On July 28, 2023, renowned investor Murray Stahl (Trades, Portfolio) reduced his stake in Texas Pacific Land Corp (TPL, Financial), a significant transaction that warrants a closer look. This article will delve into the details of the transaction, provide an overview of Stahl's investment philosophy and portfolio, and examine the performance and prospects of Texas Pacific Land Corp. We will also compare Stahl's holdings in TPL with those of other prominent gurus.
Details of the Transaction
Stahl's recent transaction involved the sale of 20,667 shares of Texas Pacific Land Corp at a price of $1,503.51 per share. This move resulted in a 1.46% reduction in his holdings, leaving him with a total of 1,398,465 shares in the company. The transaction had a -0.6% impact on his portfolio, and TPL now represents 40.61% of his holdings. Despite the reduction, Stahl still holds a significant 18.18% stake in the company.
Profile of Murray Stahl (Trades, Portfolio)
Murray Stahl (Trades, Portfolio) is the CEO and Chairman of Horizon Kinetics, a firm he co-founded. With over three decades of investing experience, Stahl is responsible for overseeing the firm's proprietary research. He is also the Co-Portfolio Manager for several registered investment companies, private funds, and institutional separate accounts. Stahl's investment philosophy is rooted in fundamental value and contrarian-oriented strategies, focusing on long-term investment horizons to harness the power of compounding. His portfolio, valued at $5.21 billion, comprises 335 stocks, with the energy and basic materials sectors being the most represented. His top holdings include CACI International Inc (CACI, Financial), Franco-Nevada Corp (FNV, Financial), Wheaton Precious Metals Corp (WPM, Financial), Texas Pacific Land Corp (TPL, Financial), and Grayscale Bitcoin Trust (GBTC, Financial).
Overview of Texas Pacific Land Corp
Texas Pacific Land Corp, a US-based company, operates in two segments: Land and Resource Management and Water Service and Operations. The company, which went public on May 29, 1975, manages oil and gas royalty interests and surface acres across 19 counties. As of August 2, 2023, the company has a market cap of $11.43 billion. The stock is currently trading at $1,485.56, representing a PE ratio of 26.35. According to GuruFocus valuation, the stock is modestly undervalued with a GF Value of $1,956.70. The company's financial health and growth are robust, with a balance sheet rank of 8/10, profitability rank of 10/10, and growth rank of 10/10. The GF Value rank stands at 9/10, indicating a strong potential for future growth.
Comparison with Other Gurus
While Stahl holds a significant stake in TPL, he is not the only guru with an interest in the company. The largest stake is held by GAMCO Investors, although the exact percentage is not disclosed. Additionally, Jefferies Group (Trades, Portfolio) also holds shares in Texas Pacific Land Corp.
Conclusion
Stahl's decision to trim his stake in Texas Pacific Land Corp is a significant move that could have implications for both his portfolio and the company. Despite the reduction, Stahl remains a major shareholder in TPL, indicating his continued confidence in the company's prospects. With its strong financial health and growth potential, Texas Pacific Land Corp remains an attractive investment for value investors. However, as with any investment decision, it is crucial to conduct thorough research and consider various factors before making a move.
