Tom Russo’s Top 5 Holdings

In this article, we discuss Tom Russo’s top 5 stocks. If you want to read our detailed discussion about the hedge fund manager’s portfolio, head over to Tom Russo Net Worth, Performance and Portfolio. 

5. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 155

Gardner Russo & Quinn’s Stake Value: $876,429,008

Alphabet Inc. (NASDAQ:GOOG) provides technology products and platforms worldwide and it is one of the Big Five tech stocks. In Q1 2023, Tom Russo held 8.4 million shares of Alphabet Inc. (NASDAQ:GOOG) worth $876.4 million, representing 9.09% of the total portfolio. It is one of Russo’s top stock picks. 

On July 20, Alphabet Inc. (NASDAQ:GOOG) said that it is currently investigating the potential of an AI product, internally known as Genesis, that could be used to automatically generate news stories. The company is engaging in discussions with news organizations, including The New York Times, The Washington Post, and News Corp to explore the possibility of using this tool to assist journalists. Genesis has the capability to process information to produce news content autonomously.

According to Insider Monkey’s first quarter database, 155 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 152 funds in the prior quarter. Harris Associates is the largest stakeholder of the company, with 36.90 million shares worth $3.8 billion. 

Wedgewood Partners Large Cap Focused Growth Fund made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its second quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) was also a top contributor to performance as revenues returned to year-over-year growth after a brief period of post-pandemic advertising spending digestion. The Company’s Cloud division also turned a small profit on a roughly $30 billion revenue run-rate. The Company’s internal engineering prowess should continue to drive longer hardware useful life and better profitability for this unit over time. Alphabet and its Google subsidiary have been pioneers in AI development, creating some of the most important software and hardware specifications and standards that developers rely on today. Alphabet should be able to continue to capitalize on its long-term AI investments by rolling out product improvements for users and advertisers featuring more automation that can deliver better returns.”

4. Compagnie Financière Richemont SA (OTC:CFRUY)

Number of Hedge Fund Holders: 2

Gardner Russo & Quinn’s Stake Value: $882,205,100

Compagnie Financière Richemont SA (OTC:CFRUY) is involved in the luxury goods industry, specializing in the design, manufacturing, and distribution of high-end products. These products include jewelry items, precision timepieces, watches, writing instruments, clothing, leather goods, and accessories. Securities filings for Q1 2023 reveal that Tom Russo held 5.5 million shares of Compagnie Financière Richemont SA (OTC:CFRUY) worth $882.20 million, representing 9.15% of the total 13F portfolio. It is one of Tom Russo’s top stock picks. 

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 138

Gardner Russo & Quinn’s Stake Value: $899,384,499

Mastercard Incorporated (NYSE:MA) is a financial technology company that provides transaction processing and other payment-related products and services. In the first quarter of 2023, Tom Russo had 2.4 million shares of Mastercard Incorporated (NYSE:MA) worth $899.3 million, representing 9.33% of the total 13F holdings. On June 26, the company declared a quarterly dividend of $0.57 per share, in line with previous. The dividend is payable on August 9, to shareholders of record on July 7. 

According to Insider Monkey’s first quarter database, 138 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), compared to 139 funds in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with 5.8 million shares worth $2.13 billion. 

LVS Advisory made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:

“We have owned Mastercard Incorporated (NYSE:MA) on and off since inception. We re-initiated the position in summer 2022 during the broader market sell-off. The stock traded off to an attractive valuation and we believed the tailwinds from a reopening of international travel still had legs. This was a small portfolio position and the stock has appreciated in the year we have owned it. The stock’s valuation is once again rich and the tailwinds from international travel and consumer spending appear to be tapering. We sold the position because we believe other opportunities within our existing portfolio will generate superior returns.”

2. Nestlé S.A. (OTC:NSRGY)

Number of Hedge Fund Holders: 4

Gardner Russo & Quinn’s Stake Value: $996,867,532

Nestlé S.A. (OTC:NSRGY) operates as a food and beverage company worldwide. Tom Russo’s Gardner Russo & Gardner is the largest stakeholder of Nestlé S.A. (OTC:NSRGY) as of the first quarter of 2023, with 8.19 million shares worth approximately $1 billion, representing 10.34% of the total securities. On February 16, Nestlé S.A. (OTC:NSRGY) reported FY 2022 non-GAAP EPS of CHF4.80 and a revenue of CHF94.42 billion, up 8.4% year-over-year. 

According to Insider Monkey’s first quarter database, 4 hedge funds were bullish on Nestlé S.A. (OTC:NSRGY), with collective stakes worth just over $1 billion, compared to 4 funds in the prior quarter worth $1.60 billion. 

Here is what Polen International Growth Fund has to say about Nestlé S.A. (OTC:NSRGY) in its Q1 2022 investor letter:

“We exited the Portfolio’s position in Nestlé in favor of what we believed to be a more compelling investment idea. Nestlé continues to enjoy competitive advantages related to its scale, distribution, and brand equity. We think the management team has positioned the business for success in recent years, with several divestitures along the way and believe the company is still likely to deliver consistent results. That said, our research indicates that returns may be at the lower end of our expected range and other opportunities appear more attractive.”

1. Berkshire Hathaway Inc. (NYSE:BRK-A)

Number of Hedge Fund Holders: N/A

Gardner Russo & Quinn’s Stake Value: $1,200,782,400

Berkshire Hathaway Inc. (NYSE:BRK-A) is the largest holding of Tom Russo. These Class A shares have a higher value due to their original issuance and limited availability. This higher price makes class A shares less accessible to retail investors, and Class A shares carry more voting rights than class B shares. In Q1 2023, Tom Russo’s fund held a position worth $1.20 billion in Berkshire Hathaway Inc. (NYSE:BRK-A). 

Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q3 2022 investor letter:

“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 25 Best Sports Stadiums in the World and 12 Most Dangerous Countries in Central and South America.