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Wedgewood Partners’ David Rolfe Buys Apple Inc., Priceline.com Inc., Monster Beverage Corp

February 14, 2013 | About:
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Wedgewood Partners just reported its fourth quarter portfolio. Under the leadership of the firm’s CIO David Rolfe, the firm has performed well. It finished 2012 with a gain of 22.54%. Over the past 10 years, the firm has averaged 10.5%, almost doubling the gain of S&P 500 in the same period.

David Rolfe initiated positions in Priceline.com, Inc., Monster Beverage Corp. He also bought more Apple, Berkshire Hathaway, Qualcomm, Cummins etc during the 3-months ended 12/31/2012, according to the most recent filings of his investment company, Wedgewood Partners, Inc. As of 12/31/2012, Wedgewood Partners, Inc. owns 22 stocks with a total value of $2.2 billion. These are the details of the buys and sells.

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

These are the top 5 holdings of David Rolfe

  1. Apple Inc (AAPL) - 401,515 shares, 9.9% of the total portfolio. Shares added by 65.4%
  2. Berkshire Hathaway Inc (BRK.B) - 1,891,093 shares, 7.9% of the total portfolio. Shares added by 24.08%
  3. Qualcomm, Inc. (QCOM) - 2,166,917 shares, 6.2% of the total portfolio. Shares added by 31.04%
  4. Cummins Inc (CMI) - 1,208,181 shares, 6.1% of the total portfolio. Shares added by 28.59%
  5. Google, Inc. (GOOG) - 183,375 shares, 6.0% of the total portfolio. Shares added by 13.39%


New Purchase: Priceline.com, Inc. (PCLN)

David Rolfe initiated holdings in Priceline.com, Inc.. His purchase prices were between $557.87 and $667.8, with an estimated average price of $619.86. The impact to his portfolio due to this purchase was 3%. His holdings were 104,729 shares as of 12/31/2012. Priceline.com, Inc. was formed as a Delaware limited liability company in 1997 and was converted into a Delaware corporation in July 1998. Priceline.com, Inc. has a market cap of $35.11 billion; its shares were traded at around $702.96 with a P/E ratio of 26.5957 and P/S ratio of 7.1378. Priceline.com, Inc. had an annual average earnings growth of 54.7% over the past 5 years.

Regarding to his purchase of Priceline, he wrote: “We think that Priceline.com has been able to generate superior ROIC, relative to its peer group, because of its rapidly increasing scale in the international hotel industry, which is a highly fragmented market. Rather than face the daunting task of advertising across several different languages, cultural preferences and mediums, over 200,000 of these international hotels have turned to Booking.com to list inventory.”

New Purchase: Monster Beverage Corp (MNST)

David Rolfe initiated holdings in Monster Beverage Corp. His purchase prices were between $41.08 and $58.42, with an estimated average price of $50.59. The impact to his portfolio due to this purchase was 2.7%. His holdings were 1,114,919 shares as of 12/31/2012. Monster Beverage Corp was formerly known as Hansen Natural Corporation was incorporated in Delaware on April 25, 1990. Monster Beverage Corp has a market cap of $8.17 billion; its shares were traded at around $47.58 with a P/E ratio of 26.2467 and P/S ratio of 4.4209. Monster Beverage Corp had an annual average earnings growth of 58% over the past 10 years. GuruFocus rated Monster Beverage Corp the business predictability rank of 3-star.

Regarding to his purchase of Monster Beverage, he wrote: “Monster's form-factor and pricing strategy were pioneering elements to the energy drink category, however, the Company continues to meticulously curate the Monster Energy brand by exclusively focusing on unconventional marketing mediums and innovative offerings. For instance, through the first 11 months of 2012, new products drove almost one-third of Monster's US unit growth. The Company recently launched a noncarbonated, low-carb, energy drink line, Monster Rehab, that includes tea-based and noncitrus flavors, and has quickly become one of the Company's most successful products, we estimate generating almost 10% of US gross revenues during 2011, after launching in February of the same year. Further, Monster's brand awareness is cultivated through non-traditional mediums, with, we estimate, less that 10% of the Company's marketing budget dedicated to conventional mediums such as radio, television, newspaper and online. Most of the Company's marketing focus is on audiences of unconventional and emerging sports such as motocross, BMX racing, snowboarding, skiing, Formula 1 and Professional Bull Riders. This is in contrast to many of Monster's rivals that typically apply more conventional methods to their marketing efforts.

We think that there is ample room for growth as the Company's sales represent less than 25% of the US energy drink market, yet Monster recently became the market share leader in the US, in terms of units sold. Outside of the US, there is a very large, untapped market where in many countries. Currently, about 20% of Monster's gross sales are generated outside of the US. Despite having populated international countries for an average of about 3 years, Monster has already generated unit sales that are a quarter of Red Bull's, while Red Bull has over 20 years experience in international markets. We think Monster's rapid market share take is a testament to the international portability of the Brand and the market's ability and willingness to support two large players, many years into the future.”

