Loews: A Holding Company with Interests in Several Companies

Paul Lountzis presented his in-depth investment thesis on Loews (L) at Best Ideas 2015.

Loews: A holding company with interests in several companies including: CNA, the 8th largest U.S. Property and Casualty Insurer, Boardwalk Pipeline Partners, a Gulf Coast based midstream MLP that transports, stores, gathers, and processes natural gas and natural gas liquids, Diamond Offshore, a leader in offshore drilling, serving the energy industry around the globe with 50 off shore drilling rigs, and Loews Hotels, a luxury hotel chain. Loews has an outstanding track record as its stock price has doubled the return of the S&P500 over the past 50 years with a 16% CAGR and has a shareholder oriented management team that continues to buy back stock. Two of the firm’s largest investments, Boardwalk Pipeline Partners and Diamond Offshore are experiencing significant challenges in the current oil and gas industry upheaval, resulting in very low valuations that in time with their parent Loews and its $5 billion dollars should rise significantly in value in the years ahead. Loews represents a more conservative way to invest in the energy industry as the company is currently selling below stated book value and at a 30-40% discount to the company’s long-term intrinsic value.

About the instructor:

Paul founded Lountzis Asset Management, LLC in October 2000. He has more than 25 years of experience in the investment industry, beginning his career with Royce & Associates, a New York City-based investment advisory firm managing the Royce Mutual Funds. Paul spent nine years, with the last five as a partner at Ruane, Cunniff & Goldfarb, Inc. an investment advisory firm managing more than $9 billion including the Sequoia Mutual Fund. While at Ruane, Cunniff & Goldfarb, Inc., Paul also evaluated several companies for Warren Buffett.

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