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Buy Quality! GMO Q1 Portfolio Update

“Buy quality!” This is what Jeremy Grantham has been telling investors through his quarterly shareholder letters. Mr. Grantham thinks the high quality companies will perform relatively well. This is what we can see from the trades at GMO in the first quarter.

Jeremy Grantham buys Philip Morris International Inc., Johnson & Johnson, America Movil, Eli Lilly & Co., CVS Caremark Corp., according to the most recent filings of his investment company, GMO LLC. As of 03/31/2011, GMO LLC owns 965 stocks with a total value of $30.1 billion. These are the details of the buys and sells that have the impact to portfolio of more than 0.1%.

In general, Grantham thinks the market is at least 40% overvalued. The US high quality will return in the order of 4% in the coming decade. GMO’s portfolio is heavy with technology and health care sectors.

This is the portfolio chart of Jeremy Grantham. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Jeremy Grantham's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Jeremy+Grantham

This is the sector weightings of his portfolio:

Technology 24.7%
Health Care 20.1%
Consumer Goods 20.1%
Consumer Services 8.6%
Oil & Gas 7.8%
Financials 4.7%
Industrials 4.4%
Telecommunications 2.5%
Basic Materials 1.6%
Utilities 0.4%


These are the top 5 holdings of Jeremy Grantham

  1. JOHNSON & JOHNSON (JNJ) - 27,533,207 shares, 5.41% of the total portfolio. Shares added by 13.77%
  2. Oracle Corp. (ORCL) - 46,741,092 shares, 5.18% of the total portfolio. Shares reduced by 11.33%
  3. Microsoft Corp. (MSFT) - 58,663,732 shares, 4.94% of the total portfolio. Shares reduced by 0.22%
  4. PFIZER INC. (PFE) - 67,328,712 shares, 4.54% of the total portfolio. Shares reduced by 11.51%
  5. PHILIP MORRIS INTERNATIONAL INC. (PM) - 20,121,599 shares, 4.38% of the total portfolio. Shares added by 120.37%


Added: Philip Morris International Inc. (PM)

Jeremy Grantham added to his holdings in Philip Morris International Inc. by 120.37%. His purchase prices were between $56.02 and $65.7, with an estimated average price of $60.39. The impact to his portfolio due to this purchase was 2.39%. His holdings were 20,121,599 shares as of 03/31/2011.

Philip Morris International is the international tobacco company, with products sold in over 160 countries. Philip Morris International Inc. has a market cap of $122.58 billion; its shares were traded at around $68.21 with a P/E ratio of 16.9 and P/S ratio of 1.8. The dividend yield of Philip Morris International Inc. stocks is 3.7%.

Added: Johnson & Johnson (JNJ)

Jeremy Grantham added to his holdings in Johnson & Johnson by 13.77%. His purchase prices were between $57.66 and $63.35, with an estimated average price of $60.71. The impact to his portfolio due to this purchase was 0.65%. His holdings were 27,533,207 shares as of 03/31/2011.

Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson has a market cap of $184.12 billion; its shares were traded at around $67.19 with a P/E ratio of 13.9 and P/S ratio of 2.9. The dividend yield of Johnson & Johnson stocks is 3.3%. Johnson & Johnson had an annual average earnings growth of 9.3% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4-star.

Added: America Movil S.a.b De C.v (AMX)

Jeremy Grantham added to his holdings in America Movil S.a.b De C.v by 160.19%. His purchase prices were between $53.63 and $59, with an estimated average price of $56.87. The impact to his portfolio due to this purchase was 0.33%. His holdings were 2,796,000 shares as of 03/31/2011.

American Movil is the provider of wireless communications services in Mexico. America Movil S.a.b De C.v has a market cap of $103.01 billion; its shares were traded at around $51.12 with a P/E ratio of 14.1 and P/S ratio of 2.1. The dividend yield of America Movil S.a.b De C.v stocks is 1%. America Movil S.a.b De C.v had an annual average earnings growth of 31.9% over the past 10 years. GuruFocus rated America Movil S.a.b De C.v the business predictability rank of 4-star.

Added: Itau Unibanco Banco Multiplo S.a. (ITUB)

Jeremy Grantham added to his holdings in Itau Unibanco Banco Multiplo S.a. by 82.3%. His purchase prices were between $20.81 and $24.53, with an estimated average price of $22.44. The impact to his portfolio due to this purchase was 0.32%. His holdings were 8,892,633 shares as of 03/31/2011.

BANCO ITAU -ADR's main goal is to focus on an equilibrium between growth and profitability, aimed at always generating value for the stockholder in the long run. Itau Unibanco Banco Multiplo S.a. has a market cap of $104.15 billion; its shares were traded at around $22.79 with a P/E ratio of 13.6 and P/S ratio of 1.8. The dividend yield of Itau Unibanco Banco Multiplo S.a. stocks is 0.4%.

