Throughout 2011 and 2012, we reaffirmed our investment thesis with the belief that a return to a more normal rate environment could dramatically increase profitability. Through our meetings with management, we were able to assess the company's investment merits and risks, all in the context of valuation. Schwab's highly scalable business model, excellent market position, growing customer base, focused corporate culture, and capable management team were attractive to us. In addition, founder and Chairman Charles Schwab's ownership stake aligned his interests with those of public investors. These factors remain the underpinnings of our current investment thesis.
After considering the regulatory, interest rate, and credit risks inherent in Schwab's business model, we added to the Fund's position in Schwab multiple times throughout 2011 and 2012. The company stands to benefit from a rise in short-term interest rates. Accordingly, investors have responded to the Fed's recent announcement and Schwab's stock price is up 49% year to date. Schwab is a 2.4% position in the Fund.
From Dodge & Cox's semi-annual 2013 report.