Dodge & Cox

Dodge & Cox

Last Update: 02-14-2017

Number of Stocks: 182
Number of New Stocks: 5

Total Value: $112,599 Mil
Q/Q Turnover: 4%

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

Dodge & Cox Watch

  • Barrow, Hanley, Mewhinney & Strauss’ Top 3 New Holdings

    Dallas-based investment firm Barrow, Hanley, Mewhinney & Strauss gained 25 new holdings in the final quarter of 2016. The firm’s top three new holdings are Twenty-First Century Fox Inc. (NASDAQ:FOXA), E.I. du Pont de Nemours & Co. (NYSE:DD) and Lowe’s Companies Inc. (NYSE:LOW).

    The firm was founded in 1979. For its equity portfolios, the firm seeks value by investing in stocks with below-market price-earnings (P/E) ratios, below-market price-book (P/B) ratios and above-market dividend yields, regardless of market conditions. For fixed income, the firm defines value as “temporarily mispriced securities with yield-to-maturity advantages over Treasury bonds of comparable maturity.” The firm employs a research-driven, bottom-up approach to select investment prospects.


  • Dodge & Cox Comments on Wells Fargo

    While we trimmed Financials on a net basis during the fourth quarter, we opportunistically added to Wells Fargo (NYSE:WFC) (up only 5% for 2016), which detracted from relative performance and was weak among bank stocks due to regulatory infractions and fines. We were disappointed to learn about the bank’s sales practices that resulted in improper account openings, but are convinced Wells Fargo is actively addressing the issues. After a comprehensive review, we believe Wells Fargo’s superior franchise, deep management team, track record of generating higher returns than other banks, and attractive valuation at 1.6 times book value make it an attractive long-term investment opportunity. On December 31, Wells Fargo was a 1.8% position in the Fund.


  • Dodge & Cox Comments on AstraZeneca

    AstraZeneca (NYSE:AZN), which is based in the United Kingdom, is a global pharmaceutical company with strengths in treatment for cancer and respiratory, cardiovascular, and infectious diseases. The share price has been under pressure due to recent and upcoming patent expirations for major drugs. Despite this headwind, the long-term growth outlook is favorable because of the company’s robust new drug pipeline, particularly in oncology. AstraZeneca has an attractive position in the revolutionary field of cancer immunotherapy, which harnesses the disease -fighting capabilities of the body’s immune system to reduce and potentially eliminate cancer tumors. With a 4.6% dividend yield, the current valuation is reasonable and does not appear to reflect the potential success of the immunotherapy drug pipeline.


  • Dodge & Cox Comments on Bristol-Myers Squibb

    Once a diversified pharmaceutical company facing significant patent expirations (a “cliff”), Bristol-Myers (NYSE:BMY) has transitioned into a focused biopharmaceutical company that is positioned to grow. Many of its competitors responded to their patent cliffs by expanding into other non-drug areas; Bristol-Myers shed its interests in those assets unrelated to the drug business (e.g., medical supply, nutritionals), focused on specialty drugs, and concentrated on only those therapeutic areas that it believed could be profitable over the long term. Its medicines help millions of people fight against such diseases as cancer, cardiovascular disease, hepatitis, HIV/ AIDS, and rheumatoid arthritis.

    In 2016, one of Bristol-Myers’ lead immuno-oncology trials (CheckMate-026) failed and its stock price declined significantly. We think this is a short-term setback, and believe the company’s immuno-oncology business is particularly attractive with its strong pipeline of other drugs, significant growth potential, and reasonable valuation at 20 times forward earnings. After weighing the risks versus the long-term opportunities, we initiated a position in Bristol-Myers, which accounted for 1.3% of the Fund on December 31.


  • Dodge & Cox's Stock Fund 4th Quarter Letter to Shareholders



  • 7 Stocks Outperforming the Market

    According to GuruFocus' All-in-One Guru Screener, the following are some of the stocks that have outperformed the Standard & Poor's 500 Index over the last 12 months and were bought by gurus during the last quarter.

    Advanced Micro Devices Inc. (NASDAQ:AMD) with a market cap of $9.19 billion has outperformed the S&P 500 Index by 370.1% over the last 12 months.


  • 7 Stocks You Could Buy to Beat the Market

    According to GuruFocus' All-in-One Guru Screener, the following are some of the stocks that have outperformed the Standard & Poor's 500 Index over the last 12 months and were bought by gurus during the last quarter.

    Companhia Siderurgica Nacional ADR (SID) with a market cap of $5.1 billion has outperformed the S&P 500 Index by 390.7% during the last 12 months.


  • 7 Cheap Stocks Based on Price-Sales

    According to GuruFocus' All-in-One Screener, the following stocks with market caps above $5 billion look cheap since they are trading with low price-sales (P/S) ratios.

    Twenty-First Century Fox Inc. Class A (FOXA) is trading at about $30 per share with a P/S ratio of 2.08, a trailing 12-month price-earnings (P/E) multiple of 19.76 and an estimated forward P/E multiple of 15.80. The company has a market cap of $55.72 billion, and the stock price has risen at an annualized rate of 5% over the last 10 years.


  • Dodge & Cox's Global Stock Fund 4th Quarter Commentary

    The Dodge & Cox Global Stock Fund had a total return of 7.1% for the fourth quarter of 2016, compared to 1.9% for the MSCI World Index. For 2016, the Fund had a total return of 17.1%, compared to 7.5% for the MSCI World.


