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GMO Latest Portfolio Update: Buys HANS, HPQ, IBM, MMM, Sells XOM, QCOM, V, MA

gurufocus

gurufocus

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GMO Latest Portfolio Update: Buys MNST, HPQ, IBM, MMM, Sells XOM, QCOM, V, MA

Global investment firm GMO, led by legendary investor Jeremy Grantham, just reported their third quarter portfolio. The firm has close to $100 billion under management. As of 12/31/2011, GMO LLC owns 726 stocks with a total value of $31.9 billion. These are the details of the buys and sells that have the impact to portfolio of more than 0.1%.

Over the past few years, GMO has been focusing on large cap high quality stocks for their investment portfolio. This can also be seen from their recent moves reported here.

Jeremy Grantham has been talking about high quality for many years. But what are high quality to him? This is his quote on quality: It is unbelievably ordinary: high return, and stable return and low debt. It is very similar to Moody’s ratings, and S&P ratings. Quality is quality, everybody knows it. If you have high and stable returns, and you can set the price, you are the price setter. You can only do that if you are a great franchise company. If you can do it, you don’t need any debt so you don’t have it. So to us, high quality companies are Coca-Cola (KO), Microsoft (MSFT), and Merck (MRK).

Jeremy Grantham’s definition of high quality companies is very similar to Warren Buffett’s. Warren Buffett said many times that he prefers buying good companies at fair prices than buying fair companies at good prices. His good companies have:

  • Proven and predictable revenue and earnings growth
  • Sustainable price power and gross margin (moat)
  • Managed by capable people
Again, GMO’s purchases over the last quarter focus on large cap quality companies. This has been very rewarding. As indicated in their latest quarterly update, over the past year, the US Quality portfolio gained 11.84%, bettering the S&P500 by 9.73%. This portfolio did the best among all the strategies GMO offer over the past year.

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 27.6%
Health Care 21.6%
Consumer Goods 18.9%
Consumer Services 9.5%
Oil & Gas 8.3%
Financials 4.2%
Industrials 3.6%
Telecom 2.3%
Basic Materials 1.4%
Not Assigned 1.1%
Utilities 0.4%


These are the top 5 holdings of Jeremy Grantham

  1. Microsoft Corp. (MSFT) - 67,736,118 shares, 5.5% of the total portfolio. Shares added by 6.8%
  2. Johnson & Johnson (JNJ) - 26,117,874 shares, 5.4% of the total portfolio. Shares added by 3.37%
  3. Philip Morris International (PM) - 19,015,418 shares, 4.7% of the total portfolio. Shares added by 1.54%
  4. Google Inc. (GOOG) - 2,278,268 shares, 4.6% of the total portfolio. Shares added by 11.35%
  5. Pfizer Inc. (PFE) - 62,524,808 shares, 4.2% of the total portfolio. Shares added by 0.47%



Sold Out: Ishares Msci Emerging Market Income Etf (EEM)

Jeremy Grantham sold out his holdings in Ishares Msci Emerging Market Income Etf. His sale prices were between $34.36 and $42.76, with an estimated average price of $38.76.

Added: Hewlettpackard Co. (HPQ)

Jeremy Grantham added to his holdings in Hewlettpackard Co. by 431.74%. His purchase prices were between $22.2 and $28.24, with an estimated average price of $26.24. The impact to his portfolio due to this purchase was 1.38%. His holdings were 21,258,554 shares as of 12/31/2011.

Added: 3m Co. (MMM)

Jeremy Grantham added to his holdings in 3m Co. by 140.55%. His purchase prices were between $70.93 and $82.29, with an estimated average price of $78.95. The impact to his portfolio due to this purchase was 0.88%. His holdings were 5,885,660 shares as of 12/31/2011.

Added: International Business Machines Corp (IBM)

Jeremy Grantham added to his holdings in International Business Machines Corp by 35.63%. His purchase prices were between $173.29 and $194.56, with an estimated average price of $184.45. The impact to his portfolio due to this purchase was 0.66%. His holdings were 4,271,012 shares as of 12/31/2011.

Added: Lowes Cos. (LOW)

Jeremy Grantham added to his holdings in Lowes Cos. by 132.81%. His purchase prices were between $18.98 and $25.96, with an estimated average price of $22.77. The impact to his portfolio due to this purchase was 0.63%. His holdings were 14,214,976 shares as of 12/31/2011.

Added: Target Corp. (TGT)

Jeremy Grantham added to his holdings in Target Corp. by 53.8%. His purchase prices were between $47.8 and $55.79, with an estimated average price of $52.58. The impact to his portfolio due to this purchase was 0.49%. His holdings were 8,493,551 shares as of 12/31/2011.

