Dodge & Cox

Dodge & Cox

Last Update: 05-13-2016

Number of Stocks: 191
Number of New Stocks: 12

Total Value: $102,227 Mil
Q/Q Turnover: 5%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Dodge & Cox Watch

  • Top Gurus Pour Heavy Capital in Major Technology Stocks

    Among all stocks listed on the Standard & Poor’s 500 index, technology stocks have high ownership among gurus, according to the S&P 500 Guru Grid. With a combined rating of 169%, Microsoft Corp. (NASDAQ:MSFT) has the highest combined weighting of all gurus among S&P 500 stocks. Alphabet Inc. (GOOGL) and Apple Inc. (NASDAQ:AAPL) have the second- and third-highest combined weightings. Although these technology companies are heavily owned by gurus, the top two technology stocks featured major sellouts during the first half of the year.

    More than just a grid of stocks


  • Under Armour's P/S Ratio Near Its 10-Year Low

    Under Armour Inc. (NYSE:UA) is traded at P/S ratio of 3.66, close to its 10-year low of 3.56. The company is owned by eight gurus.

    Under Armour has a market cap of $16.74 billion; its shares were traded around $38.32 with a P/E ratio of 64.64 and P/S ratio of 3.67. Under Armour had an annual average earnings growth of 23.50% over the past 10 years. GuruFocus rated Under Armour the business predictability rank of 5-star.


  • Dodge & Cox Buys Union Pacific, American Express

    Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox. During the first quarter the fund bought shares in the following stocks.

    It increased its shares in Union Pacific Corp. (UNP) by 4,160% with an impact of 0.93% on the portfolio.


  • Express Scripts: Is This a Value Investing Opportunity or a Legal Quagmire?

    You will have needed a pill or two if you’ve owned Express Scripts Holding Co. (NASDAQ:ESRX) over the past year — with or without the benefit of a pharmacy benefit manager (which is Express Scripts' line of business).

    ESRX low p/s


  • Dodge & Cox: Staying the Course in Value Investing

    In 2015, growth stocks in the United States and around the world outperformed value stocks by one of the widest margins since the global financial crisis. Although value stocks have outperformed growth stocks for extended periods over most of the last 90 years, the decade 2005-2015 has been one of the few ten-year periods in which value has lagged growth.


  • Bruce Berkowitz Buys Bank of America, Sells Leucadia National

    Bruce Berkowitz (Trades, Portfolio) is the founder and the managing member of the Fairholme Fund (Trades, Portfolio). During the first quarter he traded the following stocks:

    The guru increased his shares in Bank of America Corp. (BAC) by 119.31% with an impact of 3.81% on the portfolio.


  • Leucadia Opens Positions in FedEx, Adobe System, Broadcom

    Leucadia National (Trades, Portfolio) bought shares in the following stocks in the first quarter:

    Leucadia bought 6,100 shares in FedEx Corp. (FDX) with an impact of 0.14% on the portfolio.


  • John Paulson Trims Time Warner Cable, Starwood Hotels

    John Paulson (Trades, Portfolio) is the president and portfolio manager of Paulson & Co. Inc. During the first quarter he reduced or closed his shares in many stocks.

    The investor reduced his stake in Time Warner Cable Inc. (TWC) by 69.18% with an impact of -4.64% on the portfolio.


  • Fairholme Fund Sells Bank of America, Leucadia National

    Fairholme Fund (Trades, Portfolio) is managed by its founder Bruce Berkowitz (Trades, Portfolio). For the 10-year period after inception in 1999, the fund gained 253% while the Standard & Poor's lost money. During the first quarter the fund traded some stocks as follows:

    It exited its position in Bank of America Corp. (BAC) with an impact of -7.44% on the portfolio.


  • UnitedHealth’s Obamacare Changes to Affect Healthcare Sector

    UnitedHealth (NYSE:UNH) reported its first quarter earnings results on April 19. UnitedHealth is the Dow Jones Industrial Average’s only healthcare stock focused primarily on healthcare plans. Following its early morning earnings release, the company reported a gain for the day of 2.1%.

    Favorable market trading was led by a revenue and earnings beat for the first quarter. UnitedHealth reported revenue of $44.53 billion, beating analysts’ estimates by $570 million and reporting a year-over-year gain of 24.5%. EPS of $1.81 also beat analysts’ expectations and reported a positive gain of 17% year over year.


  • Dodge & Cox Funds' 1st Quarter 2016 Global Stock Fund Commentary

    The Dodge & Cox Global Stock Fund had a total return of –1.3% for the first quarter of 2016, compared to –0.3% for the MSCI World Index.

    Market Commentary


  • Dodge & Cox Funds' 1st Quarter 2016 Commentary

    The Dodge & Cox Stock Fund had a total return of –1.0% for the first quarter of 2016, compared to 1.3% for the S&P 500 Index.

    Market Commentary


  • Dodge & Cox Trims Stakes in Pfizer, GE, eBay, Microsoft

    Dodge & Cox added three new stakes to its portfolio in the fourth quarter, but the transactions that had the greatest impact were the guru's sales of portions of existing stakes.

    Dodge & Cox’s most noteworthy fourth-quarter transaction was the sale of more than 95% of its stake in Pfizer Inc. (NYSE:PFE), a pharmaceutical company based in Groton, Connecticut. The guru sold 43,023,258 shares for an average price of $33.17 per share. The deal had a -1.36% impact on Dodge & Cox’s portfolio.


