We recently published a list Top 10 shares to buy according to Akre Capital Management. In this article we will see where O’Reilly Automotive, Inc. (Nasdaq: Orly) stands against other top stocks to buy according to Akre Capital Management.
AKR Cappality Management Follows a disciplined investment philosophy aimed at identifying exceptional companies managed by honest and capable leaders who wisely reinvest the free cash flow. This approach, referred to as the ‘three -part stool’, emphasizes three important factors: extraordinary companies, strong management teams and effective reinvestment strategies. The primary objective of the company is to worsen investor capital at above -average rates while retaining a lower risk level compared to industrial standards. Led by founder Chuck Akre until 2020, the company has consistently kept to this philosophy and has produced strong results over the years.
The basis of Akre Capital’s investment strategy is based on the principle that long -term efficiency correlates closely with the return on the capital of an owner, based on stable valuations and no benefits. Historically, the average return on US shares was around 9% to 10%, in accordance with book value growth per share. Akre Capital wants to perform this benchmark better by selecting companies with superior return profiles, in the conviction that these “compound machines” are the best way to achieve accumulation of sustainable wealth. The company focuses on patience and discipline, opposes short -term marketing fluctuations in favor of long -term growth.
Unlike many asset managers, Akre Capital does not relate to setting specific sales goals when acquiring shares. Instead, the potential investments evaluates with the intention of holding them indefinitely, only sells when one of the corners of the “three -part stools” is affected. This long -term approach distinguishes the company of Wall Street’s frequent short -term focus on quarterly profit surprises. Instead of responding to small profit fluctuations, AKRE Capital continues to work for companies with solid economic Fundamentals, viewing temporary price decreases as possibilities to acquire high -quality companies in attractive ratings.
Another important distinguishing factor of Akre Capital is the ability to capitalize on market -effections. The company benefits from Wall Street’s obsession with the short -term profit reports, often with the help of quarterly “misses” as possibilities to invest in undervalued companies with a strong long -term potential. With a focus on growth over periods of five and ten years, AKRE Capital prioritizes the economic value per share rather than short -term movements on stock price. This steadfast dedication to its investment philosophy has enabled the company to consistently achieve its goal to worsen capital and reduce the risk.
Charles T. “Chuck” Akre, Jr. is an experienced asset manager with more than five decades of experience with the supervision of private funds, investment funds and separately managed accounts. He founded Akre Capital Management in 1989 after 21 years of spending at Johnston, Lemon & Co., a NYSE member company, where he received expertise in research, asset management and branch activities. During his time there he developed a deep understanding of effects and investment strategies, which laid the foundation for tackling his own company.
From 1993 to 2000, Akre Capital Management operated under the umbrella of Friedman, Billings, Ramsey & Co. In Washington, DC, and offers Chuck extra resources to refine and expand his investment philosophy. In 2000, however, he chose to take the company private again, with the emphasis on independence and a long -term investment approach. He moved Akre Capital to Middleburg, Virginia, a national setting that reflected his preference for a targeted and patient investment process, free from the distractions of the short -term mentality of Wall Street.
At Akre Capital, Chuck Akre’s leadership has formed the success of the company in the long term and ensures consistent capital growth for investors. Over the years he has built up a reputation for his disciplined and insightful approach to asset management. Today Akre continues to contribute to his expertise as chairman of Akre Capital Management. He works together with John Neff, the portfolio manager of the AKRE Focus Fund, ensuring that the investment principles of the company remain intact. With decades of experience and a dedication to compiling capital at superior rates, the influence of Chuck Akre in the investment world remains considerable.
From the most recent application for the fourth quarter of 2024, Akre Capital Management manages around $ 11.56 billion in 13F effects. The company maintains a highly concentrated portfolio, with its top ten holdings accounting for 94.82% of the total assets. This targeted investment approach reflects the dedication of Akre Capital to select a small group of high -quality companies with a strong growth potential and disciplined management.
The shares discussed below were chosen from the Q4 2024 13F archives of Akre Capital Management. They are composed in the rising order of the importance of the Hedgefonds in them on December 31, 2024. To help readers with more context, we have included the hedge funds sentiment with regard to each shares using data from 1009 hedge funds followed by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is O’Reilly Automotive, Inc. (Orly) The top stock to buy according to Akre Capital Management?
A technician who works on a car in a car shop and professionally replaces the aftermarket parts.
Number of holders of hedge funds from Q4: 63
Akre Capital Management’s Equity Stake: $ 1.06 billion
O’Reilly Automotive, Inc. (Nasdaq: Orly), generally known as O’Reilly Auto Parts, is a leading American retailer from Automotive Aftermarket parts, tools and accessories. Founded in 1957 by the O’Reilly family, the company has extended its activities to more than 6,000 stores in 48 states, Puerto Rico and Mexico.
For the fourth quarter ending on December 31, 2024, Stegen O’Reilly Automotive, Inc. (Nasdaq: Orly) Sales by 7% to $ 4.10 billion, compared to $ 3.83 billion in the previous year. The gross profit also rose by 7% to $ 2.10 billion, with a steady margin of 51.3%. However, the sales, general and administrative (SG&A) costs climbed by 9%, a total of $ 1.36 billion. The business income increased modestly by 3% to $ 739 million, while the net result experienced a slight decrease of $ 1 million, with $ 551 million. Nevertheless, the diluted profit per share (EPS) grew by 3% to $ 9.50, driven by a reduction of outstanding shares. The consistent financial strength of the company continues to support its long -term growth strategy.
O’Reilly Automotive, Inc. (Nasdaq: Orly) On March 13, that his board of directors has approved a 15-for-1 stock distribution, which will be executed as a special sharing dividend. The split depends on the approval of the shareholders of a change to increase the number of authorized shares. This decision reflects O’Reilly’s dedication to broaden the accessibility of the shares for investors and employees. CEO Brad Beckham emphasized that the stock split is in line with the long -standing tradition of the company to reward its team members, making the culture that was an integral part of O’Reilly’s continuing success.
If approved, shareholders of the record will receive 14 additional shares for each share held for each of the record as of 2 June 2025, with distribution set before 9 June. The move is intended to make shares more accessible to O’Reilly Automotive, Inc. (Nasdaq: Orly) The employees of the stock purchase program, which offers shares at a 15% discount via Payroll -Dekm. The company is of the opinion that this initiative will further strengthen the involvement of employees and tailor their interests to the continuous growth of O’Reilly.
Generally, orly is in 5th place On our list of top stocks to buy according to Akre Capital Management. Although we recognize the potential for Orly as an investment, our conviction is convinced that some AI shares have a greater promise to deliver a higher return and to do so within a shorter time frame. If you are looking for an AI share that is promising than Orly, but it acts with less than 5 times its income, view our report on the Cheapest AI stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider Monkey.
