San Francisco-based
Dodge & Cox
reported a total of 24 updates to its portfolio in the third
quarter consisting of:
|
Additions to Current Shares
|
6 |
|
New Buys
|
4 |
|
Reductions to Current Shares
|
10 |
|
Sold Out
|
4 |
Dodge & Cox
practices a meticulous research-based and team-oriented process
in investment decision making, looking to its investment
committees made up of
Dodge & Cox
veterans who brilliantly and intensely provide analyses and ideas
for specific investments and its roles in the overall portfolio.
The firm values a long-term approach and a strict price
discipline when it comes to investing, and steers clear of
popular choices that come at a price "they would rather not pay."
Below is an excerpt of its investment approach (from
dodgeandcox.com):
"From the earliest days,
Dodge & Cox
's investment approach has stressed evaluation of risk relative
to opportunity. A strict price discipline - steering clear of
popular choices that come at a price premium we would rather not
pay - is critical to achieving our investment objectives. Low
valuation investments, for example, typically reflect low
investor expectations that may serve as a buffer against the risk
of significant price decline; these low expectations may also
create greater potential for capital appreciation should investor
pessimism turn out to be unwarranted or short-lived. At all
times, our ongoing search for superior relative value is guided
by a rigorous research process that seeks to differentiate the
short-term concerns that may be temporarily depressing an
investment from the intractable, long-term problems that could
doom it."
As of the end of the third quarter, Dodge & Cox's portfolio
included 165 stocks, with a total value of almost $77 billion,
and a quarter-over-quarter turnover rate of 2 percent.
Currently, Dodge & Cox's top holdings are: Comcast Corp. (
CMCSA
), Novartis AG (
NVS
), Wells Fargo (
WFC
), Capital One Financial (
COF
) and GlaxoSmithKline PLC (
GSK
).
The fund's portfolio sector weightings is as follows:
|
Consumer Services
|
18.7% |
|
Health Care
|
18.7% |
|
Financials
|
18.4% |
|
Technology
|
16.3% |
|
Industrials
|
10% |
|
Oil & Gas
|
8.2% |
|
Telecom
|
3.7% |
|
Consumer Goods
|
2.6% |
|
Utilities
|
1.1% |
Below are Dodge & Cox's four newest additions to its
portfolio in the third quarter.
Liberty Ventures (
LVNTA
)
Dodge & Cox's new holding of business investment firm,
Liberty Ventures (
LVNTA
) amounts to 218,214 shares. With a market cap of $2 billion,
Liberty Ventures is currently trading at $56.02, beyond its
former maximum price of $50.74. It also once traded at a minimum
price of $40.52.
Google Inc. (
GOOG
)
Dodge & Cox's new holding of search engine giant, Google (
GOOG
) amounts to 727,450 shares. Google has a market cap of $216.85
billion and is currently trading at $656.89 per share. Google has
pretty solid Financial Strength and Profitability and Growth
ranks, both at 9 out of 10. While its Business Predictability
rank is only 2.5 stars, its P/E ratio of 20.4 is actually close
to its 10-year low, and overall, its per share revenue and
operating margin shows growth and expansion. View Google's
10-Year Financials to view its current financial standings.
Duke Energy Corp. (
DUK
)
Dodge & Cox's new holding of energy stock Duke Energy Corp (
DUK
) amounts to 38,605 shares. Duke has a market cap of $43.63
billion, a P/E ratio of 18.4, a P/B ratio of 1.2 and a P/S ratio
of 3. Its Financial Strength rank of 4 and Profitability and
Growth rank of 8 explains its lack of Business Predictability.
While its revenue is experiencing a downhill slope, its net
margin is doing the opposite with a positive trendline. Visit its
10-Year Financials to see where the company stands financially.
Allstate Corp. (
ALL
)
Dodge & Cox's tiny new new holding of insurance provider,
Allstate Corp. (
ALL
) amounts to 5,580 shares. Allstate has a market cap of $18.78
billion, a P/E (ttm) ratio of 9.3, a P/B ratio of a 0.9 (near its
3-year high) and a P/S ratio of 0.6 (near its three-year high).
Allstate is currently trading at $38.71 per share, up almost 2%
in afternoon trading. With only one star in Business
Predictability, Allstate experiences a negative free cash flow
growth in a 10-year time frame, at a negative rate of 3.1
percent, while its revenue growth trends the opposite direction,
with a positive rate of 4.5 percent in a 10-year time frame. View
Allstate's 10-Year Financials to see where it stands financially.
View the rest of Dodge & Cox's portfolio updates here. Also
view the funds' undervalued stocks, top growth companies and high
yield stocks.About GuruFocus: GuruFocus.com tracks the stocks
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