Dodge & Cox

Dodge & Cox

Last Update: 08-28-2015

Number of Stocks: 183
Number of New Stocks: 1

Total Value: $110,880 Mil
Q/Q Turnover: 5%

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

Dodge & Cox Watch

  • Dodge & Cox Funds 2015 Fixed Income Mid-Year Review

    See the video here.


    Read the transcript below.

      


  • Dodge & Cox Acquires Stake in Priceline

    Founded 85 years ago, San Francisco-based mutual fund company Dodge & Cox examines investment opportunities with a team research approach, then an investment policy committee makes the decision whether to invest. Recent returns have been impressive – 10.43% last year, 40.55% in 2013 and 22.01% in 2012.


    Dodge & Cox made only one new buy in the second quarter, but it was the firm’s most noteworthy transaction. Dodge & Cox invested in a 680,765-share stake in Priceline Group Inc. (NASDAQ:PCLN), a Connecticut-based provider of travel and related services, for an average price of $1,192.39 per share. The deal had a 0.71% impact on Dodge & Cox’s portfolio.

      


  • Dodge & Cox Funds' 2015 Equity Mid-Year Review



  • Ariel Capital Advisors bought Sanofi and Priceline in Q2 2015

    At the end of the second quarter of 2015, the hedge fund Ariel Capital Advisors reported a total value of its portfolio of $174,199,000 with an increase of 3.44% since the previous quarter.


    During the Q2 2015, the hedge fund bought 282 new stocks and increased 51 stakes. The following are the most heavily weighted buys of U.S. companies the hedge fund has done during that quarter.

      


  • Dodge & Cox International Stock Fund Q2 Commentary 2015

    The Dodge & Cox International Stock Fund had a total return of –0.3% for the second quarter of 2015, compared to 0.6% for the MSCI EAFE (Europe, Australasia, Far East) Index. For the six months ended June 30, 2015, the Fund had a total return of 3.9%, compared to 5.5% for the MSCI EAFE. At quarter end, the Fund had net assets of $69.7 billion with net cash of 1.7%.


    Market Commentary

      


  • Dodge & Cox Global Stock Fund Second-Quarter Commentary 2015

    The Dodge & Cox Global Stock Fund had a total return of 0.8% for the second quarter of 2015, compared to 0.3% for the MSCI World Index. For the six months ended June 30, 2015, the Fund had a total return of 2.2%, compared to 2.6% for the MSCI World. At quarter end, the Fund had net assets of $6.5 billion with net cash of 1.7%.


    Market Commentary

      


  • Dodge & Cox Fund Second Quarter Commentary 2015

    The Dodge & Cox Stock Fund had a total return of 2.6% for the second quarter of 2015, compared to 0.3% for the S&P 500 Index. For the six months ended June 30, 2015, the Fund had a total return of 1.4%, compared to 1.2% for the S&P 500. At quarter end, the Fund had net assets of $59.9 billion with net cash of 0.7%.


    Market commentary

      


  • Bill Frels' Stocks With Growing Yields

    Bill Frels (Trades, Portfolio) is the portfolio manager at Mairs & Power, which is an SEC-registered investment advisory firm and is Minnesota's oldest investment firm under private ownership and management.


    His portfolio is composed of 187 stocks and it has a total value of $7,270 million.

      


  • Dodge & Cox Reduces Stake in AOL

    San Francisco-based firm Dodge & Cox was founded in 1930 and prides itself on having a strong and reliable team of investors that have worked together for over a decade. Consistency over a long period of time seems to be the firm's approach on investing as well. Dodge & Cox looks for long-term trends in companies rather than short-term market trends, which is why the firm has such a low quarter-over-quarter turnover rate of 4%.


    With 187 positions in its portfolio valued at $108.5 billion, 22.9% of the stocks are in the technology sector, 21.5% of its positions are financial services and 16% are in the healthcare sector.

      


  • Guru Stocks at 52-Week Lows: XOM, WMT, PG, CVX, GSK

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Exxon Mobil Corporation (NYSE:XOM) Reached the 52-Week Low of $84.02

      


  • Dodge & Cox Buys 2 New Stocks

    Dodge & Cox was founded in 1930 and is a firm employing a long-term approach and strict price discipline. It has $250 billion in assets under management and returned 11.32% on average annually over the past 20 years, compared to 9.39% for the S&P 500.


    The managers discussed their view of market valuations and portfolio positioning in their first quarter fact sheet:

      


  • Dodge & Cox Keeps Buying Express Scripts

    Dodge & Cox (Trades, Portfolio) was founded in 1930, by Van Duyn Dodge and E. Morris Cox. As of March 2006, Dodge & Cox managed over $104 billion in separate accounts and mutual funds.


    In terms of investment philosophy, Dodge & Cox team is guided both in what they buy and what they sell by an ongoing search for superior relative value, steering clear of popular choices that come at a price they would rather not pay. Investing when valuations are low creates greater potential for capital appreciation. They look to be long-term owners of companies whose current valuations don’t reflect their long-term earnings and cash-flow prospects.

      


  • Dodge & Cox’ Stock Fund Q1 2015 Commentary

    The Dodge & Cox Stock Fund had a total return of –1.2% for the first quarter of 2015, compared to 1.0% for the S&P 500 Index. At quarter end, the Fund had net assets of $59.4 billion with net cash of 0.4%.


    MARKET COMMENTARY

      


  • Dodge & Cox’ Global Stock Fund Q1 2015 Commentary

    The Dodge & Cox Global Stock Fund had a total return of 1.4% for the first quarter of 2015, compared to 2.3% for the MSCI World Index. At quarter end, the Fund had net assets of $6.3 billion with net cash of 2.9%.


    MARKET COMMENTARY

      


  • Morgan Stanley's Q1 Results Beat Wall Street Estimates

    In this article, let's take a look at Morgan Stanley (NYSE:MS), a $72.64 billion market cap company, which is a financial holding company that provides various financial products and services to corporations, governments, financial institutions, and individuals worldwide.


    Beating Consensus Estimates

      


  • Market Valuations and Expected Returns – March 12, 2015

    The market was up more than 30% in 2013, the best year since the go-go years of 1990s. 2014 was another strong year for the market. The S&P 500 index was up more than 13%. Since the market recovery in 2009, the stock market has been up for 6 consecutive years. Yet in January 2015, the stock market benchmark S&P 500 lost 3.10%. In February, the market regained its strength by increasing 5.49%. Can market continue to grow in 2015?