Added: Google Inc. (GOOG)

Jeremy Grantham added to his holdings in Google Inc. by 11.35%. His purchase prices were between $495.52 and $645.9, with an estimated average price of $592. The impact to his portfolio due to this purchase was 0.47%. His holdings were 2,278,268 shares as of 12/31/2011.

Added: Microsoft Corp. (MSFT)

Jeremy Grantham added to his holdings in Microsoft Corp. by 6.8%. His purchase prices were between $24.3 and $27.31, with an estimated average price of $26.12. The impact to his portfolio due to this purchase was 0.35%. His holdings were 67,736,118 shares as of 12/31/2011.

Added: Express Scripts Inc. (ESRX)

Jeremy Grantham added to his holdings in Express Scripts Inc. by 37.17%. His purchase prices were between $35.71 and $48.32, with an estimated average price of $43.29. The impact to his portfolio due to this purchase was 0.3%. His holdings were 8,075,215 shares as of 12/31/2011.

Added: Colgatepalmolive Co. (CL)

Jeremy Grantham added to his holdings in Colgatepalmolive Co. by 23.06%. His purchase prices were between $86.48 and $93.92, with an estimated average price of $90.12. The impact to his portfolio due to this purchase was 0.28%. His holdings were 5,196,629 shares as of 12/31/2011.

Added: Lorillard (LO)

Jeremy Grantham added to his holdings in Lorillard by 50.71%. His purchase prices were between $107.08 and $118.47, with an estimated average price of $111.63. The impact to his portfolio due to this purchase was 0.23%. His holdings were 1,862,055 shares as of 12/31/2011.

Added: Itau Unibanco Holding S.a. Ads (ITUB)

Jeremy Grantham added to his holdings in Itau Unibanco Holding S.a. Ads by 46.77%. His purchase prices were between $15.17 and $19.75, with an estimated average price of $17.86. The impact to his portfolio due to this purchase was 0.2%. His holdings were 10,892,733 shares as of 12/31/2011.

Added: Johnson & Johnson (JNJ)

Jeremy Grantham added to his holdings in Johnson & Johnson by 3.37%. His purchase prices were between $61.27 and $66.02, with an estimated average price of $63.97. The impact to his portfolio due to this purchase was 0.18%. His holdings were 26,117,874 shares as of 12/31/2011.

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

Jeremy Grantham added to his holdings in America Movil S.a.b. De C.v. Ads by 50.21%. His purchase prices were between $21.5 and $26.42, with an estimated average price of $23.57. The impact to his portfolio due to this purchase was 0.14%. His holdings were 6,027,960 shares as of 12/31/2011.

Added: Pepsico Inc. (PEP)

Jeremy Grantham added to his holdings in Pepsico Inc. by 5.63%. His purchase prices were between $60.29 and $66.57, with an estimated average price of $63.32. The impact to his portfolio due to this purchase was 0.13%. His holdings were 12,087,304 shares as of 12/31/2011.

Added: Canadian Natural Resources Ltd (CNQ)

Jeremy Grantham added to his holdings in Canadian Natural Resources Ltd by 74.57%. His purchase prices were between $27.43 and $38.22, with an estimated average price of $34.59. The impact to his portfolio due to this purchase was 0.12%. His holdings were 2,332,532 shares as of 12/31/2011.

Added: Cocacola Co. (KO)

Jeremy Grantham added to his holdings in Cocacola Co. by 2.84%. His purchase prices were between $64.74 and $70.16, with an estimated average price of $67.33. The impact to his portfolio due to this purchase was 0.12%. His holdings were 19,070,098 shares as of 12/31/2011.

Added: Vanguard Msci Emerging Markets Etf (VWO)

Jeremy Grantham added to his holdings in Vanguard Msci Emerging Markets Etf by 22.15%. His purchase prices were between $35.2 and $43.47, with an estimated average price of $39.5. The impact to his portfolio due to this purchase was 0.11%. His holdings were 4,838,918 shares as of 12/31/2011.

Added: Zimmer Holdings Inc. (ZMH)

Jeremy Grantham added to his holdings in Zimmer Holdings Inc. by 20.34%. His purchase prices were between $47.41 and $55, with an estimated average price of $51.41. The impact to his portfolio due to this purchase was 0.1%. His holdings were 3,579,889 shares as of 12/31/2011.

