Limited by his fund’s size, Bill Nygren invests mostly in high quality large cap stocks. To him, “the price-to-earnings ratio looks pretty reasonable.” Bill Nygren buys Automatic Data Processing Inc., Johnson & Johnson, sells Morgan Stanley during the 3-months ended 09/30/2009, according to the most recent filings of his investment company, Oak Mark Fund. Bill Nygren owns 54 stocks with a total value of $3 billion. These are the details of the buys and sells.
This is the sector weightings of his portfolio:
These are the top 5 holdings of Bill Nygren
Mcdonald's Corp. has a market cap of $67.63 billion; its shares were traded at around $61.97 with a P/E ratio of 16.3 and P/S ratio of 2.9. The dividend yield of Mcdonald's Corp. stocks is 3.3%. Mcdonald's Corp. had an annual average earning growth of 7.2% over the past 10 years.
Walmart Stores Inc. has a market cap of $209.97 billion; its shares were traded at around $54.44 with a P/E ratio of 15.5 and P/S ratio of 0.5. The dividend yield of Walmart Stores Inc. stocks is 2%. Walmart Stores Inc. had an annual average earning growth of 13.3% over the past 10 years. GuruFocus rated Walmart Stores Inc. the business predictability rank of 5-star.
Oracle Corporation is one of the world's leading suppliers of software for information management. The company develops, manufactures, markets and distributes computer software that helps corporations manage and grow their businesses. The company's software products can be categorized intotwo broad areas: Systems software and Internet business applications software. Oracle Corp. has a market cap of $113.5 billion; its shares were traded at around $22.64 with a P/E ratio of 16.2 and P/S ratio of 4.9. The dividend yield of Oracle Corp. stocks is 0.9%. Oracle Corp. had an annual average earning growth of 18.2% over the past 10 years. GuruFocus rated Oracle Corp. the business predictability rank of 3-star.
EnCana Corporation is one of the world's largest independent natural gas producers and gas storage operators. Encana Corp. has a market cap of $39.09 billion; its shares were traded at around $52.11 with a P/E ratio of 12.7 and P/S ratio of 1.3. The dividend yield of Encana Corp. stocks is 3.1%. Encana Corp. had an annual average earning growth of 34% over the past 5 years.
Bank of New York is a bank holding company and one of the world's larger financial institutions. They provide comprehensive financial services to individuals, small and mid-sized businesses, multinational corporations, financial institutions, governments and public agencies worldwide. Their products and services are organized into five business lines: Securities Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate Banking, Global Markets and Retail Banking. Bank Of Ny Mellon Cp has a market cap of $32.18 billion; its shares were traded at around $26.75 with a P/E ratio of 10.5 and P/S ratio of 2.5. The dividend yield of Bank Of Ny Mellon Cp stocks is 1.4%.
Automatic Data Processing, Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. ADP Employer Services offers a comprehensive range of payroll, human resources, benefits administration, time and attendance, tax filing and reporting, professional employer organization, compliance management and retirement plan services to employers in the United States, Canada, Europe and Latin America. Automatic Data Processing Inc. has a market cap of $21.69 billion; its shares were traded at around $43.19 with a P/E ratio of 18 and P/S ratio of 2.5. The dividend yield of Automatic Data Processing Inc. stocks is 3%. Automatic Data Processing Inc. had an annual average earning growth of 4.1% over the past 10 years. GuruFocus rated Automatic Data Processing Inc. the business predictability rank of 4-star.
This is the commentary of Bill Nygren regarding to ADP:
ADP is the global leader in payroll processing and related employer services. ADP is generally viewed as one of the safest and most consistent growth companies. We concur with that view, and we believe that its cash-rich balance sheet and lack of debt add to its high quality. Because of that, investors have usually rewarded ADP with a premium valuation. Its price-to-earnings ratio has averaged in the mid-20s over the past 20 years, and it hit nearly 30 times earnings in 2007 when the stock reached $52. Like many extremely high-quality companies, ADP stock largely missed the post-March 9th rally, increasing by 22% while the S&P 500 increased by 58%. With the stock selling at only 16 times trailing earnings and yielding 3.4% (which is more than a 10 year government bond) we believe that this attractive company is now also an attractive stock.
Johnson & Johnson has a market cap of $176.81 billion; its shares were traded at around $64.16 with a P/E ratio of 14.1 and P/S ratio of 2.7. The dividend yield of Johnson & Johnson stocks is 3.1%. Johnson & Johnson had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 5-star.
