Scharf Investments, LLC

With escalating tensions in the Middle East, there is concern for increased market volatility and a focus on geopolitical risks. “We don’t think that geopolitical risks are fully priced into the market at this time,” said Brian Krawez, CFA, president and lead portfolio manager at Scharf Investments. He recently spoke with David Pollard of Reuters TV’s “Market Insight” program. A widening conflict is going to be disruptive to supply chains and global trade. We believe investors should look for companies that can do well in any environment. Brian highlighted a couple of companies—Lockheed Martin and Occidental Petroleum—that have the potential to perform well regardless of geopolitical turmoil. Thanks David Pollard and Reuters TV for a great conversation. https://lnkd.in/gvMe6uj8 Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #geopoliticalrisk

All of us at Scharf Investments wish our colleagues, clients, and friends who are celebrating a very happy Rosh Hashanah. May the new year bring peace, joy, good health, and prosperity. #RoshHashanah #ShanaTovah #HappyNewYear

“This is a boring stock—they make medical devices—but the stock beat guidance and estimates, and it’s up 27% quarter to date,” said Eric Lynch, managing director at Scharf Investments, during an appearance on September 17, 2024 on CNBC where he highlighted Smith and Nephew (SNN). We believe there are many stocks like this one, outside of tech, with opportunities for investors to make money. Thanks Tanvir Gill, Sam Vadas and CNBC for a great conversation. https://lnkd.in/gG7z-UXA Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #smithandnephew #boringstocks

With the Fed meeting this week to discuss cutting interest rates for the first time since 2020, the big question now is how big a cut? “Whether it’s 25 or 50 basis points, I don’t think it matters too much,” said Eric Lynch, managing director at Scharf Investments during an appearance on Reuters TV on September 13, 2024. “What’s more important is what the general trend looks like for the remaining Fed meetings this year.” Eric shared that consumers will see some relief in the short term for those with variable interest rates on credit cards. He also mentioned that first-time homebuyers will also benefit as mortgage rates start to come down from their recent peak. As for the impact on equities, Eric believes a 50 basis point cut would add “renewed vigor to the equity markets.” Thanks Lisa Bernhard and Reuters TV for a great conversation. https://lnkd.in/giWitaf3 Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #equities #downsideprotection #federalreserve #interestrates

While the Fed is poised to begin interest rate cuts next week, investors are concerned about the economy and whether we will have a soft landing. “Right now we are still doing alright, and if the Fed can mildly reduce rates and jobs growth continues, then we need to start looking more closely at earnings growth,” said Eric Lynch, managing director at Scharf Investments during a recent appearance on Yahoo Finance. We saw broad-based earnings growth in Q2 outside of tech. So far in Q3, we’re seeing negative returns for the IT sector and other sectors that were laggards a year ago now becoming leaders with real estate, consumer staples, and health care delivering positive returns. “It’s really a good time to broaden out your portfolio without a lot of risk as these are defensive sectors.” Eric's interview begins at the 3:19 mark in the link below. Thanks Brad Smith and Yahoo Finance for a great conversation. https://lnkd.in/ggiKayNq Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #equities #earningsgrowth #interestrates #federalreserve

“Regardless of the jobs number, we believe the Fed will cut 25 bps and then a continued 25 bps from there,” said Brian Krawez, CFA, president of Scharf Investments during a recent appearance on Reuters TV. He noted that there wasn’t anything in the data and recent remarks from Fed Chair Jerome Powell that would suggest a need to panic or consider a 50 bps cut. Brian shared his thoughts on the concentration we’re seeing in the stock market with the top 10 stocks representing roughly 70% of the return of the S&P 500 this year, which is unusual. However, we’re seeing the market broadening out and there are opportunities for investors to look outside of mega-cap tech stocks. Brian highlighted what makes U-Haul a compelling investment opportunity. Thanks Peter Devlin and Reuters TV for a great conversation. https://lnkd.in/gBrXrRxi Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #fed #inflation

We were privileged to host some of our Atlanta-area clients this past week at the TOUR Championship at East Lake Golf Club. We were treated to amazing weather and exceptional golf from the world’s best. The redesigned course was a big hit! We enjoyed spending time with clients and watching Scottie Scheffler cap off an amazing year. Many memorable moments and memories made. #clientappreciation #fedexcup #tourchampionship

Berkshire Hathaway stock reached an all-time high last week and the company became the first non-tech company to surpass $1 trillion in market capitalization. “This is a fantastic play on higher-for-longer interest rates. We're all talking about some coming cuts, but they still are a lot higher than they've been in the last two decades,” said Eric Lynch, managing director at Scharf Investments. “If you look at what's happened with Berkshire, there's a lot of focus on the investment portfolio, but the majority of this business is now an operating company and an insurance company under that. And their investment income is skyrocketing with these higher rates.” Berkshire Hathaway is a core holding within the Scharf portfolios and has been for years. We see significant opportunities for investors and have strong conviction in Warren Buffett and his leadership team. Thanks Josh Lipton, Seana Smith and Yahoo Finance for a great conversation. https://lnkd.in/ersTSDUP Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #warrenbuffett #berkshirehathaway

Brian Krawez, CFA, president of Scharf Investments, recently shared his views on the current market environment in a feature by Olivia Bybel and Citywire Selector. This has been a market dominated by the Mag 7 and mega-cap tech stocks and Brian believes that the other 493 companies in the S&P 500 may be worth considering as monetary policy eases and the Fed is poised to cut interest rates. “You’ve had a very concentrated market. We think this could be sort of a rotation where stock returns in general aren’t as high, but it could be actually better for some of the average stocks.” Read the full article here: https://lnkd.in/geb2ZU4B Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #averagestock

The Fed recently held their annual Jackson Hole economic symposium where Fed Chair Jerome Powell shared remarks regarding the economy and inflation, which he believes is on a sustainable path back to the Fed’s 2% goal. “The Fed has a really tough job, and I think this speech was a humble victory speech for Chair Powell,” said Brian Krawez, CFA, president of Scharf Investments during a recent appearance on Reuters TV. He noted that Powell took a lot of heat when inflation was at 9%, but that the Fed’s data-driven approach and Powell’s leadership should be appreciated given where we are today. Thanks Lisa Bernhard and Reuters TV for a great conversation. https://lnkd.in/g3VKvGSM Discussions in the link above include forward-looking assumptions and opinions by Scharf Investments and there is no guarantee that the recommendations will be profitable. Investments include risk of loss. The securities identified and described do not represent all of the securities purchased, sold or recommended for client accounts. The viewer should not assume that an investment in the securities identified was or will be profitable. #activemanagement #valueinvesting #quality #fed #inflation