Dodge & Cox

Dodge & Cox

Last Update: 03-20-2017

Number of Stocks: 182
Number of New Stocks: 5

Total Value: $112,547 Mil
Q/Q Turnover: 4%

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

Dodge & Cox Watch

  • Jerome Dodson Buys 2 Stocks, Sells 2 in 1st Quarter

    Jerome Dodson (Trades, Portfolio)’s Parnassus Fund established two new positions and sold out of two others in the first quarter of the year. He bought Cognizant Technology Solutions Corp. (NASDAQ:CTSH) and Novartis AG (NYSE:NVS). He sold Qualcomm Inc. (NASDAQ:QCOM) and Applied Materials Inc. (NASDAQ:AMAT).


    Dodson founded his firm, Parnassus Investments, in 1984. He serves as president and is the lead portfolio manager for several funds, including the Parnassus Fund, the Asia Fund and the Endeavor Fund. The firm invests across the capitalization spectrum in companies with wide moats, compounding growth, quality management teams and that are trading at a significant discount to their intrinsic value.

      


  • Dodge & Cox Funds First Quarter Commentary

    The Dodge & Cox Stock Fund had a total return of 5.0% for the first quarter of 2017, compared to 6.1% for the S&P 500 Index.


    The Fund underperformed the S&P 500 by 1.1 percentage points during the quarter.

      


  • JPMorgan’s 1st-Quarter Earnings Boosted by Trading

    JPMorgan Chase & Co. (NYSE:JPM), the nation’s largest bank by assets, released its first-quarter 2017 earnings on April 13, reporting a 17% increase in profit from trading.


    The company recorded profit of $6.4 billion, or $1.65 a share, up from a profit of $5.52 billion, or $1.35 per share, in the same quarter of 2016. The bank also had a 6% increase in net revenue to $25.6 billion. Net interest income for the quarter grew 6% to $12.06 billion.

      


  • 7 Stocks With Growing Book Values

    The following companies have grown their book values per share (BV/S) over the last 10 years.


    BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Because the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

      


  • American Express Announces Quarterly Dividend

    American Express (NYSE:AXP) has announced a quarterly dividend of 32 cents with an ex-dividend date of April 5. The dividend is unchanged from the previous two quarters. American Express currently has a forward dividend yield of 1.62%.


      


  • Stocks With Growing Book Values and Margins of Safety

    The following companies have a growing book value per share (BV/S) over the last 10 years.


    BV/S is calculated as (total equity – preferred stock)/shares outstanding (EOP). Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets less total liabilities. Because the BV/S may not reflect the company’s true value, some investors check even the tangible book value to confirm their investment ideas.

      


  • JPMorgan Increases Quarterly Dividend

    JPMorgan (NYSE:JPM) has increased its quarterly dividend to 50 cents from 48 cents. The dividend has an ex-dividend date of April 4. With the dividend the stock now has a forward dividend yield of 2.30%.


    Year to date JPMorgan has a return of 0.86%. Its 12-month return is 46.32%, and its three-year return is 44.64%. It has benefited from a positive outlook on regulations for the banking industry and increasing Federal Reserve interest rates. Momentum has slowed recently with uncertainty around the Trump administration’s new policy proposals for financial services following a lack of support for health care reform.

      


  • Pioneer Investments Exits Wells Fargo, Coca-Cola, Buys Walt Disney

    Pioneer Investment Management operates in wide areas of investment vehicles: mutual funds, single manager hedge funds, funds of hedge funds, structured products, segregated and managed accounts and institutional funds. During the fourth quarter of 2016, the firm traded shares in the following stocks:


    The guru almost closed its stake in Wells Fargo & Co. (WFC). It was reduced by 97.32% with an impact of -0.6% on the portfolio.

      


  • Scott Black Sells Time Warner, Union Pacific, Tegna

    Scott Black (Trades, Portfolio) is the chairman, president, chief investment officer and chief compliance officer at Delphi Management Inc. During the fourth quarter he sold shares in the following stocks:


    The investor exited his position in Time Warner Inc. (TWX) with an impact of -1.52% on the portfolio.

      


  • Microsoft Announces Quarterly Dividend

    Microsoft (NASDAQ:MSFT) has announced a quarterly dividend of 39 cents with an ex-dividend date of May 16 and a payable date of June 8. With the quarterly dividend the firm’s forward dividend yield is now 2.41% which is slightly higher than its trailing 12-month dividend of 2.32%.


    The firm has kept its dividend at 39 cents for the past three quarters.

      


  • The Dodge & Cox Case for Active Investing

    Dodge & Cox (Trades, Portfolio), a mutual fund that can be found among the investing gurus at GuruFocus, is an institutional investor. And, one with a unique style.


    It is a style that has worked. The San Francisco-based firm reports in its year-end message that its flagship Stock Fund had a total return of 21.3% in 2016, well ahead of the 12% posted by the S&P 500 Index.

      


  • Scott Black Continues to Buy Allergan, CVS Health, 6 Others

    Scott Black (Trades, Portfolio) is the chairman, president, chief investment officer and chief compliance officer at Delphi Management Inc. He manages a portfolio composed of 93 stocks with a total value of $171 million. In the third and fourth quarters of 2016 the guru bought shares in the following stocks:


    Southern Missouri Bancorp Inc. (SMBC)

      


  • The Complete List of 4th Quarter 2016 Hedge Fund Letters to Investors

    This wide-ranging list is published here thanks to Vintage Value Investing.


    February 10, 2017

      


  • Will YouTube TV Kill Big Cable?

    YouTube, which has entertained the world with kittens and helped fix innumerable clogged drains, has announced it will launch YouTube TV, a low-cost cable TV service. In other words fewer channels than conventional cable at a lower price. YouTube TV plans to offer some 40 channels for just $35 a month and add a number of features, including a virtual DVR (digital video recorder).


    It’s the latest spinoff from the Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) empire, which wisely purchased YouTube some years ago and has since built it into a powerhouse in its own right. By the end of 2016, fans were watching YouTube 1 billion hours a day.

      


  • Pioneer Investments Boosts JPMorgan, BlackRock, Comcast

    Pioneer Investments (Trades, Portfolio) operates in wide areas of investment vehicles: mutual funds, single manager hedge funds, funds of hedge funds, structured products, segregated and managed accounts and institutional funds. During the fourth quarter the firm bought shares in the following stocks:


    The guru increased its shares in JPMorgan Chase & Co. (JPM) by 107.20% with an impact of 0.97% on the portfolio.

      


  • Joel Greenblatt Cuts Hewlett Packard, Walt Disney, Oracle

    Joel Greenblatt (Trades, Portfolio) is known for the invention of Magic Formula Investing, and founder of the New York Securities Auction Corporation (NYSAC). Greenblatt is founder and managing partner of Gotham Asset Management LLC. During the fourth quarter the guru sold shares in the following stocks:


    The investor reduced his shares in Hewlett Packard Enterprise Co. (HPE) by 68.53% with an impact of -0.84% on the portfolio.

      


  • 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.

      


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