    Bernard Baruch once said “A market without bears would be like a nation without a free press. There would be no one to criticize and restrain the false optimism that always leads to disaster.”

      


  • Weekly CEO Buys Highlight: S, OPK, CAPL, CLF, MOSY

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    Sprint Corp: President and CEO Raul Marcelo Claure bought 5,080,000 shares

      


  • Bill Nygren Focuses On Apache Corp.

    Bill Nygren (Trades, Portfolio) is portfolio manager of The Oakmark Fund, The Oakmark Select Fund and the Oakmark Global Select Fund. Nygren has an M.S. in finance from the University of Wisconsin-Madison and a B.S. in accounting from the University of Minnesota.


    Web Page:http://www.oakmark.com/

      


  • Prem Watsa Top Growing Stocks

    “Why do Roman bridges historically last for a long, long time? Why did they last for a long time? The key reason was that the people who designed the bridges had to stand underneath it before the traffic went on. So they made sure there was a massive margin of safety. And bridges lasted for years and years and years. “


    This is just one of the wise quotes from guru Prem Watsa (Trades, Portfolio), owner of Fairfax Financial Holdings, a fund with $1,545 Mil of Total Value with 43 Stocks on its portfolio.

      


  • Dodge & Cox 2014 Equity Year in Review



  • Guru David Tepper Adds One Company to Portfolio in Fourth Quarter

    Hedge fund manager and founder of Appaloosa Management David Tepper (Trades, Portfolio) has built a reputation over the years for investing in distressed companies.


    Tepper bought only one stock in the fourth quarter – American Realty Capital Properties Inc (ARCP), a Phoenix-based real estate company. Tepper bought 2,927,632 shares in the company for an average price of $9.77 per share.

      


  • Dodge & Cox’s Global Stock Fund Comments on Siam Commercial Bank

    Siam Commercial Bank (BKK:SCB), the largest retail bank in Thailand, is a new addition to the Fund. During late 2013 and early 2014, Thailand lacked a functioning government, and the country’s stock market suffered. Siam Commercial’s stock was no exception, as its valuation declined to eight times forward earnings. During prior periods of political uncertainty, the Thai economy continued to grow, and Siam Commercial delivered an attractive return on shareholder’s equity and increased its book value per share.


    As a part of our due diligence process for owning Kasikornbank in Thailand, we had closely followed Siam Commercial to understand the competitive landscape. After conducting additional in-depth research, we concluded that these political concerns provided us with a long-term investment opportunity at a low valuation. Siam Commercial’s leading positions in retail banking and fee-related financial services provide it with a durable franchise. We believe that the company’s high return on equity—generated by a combination of stable net interest margins, high fee income, ample provisions, efficient operations, and moderate leverage—is sustainable over our investment horizon. Furthermore, we believe that Siam Commercial is well prepared to absorb economic volatility, given its high profitability, capital levels, and loan loss reserves. After weighing these opportunities against the political risk, we initiated a position; Siam Commercial was a 0.4% holding in the Fund at year end.

      


  • Dodge & Cox’s Global Stock Fund Comments on Standard Chartered

    Domiciled in the United Kingdom, Standard Chartered (LSE:STAN) has extensive geographic reach. The company provides consumer and wholesale banking products to customers throughout the emerging markets (especially in Asia, Africa, and the Middle East); approximately a third of the company’s deposits are located in Greater China. Falling commodity prices, concerns about asset quality, regulatory fines, and increasing capital requirements in the United Kingdom weighed on the company’s share price, and its valuation fell to 0.8 times book value in October, a historically low level.


    Standard Chartered has been held in the Fund since 2008. Over the years, we have spent considerable time researching and analyzing the company in various market environments. Standard Chartered’s broad network across the developing world would be very difficult to replicate today. The company’s global payments and trade business is a particular strength: local roots from its longstanding presence allow for local currency funding, and cooperation across the network provides integrated wholesale banking services to clients. The bank is exposed to economic growth and increasing trade flows in emerging markets.

      


  • Dodge & Cox’s Global Stock Fund Q4 2014 Shareholder Letter

    TO OUR SHAREHOLDERS


    The Dodge & Cox Global Stock Fund had a total return of 6.9%, compared to a return of 4.9% for the MSCI World Index for the year ending December 31, 2014. At year end, the Fund had net assets of $5.9 billion with a cash position of 3.1%.

      


  • Dodge & Cox’s Stock Fund Comments on Schlumberger NV

    Schlumberger (SLB), the world’s leading oil services company, is the most technologically-focused company among the integrated oilfield service companies, with double the R&D budget of its closest peer. We believe that its consistent spending on technology (e.g., enhanced recovery techniques, seismic interpretation, directional drilling) has provided the company with a competitive advantage that is sustainable over time. The company’s innovation efforts have enabled the industry to extract oil and gas from deepwater and shale resources that were previously cost-prohibitive or physically challenging to reach. Schlumberger is the dominant international provider in key markets, including the Middle East and Russia. The majority of its revenues come from outside the United States, and its international business has higher margins than its U.S. operations. We believe that Schlumberger is well positioned to continue to benefit from the long- term relationships it has with international oil companies and producing nations. If the price of oil remains low, the company will face a challenging environment. Relative to competitors, its strong franchises and solid balance sheet and cash flow should allow the company to endure an extended downturn. Weighing this risk with Schlumberger’s valuation and opportunities, we believe that the company (a 2.5% position in the Fund) remains an attractive investment opportunity.


    From Dodge & Cox’s Stock Fund Q4 2014 Shareholder Letter.

      


  • Dodge & Cox’s Stock Fund Comments on Google

    As the most popular internet destination in the world, Google (GOOG, GOOGL) has extremely high search engine market share in both developed and emerging markets: ~70% desktop share and over 90% mobile share globally. The company is well-positioned to benefit from continued growth in its core search business as internet penetration increases (currently at approximately 40% globally), users spend more time online, e-commerce expands, and more advertising revenue is earned online. Google also has meaningful non-search assets in display advertising (e.g., YouTube, DoubleClick), mobile (e.g., Android), and social (e.g., Google+). The company is led by a long-term, product- focused management team with significant economic ownership and a demonstrated focus on shareholders and financial returns. However, Google faces increasing competition, greater regulatory scrutiny around the world, and declining margins due to rising R&D expenses. Despite these issues, we believe that its valuation at 17 times forward estimated earnings(c) is reasonable considering its strong long-term growth prospects and cash generation potential. Recently, we added to the Fund’s position; Google was a 2.3% holding at year end.


