, who manages the $24 billion T. Rowe Price Equity Income Fund,
has reported a total of 33 transactions for his fourth quarter
2012 portfolio update. The update consists of 11 stake increases,
7 new buys, 6 stake reductions and 9 sales of his entire stake in
Established in 1985, the fund has returned an annual average of
10.69 percent since inception. In the last year, it beat the
S&P 500's 16 percent, by 1.25 percent.
With 125 stocks in the portfolio, Rogers' top holdings remain:
General Electric (
), JPMorgan Chase (
), Chevron Corp. (
), Exxon Mobil (
) and Wells Fargo (
Out of Rogers' seven new buys, Norfolk Southern Corp. (
), Apache Corp. (
) and Bank of New York Mellon (
) were his highest-costing stocks.
Norfolk Southern Corp. (
Operating about 20,000 route miles of rail in the U.S.,
transportation company Norfolk Southern Corp. serves as a major
rail carrier of coal, automotive and industrial products. Its
presence is prevalent in the eastern part of the country,
spanning 22 states plus the District of Columbia.
Buying 4 million shares at $62.04 on average, Rogers' Norfolk
Southern transaction came up to more than $247 million. The buy
sparked a 1.1 percent holding in his portfolio, equivalent to
1.27 percent of Norfolk Southern's outstanding shares.
Although appearing new in last year's fourth quarter, Rogers
actually had a small holding of the company in the second quarter
of 2009, when the stock's average trading price was $37. By the
next quarter, Norfolk Southern spiked to $44, resulting to Rogers
quickly selling all 500,000 of his shares.
In the company's 2012 fourth quarter report, Norfolk Southern
revealed a slight decline in coal shipments in the last three
months of the year. Improved volumes in chemicals, auto and
housing, however, made up for the decline.
One thing that Norfolk Southern CEO emphasized in the report was
the company's plan to invest $2 billion in capital improvements,
serving the company's operational efficiency, safety performance
and overall future growth.
Yesterday, Norfolk Southern further elaborated on these
investments in a press release. Portions of the $2 billion will
be dedicated to the following projects: $831 million for roadway
improvements such as rail replacements, crossties and bridges;
$420 million to acquire new locomotives, rebuild and upgrade
existing units; $229 million for efforts to implement positive
train control; and $84 million for infrastructure improvements to
increase main line capacity and accommodate traffic growth - to
name a few.
With this buy of Norfolk Southern, Rogers joins other Gurus like
, who advocate their support in the rail transportation
businesses through their solid positions in rail companies
Burlington Northern Santa Fe and American Railcar Industries
NSC data by GuruFocus.com
Gaining about 34 percent in the last five years, Norfolk
Southern's stock has seen sizable gains in its recent years. In
the last three years, its market value increased by 45 percent.
Ending its first month of 2013 with a 14.54 percent gain, Norfolk
Southern trades at $70.37 this morning, up 0.61 percent.
View Norfolk Southern Corp.'s 10-Year Financials.
Apache Corp. (
Headquartered in Houston, Apache Corp. is an oil and gas
exploration company with a market capitalization of $32.87
billion. Its operations spans beyond the U.S., to Canada, Egypt,
the UK, Australia and Argentina.
Rogers' new holding of Apache is worth more than $204 million,
totaling 2.6 million shares. Bought at an average price of $80,
Rogers' stake represents 0.66 percent of Apache's outstanding
shares, and is 0.88 percent of the T. Rowe Price Equity Income
Having long encouraged America's use of natural gas, Apache
announced partnering with oilfield services companies Halliburton
(HAL) and Schlumberger (SLB) to find ways to use natural gas to
power hydraulic fracturing.
Apache announced the initiative earlier this month in a feature
article published by the company, noting that hydraulic
fracturing is the most energy-intensive process employed in the
oil and gas industries. To Apache, finding a way to increase the
1 percent that uses natural gas for this process will save the
U.S. billions of barrels of imported oil, while cutting fuel
"When I approached Halliburton and told them Apache wanted to do
this, they told me that the reason that frac spreads that moved
every week did not run on natural gas was due to the complexity
of the natural gas supply and support infrastructure," Mike
Bahorich, Apache's executive vice president of technology, said
in the article. "I also contacted Schlumberger. It didn't take
long for both companies to call back and tell me it could be
Apache also supports using compressed natural gas in vehicles,
and other "green" initiatives. Last week, it announced its
donation of Memorial Park's 3-millionth tree in Houston.
APA data by GuruFocus.com
From its three-year low of $75 in November, Apache is currently
seeing a slow recovery as it has risen a couple of points over
the past months. Since the start of 2013, Apache has gained 8.67
percent in market value.
Today it trades at $84.77, up 1.24 percent.
View Apache Corp.'s 10-Year Financials.
Bank of New York Mellon (
A global investments company, Bank of New York Mellon helps its
clients manage and service financial assets from 36 countries.
The Bank of New York Mellon has over $1.4 trillion in assets
Rogers' new holding comes up to 5.85 million Bank of New York
Mellon shares, worth more than $150 million. He bought the stock
at $24.31 on average, the stake representing a meager 0.65
percent of his portfolio.
Although a new buy for Rogers' fourth quarter, he previously
owned shares of Bank of New York Mellon for several years, before
he sold out the stock in the third quarter of 2012.
In 2009, Rogers had 7 million shares, his largest holding amount
in five years. At the time, its average price was $24.72, before
it rose to $30 in 2011. By the time Rogers purchased the stock
again recently, Bank of New York Mellon's average price has
deflated back down to $24.31.
Last week, Bank of New York Mellon reported its fourth quarter
earnings. In the three months, its assets under management rose
10 percent comparable to year over year data; net long-term
inflows reached $14 billion for the quarter out of the $56
billion made for the entire year. Additionally, Bank of New York
Mellon made $622 million in earnings for the quarter, and 19
percent in return on tangible common equity.
In the last five years, the company's stock has lost 40.46
percent in market value; in three years it lost 7.13 percent in
three years. For 2012, however, the Bank of New York Mellow saw a
turnaround. The stock went from trading around $20 at the end of
January, to $26 at the end of December.
BK data by GuruFocus.com
Gerald Hassell, Bank of New York Mellon chairman and CEO, noted
the stock's price improvement in the earnings report.
"We benefited from the improvement in market values and, more
importantly, from our relentless focus on generating organic
growth with our broad client base," he said. "We are also driving
our operational excellence initiatives to improve our efficiency
and help mitigate the impact on our high margin revenues due to
the low interest rate environment and tepid capital markets
After repurchasing $1.1 billion worth of its common shares, Bank
of New York Mellon proceeded to maintain a strong balance sheet
and capital ratios throughout 2012. The company acquired 49.8
million of its own shares for the year.
Today, the stock trades at $27.10, up 0.04 percent.
Besides Rogers, Gurus who hold the stock include Warren Buffett,
Donald Yacktman, Mario Gabelli and Jean-Marie Eveillard.
View Apache Corp.'s 10-Year Financials.
To view more of his stocks, visit Brian Rogers' Portfolio Also
view his undervalued stocks, his high-yield companies and his top
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