is a 5.67% of the portfolio position purchased in Q1 2018 at prices between $86 and $97 and increased by ~20% next quarter at prices between $69 and $85. The stock currently trades at ~$123. There was minor trimming over the last five quarters.MasterCard Inc. (MA): MA is a ~5% of the portfolio stake established soon after its IPO in 2006 at a split-adjusted cost-basis of $4.50 per share. The original position was huge at ~2.4M shares (24M shares after accounting for the 10-for-1 stock-split in 2014). It was sold down by ~72% over the next two years. Recent activity follow: Q3 2018 saw a ~22% selling at prices between $196 and $224. That was followed with a ~30% selling this quarter at prices between $257 and $292. The stock currently trades at ~$299.Amazon.com Inc. (AMZN): AMZN stake was established in Q4 2016 at prices between $719 and $845. Q4 2017 saw the stake almost doubled at prices between $957 and $1196. Last year saw a ~60% selling at prices between $1170 and $2050. The stock is currently at $1787 and the stake is at 4.90% of the portfolio. Last two quarters had also seen a one-third selling at prices between $1500 and $1963. They are realizing gains. There was marginal trimming this quarter.Charles Schwab (SCHW): SCHW is a 4.78% portfolio stake purchased in Q2 2016 at a cost-basis of ~$29. Last few quarters have seen only minor adjustments. The stock is now at $48.12.Booking Holdings (BKNG): The 4.51% of the portfolio BKNG stake was purchased in Q1 2017 at prices between $1477 and $1789 and increased by ~40% the following quarter at prices between $1738 and $1911. The stock currently trades at $2023. Last six quarters have seen only minor adjustments.Mohawk Industries (MHK): MHK is a very long-term 2.29% of the portfolio position first purchased in 2001. The stake became a significantly large position in Q3 2002 when close to 10M shares were purchased at a cost-basis of around $50. The position has wavered. Last few quarters have seen only minor activity. The stock is now at ~$137.Visa Inc. (V): Visa is a now a small ~2% of the portfolio stake. It is a very long-term position first purchased soon after the IPO in 2008. The position was sold down consistently since Q1 2018. That quarter saw a ~30% selling at prices between $114 and $126 and that was followed with a ~22% selling in Q3 2018 at prices between $131 and $151. Last three quarters had seen minor trimming and that was followed with another ~40% selling this quarter at prices between $169 and $186.Kept Steady:None.The spreadsheet below highlights changes to Ruane, Cunniff, & Goldfarb’s 13F stock holdings in Q3 2019:Top 10 Holdings from Q2 2019 Letter:Regulatory filings thru 9/9/2019: None."