  • 5 Most Popular S&P 500 Stocks

    The following were five of the most popular Standard & Poor's 500 stocks among the gurus during the fourth quarter, according to results from GuruFocus’ All-in-One Screener.

    Apple (NASDAQ:AAPL)


  • Dodge & Cox: Value Investing in 2016

    Value managers Diana Strandberg and Charles Pohl discuss their fund's underperformance of the S&P 500 as growth surpassed value in recent years. The result has been more opportunities arising, particularly in financials, energy and emerging markets.

    "What I'd note is, conditions can change direction quickly and so we find that too many investors jump in and out at just the wrong time, and we think that having patience and persistence in retaining a long-term view are essentials to long-term investing success," Strandberg said.


  • Charles Brandes' Top Buys During the 4th Quarter

    Charles Brandes (Trades, Portfolio), chairman of Brandes Investment Partners, increased his stakes in many stocks in the fourth quarter.

    He raised his stake in Credit Suisse Group AG (CS) by 121.44%. The deal had an impact of 0.52% on the portfolio.


  • Fairholme Fund Cuts Bank of America, Buys Lands' End

    Fairholme Fund (Trades, Portfolio) is managed by its founder, Bruce Berkowitz (Trades, Portfolio). In the 10-year period after inception in 1999, the fund gained 253% while the Standard & Poor's lost money. During the fourth quarter Berkowitz traded many stocks.

    The investor reduced its stake in Bank of America Corp. (BAC) by 71.16%; the deal had an impact of -15.61% on the portfolio.


  • Dodge & Cox Comments on HP Inc.

    As the leader in printing and personal computer sales globally, HP Inc. (NYSE:HPQ)’s key challenge is declining revenues. Partly due to the stronger U.S. dollar, consensus estimates have the company’s sales declining approximately 10% in 2016. Many investors believe a shrinking market for hardware and ink may be too difficult to overcome; we believe this view of the company’s prospects is too pessimistic. HP’s management is aggressively cutting costs and has plans to introduce more new products. For example, HP has portions of its printing business (e.g., high-end graphics production) that are currently growing and may increase share in the established copier market and in the more nascent 3D print market. Moreover, the company generates robust free cash flow. Trading at seven times forward estimated earnings, HP remains an attractive investment opportunity with strong business prospects given its large valuation discount to the overall market.

    From Dodge & Cox Stock Fund annual commentary for 2015.


  • Dodge & Cox Comments on Hewlett Packard Enterprise

    After providing strong returns in 2013 and 2014, Hewlett-Packard was the Fund’s largest detractor from results during 2015. Hewlett-Packard recently split into two entities—Hewlett Packard Enterprise (NYSE:HPE) and HP Inc. (NYSE:HPQ)—which should result in greater focus and flexibility for each company to achieve its strategic goals. To assess secular challenges and evaluate the risks and opportunities of each stand-alone business, we met numerous times with their management teams and competitors and spoke with industry consultants. As a result, we added to the Fund’s positions in both companies. On December 31, Hewlett Packard Enterprise was a 2.5% position and HP Inc. was a 1.8% position in the Fund.

    Hewlett Packard Enterprise, one of the largest vendors in information technology (IT), consists of the enterprise technology infrastructure, software, and services segments of the old Hewlett-Packard. We acknowledge the company faces headwinds: the shift to the cloud has negatively impacted all on-premise IT vendors, continued public cloud adoption will likely erode the company’s market share, and competition is keen. Despite these risks, we believe Hewlett Packard Enterprise is an attractive investment due to its strong market positions across its portfolio (e.g., top provider of servers, number two position in IT services), scale advantages, and opportunities to improve its margin structure. Meg Whitman—the CEO of Hewlett Packard Enterprise—has overseen sound acquisitions (e.g., 3Par), new product launches, and cost reduction programs during her tenures at Hewlett-Packard and eBay. Management is actively cutting costs and retooling its product and service offerings to improve the company’s competitiveness. Margins in the Enterprise Services segment should expand as the company optimizes its contract mix and delivery models. The company trades at a compelling valuation (eight times forward estimated earnings), which is among the lowest in the S&P 500.


  • Dodge & Cox Comments on American Express

    American Express (NYSE:AXP)—the largest new purchase in the Fund during 2015—provides charge and credit card products and travel-related services to consumers and businesses worldwide. The company is the number one credit/charge card issuer and merchant acquirer in the United States measured by billed business, and its network is the second largest after Visa. Historically, American Express has generated attractive returns due to its vertical integration and strong value proposition for high-spending customers.

    In 2015, American Express’ stock declined 24%(c) due to concerns that the company’s business model is under pressure: Costco U.S. and JetBlue terminated their exclusive relationships with the card company and the Department of Justice questioned American Express’ ability to enforce rules prohibiting merchants from steering customers to other credit cards. As a result, American Express’ valuation relative to the market is at a historically low level (13 times forward estimated earnings(d)). We initiated a position in the company because we believe these near-term concerns have obscured a long-term investment opportunity. The company has an attractive business model that produces high returns on capital by encouraging more affluent and creditworthy customers to use the company’s credit and charge cards. American Express’ highly perceived rewards program, customer service, and strong brand recognition help attract and retain wealthier customers. The company should benefit from a continued industry shift from paper to plastic payments and growth in its third-party issued cards business. We believe American Express will be able to maintain its strong return on equity and improve profitability in the long run. On December 31, American Express was a 1.4% position in the Fund.


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