Added: El Paso Corp. (EP)

Jeremy Grantham added to his holdings in El Paso Corp. by 11771.3%. His purchase prices were between $17.13 and $26.57, with an estimated average price of $24.03. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,199,000 shares as of 12/31/2011.

Added: Infosys Ltd. (INFY)

Jeremy Grantham added to his holdings in Infosys Ltd. by 83.34%. His purchase prices were between $49.35 and $60.87, with an estimated average price of $53.94. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,419,780 shares as of 12/31/2011.

Added: Gerdau S.a. Ads (GGB)

Jeremy Grantham added to his holdings in Gerdau S.a. Ads by 388.22%. His purchase prices were between $6.84 and $9.47, with an estimated average price of $7.99. The impact to his portfolio due to this purchase was 0.1%. His holdings were 5,317,950 shares as of 12/31/2011.

Added: Enbridge Inc. (ENB)

Jeremy Grantham added to his holdings in Enbridge Inc. by 309.04%. His purchase prices were between $30.93 and $37.42, with an estimated average price of $34.56. The impact to his portfolio due to this purchase was 0.1%. His holdings were 1,117,100 shares as of 12/31/2011.

Reduced: Exxon Mobil Corp. (XOM)

Jeremy Grantham reduced to his holdings in Exxon Mobil Corp. by 21.15%. His sale prices were between $71.15 and $85.28, with an estimated average price of $78.88. The impact to his portfolio due to this sale was -0.52%. Jeremy Grantham still held 7,694,033 shares as of 12/31/2011.

Reduced: Qualcomm Inc. (QCOM)

Jeremy Grantham reduced to his holdings in Qualcomm Inc. by 21.9%. His sale prices were between $47.65 and $57.4, with an estimated average price of $53.69. The impact to his portfolio due to this sale was -0.4%. Jeremy Grantham still held 8,477,811 shares as of 12/31/2011.

Reduced: Mastercard Cl A (MA)

Jeremy Grantham reduced to his holdings in Mastercard Cl A by 32.41%. His sale prices were between $307.66 and $380.96, with an estimated average price of $352.67. The impact to his portfolio due to this sale was -0.37%. Jeremy Grantham still held 699,628 shares as of 12/31/2011.

Reduced: Visa (V)

Jeremy Grantham reduced to his holdings in Visa by 28.59%. His sale prices were between $84.26 and $103.15, with an estimated average price of $93.81. The impact to his portfolio due to this sale was -0.37%. Jeremy Grantham still held 3,070,088 shares as of 12/31/2011.

Reduced: Altria Group Inc. (MO)

Jeremy Grantham reduced to his holdings in Altria Group Inc. by 91.32%. His sale prices were between $26.5 and $30.31, with an estimated average price of $27.98. The impact to his portfolio due to this sale was -0.33%. Jeremy Grantham still held 335,402 shares as of 12/31/2011.

Reduced: Eli Lilly & Co. (LLY)

Jeremy Grantham reduced to his holdings in Eli Lilly & Co. by 40.6%. His sale prices were between $35.58 and $41.75, with an estimated average price of $38.33. The impact to his portfolio due to this sale was -0.29%. Jeremy Grantham still held 3,282,746 shares as of 12/31/2011.

Reduced: Gilead Sciences Inc. (GILD)

Jeremy Grantham reduced to his holdings in Gilead Sciences Inc. by 62.23%. His sale prices were between $36.26 and $42.79, with an estimated average price of $39.97. The impact to his portfolio due to this sale was -0.2%. Jeremy Grantham still held 882,651 shares as of 12/31/2011.

Reduced: Wellpoint Inc. (WLP)

Jeremy Grantham reduced to his holdings in Wellpoint Inc. by 55.1%. His sale prices were between $62.32 and $70.75, with an estimated average price of $66.85. The impact to his portfolio due to this sale was -0.18%. Jeremy Grantham still held 636,254 shares as of 12/31/2011.

Reduced: Medco Health Solutions Inc. (MHS)

Jeremy Grantham reduced to his holdings in Medco Health Solutions Inc. by 68.74%. His sale prices were between $45.64 and $58.11, with an estimated average price of $53.41. The impact to his portfolio due to this sale was -0.17%. Jeremy Grantham still held 472,463 shares as of 12/31/2011.

Reduced: Kimberlyclark Corp. (KMB)

Jeremy Grantham reduced to his holdings in Kimberlyclark Corp. by 39.09%. His sale prices were between $68.52 and $74, with an estimated average price of $70.9. The impact to his portfolio due to this sale was -0.13%. Jeremy Grantham still held 815,303 shares as of 12/31/2011.

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gurufocus
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