Added: Banco Bradesco (BBD)

Jeremy Grantham added to his holdings in Banco Bradesco by 124.03%. His purchase prices were between $17.91 and $20.69, with an estimated average price of $19.35. The impact to his portfolio due to this purchase was 0.23%. His holdings were 5,964,138 shares as of 03/31/2011.

Banco Bradesco's main activities are the provision of banking and insurance services such as private and industrial credit loans, credit cards, mortgaged loans, 24 hour banking, health and life insurance, leasing, pension fund management and services for stock market investors. Banco Bradesco has a market cap of $38 billion; its shares were traded at around $19.87 with a P/E ratio of 12.1 and P/S ratio of 0.8. The dividend yield of Banco Bradesco stocks is 0.6%. Banco Bradesco had an annual average earnings growth of 62.9% over the past 5 years.

Added: Eli Lilly & Co. (LLY)

Jeremy Grantham added to his holdings in Eli Lilly & Co. by 65.59%. His purchase prices were between $33.63 and $35.84, with an estimated average price of $34.79. The impact to his portfolio due to this purchase was 0.2%. His holdings were 4,388,644 shares as of 03/31/2011.

Eli Lilly and Company discovers, develops, manufactures, and sells products in one significant business segment -pharmaceutical products. Eli Lilly & Co. has a market cap of $44.87 billion; its shares were traded at around $38.76 with a P/E ratio of 8 and P/S ratio of 1.9. The dividend yield of Eli Lilly & Co. stocks is 5.1%. Eli Lilly & Co. had an annual average earnings growth of 1.3% over the past 10 years.

Added: Cvs Caremark Corp. (CVS)

Jeremy Grantham added to his holdings in Cvs Caremark Corp. by 405.05%. His purchase prices were between $32.51 and $35.71, with an estimated average price of $33.91. The impact to his portfolio due to this purchase was 0.15%. His holdings were 1,711,475 shares as of 03/31/2011.

CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's pharmaceutical services companies with the country's largest pharmacy chain. Cvs Caremark Corp. has a market cap of $52.25 billion; its shares were traded at around $38.19 with a P/E ratio of 14.3 and P/S ratio of 0.5. The dividend yield of Cvs Caremark Corp. stocks is 1.3%. Cvs Caremark Corp. had an annual average earnings growth of 13.4% over the past 10 years. GuruFocus rated Cvs Caremark Corp. the business predictability rank of 4.5-star.

Added: Telefonos De Mexico Sa De Cv (TMX)

Jeremy Grantham added to his holdings in Telefonos De Mexico Sa De Cv by 75.46%. His purchase prices were between $16.14 and $18.09, with an estimated average price of $17.23. The impact to his portfolio due to this purchase was 0.13%. His holdings were 5,074,271 shares as of 03/31/2011.

Telmex is a world-class telecommunications company that provides total telecommunications solutions to its clients: Local and long distance wire service, wireless communications, multimedia network for video, audio and data, network engineering, digital wireless network access, and Internet. Telefonos De Mexico Sa De Cv has a market cap of $9.18 billion; its shares were traded at around $18.81 with a P/E ratio of 13.7 and P/S ratio of 1.1. The dividend yield of Telefonos De Mexico Sa De Cv stocks is 4.2%.

Added: Research In Motion Ltd. (RIMM)

Jeremy Grantham added to his holdings in Research In Motion Ltd. by 147.57%. His purchase prices were between $55.995 and $69.8625, with an estimated average price of $62.99. The impact to his portfolio due to this purchase was 0.11%. His holdings were 958,100 shares as of 03/31/2011.

RESEARCH IN MOTION is a world leader in the mobile communications market and has a history of developing breakthrough wireless solutions. Research In Motion Ltd. has a market cap of $22.95 billion; its shares were traded at around $43.79 with a P/E ratio of 6.8 and P/S ratio of 1.2. Research In Motion Ltd. had an annual average earnings growth of 53.4% over the past 5 years.

Reduced: Baxter International Inc. (BAX)

Jeremy Grantham reduced to his holdings in Baxter International Inc. by 48.47%. His sale prices were between $48.38 and $53.91, with an estimated average price of $51.16. The impact to his portfolio due to this sale was -0.29%. Jeremy Grantham still held 1,732,100 shares as of 03/31/2011.

Baxter engages in the worldwide development, manufacture and distribution of a diversified line of products, systems and services used primarily in the health-care field. Baxter International Inc. has a market cap of $34.07 billion; its shares were traded at around $59.37 with a P/E ratio of 14.7 and P/S ratio of 2.6. The dividend yield of Baxter International Inc. stocks is 2.1%. Baxter International Inc. had an annual average earnings growth of 6.3% over the past 10 years. GuruFocus rated Baxter International Inc. the business predictability rank of 3.5-star.