    From Dodge & Cox’s Stock Fund Q4 2014 Shareholder Letter.

      


  • Dodge & Cox’s Stock Fund Comments on Hewlett-Packard Co

    Hewlett-Packard (HPQ), a long-term holding in the Fund, is an example of how our patience, persistence, and ability to build conviction in the face of uncertainty have benefited recent performance (up 101% in 2013 and up 46% in 2014, and the largest contributor to Fund results in both years). We believe that Hewlett-Packard remains an attractive investment opportunity with strong business prospects given its large valuation discount to the overall market. As the world’s largest enterprise technology company, Hewlett-Packard has a strong, well- recognized brand and serves more than one billion end users in more than 170 countries. The company generates high, recurring free cash flow. Over our three- to five-year investment horizon, Hewlett-Packard is positioned to benefit from growth opportunities in the cloud, security, and converged network infrastructure markets. Furthermore, we believe that the competent management of the company’s operating businesses is underappreciated by the market. Current risks to the business include the possibility of expensive acquisitions, macroeconomic weakness, and competitive threats in PCs, services, and enterprise server/storage/networking. While these risks are significant, we believe that the valuation reflects an overly pessimistic outlook.


    In October, the company announced plans to separate the business into two companies—Hewlett-Packard Enterprise and HP Inc.—and expects to complete the transaction by October 2015. Hewlett-Packard Enterprise will consist of technology infrastructure, software, and services, with a focus on growth opportunities from cloud, big data, security, and mobility. HP Inc. will consist of the personal computing and printing businesses, which generate strong cash flow; the new company intends to invest in innovative technologies, such as 3-D printing. We believe that the proposed deal could build long-term shareholder value. The announcement comes four years into Hewlett-Packard’s five-year turnaround strategy. Management believes that the separation will provide greater focus, flexibility, and management alignment for each new company. Additionally, we believe the proposed capital structures and capital allocation strategy would be better tailored for each company’s respective growth profile. On December 31, Hewlett-Packard was a 4.1% position in the Fund.

      


  • Dodge & Cox’s Stock Fund Q4 2014 Shareholder Letter

    TO OUR SHAREHOLDERS


    The Dodge & Cox Stock Fund had a total return of 10.4% for the year ending December 31, 2014, compared to a return of 13.7% for the S&P 500 Index. At year end, the Fund had net assets of $60.3 billion with a cash position of 1.2%.

      


  • Walt Disney´s Dividend Hike Seems to Adequate to Its Intrinsic Value

    In this article, let's take a look at The Walt Disney Company (NYSE:DIS), a $159.52 billion market cap company, which is a media and entertainment conglomerate which has diversified global operations intheme parks, filmed entertainment, television broadcasting and consumer products.


    Dividend Hike

      


  • Dodge & Cox's Stock Fund Q4 2014 Commentary

    The Dodge & Cox Stock Fund had a total return of 2.2% for the fourth quarter of 2014, compared to 4.9% for the S&P 500 Index. For 2014, the Fund had a total return of 10.4%, compared to 13.7% for the S&P 500. At year end, the Fund had net assets of $60.3 billion with a cash position of 1.2%.


    MARKET COMMENTARY

      


  • Dodge & Cox International Fund Q3 Commentary

    The Dodge & Cox International Stock Fund had a total return of –2.7% for the third quarter of 2014, compared to –5.9% for the MSCI EAFE (Europe, Australasia, Far East) Index. For the nine months ended September 30, 2014, the Fund had a total return of 5.0%, compared to –1.4% for the MSCI EAFE. At quarter end, the Fund had net assets of $64.7 billion with a cash position of 1.7%.


    MARKET COMMENTARY

      


  • UNH: A Strong Candidate for Income and Capital Appreciation

    American health care is a turbulent space these days, with the Affordable Care Act, budget restraints, aging Baby Boomers, and a whole lot more.


    Yet this company seems to sail through it all reasonably comfortably, with strong revenue and earnings growth since the financial crisis of the last decade.

      


  • Dodge & Cox Discuss Their Investments in Pharmaceuticals

    EXECUTIVE SUMMARY


    The Pharmaceutical (Pharma) industry has long been a significant engine of the global economy. Throughout the 1990s, Pharma industry valuations were high due to expected industry growth, robust profitability, and overall optimism about scientific advancements. However, by the turn of the millennium, positive sentiment was decreasing in light of tougher FDA approval standards, health care cost scrutiny, and reduced research and development (R&D) productivity. By 2009, valuations plummeted to historically low levels as investors appeared to be questioning the viability of the traditional “Large Pharma” business model.

      


  • Dodge & Cox Video - Understanding the Pharmaceutical Industry

    Pharmaceuticals analysts at investing firm Dodge & Cox explain the industry, where they have a "significant overweight" position.


    Watch the video here.

      


  • Dodge & Cox's Top New Buys of Q3

    The Dodge & Cox fund in companies that it believes the stock market is undervaluing but have strong potential long-term growth. It returned 8% for the first nine months of the year, just shy of the 8.3% return of the S&P 500.


    Managers at Dodge & Cox are optimistic about the direction of stocks going forward, saying in this third quarter letter:

      


  • Black Friday ... Or Red Friday?

    Black Friday was invented by retailers to kick off the holiday season and encourage shoppers to get Christmas shopping done and out of the way the day after Thanksgiving. In 2005, Cyber Monday became popular, giving shoppers the option to stay away from the Black Friday mobs and shop from home on the computer.


    This year, the turnout for Black Friday was not as hectic and the stores at the mall were not bombarded with eager shoppers who had been camping outside since the night before, right after eating turkey and stuffing with the family on Thanksgiving. What happened to this retail holiday? And will there still be a Black Friday in years to come?

