Charles H. Brandes is an American investor, businessman, and philanthropist. He is a disciple of the Benjamin Graham school of value investing. Brandes Investment Partners, which was started in 1974, currently has over $28.9 billion under management (down from over $111 billion in 2007) and is based in San Diego, California. In the Forbes 400 Richest Americans publication for 2007, Brandes ranked 165.
Charles Brandes | |
|---|---|
| Born | 1942 or 1943 (age 81–82)[1] Pittsburgh, Pennsylvania |
| Nationality | American |
| Citizenship | United States |
| Education | Bucknell University San Diego State University |
| Occupation(s) | Businessman, investor, philanthropist |
| Employer | Brandes Investment Partners |
| Known for | Manager of Brandes Investment Partners |
| Spouses |
|
| Children | 2[1] |
According to Forbes, Brandes was worth over $1 billion as of January 2018.[3]
Early life and education
editBrandes grew up in Pittsburgh. In 1965, he graduated from Bucknell University with a bachelor's degree in economics.[4] He did graduate studies at San Diego State University.
Brandes is a CFA charterholder. Brandes met Ben Graham in San Diego while he was training to be a stockbroker. He was able to learn firsthand the techniques Graham used to determine undervalued investment securities.[1]
Career
editAs of 2007, Brandes' U.S. Value Equity fund has beaten the S&P 500 index for the past 5, 10 and 15 years. According to the book Investment Leadership, Brandes' Global equity fund had an average return of 19.21% over the prior 20 years. Brandes Investments strictly follows Graham and Dodd principles as outlined in the books Security Analysis and The Intelligent Investor.[5] Also recently, the firm made investments in the troubled mortgage and financial sectors, paying bargain prices for investments in Countrywide Financial, Washington Mutual, Wachovia. and Bank of America. Brandes is among the largest institutional shareholder of Royal Bank of Scotland and General Motors. Thomson Financial's well-regarded Nelson's World's Best Money Managers rankings consistently lists Brandes Investment Partners among the Top 10 International Equity Fund Managers in the world.[6]
Brandes' adherence to Graham and Dodd principles has extended to investment research. He commissioned a study to investigate the "Falling Knives" strategy, the investment axiom that catching falling knives (a stock whose price has been dropping precipitously) is like catching falling money (likely to lead to losses). Researching 1,000 companies between 1986 and 2002 whose price had fallen 60% over a twelve-month period, the study found that within three years of the decline 13% of the companies went bankrupt, but despite this that the portfolio as a whole gained in value by 18% over three years. Announced departure from the firm effect February 26, 2018.[7] Brandes published a well-received book on his investment strategies in 2003 titled Value Investing Today.[8]
Philanthropy
editThe Tanya and Charles Brandes Foundation funded a scholarship program at San Diego Jewish Academy's Maimonides Upper School.[9]
Personal life
editBrandes has been married four times:[10]
- In 1986, he married his second wife Linda King Formo (born 1948).[11] They divorced in 2004.[12] They did not have children.[10]
- in 2006, he married Tanya Johnson; in 2018 the couple announced that they were divorcing citing mutual domestic violence as one of the causes.[13][14] He lives in San Diego County in Rancho Santa Fe on 30 Acres.[15]
- in 2020 he was married in a private ceremony over Zoom, the couple celebrated September 9, 2021 in a public ceremony with friends and family.
See also
editReferences
edit- ^ a b c "The World's Billionaires (2010): #655 Charles Brandes". Forbes. March 3, 2010.
- ^ Rowe, Peter (January 22, 2011). "County's richest couple battle over a fortune". Union-Tribune.
- ^ Forbes The World's Billionaires: Charles Brandes April 2014
- ^ Showley, Roger M. (June 4, 2006). "Rancho Santa Fe home is over the top, yet firmly rooted in nature". San Diego Union Tribune.
- ^ Ware, James W.; Michaels, Beth; Primer, Dale (2003). Investment Leadership: Building a Winning Culture for Long-Term Success. John Wiley and Sons. pp. 124. ISBN 0-471-45333-1.
- ^ Mildenberg, David (October 30, 2007). "Brandes Investment firm buys stakes in Financial Sector". Bloomberg News.
- ^ Maiello, Michael (2004). Buy the Rumor, Sell the Fact. McGraw-Hill Professional. pp. 101. ISBN 0-07-142795-3.
- ^ Brandes, Charles (2003). Value Investing Today. McGraw-Hill. ISBN 0-07-141738-9.
- ^ "Brandes Foundation to fund SDJA scholarships", San Diego Jewish World July 17, 2007
- ^ a b UT San Diego: "County's richest couple battle over a fortune - Rancho Santa Fe couple's divorce opens window on privileged world By Peter Rowe January 22, 2011
- ^ Sign On San Diego: "Rancho Santa Fe 3-story building destroyed by fire" By Moshay Simpson August 30, 2003
- ^ UT San Diego: "Divorce costs county's richest man $10M, $485,000 a month" By Peter Rowe October 4, 2011
- ^ Gittelsohn, John (February 26, 2018). "Charles Brandes Retires From His Firm Amid Divorce Proceedings". Bloomberg News.
- ^ Bauder, Don (February 18, 2018). "Spike three: Tanya and Charles Brandes divorcing. Rancho Santa Fe money man and his wife both claim violence in marriage". San Diego Reader.
- ^ "A Home That Even a Hedge Fund Manager Would Envy". Institutional Investor. 29 July 2015. Retrieved 2022-05-03.