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Guru David Rolfe's Top Five Second Quarter Positions

August 21, 2013 | About:
Monica Wolfe

Monica Wolfe

119 followers
During the second quarter David Rolfe did not add any new holdings, but he did increase his position in 18 different stocks. As of the second quarter, Rolfe holds 21 stocks valued at $3.463 billion.

The following five companies represent Rolfe’s top five positions as of June 30.



Apple (AAPL)

David Rolfe’s largest position is in Apple where he holds 793,439 shares. His position represents 0.08% of the company’s shares outstanding and 9.1% of his total portfolio.

During the second quarter Rolfe upped his stake in Apple 24.36% by adding a total of 1,352,878 shares to his holdings. Rolfe bought these shares in the second quarter price range of $390.53 to $463.84 per share, with an estimated average price of $430.74. Since then the share price has increased approximately 17.9%

Rolfe’s holding history as of the second quarter:

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What Rolfe had to say about Apple:

Apple’s stock continued its streak of absolute and relative underperformance during the second quarter. However, in our view, the Company's long term competitive positioning is strong and intact , particularly due to their aggressive, multibillion dollar re investment in its supply chain, which should bear fruit over a multi year period.

The company designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sell a variety of related software, services, peripherals and networking solutions.

Apple’s historical revenue and net income:

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The Peter Lynch Chart suggests that Apple is currently undervalued:

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Apple has a market cap of $457.87 billion. Its shares are currently trading at around $503.99 with a P/E ratio of 12.50, a P/S ratio of 2.80 and a P/B ratio of 3.90. The company had an annual average earnings growth of 82.7% over the past 10 years.

GuruFocus rated Apple the business predictability rank of 4.5-star.

Berkshire Hathaway (BRK.B)

Rolfe’s second largest position is in Berkshire Hathaway. The guru holds 2,248,214 shares of the company’s stock, representing 0.10% of the company’s shares outstanding and 7.3% of his total portfolio.

During the second quarter Rolfe increased his position by 15.52%. The guru bought 1,975,217 shares in the second quarter price range of $103 to $115.31, with an estimated average price of $110.02. Since then the price per share has increased approximately 4.1%.

Rolfe’s holding history as of the second quarter:

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What Rolfe had to say about Berkshire Hathaway:

We attended the 2013 Berkshire Hathaway (BRK.A)(BRK.B) annual meeting in early May and it was a strong reaffirmation of our investment thesis on Berkshire. The Company's (as well as the Company's key subsidiary companies) considerable competitive position and competitive advantages are intact.

The company is a holding company owning subsidiaries engaged in a number of diverse business activities, including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, service and retailing.

Berkshire Hathaway’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently undervalued:

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Berkshire Hathaway has a business predictability rank of $266.18 billion. Its shares are currently trading around $113.89 per share with a P/E ratio of 14.90, a P/S ratio of 1.50 and a P/B ratio of 1.30.. The company had an annual average earnings growth of 7.8% over the past ten years.

GuruFocus rated Berkshire Hathaway the business predictability rank of 3-star.

Cognizant Technology Solutions (CTSH)

Rolfe’s third largest position belongs to Cognizant Technology Solutions where he holds 3,807,365 shares. His position represents 1.26% of the company’s shares outstanding and 6.9% of his total portfolio.

During the second quarter Rolfe increased his holdings by 105.32% by purchasing 1,952,968 shares. The guru bought these shares in the second quarter price range of $61.35 to $77.66, with an estimated average price of $66.47 per share. Since then, the price per share has increased approximately 7.9%.

Rolfe’s holding history as of the second quarter:

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What Rolfe had to say about Cognizant:

The stock's sharp 20% drop has priced in some onerous assumptions about future revenue growth and margins. Thus, we believe that Cognizant represents an exceptional risk reward proposition regardless of legislative outcome s. As such, we added to our existing position in the shares.

Cognizant Tech Sol is a provider of custom IT consulting and technology services as well as outsourcing services for Global 2000 Companies located in North America, Europe and Asia.

Cognizant’s historical revenue and net income:

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The Peter Lynch Chart suggests that Cognizant is currently overvalued:

1377101777587.png

Cognizant Tech has a market cap of $21.8 billion. Its shares are currently trading at around $72.34 with a P/E ratio of 19.30, a P/S ratio of 2.70 and a P/B ratio of 4.10. The company had an annual average earnings growth of 36% of the past ten years.

GuruFocus rated Cognizant the business predictability rank of 4-star.

Qualcomm (QCOM)

Rolfe’s fourth largest position is in Qualcomm where he holds 3,690,177 shares. His position in the company represents 0.21% of the company’s shares outstanding and 6.5% of his total portfolio.

During the second quarter Rolfe upped his position 23.79% by purchasing 709,103 shares. He bought these shares in the second quarter price range of $59.88 to $66.61, with an estimated average price of $63.80. Since then the share price has increased approximately 4.9%.

Rolfe’s holding history as of the second quarter:

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What Rolfe had to say about Qualcomm:

Qualcomm was one of our poorest performers during the quarter, declining nearly 9%. In fact the shares in this long held position (at approximately $60), are little changed since reaching t hat level in February 2011.

Qualcomm develops designs, manufactures and markets digital wireless telecommunications products and services.

Qualcomm’s historical revenue and net income:

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The Peter Lynch Chart suggests that Qualcomm is currently overvalued:

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Qualcomm currently has a market cap of $114.42 billion. Its shares are currently trading at around $66.70 with a P/E ratio of 17.70, a P/S ratio of 5.00 and a P/B ratio of 3.10. The company had an annual average earnings growth of 14.3% per year.

GuruFocus rated Qualcomm the business predictability rank of 4-star.

EMC Corporation (EMC)

Rolfe’s fifth largest position is in EMC Corporation. As of the close of the second quarter Rolfe held a total of 9,303,186 shares, representing 0.44% of the company’s shares outstanding and 6.3% of his total portfolio.

During the second quarter Rolfe upped his stake by 89.57%. The guru purchased a total of 4,395,752 shares in the price range of $21.50 to $24.99, with an estimated average price of $23.58. Since then the share price has increased approximately 9.9%.

Rolfe’s holding history as of the second quarter:

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What Rolfe had to say about EMC:

During the quarter, we increased our weighting in EMC after the stock had been flat over the trailing 12 months, compared to the over 20% run up in the S&P 500 Index. Combined with EMC's double digit free cash flow generation, the stock has gotten cheaper, in our view, through benign neglect.

The company and its subsidiaries develop, deliver and support the information technology industry's a range of information infrastructure and virtual infrastructure technologies and solutions.

EMC’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently overvalued:

1377104013640.png

EMC Corporation has a market cap of $53.52 billion. Its shares are currently trading at around $25.72 with a P/E ratio of 20.30, a P/S ratio of 2.50 and a P/B ratio of 2.40. EMC had an annual average earnings growth of 18.8% over the past 10 years.

GuruFocus rated EMC the business predictability rank of 3-star.

Check out David Rolfe’s second quarter portfolio here.

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