      


  • Dodge & Cox Global Stock Fund Q3 Commentary

    The Dodge & Cox Global Stock Fund had a total return of –0.3% for the third quarter of 2014, compared to –2.2% for the MSCI World Index. For the nine months ended September 30, 2014, the Fund had a total return of 8.4%, compared to 3.9% for the MSCI World. At quarter end, the Fund had net assets of $5.8 billion with a cash position of 3.9%.


    MARKET COMMENTARY

      


  • Dodge & Cox’ Stock Fund Third Quarter 2014 Commentary

    The Dodge & Cox Stock Fund had a total return of 0.9% for the third quarter of 2014, compared to 1.1% for the S&P 500 Index. For the nine months ended September 30, 2014, the Fund had a total return of 8.0%, compared to 8.3% for the S&P 500. At quarter end, the Fund had net assets of $58.7 billion with a cash position of 1.4%.


    MARKET COMMENTARY

      


  • Latest Real Time Picks

    The Real Time Picks section of GuruFocus is a great way to ideas from the investing gurus. We currently follow 147 guru portfolios. If a guru makes a purchase or sale of a company in which he or she owns a greater than 5 percent stake, SEC regulations require the trade to be reported within 10 days. Some of the gurus report their trades within 2 days. The type of filing can disclose whether the trade is a passive (Schedule 13G) or activist (Schedule 13D) holding. The link to the filing is available through the Real Time Picks section. The latest Real-Time Picks are from John Paulson, Ron Baron, Mario Gabelli and Dodge & Cox.


    John Paulson of Paulson & Company initiated a new holding of 61,384,234 Class A shares of Overseas Shipholding Group (OSGIQ)on 08/31/2014, as reported in the latest 13G filings by John Paulson (Trades, Portfolio). The filing indicates that Paulson owns 56,425,082 shares of Class A common stock and 4,959,152 shares of common stock issuable upon exercise of Class A warrants. The investment gives Paulson a 19.35 percent stake in the company. OSG is a leading provider of global energy transportation services. It owns and operates a fleet of international and U.S. Flag vessels that transport crude oil, refined petroleum products and liquefied natural gas (LNG) worldwide. The company filed for Chapter 11 bankruptcy in November of 2012. On August 5, the emergence from bankruptcy was announced. Class B shares are now trading under the symbol, OGSRB, but the Class A shares are not shown as trading yet. Paulson most likely had an earlier investment in the company and received the new shares and warrants as part of the bankruptcy plan. It will be difficult to value the new company until its first post-bankruptcy financial statements are filed. I had left a message for investor relations but have not received a call back, yet. I was informed by a brokerage office that the current shares trading OTC are Class B shares.

      


  • Weekly CEO Buys Highlight: FSIC, NLY, OPK, GPC, ACXM

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


    FS Investment Corp (NYSE:FSIC): CEO Michael C. Forman Bought 160,409 Shares

      


  • Dodge & Cox Second Quarter 2014 Commentary

    The Dodge & Cox Stock Fund had a total return of 4.5% for the second quarter of 2014, compared to 5.2% for the S&P 500 Index. For the six months ended June 30, 2014, the Fund had a total return of 7.0%, compared to 7.1% for the S&P 500. At quarter end, the Fund had net assets of $58.4 billion with a cash position of 0.8%.


    MARKET COMMENTARY

      


  • Guru Stocks at 52-Week Lows: GOOG, C, HMC, SMFG, STT

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Google Inc (NASDAQ:GOOG) Reached the 52-Week Low of $520.63

      


  • Weekly CEO Buys Highlight: CLMS, AOL, HOS, GEO, OPK

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:


      


  • Guru Stocks at 52-Week Lows: GOOG, HSBC, C, HMC, NMR

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Google Inc. (NASDAQ:GOOG) Reached the 52-Week Low of $509.96

      


  • Dodge & Cox First Quarter 2014 Commentary

    The Dodge & Cox Stock Fund had a total return of 2.4% for the first quarter of 2014, compared to 1.8% for the S&P 500 Index. At quarter end, the Fund had net assets of $55.6 billion with a cash position of 2.3%.


    MARKET COMMENTARY

      


  • Guru Stocks at 52-Week Lows: HSBC, VZ, TM, MTU, HMC

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    HSBC Holdings Plc (NYSE:HSBC) Reached the 52-Week Low of $50.85

      


  • Forest Laboratories Is an Option for Wealthy Investors Who Could Afford to Pay a High Premium

    Forest Laboratories Inc. (NYSE:FRX) is one of the largest U.S.-based pharmaceutical companies in the area of developing, producing and selling central nervous system (CNS)-related prescription drugs. The company also focuses on the development and introduction of new products, including products developed in collaboration with licensing partners.


    The company’s principal products include Namenda (memantineHCl) for Alzheimer´s disease, Savella (milnacipranHCl) for fibromyalgia, Bystolic for hypertension and Benicar (olmesartanmedoxomil) for high blood pressure.

      


  • Guru Stocks at 52-Week Lows: HMC, NMR, SDRL, ZTS, BBBY

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Honda Motor Co. Ltd. (NYSE:HMC) Reached the 52-Week Low of $34.17

      


  • Gurus Choose This Stock for Long-Term Investment

    When the 2007 economic crisis went full scale, several companies saw their stock plummet together with the global market. Dropping from a historic high of $40 to $10 in less than six months, Weatherford International (NYSE:WFT) is a clear example. After a small rebound, stock value entered another negative trend returning to the $10 mark at the end of 2012. However, market performance improved throughout 2013, reaching $17 per share. The positive trend caught the attention of several new and old gurus. Dodge & Cox is currently the largest shareholder, with a position consolidated through four purchases during the last quarter of 2013 and first of the current year. Mario Gabelli (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) hold important shares as well, with positions dating back to 2009, making the stock a case study for long-term investment.

    The Good Times Keep on Rolling

    Weatherford International announced on February that remediated material weakness for income tax accounting, reduced net debt by $687 million, and generated positive free cash flow of $298 million in the fourth quarter of fiscal 2013. Also, revenue for the fourth quarter of 2013 was $3.74 billion compared with $3.82 billion in the third quarter of 2013 and $4.06 billion in the fourth quarter of 2012. Nonetheless, full year financial indicators reported improvements across the board.

    Weatherford International partnered the Alamo College to provide job training using a $1.5 million Skills Development Fund grant from the Texas Workforce Commission. The project will provide the company with trained and competitive human resources. Also, being a manufacturer and provider of equipment and services for drilling, completion and production of oil and natural gas wells, Weatherford International’s long-term performance depends on successful research and development.

