Mario Gabelli stands among the most accomplished value investors outside of Warren Buffett. His hedge fund, GAMCO, has delivered exceptional returns across its investment portfolios for over 45 years. Through investing and investment management, Gabelli has amassed billions in personal wealth.
Let’s examine some of Mario Gabelli’s most successful stock picks to understand how he’s maintained such remarkable consistency as a value investor.
Who is Mario Gabelli?
Mario Gabelli is an American investor who established investment management firm GAMCO in 1977. According to interviews, his fascination with the stock market began in childhood after reading analyst reports.
Gabelli launched his investment career in the early 1970s with brokerage firm Loeb, Rhoades & Co. He departed to establish Gabelli & Co., a brokerage, in 1976 before launching Gabelli Investors, which eventually became GAMCO.
The Gabelli Asset Fund, his first public mutual fund, debuted in 1986. By 1996, Gabelli’s firm managed over $16 billion in assets, earning him Morningstar’s domestic equity fund manager of the year award in 1997.
Now 80, Gabelli remains chairman and CEO of GAMCO.
Mario Gabelli Investment Style
Mario Gabelli follows a value investing philosophy similar to Warren Buffett. He targets robust companies with substantial competitive moats and superior long-term business models. Gabelli has consistently emphasized his preference for industries delivering tangible value, which explains his concentration in industrial companies.
He then capitalizes when these companies become undervalued due to market volatility. Occasionally, he invests around mergers and acquisitions, leveraging these events as catalysts that create undervaluation opportunities.
Mario Gabelli Stock Picks
GAMCO reveals its stock selections through SEC 13F filings, providing valuable insight into Gabelli’s most significant investments over recent decades.
Herc Holdings
GAMCO began investing in Herc Holdings during 2016, shortly after its spin-off from car rental giant Hertz. Focusing on industrial and construction equipment rentals, Herc attracted Gabelli partly due to America’s escalating infrastructure demands.
By late 2016, GAMCO owned 12.51% of Herc Holdings. The fund steadily increased its stake until the 2020 pandemic, when Gabelli began trimming shares despite Herc’s soaring price. Initially valued around $35 in 2016, the stock peaked at $194 in October 2021.
GAMCO maintains a $282 million Herc position, which could continue benefiting as federal Infrastructure Investment and Jobs Act funding materializes over the coming years.
Apple
Though recognized primarily as a value investor, Gabelli hasn’t completely avoided growth stocks. GAMCO’s largest holdings include tech giants Apple, Microsoft, Google, and Facebook.
GAMCO first acquired Apple shares in 2009, shortly after the inaugural iPhone launch. The portfolio has repeatedly purchased Apple stock over the past decade, most recently in 2021.
GAMCO sold over 20% of its Apple position near the 2022 market peak. The fund’s Apple trades have generated more than 1,550% profit. GAMCO retains a $23.8 million Apple stake.
GATX
Between 2010-2011, Gabelli and GAMCO acquired over half a million GATX Corporation shares, adding another 385,000 in 2016. GATX mirrors Gabelli’s Herc Holdings strategy, leasing specialized railcars for transporting petroleum, chemicals, and agricultural products.
GATX traded at $34 during GAMCO’s 2010-2011 purchases and $44 in 2016. Currently priced at $112, the stock represents roughly 300% gains on Gabelli’s initial investment. GATX remains among GAMCO’s top holdings, valued at approximately $176 million.
Sony
GAMCO invested aggressively in electronics manufacturer Sony from 2013-2015, accumulating over 6.2 million shares by late 2015 at roughly $18 per share. Gabelli cited Sony’s video game content and expanding artificial intelligence and virtual reality capabilities as key attractions.
GAMCO has gradually reduced its Sony position since 2016, with the largest sale occurring in May 2020—542,000 shares at $62 each, representing 245% gains. Today, GAMCO holds 1.7 million Sony shares, currently priced at $106.
Mueller Industries
Mueller Industries represents another cornerstone GAMCO holding. Gabelli began investing in 2010, accumulating millions of shares by 2016 at approximately $27 per share.
While GAMCO has gradually sold Mueller Industries shares over six years, it maintains 2.6 million shares valued at $172 million. Currently trading at $66 per share, Mueller represents 145% gains.
American Express
Gabelli purchased over 3.5 million American Express shares—one of Warren Buffett’s preferred companies—in 2001 when the stock plummeted to around $35 amid the dotcom crash. He bought and sold an additional 3 million shares in 2003 for quick profits as the stock recovered.
GAMCO has steadily reduced shares since 2010. The portfolio retains approximately 828,000 shares worth an estimated $128 million. American Express currently trades at $155—a 340% gain on Gabelli’s original investment.
Crane Holdings
In 2001, GAMCO established a $125 million Crane Holdings position. This industrial conglomerate operates across aerospace engineering, fiberglass production, currency printing, and industrial control systems.
Following various sales over the past decade, GAMCO retains 1.45 million shares—roughly one-quarter of its original stake. Crane Holdings currently trades at $108 per share, representing 315% gains since 2001.
Mario Gabelli Lifetime Performance
While comprehensive performance estimates for Mario Gabelli or GAMCO since the 1976 launch aren’t available, GAMCO publishes lifetime statistics for individual funds.
All but two of GAMCO’s currently available mutual funds have delivered positive investor returns. The Gabelli Small Cap Growth Fund and Gabelli Asset Fund have each generated average annualized returns exceeding 11% for at least 30 years. Five additional funds have produced average annualized returns above 8% for at least 25 years.
Gabelli’s personal net worth is estimated at approximately $1.8 billion. GAMCO manages $33 billion in assets under management.
Conclusion: Mario Gabelli Stock Picks
Mario Gabelli, GAMCO’s founder, ranks among the most successful value investors. His most impressive investments include Herc Holdings, American Express, GATX, and Sony. Today, his firm manages over $33 billion in assets while Gabelli’s personal wealth approaches $2 billion.