The Black & Decker Corporation is a global marketer and manufacturer of quality products used in and around the home and for commercial applications. The Corporation is one of the world's leading producers of power tools, power tool accessories, and residential security hardware, and the Corporation's product lines hold leading market share positions in these industries. They are a major global supplier of engineered fastening and assembly systems. They are also one of the leading producers of faucets in North America. Black & Decker Corp. The has a market cap of $3.68 billion; its shares were traded at around $61.13 with a P/E ratio of 24.6 and P/S ratio of 0.6. The dividend yield of Black & Decker Corp. The stocks is 0.8%. Black & Decker Corp. The had an annual average earning growth of 7.7% over the past 10 years.
Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Its businesses include some of the world's most recognized and respected brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, Expedia and News Corporation. Liberty Media Corp. Interactive Common S has a market cap of $6.08 billion; its shares were traded at around $10.72 with and P/S ratio of 0.8. Liberty Media Corp. Interactive Common S had an annual average earning growth of 20.8% over the past 5 years.
Diageo is an multinational branded food and drinks company. Diageo has an outstanding portfolio of world-famous food and drinks brands include Smirnoff, Johnnie Walker, J&B, Gordon's, Malibu, Baileys, Guinness and Tanqueray. Diageo Plc has a market cap of $42.86 billion; its shares were traded at around $68.58 with and P/S ratio of 2.9. The dividend yield of Diageo Plc stocks is 3.3%. Diageo Plc had an annual average earning growth of 12.1% over the past 10 years.
Fedex Corp. has a market cap of $26.86 billion; its shares were traded at around $85.94 with a P/E ratio of 27.7 and P/S ratio of 0.7. The dividend yield of Fedex Corp. stocks is 0.5%. Fedex Corp. had an annual average earning growth of 17.7% over the past 10 years.
Kohl's Corporation operates family oriented, specialty department stores primarily in the Midwest, Mid-Atlantic and Northeast areas of the United States that feature quality, national brand merchandise priced to provide exceptional value to customers. The company's stores sell moderately priced apparel, shoes, accessories and home products targeted to middle-income customers shopping for their families and homes. Kohl's stores feature easily accessible locations, well laid out stores, central checkout and good in-stock. Kohl's Corp. has a market cap of $16.56 billion; its shares were traded at around $54.18 with a P/E ratio of 18.5 and P/S ratio of 1. Kohl's Corp. had an annual average earning growth of 21% over the past 10 years. GuruFocus rated Kohl's Corp. the business predictability rank of 4-star.
Capital One Financial is a holding company whose subsidiaries provide a variety of products and services to consumers using its proprietary information-based strategy. The corporation's principal subsidiary, Capital One Bank offers credit card products. Capital One Services, Inc., another subsidiary of the corporation, provides various operating, administrative and other services to the corporation and its subsidiaries. Capital One Financial Corp. has a market cap of $16.8 billion; its shares were traded at around $36.92 with and P/S ratio of 1. The dividend yield of Capital One Financial Corp. stocks is 0.5%. Capital One Financial Corp. had an annual average earning growth of 16.3% over the past 10 years.
Morgan Stanley has a market cap of $41.05 billion; its shares were traded at around $30.2 with and P/S ratio of 0.7. The dividend yield of Morgan Stanley stocks is 0.6%. Morgan Stanley had an annual average earning growth of 27.3% over the past 10 years.
- New Purchases: ADP, JNJ,
- Added Positions: BK, ECA, MCD, ORCL, WMT,
- Reduced Positions: BDK, COF, DEO, FDX, KSS, LINTA,
- Sold Out: MS,
This is the sector weightings of his portfolio:
| Consumer Services | 31.6% |
| Industrials | 15.3% |
| Technology | 13.9% |
| Financials | 11.3% |
| Consumer Goods | 7.3% |
| Health Care | 6.6% |
| Oil & Gas | 2.2% |
These are the top 5 holdings of Bill Nygren
- LIBERTY MEDIA CORPORATION - SERIES A LIBERTY ENTER (LMDIA) - 3,098,680 shares, 3.22% of the total portfolio
- Intel Corp. (INTC) - 3,950,000 shares, 2.58% of the total portfolio
- Walgreen Company (WAG) - 2,000,000 shares, 2.5% of the total portfolio
- HewlettPackard Company (HPQ) - 1,475,000 shares, 2.32% of the total portfolio
- ScheringPlough Corp. (SGP) - 2,431,135 shares, 2.29% of the total portfolio
Added: Mcdonald's Corp. (MCD, Financial)
Bill Nygren added to his holdings in Mcdonald's Corp. by 50.51%. His purchase prices were between $54.23 and $58.82, with an estimated average price of $56.25. The impact to his portfolio due to this purchase was 0.57%. His holdings were 894,000 shares as of 09/30/2009.Mcdonald's Corp. has a market cap of $67.63 billion; its shares were traded at around $61.97 with a P/E ratio of 16.3 and P/S ratio of 2.9. The dividend yield of Mcdonald's Corp. stocks is 3.3%. Mcdonald's Corp. had an annual average earning growth of 7.2% over the past 10 years.