    Some of the latest product introductions announced by management are the Reveal 360, an imaging technique that removes the blind spots from wireline wellbore images; and the RipTide RFID, the drilling industry’s most advanced concentric underreamer. Another important step is the agreement with CurTran LLC to use, sell and distribute LiteWire, the first commercial scale production of a carbon nanotube technology in wire and cable form.

    Good Prospects, Fragile Standing

    Future prospects continue to improve, as management decided to move Weatherford International’s base to Ireland. The decision is in response to Switzerland’s policy changes concerning executive pays. The move allows the company “to operate at the lowest possible cost while enhancing the company’s ability to retain, as well as further attract, the best women and men in the industry,” Weatherford chairman, president and CEO Bernard Duroc-Danner said.

    Weatherford International's growth prospects are abroad. Mexico, Russia, China, Australia and Saudi Arabia hold the greatest potential related to cost reductions and improvements in capital efficiency. Additional opportunities will appear in Iraq as projects reach completion and become operative during 2014. Also, outlook for activities in North America contemplates a depressed natural gas environment overshadowed by the predominance of oil activity in Canada and the U.S.

    Currently trading at 16.78 times its consensus earnings, Weatherford International is at the industry average. And, although the company’s balance sheet has shown improvements during the last year it is far from healthy. Debt continues to rise while revenue has stagnated and cash flow remains negative. Most important, management expects to widen operating margins after relocation is complete.

    Last, Weatherford International sold its pipeline and specialty services business to Baker Hughes (NYSE:BHI) last month. The transaction is an important sign of the troubles faced by current finances. Also, it is a clear return to the basics and divestiture of non-core activities. In the end, the company is not performing well, and even when prospects are promising, risks associated with this stock remain varied in type and important in size. Hence, it is not recommended to take a position in the company.

    Disclosure: Vanina Egea holds no position in any of the mentioned stocks.

      


  • Guru Stocks at 52-Week Lows: HSBC, KO, HMC, LNKD, ED

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    HSBC Holdings Plc (NYSE:HSBC) Reached the 52-Week Low of $50.82

      


  • Guru Stocks at 52-Week Lows: CEO, BCS, HMC, ED, ZTS

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    CNOOC Ltd. (NYSE:CEO) Reached the 52-Week Low of $151.56

      


  • Investors Should Not Fear, Protect Your Portfolio with ADT

    The ADT Corporation (NYSE:ADT) is a provider of electronic security, interactive home and business automation and related monitoring services in the U.S. and Canada (about 6.5 million residential and small business customers).


      


  • Guru Stocks at 52-Week Lows: VZ, HSBC, CHL, MTU, HMC

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Verizon Communications Inc. (NYSE:VZ) Reached the 52-Week Low of $46.91

      


  • Forest Laboratories' Recovery

    Organized in 1956, Forest Laboratories Inc. (NYSE:FRX) is a pharmaceutical corporation focused on the in-licensing drugs for development. Its products include those developed by it and those acquired from other pharmaceutical companies and integrated into its marketing and distribution systems. Forest and it subsidaries develop, manufacture and sell branded forms of ethical drug products, most of which are only available with written instructions from a physician. Forest emphasizes detailing to physicians of those branded ethical drugs that have the most potential for growth and benefit for patients. The company mainly sells its drugs in the U.S., but has a small international presence.


    Forest also has well-established franchises in therapeutic areas of the central nervous, cardiovascular and respiratory systems, as well as R&D (research and development) programs addressing a great range of health conditions. Last fiscal year, the company posted total revenues of $3.1 billion, down 31.8%, mostly due to the loss exclusivity on the antidepressant Lexapro and the massive hole that left.

      


  • Guru Stocks at 52-Week Lows: VZ, HSBC, CHL, PTR, T

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Verizon Communications Inc. (NYSE:VZ) Reached the 52-Week Low of $46.08

      


  • Verizon Tops Most Guru-Held Communications Services of the Year

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which companies based out of the Communications Services sector were held by the highest number of gurus. The following five companies come from this industry and are held by the largest number of gurus.


    Verizon Communications (VZ)

      


  • Top Held European Stocks Highlighted by Health Care and Oil and Gas Stocks

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies were bought by the largest numbers of gurus over a certain period of time. By using this screener, we filtered down to see which companies based in Europe were bought by the highest number of gurus.


    The following five companies come from a variety of industries, are European-based and were bought by the largest number of gurus over the past quarter.

      


  • Guru Stocks at 52-Week Lows: VZ, CHL, T, PBR, HMC

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    Verizon Communications Inc. (NYSE:VZ) Reached the 52-Week Low of $46.76

      


  • Top 10 Guru-Held Stocks of the Fourth Quarter

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which companies were held by the highest number of gurus. The following ten companies come from a variety of industries, are based actually all based out of the United States and are held by the largest number of gurus as of the close of the fourth quarter


    Microsoft Corporation (MSFT)

      


  • Dodge & Cox Funds 2013 Equity Year in Review

    Dodge & Cox analysts discuss their 2013 equity year in a video here.


    Below is a transcript of the video.

      


  • Dodge & Cox Comments on Capital One

    Capital One (NYSE:COF) (the Fund's largest position at 4.0%) is a consumer finance firm with credit card, auto lending, and banking businesses. The company has a strong franchise, attractive growth opportunities, and a disciplined management team with a solid track record and long-term focus. Capital One has grown market share while achieving high return on equity through its data analytics, which have led to sophisticated marketing and strong underwriting. Its acquisitions of ING Direct and HSBC's credit card portfolio appear to be strategically sound. While regulatory reform could force changes in business practices that could adversely affect the industry, we believe Capital One— trading at 11 times forward earnings—is an attractive long-term investment opportunity.

      


  • Dodge & Cox Funds Stock Fund Q4 Shareholder Letter

    TO OUR SHAREHOLDERS


    The Dodge & Cox Stock Fund had a total return of 19.6% for the six months ending December 31, 2013, compared to a return of 16.3% for the S&P 500 Index. For 2013, the Fund had a total return of 40.6%, compared to 32.4% for the S&P 500 Index. At year end, th e Fund had net assets of $54.8 billion with a cash position of 1.7%.

