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

  • 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.

      


  • Dodge & Cox Comments on Schneider Electric

    Schneider Electric (XPAR:SUNV), a 2.2% position in the Fund, is a global leader in electrical products, systems, and services such as low- and medium-voltage gear, factory automation equipment and systems, and uninterruptible power supply solutions for data centers. While incorporated in France, Schneider derives only 27% of its revenues from Western Europe and more than 40% of its sales come from emerging markets. Thus, Schneider is a prime example that a company’s domicile does not always reflect its true revenue exposure. Schneider’s stock performed poorly in 2015 (down 21% in U.S. dollars) due to lower than expected construction and industrial activity, driven in large part by a slowdown in China, Russia, and Brazil.

      


  • Dodge & Cox Comments on Itau Unibanco

    Itau Unibanco (NYSE:ITUB), Brazil’s leading bank, has strong market positions in consumer credit and payments and is exposed to under-penetrated areas of the financial market that are poised to grow over the next three to five years. Brazil’s struggling economy and sharp currency depreciation weighed substantially on Itau Unibanco’s stock during 2015 (down 41%(e) in U.S. dollars). We conducted both on-the-ground and other due diligence with company management and government officials to evaluate economic and company-specific concerns. What we found reaffirmed our view that Itau’s management has proactively managed credit risk by reducing exposures and raising provisions. Management is focused on enhancing shareholder value and has a solid track record of capital allocation. Beyond this cycle, management is investing for the future and strengthening Itau’s competitive advantage. For example, Itau continues to invest in online access to better serve the needs of affluent customers and more efficiently handle payments and transactions for its retail customer base. At 1.6 times tangible book value, Itau trades at a 10-year low valuation. While political and macroeconomic instability has plagued Brazil, we believe Itau is an attractive long-term investment opportunity and added to the holding. On December 31, Itau was a 1.7% position in the Fund.


    From Dodge & Cox International Stock Fund year-end letter 2015.

      


  • Dodge & Cox Stock Fund Annual Letter 2015

    To Our Shareholders

      


  • Stocks in the Spotlight

    Indexes had a nice rebound along with oil on Tuesday on renewed optimism that oil producers will look to curb production in the near future. The problem with this is twofold. For one, Saudi Arabia has been pretty adamant that it plans to keep producing oil in order to preserve market share. Second, more supply is set to hit the market, this time from Iran whose sanctions have been lifted. Neighboring Iraq is also set to increase its oil production from 3.8 million barrels per day to 4 million plus.


    The main stock to watch on Wednesday, Jan. 27, will be Apple (NASDAQ:AAPL) whose shares are down after hours after it reported better-than-expected earnings but missed analyst estimates on revenue. Earnings came in at $3.28 per share on $75.9 billion in revenue vs. analyst expectations of $3.23 per share on revenue of $76.54 billion.

      


  • Dodge & Cox Global Stock Fund 4th Quarter Commentary

    The Dodge & Cox Global Stock Fund had a total return of 3.5% for the fourth quarter of 2015, compared to 5.5% for the MSCI World Index. For 2015, the Fund had a total return of –8.1%, compared to –0.9% for the MSCI World.


    Market Commentary

      


  • Still a Guru Favorite

    Are the gurus right about Bank of America (NYSE:BAC)?


    There are only a few companies that are more widely held by GuruFocus' gurus. Two of these are banks as well: Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C). Meanwhile lots of gurus have been selling out of Bank of America over the past quarter while the stock is within 20% of its 52-week high and only 2.3% above its 52-week low. Today, the bank reported solid earnings that beat expectations.

      


  • Dodge & Cox Stock Fund 2015 Commentary

    The Dodge & Cox Stock Fund had a total return of 4.6% for the fourth quarter of 2015, compared to 7.1% for the S&P 500 Index. For 2015, the Fund had a total return of -4.5%, compared to 1.4% for the S&P 500.


    Market Commentary

      


  • Dodge & Cox Continues to Buy Shell, Coach, Cisco

    Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox. The firm manages a portfolio of 186 stocks with a total value of $99.4 billion. The following are the stocks he has been buying for at least the last two quarters.


    LM Ericsson Telephone Co. (ERIC)

      


  • Berkshire Hathaway, China Mobile, Novartis, Oracle, PetroChina Near 52-Week Lows

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


    Berkshire Hathaway Inc. reached the 52-week low of $197,800

      


  • High Dividend Yield Ratios Are Hallmarks of Many Dodge & Cox Stakes

    Ten of the existing stakes in Dodge & Cox's portfolio provide high dividend yields for the company. The firm reduced its positions in six in the third quarter.


    Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox and employs a team research approach in making investment decisions. The investment decisions are made by the Investment Policy Committee.

      


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