Added: Walmart Stores Inc. (WMT, Financial)
Bill Nygren added to his holdings in Walmart Stores Inc. by 33.33%. His purchase prices were between $47.57 and $51.88, with an estimated average price of $49.98. The impact to his portfolio due to this purchase was 0.49%. His holdings were 1,200,000 shares as of 09/30/2009.Walmart Stores Inc. has a market cap of $209.97 billion; its shares were traded at around $54.44 with a P/E ratio of 15.5 and P/S ratio of 0.5. The dividend yield of Walmart Stores Inc. stocks is 2%. Walmart Stores Inc. had an annual average earning growth of 13.3% over the past 10 years. GuruFocus rated Walmart Stores Inc. the business predictability rank of 5-star.
Added: Oracle Corp. (ORCL, Financial)
Bill Nygren added to his holdings in Oracle Corp. by 42.86%. His purchase prices were between $20.18 and $22.86, with an estimated average price of $21.66. The impact to his portfolio due to this purchase was 0.42%. His holdings were 2,000,000 shares as of 09/30/2009.Oracle Corporation is one of the world's leading suppliers of software for information management. The company develops, manufactures, markets and distributes computer software that helps corporations manage and grow their businesses. The company's software products can be categorized intotwo broad areas: Systems software and Internet business applications software. Oracle Corp. has a market cap of $113.5 billion; its shares were traded at around $22.64 with a P/E ratio of 16.2 and P/S ratio of 4.9. The dividend yield of Oracle Corp. stocks is 0.9%. Oracle Corp. had an annual average earning growth of 18.2% over the past 10 years. GuruFocus rated Oracle Corp. the business predictability rank of 3-star.
Added: EnCana Corp. (ECA, Financial)
Bill Nygren added to his holdings in Encana Corp. by 21.05%. His purchase prices were between $44.8 and $58.97, with an estimated average price of $52.45. The impact to his portfolio due to this purchase was 0.38%. His holdings were 1,150,000 shares as of 09/30/2009.EnCana Corporation is one of the world's largest independent natural gas producers and gas storage operators. Encana Corp. has a market cap of $39.09 billion; its shares were traded at around $52.11 with a P/E ratio of 12.7 and P/S ratio of 1.3. The dividend yield of Encana Corp. stocks is 3.1%. Encana Corp. had an annual average earning growth of 34% over the past 5 years.
Added: Bank Of NY Mellon Cp (BK, Financial)
Bill Nygren added to his holdings in Bank Of Ny Mellon Cp by 16.31%. His purchase prices were between $26.74 and $30.74, with an estimated average price of $28.66. The impact to his portfolio due to this purchase was 0.29%. His holdings were 2,139,630 shares as of 09/30/2009.Bank of New York is a bank holding company and one of the world's larger financial institutions. They provide comprehensive financial services to individuals, small and mid-sized businesses, multinational corporations, financial institutions, governments and public agencies worldwide. Their products and services are organized into five business lines: Securities Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate Banking, Global Markets and Retail Banking. Bank Of Ny Mellon Cp has a market cap of $32.18 billion; its shares were traded at around $26.75 with a P/E ratio of 10.5 and P/S ratio of 2.5. The dividend yield of Bank Of Ny Mellon Cp stocks is 1.4%.