      


  • Symantec Corp After Reporting Better Than Expected Earnings: Profitability Analysis

    Profitability is one of the main factors one must look at when analyzing a company. It is not only the reason behind a company’s existence, but also a key element when determining whether to invest in a company or not. Thus, in this article I will look into Symantec Corp (NASDAQ:SYMC)´s earnings and earnings growth (which came in better than expected on the last reported quarter), profit margins and other profitability ratios.


    Additionally, I will evaluate which institutional investors bought the stock in the recent quarters (institutional backup can tell a lot about a stock), and the initiatives that the company is putting in motion in order to ameliorate its sales and margins.

      


  • Weekly Three-Year Low Highlight: COH, GLPI, AUO, JCP

    According to GuruFocus list of three-year lows; Coach Inc., Gaming and Leisure Properties Inc., AU Optronics Corporation and J.C. Penney Co. Inc. have all reached their three-year lows.


    Coach Inc. (NYSE:COH) Reached the Three-Year Low of $47.89

      


  • Weekly Guru Bargains Highlights: PBR.A

    According to GuruFocus updates, these stocks have declined the most since Gurus have bought.


    Petroleo Brasileiro SA Petrobras (NYSE:PBR.A): Down 21% Since Charles Brandes (Trades, Portfolio) Bought In the Quarter Ended on 2013-09-30

      


  • Dodge & Cox Funds Fourth Quarter 2013 Commentary

    The Dodge & Cox Stock Fund had a total return of 11.8% for the fourth quarter of 2013, compared to 10.5% for the S&P 500 Index. For 2013, the Fund had a total return of 40.6%, compared to 32.4% for the S&P 500. At year end, the Fund had net assets of $54.8 billion with a cash position of 1.7%.


    MARKET COMMENTARY

      


  • Corning: A Promising Investment in the Display Technology Sector?

    Among electronic components distributors and manufacturers, Corning Inc. (NYSE:GLW) stands out for having placed a huge bet on liquid crystal display (LCD) production. Although the firm has made an effort to diversify its production over recent years, its net income is still concentrated on their display technology segment (97% in 2010, almost 90% in 2011 and 82.28% on 2012, according to annual reports).


    Despite being so dependent on American consumers (in contrast with other electronic components distributors), Corning and Samsung Corning Precision (SCP, a 50% subsidiary) have half the market share in the glass panel industry. So, in order to evaluate whether this company is worth being considered as a profitable long-term alternative or not, we should take a deep look into the LCD market, and characterize it, so as to know what we should expect from it.

      


  • Chevron Goes for the Long-Term – Brazil Emerges as Major Oil Reserve

    Brazilian offshore exploration over the past years has turned the South American bull into one of the fastest growing economies, as well as the 10th largest oil producer in the world. This, of course, is no news if we take into account the radical increase in revenues and steady growth of long-term assets shown by local enterprises, such as Petroleo Brasileiro SA Petrobras (NYSE:PBR)


      


  • Guru Stocks at 52-Week Lows: T, EC, BBD, SO, KMP

    According to GuruFocus list of 52-week lows, these Guru stocks have reached their 52-week lows.


    AT&T Inc. (NYSE:T) Reached the 52-Week Low of $33.62

      


  • Duke Energy Marked as GuruFocus Dividend Grower of the Week

    During the past week, GuruFocus recognized one company as a dividend grower. In order to be qualified for this list, the company had to:


    · Have a dividend yield of greater than 3%.

      


  • Value-Oriented Funds from Dodge & Cox – Is Symantec a Right Pick?

    The fund looks to be long-term owners of companies whose current valuations don’t reflect their long-term earnings and cash-flow prospects. On Dec. 8, Dodge & Cox added Symantec Corporation (NASDAQ:SYMC). The firm is a provider in security, backup and availability solutions. Let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment opportunity.

    The Secret of Diversification  


  • Top Third Quarter Guru-Held Industrial Companies

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which companies based out of the industry sector were held by the highest number of gurus. The following five companies come from this industry and are held by the largest number of gurus.

    General Electric (GE)
      


  • What the Gurus Bought this Week

    The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they owns a greater-than 5% stake, SEC regulations require them to report their transaction within two days. This week we saw notable increases Real Time activity from Warren Buffett, Steven Cohen and Dodge & Cox.

    Warren Buffett
      


  • Top Guru-Bought European Stocks of the Third Quarter

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies were bought by the largest numbers of gurus over a certain period of time. By using this screener, we filtered down to see which companies based in Europe were bought by the highest number of gurus.

    The following five companies come from a variety of industries, are European-based and were bought by the largest number of gurus over the past quarter. [b]  


  • Dodge & Cox Discusses the Media and Internet Landscape

    Dodge & Cox analysts discuss the fundamental changes and the trends taking place in the media and Internet landscape, as well as the effects it is having on related companies. Watch the video here.  


  • Dodge & Cox Funds - Finding Fixed Income Opportunities Abroad

    Dodge & Cox manages discuss the opportunities and risks they are seeing abroad in a video here.  


  • Top Third-Quarter Guru-Owned Financial Services Companies

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which financial services companies are held by the largest number of gurus. As of the third quarter, the following five financial services-based stocks are held by the largest number of gurus.

    Citigroup (C)  


  • Dodge & Cox Impact Sells and Company Earnings Update

    The third quarter portfolio of Dodge & Cox lists 164 stocks and a total value of $88.03 billion with a quarter-over-quarter turnover of 3%. The firm bought three new stocks in the third quarter. The average return of Dodge & Cox over 12 months is 27.77%.

    The recent trading of Sprint Corp. (NYSE:S) is very active, with a third quarter report that its wireless revenue of $7.3 billion has increased year-over-year for the thirteenth consecutive year. Sprint is one of the recent high-impact reductions made by Dodge & Cox in the third quarter.  


  • Dodge & Cox Comments on Royal Dutch Shell

    LNG is also growing faster than other traditional sources of energy, partly due to growing power generation and industrial usage. In the form of LNG, natural gas can be transported long distances. The Middle East, Africa, and Australia have significant natural gas reserves and are among the largest exporters of LNG; the biggest importers include Asia and Europe. As one of the world's largest producers of natural gas and suppliers of LNG, Royal Dutch Shell (RDS) is well positioned to benefit from increasing LNG demand in our opinion. LNG continues to be a driver of future growth, accounting for nearly one quarter of Shell's new resource production. This well-diversified business segment has grown more than 10% annually over the last few years, and we project similar growth rates over our investment horizon. Shell's LNG growth is much faster than the demand growth for other traditional sources of energy. While we evaluate the geopolitical risks inherent in the Energy sector against company fundamentals, Shell is held in the Dodge & CoxGlobal Stock Fund and International Stock Fund due to its reasonable valuation and exposure to LNG.

