Founder of the Sequoia Fund — the only manager Warren Buffett recommended to his partners in 1969.
Life story
William "Bill" Ruane was born on October 24, 1925. He earned a B.S. in electrical engineering from the University of Minnesota in 1945 and an MBA from Harvard Business School in 1949. Little is publicly known about his childhood or parents.
Ruane was also known for philanthropy: in 1992 he "adopted" a block in Harlem, renovating buildings, opening clinics and community programmes, and funding Catholic school scholarships for the block's children.
How they got started
Ruane met Warren Buffett in 1950 at Benjamin Graham's seminar at Columbia University, and both assisted Graham.
When Buffett wound up his investment partnership in 1969, he advised his clients to entrust their money to Ruane — in Buffett's words, Ruane was the only person he recommended. Ruane and Rick Cunniff set up the firm, and the Sequoia Fund launched on July 15, 1970. Robert Goldfarb joined later, and in 2004 the firm became Ruane, Cunniff & Goldfarb.
From 1970 to 2015 Sequoia returned 14.65% a year on average, versus 10.93% for the S&P 500. Ruane died of lung cancer on October 4, 2005.
Investment style
The firm describes itself as thinking like business owners rather than holders of stocks: instead of forecasting the economy, it studies business quality and management competence, aiming to hold companies for many years or even decades.
Sequoia is a non-diversified fund that concentrates capital in relatively few companies. That can produce outstanding results — but a single mistake can hurt the whole fund.
Best decisions
Buffett's endorsement and a 45-year record
Launched on Buffett's recommendation, Sequoia beat the S&P 500 by about 3.7 percentage points a year from 1970 to 2015; per Morningstar it beat its category in 332 of 333 rolling ten-year periods.
Morningstar award (2010)
Robert Goldfarb and David Poppe, who ran the fund after Ruane, were named Morningstar's Domestic-Stock Fund Managers of the Year in 2010.
Biggest mistakes
The Valeant disaster (2015–2016)
After Ruane's death the fund let Valeant Pharmaceuticals grow to about 30% of the portfolio. When Valeant fell roughly 85% in six months, the fund lost 7.3% in 2015 (6.3 points from Valeant) and suffered a $1.26bn one-day loss. Goldfarb stepped down in March 2016.
Today
The firm now operates as Ruane Cunniff LP and still manages the Sequoia Fund. Goldfarb left in 2016 and David Poppe in 2018; the fund is now overseen by a four-person investment committee.
What to learn from following the portfolio
- The firm relies on long-term ownership — positions held for years and stake increases say more than short-term trades.
- Valeant is the lesson: an oversized single position is a big risk even for great managers. When following the portfolio, pay attention to position size.
- The portfolio may include insurers and financials, which are usually not halal; technology and consumer companies are more likely to pass. Check each position's halal status in the Portfolio tab.
- 13F is 45 days delayed and shows only long US positions.
An introduction based on public sources — not investment advice. Spotted an error? Let us know.