MiB: Thomas S. Gayner, Markel Corp
This week, we spoke with Thomas S. Gayner, Chief Investment Officer and Co-CEO of Markel Corp. Gayner is responsible for overseeing the public investment activities of the company (with a capital portfolio of $27 billion) and Markel Ventures, investing in private companies. During the 15 years from 2000 to 2015, Gainer’s portfolio had an annual return of 11.3%, compared to 4.2% for the S&P 500.
He explained why Markel Corp is considered the best way to list a family office.
There are many similarities with the Berkshire Hathaway, which Gehner has owned for decades: Gehner can use the free cash flow of insurance companies, which makes him a very cheap source of long-term capital. Regular capital inflows allow him to enter many of his favorite value positions at an average cost. He runs a concentrated investment portfolio. The company’s 10 largest holdings account for about 45% of the portfolio; among the average US equity funds, the top 10 averages less than 30%.
Gayner also runs Markel Ventures, which allows him to acquire private (non-public) medium-sized companies.He prefers companies that get rid of a lot of free cash flow and have a lot of moats around their business
You can stream and download our complete conversation, including podcast additional content iTunes, Spotify, Suturing device, Google, Bloomberg, with Acaster. All early podcasts on your favorite podcast host are available Found here.
Be sure to check our Master of Business Meet next week with Robin Wigglesworth, a global finance correspondent for the Financial Times based in Oslo, Norway. He focuses on reshaping market and investment trends, from technological disruption to quantitative investment.His new book is Trillions: How a group of Wall Street traitors invented index funds and changed finance forever.
Tom Gaynor’s favorite book
Lincoln Highway By Amor Towles
Gentleman of Moscow By Amor Towles