  • Dodge & Cox's Stock Fund 4th Quarter Commentary

    The Dodge & Cox Stock Fund had a total return of 10.7% for the fourth quarter of 2016, compared to 3.8% for the S&P 500 Index. For 2016, the Fund had a total return of 21.3%, compared to 12.0% for the S&P 500.


  • Spiros Segalas Buys 4 New Stocks in 4th Quarter

    Spiros Segalas (Trades, Portfolio) of Jennison Associates and the Harbor Capital Appreciation Fund acquired four new holdings in the fourth quarter. Among his new holdings for the final quarter of 2016 are FedEx Corp. (NYSE:FDX), Charter Communications Inc. (NASDAQ:CHTR), Ulta Salon Cosmetics & Fragrance Inc. (NASDAQ:ULTA) and Expedia Inc. (NASDAQ:EXPE).

    Segalas is director, chief investment officer, president and founding member of Jennison Associates. The Harbor fund is subadvised by Jennison. Segalas, who has managed the fund since 1990, seeks long-term growth of capital. According to the fund's prospectus, it invests in midcap to large-cap growth stocks. Segalas looks for companies that have high revenue and earnings growth, improving profitability and strong balance sheets.


  • 7 Profitable Companies With Strong Yields

    Thanks to GuruFocus’ All-In-One Screener, I want to highlight stocks that have a five-year growing dividend yield with strong profitability and a long-term track of solid returns and growing asset value.

    Cisco Systems Inc(CSCO) has a dividend yield that has grown by 47.50% during the last five years. The yield is now 3.44% with a payout ratio of 47%. The company has a 10-year’s asset growth rate of 8%, supported by an average return on assets (ROA) over the last 10 years of 9.41%.


  • Dodge & Cox Invests in 7 Positions in the 3rd Quarter

    Dodge & Cox manages over $104 billion in separate accounts and mutual funds. The firm employs a team research approach in making investment decisions and the investment decisions are made by the Investment Policy Committee. The firm made the following buys during the third quarter:

    Dodge & Cox established a new position of 32,979,554 shares of Johnson Controls International PLC. (NYSE:JCI). The trade had an impact of 1.3% on the portfolio.


  • Dodge & Cox Sells Symantec, Walmart, Microsoft

    Van Duyn Dodge and E. Morris Cox founded Dodge & Cox in 1930. The firm manages a portfolio with a total value of $106.414 billion. During the third quarter the guru’s largest sells were the following:

    Its stake in EMC Corp. (EMC) was closed with an impact of -2.05% on the portfolio.


  • Donald Yacktman Invests in Bank of America, Berkshire

    Donald Yacktman (Trades, Portfolio) is the president and co-chief investment officer of Yacktman Asset Management Co. He is also a co-manager for the Yacktman Fund (Trades, Portfolio). During the third quarter the guru’s largest buys were the following:

    His stake in Twenty-First Century Fox Inc. Class A (FOXA) was raised by 18.80% and with an impact of 1.59% on the portfolio. It is a diversified media and entertainment company. It operates in five business segments: Cable Network Programming, Television, Filmed Entertainment and Other Corporate and Eliminations. First quarter income from continuing operations attributable to stockholders was $827 million or 44 cents per share compared to $678 million or 34 cents per share reported in the same quarter of a year before, and revenue increased 7% year over year.


  • Hotchkis & Wiley Trims Corning, Microsoft, Exits HP

    HOTCHKIS & WILEY was formed in Los Angeles in 1980 and has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation. During the third quarter the guru’s largest sells were the following:

    The firm reduced its stake in Corning Inc. (GLW) by 31.63% with an impact of -1.24% on the portfolio.


  • Paul Singer Invests in Technology, Oil in 3rd Quarter

    Elliott Management’s Paul Singer (Trades, Portfolio) acquired 12 new holdings in the third quarter. Of these, his top three new holdings are Dell Technologies (NYSE:DVMT), Encana Corp. (NYSE:ECA) and Marathon Petroleum Corp. (NYSE:MPC).

    Singer founded Elliott Management in 1977 and currently serves as CEO. He is known for being an activist investor in underperforming companies. Recently, his firm challenged Samsung to reshape its ownership structure and was behind Bass Pro Shops' recent acquisition of Cabela’s.


  • John Griffin Gains 3 Positions in 3rd Quarter

    John Griffin (Trades, Portfolio), president of Blue Ridge Capital, previously worked with Julian Robertson (Trades, Portfolio) at Tiger Funds before founding Blue Ridge in 1996. The fund seeks absolute returns using a long/short equity approach that invests in companies with strong performance relative to their industry and shorts those with fundamental problems. Griffin usually takes long positions, a trend that continued during the third quarter of 2016. The guru took stakes in three companies and added to two others.

    Citigroup Inc. (NYSE:C)


  • Andreas Halvorsen’s Top 3 New Holdings

    Andreas Halvorsen (Trades, Portfolio), founding partner and CEO of Viking Global Investors, acquired 23 new holdings in the third quarter. His top three new holdings are Bank of America Corp. (NYSE:BAC), LyondellBasell Industries (NYSE:LYB) and Universal Health Services Inc. (NYSE:UHS).

    Halvorsen purchased 25,110,973 shares in Bank of America for an average price of $14.89 per share. The transaction impacted the portfolio by 1.7%.


  • 9 Stocks First Eagle Keeps Buying

    First Eagle Investment is an independent company with approximately $98 billion in assets under management. In both the second and third quarters the guru bought shares in the following stocks:

    MetLife Inc. (MET)


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