New Purchase: Automatic Data Processing Inc. (ADP, Financial)
Bill Nygren initiated holdings in Automatic Data Processing Inc.. His purchase prices were between $33.33 and $39.88, with an estimated average price of $37.42. The impact to his portfolio due to this purchase was 1.31%. His holdings were 1,000,000 shares as of 09/30/2009.Automatic Data Processing, Inc. is one of the largest providers of computerized transaction processing, data communication, and information services in the world. ADP Employer Services offers a comprehensive range of payroll, human resources, benefits administration, time and attendance, tax filing and reporting, professional employer organization, compliance management and retirement plan services to employers in the United States, Canada, Europe and Latin America. Automatic Data Processing Inc. has a market cap of $21.69 billion; its shares were traded at around $43.19 with a P/E ratio of 18 and P/S ratio of 2.5. The dividend yield of Automatic Data Processing Inc. stocks is 3%. Automatic Data Processing Inc. had an annual average earning growth of 4.1% over the past 10 years. GuruFocus rated Automatic Data Processing Inc. the business predictability rank of 4-star.
This is the commentary of Bill Nygren regarding to ADP:
ADP is the global leader in payroll processing and related employer services. ADP is generally viewed as one of the safest and most consistent growth companies. We concur with that view, and we believe that its cash-rich balance sheet and lack of debt add to its high quality. Because of that, investors have usually rewarded ADP with a premium valuation. Its price-to-earnings ratio has averaged in the mid-20s over the past 20 years, and it hit nearly 30 times earnings in 2007 when the stock reached $52. Like many extremely high-quality companies, ADP stock largely missed the post-March 9th rally, increasing by 22% while the S&P 500 increased by 58%. With the stock selling at only 16 times trailing earnings and yielding 3.4% (which is more than a 10 year government bond) we believe that this attractive company is now also an attractive stock.
New Purchase: Johnson & Johnson (JNJ, Financial)
Bill Nygren initiated holdings in Johnson & Johnson. His purchase prices were between $55.97 and $61.79, with an estimated average price of $59.99. The impact to his portfolio due to this purchase was 1.12%. His holdings were 550,000 shares as of 09/30/2009.Johnson & Johnson has a market cap of $176.81 billion; its shares were traded at around $64.16 with a P/E ratio of 14.1 and P/S ratio of 2.7. The dividend yield of Johnson & Johnson stocks is 3.1%. Johnson & Johnson had an annual average earning growth of 12.5% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 5-star.
This is Bill Nygren’s commentary about JNJ:
JNJ is the world’s largest healthcare company. Their products are highly diversified across pharmaceuticals, devices, diagnostics and consumer products. JNJ has been a highly admired company for a long time. Their expanding portfolio of innovative products that solve health problems for a growing and aging population has allowed them to increase both earnings and dividends at double-digit rates for several decades. That translated to a high price-earnings ratio and made JNJ one of many companies we admired, but couldn’t justify purchasing. In 2001, when JNJ first sold for more than $60, the company earned $1.91 per share, for a price-earnings ratio of over 30 times. Today, with expected earnings approaching $5 per share, the price-earnings ratio of just over 12 times is lower than JNJ’s average price-earnings ratio in any of the past twenty years. And its yield of over 3% is also near historic highs. We aren’t oblivious to the change that is coming in healthcare, but we believe that newly insured consumers will increase usage which will be an important offset to new pricing pressures. As often happens, a negative news environment has caused investors to worry about doomsday scenarios. This leads to a much lower stock price that we deem to be a bargain.[i][/i]
Reduced: Black & Decker Corp. The (BDK, Financial)
Bill Nygren reduced to his holdings in Black & Decker Corp. The by 21.43%. His sale prices were between $26.7 and $49.71, with an estimated average price of $39.72. The impact to his portfolio due to this sale was -0.36%. Bill Nygren still held 1,100,000 shares as of 09/30/2009.The Black & Decker Corporation is a global marketer and manufacturer of quality products used in and around the home and for commercial applications. The Corporation is one of the world's leading producers of power tools, power tool accessories, and residential security hardware, and the Corporation's product lines hold leading market share positions in these industries. They are a major global supplier of engineered fastening and assembly systems. They are also one of the leading producers of faucets in North America. Black & Decker Corp. The has a market cap of $3.68 billion; its shares were traded at around $61.13 with a P/E ratio of 24.6 and P/S ratio of 0.6. The dividend yield of Black & Decker Corp. The stocks is 0.8%. Black & Decker Corp. The had an annual average earning growth of 7.7% over the past 10 years.
