Tracking Thomas Gayner's Markel Portfolio – Q3 2017 Update

• Gayner’s portfolio increased ~7% from $4.69B to $5.02B during the quarter.
• Markel substantially increased Alphabet and Amazon while dropping Core Labs and reducing Exxon Mobil.
• Berkshire Hathaway at 11.47% of the portfolio is by far the largest position.

Thomas Gayner’s Markel Investment Portfolio increased 7.12% from $4.69B to $5.02B during the quarter. The portfolio continues to have around 100 different positions although only around 50 are significantly large (more than 0.5% of the portfolio each). The top-five stakes are Berkshire Hathaway (BRK.A) (BRK.B), CarMax Corporation (KMX), Brookfield Asset Management (BAM), Diageo plc (DEO), and Walt Disney (DIS).

Markel Corporation (MKL) is currently trading at around 1.7-times Book Value (BV) at $1073 per share - BV is around $640.

Below is a summary:

1. Alphabet Inc. (GOOG): The 2.10% stake saw a ~10% increase this quarter at prices between $898 and $980. Last two quarters had seen a combined ~40% increase at prices between $770 and $984. 2016 saw a ~160% stake increase at prices between $665 and $800. Gayner is actively building this stake. For investors attempting to follow Gayner, GOOG is a good option to consider for further research. The stock is currently at $1033.

2. Amazon.com (AMZN): The stake saw a ~14% increase during the quarter at prices between $939 and $1053. It had seen a ~55% increase over the last two quarters at prices between $750 and $1011. The stock is now at $1112. For investors attempting to follow Gayner, AMZN is a good option to consider for further research.

Other positions being built actively include Oaktree Capital Management (OAK), Watsco Inc. (WSO), and Blackstone Group (BX). Below is a spreadsheet that highlights the changes to the portfolio as of Q3 2017. Please check out our previous update to have an idea on how the portfolio is progressing:

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy.