Breaking down the stocks Tom Russo (Gardner Russo & Quinn) bought, sold, and held in Q2 2025, including their holdings at the end of the quarter. All data sourced from Gardner Russo & Quinn's 13F filed on August 13, 2025.
Who are Tom Russo and Gardner Russo & Quinn?
Tom Russo is the founder and managing member of Gardner Russo & Quinn LLC (commonly referred to as GRQ). The firm is known for its concentrated portfolio, typically consisting of around 85 positions with the top 10 holdings comprising approximately 80% of assets, reflecting a focus on a core group of long-held, high-conviction investments with low annual turnover (averaging around 5.5%). His investment strategy is a global value investing approach inspired by Warren Buffett's principles, emphasizing companies with the "capacity to reinvest" and "capacity to suffer" — meaning they can endure short-term earnings pressures to compound intrinsic value at high rates over decades through strategic reinvestments. Russo focuses on underfollowed or undervalued global brands, often family-controlled, that expand into large addressable markets, with strong qualitative factors like pricing power, indispensable products, high returns on invested capital, reinvestment opportunities in emerging economies, and low agency costs.
Holdings in Q2 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| MA | Mastercard | 15.6% | Trimmed (-2%) | $945.77M |
| PM | Philip Morris | 14.7% | Trimmed (-3%) | $887.58M |
| CFR.SW | Richemont | 11.6% | Trimmed (-2%) | $700M |
| HEIO.AS | Heineken Holding | 10.3% | Added (+4%) | $625.94M |
| NSRGY | Nestle | 9.9% | Trimmed (-2%) | $597.39M |
| BRK-B | Berkshire Hathaway | 9.3% | Trimmed (-2%) | $560.85M |
| UBER | Uber | 7.5% | Added (+10%) | $456.86M |
| AHT.L | Ashtead Group | 6.1% | Added (+5%) | $371.78M |
| Pernod Ricard | 4.6% | Trimmed (-2%) | $280.47M | |
| DASH | DoorDash | 3.9% | Added (+22%) | $238.32M |
| JPM | JPMorgan | 2.7% | Trimmed (-45%) | $166.32M |
| CMCSA | Comcast | 1.5% | Trimmed (-2%) | $91.29M |
| BF-A | Brown-Forman | 0.8% | Trimmed (-2%) | $50.19M |
| BF-B | Brown Forman | 0.3% | Trimmed (-5%) | $20.95M |
| Anheuser-Busch InBev | 0.3% | Trimmed (-13%) | $20.26M | |
| MO | Altria Group | 0.2% | Trimmed (-22%) | $11.22M |
| SWZ | Swiss Helvetia Fund | 0.0% | Added (+48%) | $2.75M |
| ABBV | AbbVie | 0.0% | $2.3M | |
| Konecranes | 0.0% | $1.87M | ||
| WFC | Wells Fargo | 0.0% | Trimmed (-64%) | $1.83M |
| ABT | Abbott | 0.0% | $1.57M | |
| Puig | 0.0% | $1.34M | ||
| Heineken | 0.0% | $1.31M | ||
| SSPG.L | SSP Group | 0.0% | $1.29M | |
| Electrolux Professional | 0.0% | $1.23M | ||
| De'Longhi | 0.0% | $1.18M | ||
| RL | Ralph Lauren | 0.0% | $1.12M | |
| NESN.SW | Nestlé | 0.0% | $1.12M | |
| KO | Coca-Cola | 0.0% | $965.03K | |
| HMSB.DE | H&M | 0.0% | Trimmed (-27%) | $892.47K |
| LEVI | Levi Strauss | 0.0% | Trimmed (-30%) | $882.43K |
| JBT | John Bean Technologies | 0.0% | $871.88K | |
| ZAL.DE | Zalando | 0.0% | NEW | $853.04K |
| RAA.DE | Rational | 0.0% | $814.89K | |
| ORCL | Oracle | 0.0% | $759.74K | |
| LAMR | Lamar Advertising | 0.0% | $725K | |
| LT Group | 0.0% | $405.23K | ||
| UNM | Unum | 0.0% | $306.89K | |
| MCD | McDonald's | 0.0% | $205.98K | |
| Diageo | 0.0% | $202.33K | ||
| Sampoerna | 0.0% | $184.79K | ||
| MRK | Merck | 0.0% | Exited | $-248.01K |
| HKHHY | Heineken | 0.0% | Exited | $-226.19K |
| BP | BP | 0.0% | Exited | $-212.88K |
Current Investment Strategy
Gardner Russo & Quinn's Tom Russo maintained his signature Buffett-inspired global value approach in Q2 2025, holding a concentrated $9.4 billion portfolio of 85 positions with top-10 concentration at 81%, anchored by Berkshire Hathaway, Mastercard, Alphabet, Philip Morris, and Netflix while exiting Merck, Heineken, and BP. The legendary investor's minimal 1% turnover and new stake in European e-commerce platform Zalando underscore his continued focus on family-controlled businesses and global consumer brands with "capacity to suffer" short-term pressures while reinvesting for decades-long compounding in underpenetrated markets.
New Investments
Zalando ZAL.DE
Tom Russo bought $853.04K of Zalando in Q2 2025. Zalando demonstrated strong acceleration in Q3 2025 with revenue growth of 26.5% and GMV growth of 21.6%, significantly outpacing Q2's 7.3% revenue growth, primarily driven by the ABOUT YOU acquisition. On a pro-forma basis, the company maintained healthy 6.7% GMV growth and 7.5% revenue growth, indicating underlying business strength beyond the acquisition. Profitability improved to €96.3 million adjusted EBIT, and the company reconfirmed its FY 2025 guidance with analyst buy ratings supporting potential upside.
- Revenue surged 26.5% YoY to €3.0 billion in Q3 2025, accelerating sharply from Q2's 7.3% growth rate.
- Pro-forma GMV growth of 6.7% YoY and revenue growth of 7.5% demonstrate solid underlying business momentum independent of acquisitions.
- Active customers increased 21.9% YoY to 61.4 million with adjusted EBIT of €96.3 million, reflecting improved profitability.
Added, Trimmed, and Exited
Added
Gardner Russo & Quinn increased positions in Uber (+465,047 shares), Ashtead Group (+296,377 shares), Heineken Holding (+290,808 shares), DoorDash (+173,095 shares), and Swiss Helvetia Fund (+140,834 shares).
What it means: Russo appears to be doubling down on his highest-conviction growth stories, particularly in on-demand platforms and European industrial names. Notably, Uber and DoorDash delivered exceptional returns of 41.5% and 64.3% respectively, suggesting he's adding to winners that continue demonstrating the "capacity to reinvest" he values. The substantial addition to Ashtead Group (up 26%) and Heineken Holding reflects continued confidence in European brands with global expansion potential despite near-term economic headwinds. This concentration into performing positions aligns with GRQ's low-turnover, high-conviction philosophy.
Trimmed
Gardner Russo & Quinn reduced exposure across financials and alcohol brands, most notably cutting JPMorgan (-469,654 shares, down 35% in value), Wells Fargo (-40,053 shares), Mastercard (-33,323 shares), and Berkshire Hathaway (-26,042 shares). The firm also trimmed multiple spirits and beverage positions including Philip Morris (-143,305 shares), Altria Group (-55,208 shares), both classes of Brown Forman (-43,774 and -42,275 shares respectively), Pernod Ricard (-58,033 shares), Anheuser-Busch InBev (-42,350 shares), and consumer names Nestle (-128,906 shares) and Comcast (-58,845 shares).
What it means: This broad-based trimming of traditional value stalwarts suggests portfolio rebalancing rather than loss of conviction, as many trimmed positions still delivered positive returns (Philip Morris +11.5%, Richemont +6.9%). The aggressive reduction in JPMorgan despite its blue-chip status and the near-exit from Wells Fargo (down 59.5%) indicate Russo may be rotating out of financials amid valuation concerns or regulatory uncertainty. The synchronized trimming across alcohol brands—despite GRQ's historical affinity for spirits companies—suggests concern about changing consumer preferences, regulatory pressures, or simply taking profits after long holding periods to fund higher-conviction opportunities like the technology platforms he's adding to.
Exited
Gardner Russo & Quinn completely liquidated positions in Merck ($248,013), Heineken ADR ($226,192), and BP ($212,881).
What it means: These exits, while relatively small in absolute dollars, are symbolically significant for a firm known for multi-decade holding periods. The Heineken ADR exit is particularly notable given GRQ maintains and increased the Heineken Holding position, suggesting a preference for the holding company structure or simply consolidating exposure. Exiting BP continues a broader trend away from traditional energy, while the Merck sale may reflect concerns about pharmaceutical patent cliffs or pricing pressures. These complete exits from established franchises, combined with the new Zalando position, suggest Russo is cautiously pivoting toward higher-growth European digital platforms while pruning lower-conviction legacy holdings.
Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.