Reduced: Liberty Media Corp. Interactive Common S (LINTA, Financial)
Bill Nygren reduced to his holdings in Liberty Media Corp. Interactive Common S by 29.73%. His sale prices were between $4.7 and $11.34, with an estimated average price of $8.36. The impact to his portfolio due to this sale was -0.44%. Bill Nygren still held 4,005,000 shares as of 09/30/2009.Liberty Media Corporation owns a broad range of electronic retailing, media, communications and entertainment businesses and investments. Its businesses include some of the world's most recognized and respected brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, Expedia and News Corporation. Liberty Media Corp. Interactive Common S has a market cap of $6.08 billion; its shares were traded at around $10.72 with and P/S ratio of 0.8. Liberty Media Corp. Interactive Common S had an annual average earning growth of 20.8% over the past 5 years.
Reduced: Diageo Plc (DEO, Financial)
Bill Nygren reduced to his holdings in Diageo Plc by 24.57%. His sale prices were between $56.42 and $64.44, with an estimated average price of $61.32. The impact to his portfolio due to this sale was -0.46%. Bill Nygren still held 921,000 shares as of 09/30/2009.Diageo is an multinational branded food and drinks company. Diageo has an outstanding portfolio of world-famous food and drinks brands include Smirnoff, Johnnie Walker, J&B, Gordon's, Malibu, Baileys, Guinness and Tanqueray. Diageo Plc has a market cap of $42.86 billion; its shares were traded at around $68.58 with and P/S ratio of 2.9. The dividend yield of Diageo Plc stocks is 3.3%. Diageo Plc had an annual average earning growth of 12.1% over the past 10 years.
Reduced: Fedex Corp. (FDX, Financial)
Bill Nygren reduced to his holdings in Fedex Corp. by 23.81%. His sale prices were between $53.36 and $78.88, with an estimated average price of $66.75. The impact to his portfolio due to this sale was -0.48%. Bill Nygren still held 800,000 shares as of 09/30/2009.Fedex Corp. has a market cap of $26.86 billion; its shares were traded at around $85.94 with a P/E ratio of 27.7 and P/S ratio of 0.7. The dividend yield of Fedex Corp. stocks is 0.5%. Fedex Corp. had an annual average earning growth of 17.7% over the past 10 years.
Reduced: Kohl's Corp. (KSS, Financial)
Bill Nygren reduced to his holdings in Kohl's Corp. by 35.5%. His sale prices were between $41.46 and $56.39, with an estimated average price of $50.71. The impact to his portfolio due to this sale was -0.49%. Bill Nygren still held 726,900 shares as of 09/30/2009.Kohl's Corporation operates family oriented, specialty department stores primarily in the Midwest, Mid-Atlantic and Northeast areas of the United States that feature quality, national brand merchandise priced to provide exceptional value to customers. The company's stores sell moderately priced apparel, shoes, accessories and home products targeted to middle-income customers shopping for their families and homes. Kohl's stores feature easily accessible locations, well laid out stores, central checkout and good in-stock. Kohl's Corp. has a market cap of $16.56 billion; its shares were traded at around $54.18 with a P/E ratio of 18.5 and P/S ratio of 1. Kohl's Corp. had an annual average earning growth of 21% over the past 10 years. GuruFocus rated Kohl's Corp. the business predictability rank of 4-star.
Reduced: Capital One Financial Corp. (COF)
Bill Nygren reduced to his holdings in Capital One Financial Corp. by 44.28%. His sale prices were between $20.47 and $38.32, with an estimated average price of $31.97. The impact to his portfolio due to this sale was -0.89%. Bill Nygren still held 1,679,800 shares as of 09/30/2009.Capital One Financial is a holding company whose subsidiaries provide a variety of products and services to consumers using its proprietary information-based strategy. The corporation's principal subsidiary, Capital One Bank offers credit card products. Capital One Services, Inc., another subsidiary of the corporation, provides various operating, administrative and other services to the corporation and its subsidiaries. Capital One Financial Corp. has a market cap of $16.8 billion; its shares were traded at around $36.92 with and P/S ratio of 1. The dividend yield of Capital One Financial Corp. stocks is 0.5%. Capital One Financial Corp. had an annual average earning growth of 16.3% over the past 10 years.
Sold Out: Morgan Stanley (MS)
Bill Nygren sold out his holdings in Morgan Stanley. His sale prices were between $25.5 and $32.98, with an estimated average price of $28.98.Morgan Stanley has a market cap of $41.05 billion; its shares were traded at around $30.2 with and P/S ratio of 0.7. The dividend yield of Morgan Stanley stocks is 0.6%. Morgan Stanley had an annual average earning growth of 27.3% over the past 10 years.
