Chuck Akre’s Top 5 Stock Holdings

1. MasterCard Incorporated (NYSE: MA)

As of the fourth quarter of 2020, Mastercard Incorporated (NYSE: MA) was the largest holding of Chuck Akre’s fund. His fund owned the stock since 2010, which is compliant with the long term investment strategy followed by Akre. As the largest investment in the fund, it constituted 14.18% of the overall portfolio, valued at $2.10 billion. MasterCard share price remained unchanged during the last twelve months.

This position was initiated in 2010 and it represents another successful example of Akre’s long term investment philosophy.

MasterCard operates in a duopoly environment, where it competes directly with Visa. Akre allocates nearly 21% of his portfolio to the cards business. The emergence of COVID-19 is expected to be a catalyst amid extensive migration to digital solutions.

MasterCard’s diluted EPS decreased by 20% during 2020 while revenues reached $15.3 billion, decreasing by 9%. The global company pays $0.44 quarterly dividend and its board have authorized a stock buyback program allowing to repurchase up to 1.8% of the company’s outstanding shares.

After reviewing Chuck Akre’s top 10  holdings for the fourth quarter of 2020, we can clearly realize what he meant by “the power of compounding”. Holding investments for many years allows the internal compounding to do its work. Akre Capital Management has always been consistent in applying the fund’s philosophy when selecting its potential investments.

You can also take a peek at 10 Best Bank Stocks for 2021 and 15 Most Valuable Cloud Computing Companies.

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