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Dodge & Cox’s Q3 Portfolio Updates: Buys Liberty Ventures, Google, Duke Energy and Allstate
Posted by: Dianne Tordillo (IP Logged)
Date: November 14, 2012 01:55PM

San Francisco-based Dodge & Cox reported a total of 24 updates to its portfolio in the third quarter consisting of:

Additions to Current Shares 6
New Buys 4
Reductions to Current Shares 10
Sold Out 4


Dodge & Cox practices a meticulous research-based and team-oriented process in investment decision making, looking to its investment committees made up of Dodge & Cox veterans who brilliantly and intensely provide analyses and ideas for specific investments and its roles in the overall portfolio.

The firm values a long-term approach and a strict price discipline when it comes to investing, and steers clear of popular choices that come at a price “they would rather not pay.” Below is an excerpt of its investment approach (from dodgeandcox.com):

“From the earliest days, Dodge & Cox’s investment approach has stressed evaluation of risk relative to opportunity. A strict price discipline — steering clear of popular choices that come at a price premium we would rather not pay — is critical to achieving our investment objectives. Low valuation investments, for example, typically reflect low investor expectations that may serve as a buffer against the risk of significant price decline; these low expectations may also create greater potential for capital appreciation should investor pessimism turn out to be unwarranted or short-lived. At all times, our ongoing search for superior relative value is guided by a rigorous research process that seeks to differentiate the short-term concerns that may be temporarily depressing an investment from the intractable, long-term problems that could doom it.”


As of the end of the third quarter, Dodge & Cox’s portfolio included 165 stocks, with a total value of almost $77 billion, and a quarter-over-quarter turnover rate of 2 percent.

Currently, Dodge & Cox’s top holdings are: Comcast Corp. (CMCSA), Novartis AG (NVS), Wells Fargo (WFC), Capital One Financial (COF) and GlaxoSmithKline PLC (GSK).

The fund’s portfolio sector weightings is as follows:

Consumer Services 18.7%
Health Care 18.7%
Financials 18.4%
Technology 16.3%
Industrials 10%
Oil & Gas 8.2%
Telecom 3.7%
Consumer Goods 2.6%
Utilities 1.1%


Below are Dodge & Cox’s four newest additions to its portfolio in the third quarter.

Liberty Ventures (LVNTA)

Dodge & Cox’s new holding of business investment firm, Liberty Ventures (LVNTA) amounts to 218,214 shares. With a market cap of $2 billion, Liberty Ventures is currently trading at $56.02, beyond its former maximum price of $50.74. It also once traded at a minimum price of $40.52.

Google Inc. (GOOG)

Dodge & Cox’s new holding of search engine giant, Google (GOOG) amounts to 727,450 shares. Google has a market cap of $216.85 billion and is currently trading at $656.89 per share. Google has pretty solid Financial Strength and Profitability and Growth ranks, both at 9 out of 10. While its Business Predictability rank is only 2.5 stars, its P/E ratio of 20.4 is actually close to its 10-year low, and overall, its per share revenue and operating margin shows growth and expansion. View Google’s 10-Year Financials to view its current financial standings.

Duke Energy Corp. (DUK)

Dodge & Cox’s new holding of energy stock Duke Energy Corp (DUK) amounts to 38,605 shares. Duke has a market cap of $43.63 billion, a P/E ratio of 18.4, a P/B ratio of 1.2 and a P/S ratio of 3. Its Financial Strength rank of 4 and Profitability and Growth rank of 8 explains its lack of Business Predictability.

While its revenue is experiencing a downhill slope, its net margin is doing the opposite with a positive trendline. Visit its 10-Year Financials to see where the company stands financially.


Allstate Corp. (ALL)

Dodge & Cox’s tiny new new holding of insurance provider, Allstate Corp. (ALL) amounts to 5,580 shares. Allstate has a market cap of $18.78 billion, a P/E (ttm) ratio of 9.3, a P/B ratio of a 0.9 (near its 3-year high) and a P/S ratio of 0.6 (near its three-year high). Allstate is currently trading at $38.71 per share, up almost 2% in afternoon trading. With only one star in Business Predictability, Allstate experiences a negative free cash flow growth in a 10-year time frame, at a negative rate of 3.1 percent, while its revenue growth trends the opposite direction, with a positive rate of 4.5 percent in a 10-year time frame. View Allstate’s 10-Year Financials to see where it stands financially.

View the rest of Dodge & Cox’s portfolio updates here. Also view the funds’ undervalued stocks, top growth companies and high yield stocks.



Guru Discussed: Dodge & Cox: Current Portfolio, Stock Picks
Stocks Discussed: LVNTA, GOOG, DUK, ALL,
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