Reduced: Home Depot Inc. (HD)

Jeremy Grantham reduced to his holdings in Home Depot Inc. by 80.38%. His sale prices were between $34.38 and $38.48, with an estimated average price of $36.6. The impact to his portfolio due to this sale was -0.25%. Jeremy Grantham still held 447,644 shares as of 03/31/2011.

Home Depot is the one of world's largest home improvement retailer. Home Depot Inc. has a market cap of $59.59 billion; its shares were traded at around $37.29 with a P/E ratio of 18.3 and P/S ratio of 0.9. The dividend yield of Home Depot Inc. stocks is 2.7%. Home Depot Inc. had an annual average earnings growth of 7.4% over the past 10 years.

Reduced: Thermo Fisher Scientific Inc. (TMO)

Jeremy Grantham reduced to his holdings in Thermo Fisher Scientific Inc. by 95.91%. His sale prices were between $52.58 and $57.85, with an estimated average price of $55.9. The impact to his portfolio due to this sale was -0.23%. Jeremy Grantham still held 57,243 shares as of 03/31/2011.

Thermo Fisher Scientific is the world leader in serving science, enabling our customers to make the world healthier, cleaner and safer. Thermo Fisher Scientific Inc. has a market cap of $24.09 billion; its shares were traded at around $61.67 with a P/E ratio of 16.9 and P/S ratio of 2.2. Thermo Fisher Scientific Inc. had an annual average earnings growth of 12.7% over the past 10 years. GuruFocus rated Thermo Fisher Scientific Inc. the business predictability rank of 2.5-star.

Reduced: General Electric (GE)

Jeremy Grantham reduced to his holdings in General Electric by 85.98%. His sale prices were between $18.28 and $21.52, with an estimated average price of $19.96. The impact to his portfolio due to this sale was -0.18%. Jeremy Grantham still held 479,800 shares as of 03/31/2011.

General Electric is one of the largest and most diversified industrial corporations in the world. General Electric has a market cap of $213.86 billion; its shares were traded at around $20.14 with a P/E ratio of 15.9 and P/S ratio of 1.4. The dividend yield of General Electric stocks is 2.8%. General Electric had an annual average earnings growth of 13.1% over the past 10 years.

Reduced: Petroleo Brasileiiro Sa Petrobras (PBR)

Jeremy Grantham reduced to his holdings in Petroleo Brasileiiro Sa Petrobras by 22.19%. His sale prices were between $35.41 and $41.57, with an estimated average price of $38.28. The impact to his portfolio due to this sale was -0.14%. Jeremy Grantham still held 3,652,562 shares as of 03/31/2011.

PETROBRAS-ADR C is an integrated company operating in exploration, production, refining, retailing and transportation of petroleum and its byproducts at home and abroad. Petroleo Brasileiiro Sa Petrobras has a market cap of $125.29 billion; its shares were traded at around $33.67 with a P/E ratio of 8.3 and P/S ratio of 1.1. The dividend yield of Petroleo Brasileiiro Sa Petrobras stocks is 0.4%. Petroleo Brasileiiro Sa Petrobras had an annual average earnings growth of 19.8% over the past 10 years.

Reduced: Mobile Telesystems Ojsc (MBT)

Jeremy Grantham reduced to his holdings in Mobile Telesystems Ojsc by 42.05%. His sale prices were between $18.48 and $21.54, with an estimated average price of $20.15. The impact to his portfolio due to this sale was -0.11%. Jeremy Grantham still held 2,155,767 shares as of 03/31/2011.

MOBILE TELE-ADR mission is to build a integrated mobile communications world, which will bring people together, enrich their lives and open up new horizons, both at work and at home. Mobile Telesystems Ojsc has a market cap of $19.81 billion; its shares were traded at around $20.67 with a P/E ratio of 11 and P/S ratio of 1.8. The dividend yield of Mobile Telesystems Ojsc stocks is 3.9%.

Reduced: Vale S.a. (VALE)

Jeremy Grantham reduced to his holdings in Vale S.a. by 55.16%. His sale prices were between $31.04 and $37.08, with an estimated average price of $34.22. The impact to his portfolio due to this sale was -0.1%. Jeremy Grantham still held 711,041 shares as of 03/31/2011.

VALE RIO DO-ADR is a mining company that specializes in the mining of iron ore and pellets, manganese, alloys, gold, copper, potassium, and kaolin. Vale S.a. has a market cap of $97.93 billion; its shares were traded at around $30.31 with a P/E ratio of 7.4 and P/S ratio of 2.1. Vale S.a. had an annual average earnings growth of 53.5% over the past 10 years.


Rating: 2.9/5 (7 votes)

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