    From Dodge & Cox Funds' The Energy Sector commentary.  


  • Dodge & Cox Comments on General Electric

    Consumers commonly associate General Electric (GE) with light bulbs and refrigerators. However, energy is also a major source of the company's earnings. General Electric is a leading provider of wind power, clean coal, natural gas turbines, solar, and nuclear fuel technologies. In addition, the company provides financing to energy companies around the globe through its GE Capital business segment. We have chosen not to invest in early-stage alternative energy companies that lack established business models and customer franchises, or are very reliant on new or unproven technologies becoming commercially successful in the future. General Electric, by contrast, offers us exposure to these fast growing areas in a diversified portfolio of leading businesses, which can partially offset the risks associated with the adoption of alternative energy technologies. We believe this company has the financial strength to fund new innovations out of existing cash flow, and the brand recognition, established distribution, and staying power that are critical for customer adoption of any long- term energy solutions.

    From Dodge & Cox Funds' The Energy Sector commentary.  


  • Dodge & Cox Comments on Petrobras

    Petrobras (PBR), one of Latin America's largest companies, is a world leader in developing advanced technology for deep-water and ultra-deep water oil production. The company has an attractive asset base with above-average, long-term growth opportunities in reserves and production. Petrobras has an advantaged position in world-class resource basins; its oil fields in the Campos Basin account more than 80% of the Brazilian oil production and its "pre-salt" assets are among the world's largest new oil producing developments in decades. The Brazilian government owns over half of the company's voting shares, and has made Petrobras' growth a national priority. While the government's ownership and social objectives may force the company to take non-economic actions, we believe Petrobras' valuation and strong franchise make it an attractive investment opportunity.

    From Dodge & Cox Funds' The Energy Sector commentary.  


  • Dodge & Cox Comments on Schlumberger

    Schlumberger (SLB) (the world's leading oil services company) has been a long-term holding in theDodge & Cox Equity Funds. Roughly two-thirds of Schlumberger's revenues come from outside the United States. The company is the dominant international provider in key markets including the Middle East and Russia. Historically, its international business has had higher margins and faster growth rates than its U.S. operations. Among its peers, Schlumberger has also consistently spent more on technology and research and development. Although a supply or demand shock to oil prices could reduce industry exploration and production budgets, we believe Schlumberger is well positioned to continue to benefit from the long-term relationships it has with international oil companies and producing countries.

    From Dodge & Cox Funds' The Energy Sector commentary.  


  • The Energy Sector - Dodge & Cox Funds Commentary

    Energy, a critical input to the modern global economy, accounts for approximately 8% of world GDP. Energy prices have a large effect on economic activity, significantly impacting consumers, companies, and countries. We will discuss the application of Dodge & Cox's long-standing investment philosophy in evaluating this vital sector of the global economy, the Energy positioning in the Dodge & Cox Equity Funds, (a) and some broad industry trends that are influencing our individual security selection.

    OVERVIEW OF DODGE & COX'S INVESTMENT APPROACH  


  • David and Goliath of LCDs - 20 Gurus Hold GLW, One Guru Holds WGA

    Corning Inc. reported last week that it will buy Samsung Corning Precision Materials Co.’s stake in their liquid crystal display (LCD) panel joint venture for around $300 million. The acquisition, set for completion in early 2014, is expected to add around $2 billion per year to Corning’s sales, according to Reuters.

    Here’s an update on the David and Goliath of the liquid crystal display (LCD) arena, with giant Corning Inc. (NYSE:GLW) versus a small but growing global competitor, Wells-Gardner Electronic (WGA).  


  • Weekly CEO Buys Highlight: SCTY, HLX, COH, EVEP, OPK

    According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below:

      


  • Should You Stay Long Coach?

    Coach (NYSE:COH)'s results were a bit more than disappointing. I have been bullish on the name since the year started and I was sure the stock's weaknesses were more than reflected by its relatively conservative valuation. I was dead wrong. The stock is down by 3% year-to-date, under-performing the S&P 500 by more than 20%. Despite being able to show strong results in the international side of its business, the company's inability to turn around its North American operations is indeed worrisome. Let's take a look at the company's results.

    A Disappointing Quarter  


  • New Tendencies in Oil & Gas E&P: When the Leading Geo Struggles

    When looking at the oil and gas industry from outside, one ignores the sheer size and number of participants. The most common image is the market giants like Chevron, Shell and BP fighting over every oil well and customer, but the painting is a whole lot more complex because many of the enabling firms do not make the news. In this case, I will look at the two largest oil service companies, Schlumberger NV (NYSE:SLB) and Halliburton Co (NYSE:HAL), in order to find out if they stand as good long-term investment options.

    The Charm of Market Domination: Business Innovation  


  • Dodge & Cox Cut Sprint and Compuware

    The third quarter portfolio of Dodge & Cox lists 166 stocks, 7 of them new, with a total value of $84.20 billion, and a quarter-over-quarter turnover of 7%. The portfolio’s top three sector weightings are financial services at 20.5%, health care at 17.6% and communication services at 9.3%. The Dodge & Cox average return over 12 months is 28.07%. In 2012, the firm’s annual return was 22.01% compared to the S&P500 Index at 15.99%.

    On the selling side of third quarter trading, Dodge & Cox reduced only two companies, cutting large positions in both Sprint Corp. (NYSE:S) and Compuware Corporation (NASDAQ:CPWR).  


  • Catering to Customers in the Software Industry

    Innovation and friendliness are two stewards that software developers value highly in order to retain and attract customers. Applications that are easy to navigate and to use have proved to be highly valued by users. Some companies were able to meet the challenge and deliver tailor made products, among them are: Sap Aktiengesellschaft (NYSE:SAP) and Adobe Systems (NASDAQ:ADBE). But, does catering to customer preferences generate profits?