Added: Apple Inc (AAPL)

David Rolfe added to his holdings in Apple Inc by 65.4%. His purchase prices were between $509.59 and $671.45, with an estimated average price of $577.16. The impact to his portfolio due to this purchase was 3.91%. His holdings were 401,515 shares as of 12/31/2012. Apple Inc is a California corporation founded in 1977. Apple Inc has a market cap of $438.55 billion; its shares were traded at around $465.51 with a P/E ratio of 10.5932 and P/S ratio of 2.6846. The dividend yield of Apple Inc stocks is 1.7%. Apple Inc had an annual average earnings growth of 81.6% over the past 10 years. GuruFocus rated Apple Inc the business predictability rank of 4.5-star.

David Wolfe has been a long term investor of Apple. His firm benefited from Apple tremendously. He is a strong believer of Apple.

Added: Berkshire Hathaway Inc (BRK.B)

David Rolfe added to his holdings in Berkshire Hathaway Inc by 24.08%. His purchase prices were between $84.58 and $90.69, with an estimated average price of $88.09. The impact to his portfolio due to this purchase was 1.53%. His holdings were 1,891,093 shares as of 12/31/2012. Berkshire Hathaway Inc., is domiciled in the state of Delaware. Berkshire Hathaway Inc has a market cap of $230.25 billion; its shares were traded at around $97.79 with a P/E ratio of 17.3611 and P/S ratio of 1.4843. Berkshire Hathaway Inc had an annual average earnings growth of 4.5% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc the business predictability rank of 2-star.

Added: Qualcomm, Inc. (QCOM)

David Rolfe added to his holdings in Qualcomm, Inc. by 31.04%. His purchase prices were between $57.43 and $64.35, with an estimated average price of $61.36. The impact to his portfolio due to this purchase was 1.47%. His holdings were 2,166,917 shares as of 12/31/2012. Qualcomm Incorporated (Qualcomm) in the state of Delaware, develops designs, manufactures and markets digital wireless telecommunications products and services. Qualcomm, Inc. has a market cap of $112.45 billion; its shares were traded at around $65.26 with a P/E ratio of 19.6078 and P/S ratio of 5.5928. The dividend yield of Qualcomm, Inc. stocks is 1.47%. Qualcomm, Inc. had an annual average earnings growth of 14% over the past 10 years. GuruFocus rated Qualcomm, Inc. the business predictability rank of 4-star.

Added: Cummins Inc (CMI)

David Rolfe added to his holdings in Cummins Inc by 28.59%. His purchase prices were between $86.49 and $108.67, with an estimated average price of $98.11. The impact to his portfolio due to this purchase was 1.36%. His holdings were 1,208,181 shares as of 12/31/2012. Cummins Inc. was founded in 1919 in Columbus, Indiana as one of the first diesel engine manufacturers. Cummins Inc has a market cap of $22.63 billion; its shares were traded at around $118.88 with a P/E ratio of 12.4224 and P/S ratio of 1.261. The dividend yield of Cummins Inc stocks is 1.51%. Cummins Inc had an annual average earnings growth of 20.6% over the past 10 years. GuruFocus rated Cummins Inc the business predictability rank of 3-star.

Added: Express Scripts (ESRX)

David Rolfe added to his holdings in Express Scripts by 30.02%. His purchase prices were between $50.05 and $65.45, with an estimated average price of $57.19. The impact to his portfolio due to this purchase was 1.22%. His holdings were 2,109,953 shares as of 12/31/2012. Express Scripts, Inc. was incorporated in Missouri in September 1986, and reincorporated in Delaware in March 1992. Express Scripts has a market cap of $45.25 billion; its shares were traded at around $55.4 with a P/E ratio of 33.3333 and P/S ratio of 0.4645. Express Scripts had an annual average earnings growth of 25.6% over the past 10 years. GuruFocus rated Express Scripts the business predictability rank of 5-star.

Added: Charles Schwab Corp (SCHW)

David Rolfe added to his holdings in Charles Schwab Corp by 31.81%. His purchase prices were between $12.5 and $14.47, with an estimated average price of $13.37. The impact to his portfolio due to this purchase was 1.11%. His holdings were 6,887,034 shares as of 12/31/2012. Charles Schwab Corp was incorporated in Delaware in 1986. Charles Schwab Corp has a market cap of $21.57 billion; its shares were traded at around $16.89 with a P/E ratio of 24.4499 and P/S ratio of 4.4863. The dividend yield of Charles Schwab Corp stocks is 1.42%. Charles Schwab Corp had an annual average earnings growth of 9.6% over the past 10 years.

Here is the complete portfolio of David Rolfe. Also check out:

1. David Rolfe's Undervalued Stocks

2. David Rolfe's Top Growth Companies, and

3. David Rolfe's High Yield stocks


Rating: 2.0/5 (2 votes)

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