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 Daisy Maxey. “Mr. Akre doesn’t distinguish between growth and value or focus on any particular market capitalization, doesn’t mind holding relatively large chunks of cash […]

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 made many leery of taking on debt. All of that means growth should continue to be sluggish, Akre says. With growth likely to remain slow, […]

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 view involves little to no  growth for the US, along with continued high unemployment, constrained consumers, and  increasing inflation. Because of that, Akre is keen […]