    Developing Cloud Customers  


  • Technology Improvements Are No Match for the Recession

    The electronic components industry is one of the many industries hit by the economic recession. Growth for the short- and mid-term is very well limited by smaller disposable incomes. With a recovering economy, and the introduction of new technologies during the last decade, prospects for Emerson Electric (NYSE:EMR) and Corning (NYSE:GLW) defy a weak environment. Whether profits are on the way is the subject at hand. Let’s take a closer look.

    Growth in All Segments  


  • Health Care Stocks Gurus Investors Are Buying Ahead of Obamacare

    Signed into law by President Obama on March 23, 2010, the Affordable Care Act is now headed quickly toward some important dates. The first is Oct. 1, when the Health Insurance Marketplace, a new portal for Americans to shop for health insurance, opens. Then, on Jan. 1, 2014, coverage for those who signed up for a plan in the marketplace begins.

    Certainly the new government mandated program will change the playing field for the health care industry in a dramatic way. The new law requires all Americans to purchase an insurance policy or face a fine. Currently about 15% of the population is uninsured, and 50,000 Americans with pre-existing conditions who were previously denied coverage will have access to a special plan. The law will also prevent insurers from placing lifetime dollar limits on more than 105 million Americans, and 3.1 million young adults have gained coverage already through a provision that extends the length of time they can remain on their parents’ health insurance plan, according to Whitehouse.gov.  


  • Top Five Guru-Owned Energy Companies

    Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see energy companies which are held by the most gurus. The following five energy companies are held by the largest number of gurus.

    Exxon Mobil Corporation (XOM)
      


  • Dodge & Cox Mid-Year Review [Video]

    Dodge & Cox managers review the performance of their portfolios in the first half and discuss where they are seeing opportunities over the next five years.

    See the Dodge & Cox mid-2013 review here.  


  • Top Guru-Held European Companies as of the Second Quarter

    By using the Aggregated Portfolio Screener, we filtered through the 51 highest rated gurus to find out what international companies they liked the best. The following companies are each held by 10 gurus as of the second quarter.

    Sanofi (SNY)(XPAR:SNY)
      


  • The Stocks the Most Gurus Sold While the Fewest Bought

    A new feature introduced yesterday filters for the net buys of investment gurus – those with the most buys minus sells. The Net Buys S&P 500 screener also tracks the most net sold stocks. According to the screener, the stocks the most gurus discarded while the fewest bought during the second quarter were: Disney (NYSE:DIS), Pfizer (NYSE:PFE), AIG (NYSE:AIG), News Corp. (NASDAQ:NWSA) and Goldman Sachs (NYSE:GS).

    Disney (NYSE:DIS)  


  • $84.2B Dodge & Cox Reduces 10, Sells JCP, DELL, NWSA, A in Second Quarter

    Boston-based Dodge & Cox Funds is the giant among all mutual fund, hedge fund and investment companies, and it makes giant-sized trades. Actively trading in the second quarter of 2013, the firm sold out four companies, including iconic American companies - J.C. Penney Co. Inc. (NYSE:JCP) and Dell Inc. (DELL). The firm also reduced 10 positions, unloading companies in software, oil and gas, and a monolithic beverage company, among others.

    The Dodge & Cox Stock Fund had a total return of 17.6% for the six months ended June 30, 2013, compared to 13.8% for the S&P 500 Index. On June 30, the fund had net assets of $46.4 billion with a cash position of 1.5%, according to a company press release. In 2012, the Dodge & Cox Stock Fund had an annual return of 22.01%. In this first quarter of 2013, the same fund returned 11.74%. The firm has averaged a return 21.08% over 12 months.  


  • Dodge & Cox Comments on Charles Schwab

    In 2010, the Fund initiated a position in Charles Schwab (NYSE:SCHW) (a leading U.S. brokerage company) due to its durable business franchise, strong market position, growth prospects, and attractive valuation. As a result of the low interest rate environment in the United States, Schwab had waived some of the fees it charged customers on money market funds and its net interest margins substantially compressed. We believed that the company's revenues and earnings would be significantly higher in a more normal interest rate environment. However, starting in late 2010, the Fed announced additional rounds of quantitative easing and interest rates continued to drop.

    Throughout 2011 and 2012, we reaffirmed our investment thesis with the belief that a return to a more normal rate environment could dramatically increase profitability. Through our meetings with management, we were able to assess the company's investment merits and risks, all in the context of valuation. Schwab's highly scalable business model, excellent market position, growing customer base, focused corporate culture, and capable management team were attractive to us. In addition, founder and Chairman Charles Schwab's ownership stake aligned his interests with those of public investors. These factors remain the underpinnings of our current investment thesis.  


  • Dodge & Cox Comments on Sprint

    Sprint (NYSE:S), the third largest cellular carrier in the United States, is a 2.3% position in the Fund. Since the Fund's initial investment in 2006, the company has faced a difficult competitive environment, lost market share to Verizon Wireless and AT&T (the two largest carriers in the United States), and struggled to assimilate Nextel, which it acquired in 2005. In addition, overall economic weakness and the 2008-2009 equity market decline impacted profitability. As a result of these challenges, Sprint's share price dropped significantly from the Fund's initial purchase price. By mid 2012, the broader economy and equity markets had recovered from the lows of 2009, but Sprint continued to struggle.

    Throughout this period, we continually reassessed the company's major risks and challenges, including its competitive position, balance sheet, cash flow, and capital spending needs. We also evaluated the value of the company's customer base, and its other assets, including its ownership stake in Clearwire. Concluding that the shares had significant potential, we decided to add meaningfully to the Fund's position during 2012. Importantly, our analysis compared the existing price to what we believed the long-term value could be; the initial purchase price did not cloud our analysis.  


  • Dodge & Cox Funds Semi-Annual Report

    TO OUR SHAREHOLDERS

    The Dodge & Cox Stock Fund had a total return of 17.6% for the six months ended June 30, 2013, compared to 13.8% for the S&P 500 Index. On June 30, the Fund had net assets of $46.4 billion with a cash position of 1.5%.  


  • Dodge & Cox Discusses How Far European Financials Have Come

    Dodge & Cox analysts Charles Pohl and Mario DiPrisco comment on the state of the European banking sector, as well as individual banks such as Barclays (NYSE:BCS) and HSBC (HBC).

    Watch the video here.  


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