This article first appeared on GuruFocus .
Exploring the Investment Decisions of a Renowned Value Investor
Tom Russo ( Trades , Portfolio ) recently submitted the 13F filing for the first quarter of 2026, providing insights into his investment moves during this period. Thomas A. Russo joined Gardner Investments as a partner in 1989. In 2014, Mr. Russo became the Managing Member of the firm. Mr. Russo serves as Managing Member of Gardner Russo & Quinn LLC and of Semper Vic Partners GP, LP, which oversees two "global value," long-only, equity investment partnerships, the first of which Mr. Russo founded in 1983. Mr. Russo oversees more than $8 billion distributed between Semper Vic partnerships and separate accounts managed in parallel fashion. His investment philosophy emphasizes return on invested capital, principally through equity investments. His approach to stock selection stresses two main points: value and price. He looks for companies with strong cash-flow characteristics, where large amounts of "free" cash flow are generated. Portfolio companies tend to have strong balance sheets and a history of producing high rates of return on their assets.
Summary of New Buy
Tom Russo ( Trades , Portfolio ) added a total of 3 stocks, among them:
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The most significant addition was Sunbelt Rentals Holdings Inc ( NYSE:SUNB ), with 6,049,133 shares, accounting for 4.63% of the portfolio and a total value of $393.74 million.
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The second largest addition to the portfolio was Eurofins Scientific SE ( ERFSF ), consisting of 3,096,404 shares, representing approximately 2.63% of the portfolio, with a total value of $223.55 million.
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The third largest addition was Merck & Co Inc ( NYSE:MRK ), with 2,141 shares, accounting for a total value of $257,540.
Key Position Increases
Tom Russo ( Trades , Portfolio ) also increased stakes in a total of 20 stocks, among them:
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The most notable increase was Netflix Inc ( NASDAQ:NFLX ), with an additional 605,901 shares, bringing the total to 5,610,666 shares. This adjustment represents a significant 12.11% increase in share count, a 0.69% impact on the current portfolio, with a total value of $539.47 million.
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The second largest increase was DoorDash Inc ( NASDAQ:DASH ), with an additional 70,728 shares, bringing the total to 1,001,195. This adjustment represents a significant 7.6% increase in share count, with a total value of $150.33 million.
Summary of Sold Out
Tom Russo ( Trades , Portfolio ) completely exited 5 of the holdings in the first quarter of 2026, as detailed below:
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Sunbelt Rentals Holdings Inc ( ASHTF ): Tom Russo ( Trades , Portfolio ) sold all 6,111,758 shares, resulting in a -4.51% impact on the portfolio.
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Diageo PLC ( DGEAF ): Tom Russo ( Trades , Portfolio ) liquidated all 129,805 shares, causing a -0.03% impact on the portfolio.
Key Position Reduces
Tom Russo ( Trades , Portfolio ) also reduced positions in 40 stocks. The most significant changes include:
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Reduced Alphabet Inc ( NASDAQ:GOOG ) by 580,860 shares, resulting in a -14.78% decrease in shares and a -1.97% impact on the portfolio. The stock traded at an average price of $314.16 during the quarter and has returned 30.08% over the past 3 months and 26.86% year-to-date.
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Reduced JPMorgan Chase & Co ( NYSE:JPM ) by 380,019 shares, resulting in a -71.86% reduction in shares and a -1.32% impact on the portfolio. The stock traded at an average price of $303.48 during the quarter and has returned 0.17% over the past 3 months and -5.52% year-to-date.
Portfolio Overview
At the first quarter of 2026, Tom Russo ( Trades , Portfolio )'s portfolio included 85 stocks, with top holdings including 12.34% in Berkshire Hathaway Inc ( NYSE:BRK.A ), 11.31% in Alphabet Inc ( NASDAQ:GOOG ), 9.15% in Mastercard Inc ( NYSE:MA ), 8.96% in Philip Morris International Inc ( NYSE:PM ), and 7.57% in Heineken Holding NV ( HKHHF ).
The holdings are mainly concentrated in 10 of all the 11 industries: Financial Services, Consumer Defensive, Communication Services, Consumer Cyclical, Basic Materials, Industrials, Technology, Healthcare, Energy, and Real Estate.
