Giverny Capital Reveals Favorite Long-Term Consumer Stocks

#3. O’Reilly Automotive Inc. (NASDAQ:ORLY)

– Shares Owned by Giverny Capital (as of June 30): 79,560

– Value of Giverny Capital’s Holding (as of June 30): $21.57 Million

The investment firm that employs a Buffett-style investment approach increased its exposure to O’Reilly Automotive Inc. (NASDAQ:ORLY) by a mere 1,310 shares during the three months ended June 30, to 79,560 shares. The enlarged stake, worth around $21.57 million on June 30, constituted 4.2% of the value of the firm’s portfolio at that time. The shares of the U.S. automotive aftermarket specialty retailer are 13% in the green thus far in 2016. O’Reilly Automotive reported sales of $4.27 billion for the first-half of 2016, an increase of 9% year-over-year. Meanwhile, the company’s comparable-store sales jumped by 5.1% year-over-year, after rising by 7.2% for the first six months of 2015. Although the current population of better engineered and more technically-advanced vehicles require less frequent repairs, the cost of replacement parts for these vehicles is greater on average. There were 42 hedge funds followed by Insider Monkey with positions in O’Reilly at the end of the March quarter, amassing around 4% of the company’s outstanding shares. Louis Navellier’s Navellier & Associates trimmed its stake in O’Reilly Automotive Inc. (NASDAQ:ORLY) by 29% during the June quarter, to 29,570 shares.

#2. Walt Disney Co (NYSE:DIS)

– Shares Owned by Giverny Capital (as of June 30): 406,183

– Value of Giverny Capital’s Holding (as of June 30): $39.73 Million

The investment management firm founded by Francois Rochon upped its position in Walt Disney Co (NYSE:DIS) by 6% during the April-to-June period, having finished the second quarter with 406,183 shares valued at $39.73 million. The shares of the media giant are 7% in the red year-to-date due to growing worries about the impact of cord-cutting, the biggest challenge the company has been facing as of late. The company’s television and cable business, in particular its ESPN sports network, has suffered lately as consumers choose cheaper bundles or sacrifice cable altogether. Disney recently announced the purchase of a 33% stake in BAMTech, one of the leading online live-streaming companies, for $1 billion. As part of the deal, ESPN will launch a new digital service this year that will include games the sports network does not air on its linear channels. Ken Fisher’s Fisher Asset Management reported ownership of 8.67 million shares of Walt Disney Co (NYSE:DIS) in its 13F for the June quarter.

#1. CarMax Inc. (NYSE:KMX)

– Shares Owned by Giverny Capital (as of June 30): 838,884

– Value of Giverny Capital’s Holding (as of June 30): $41.13 Million

CarMax Inc. (NYSE:KMX) was the third-largest overall position in Giverny Capital’s portfolio at the end of June, accounting for around 8.0% of its value. The Canadian asset manager upped its CarMax position by approximately 1% during the second quarter, to 838,884 shares valued at $41.13 million on June 30. The nation’s largest retailer of used vehicles has seen its market cap increase by 9% since the start of the year. CarMax operates 160 used car stores in 80 U.S. markets, including 51 mid-sized markets, 23 large markets and six small markets. The sales growth at the well-known used-car dealer have been slowing lately due to temporary weakness in used-car pricing, reflecting lower gas prices and a constantly tightening labor market that led to higher sales of new cars. The number of money managers in our system with stakes in CarMax fell to 17 from 24 during the first quarter. Tom Gayner’s Markel Gayner Asset Management owned 4.91 million shares of CarMax Inc. (NYSE:KMX) at the end of June.

Disclosure: None