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Guru James Barrow's Third Quarter Top Five

November 13, 2013 | About:
Monica Wolfe

Monica Wolfe

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James Barrow, the manager of Vanguard Windsor II and Selected Value Funds reported his second quarter portfolio. As usual, his portfolio has extremely low turnovers. As of Sept. 30, Barrow, Hanley, Mewhinney & Strauss own 163 stocks with a total value of $62.55 billion.

The fund purchased 4 new stocks over the duration of the third quarter. The following five companies represent the top five stocks in Barrow, Hanley, Mewhinney & Strauss’s third quarter portfolio.

Philip Morris International (PM)

James Barrow’s largest position is in Philip Morris where he holds on to 21,562,204 shares of the company’s stock. The guru’s position represents 3% of his total portfolio and 1.33% of the company’s shares outstanding.

Over the past quarter Barrow made a slight increase to his position in the company. The guru increased his holdings 0.88% by purchasing 188,922 shares. He bought these shares in the third quarter price range of $82.95 to $90.54, with an estimated average quarterly price of $87.43 per share. Since his buy the price per share has gone up about 2.2%.

Barrow’s holding history as of the close of the third quarter:



Philip Morris and its subsidiaries and affiliates are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the U.S. Its portfolio comprises both international and local brands.

Philip Morris’ historical revenue and net income:



The analysis on Philip Morris reports that the company’s revenue has been in decline over the past year, its price is nearing a 10-year high, they have issued $9.8 billion in debt over the past three years, its dividend yield is at a three-year high and its operating margin is expanding.

The top three guru shareholders of Philip Morris International:

1. James Barrow: 21,562,204 shares, representing 1.33% of the company’s shares outstanding and 3% of his total portfolio.

2. Jeremy Grantham: 15,857,175 shares, representing 0.98% of the company’s shares outstanding and 3.6% of his total portfolio.

3. Tom Russo: 9,191,748 shares, representing 0.57% of the company’s shares outstanding and 9.3% of his total portfolio.

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



Philip Morris has a market cap of $143.79 billion. Its shares are currently trading at around $89.75 with a P/E ratio of 17.30 and a P/S ratio of 1.90. The dividend yield of Philip Morris International stocks is 3.90%. The company had an annual average earnings growth of 14.50% over the past five years.

Wells Fargo & Co (WFC)

Barrow’s second largest holding is in Wells Fargo where he maintains 43,209,254 shares of the company’s stock. The guru’s position in Wells Fargo represents 2.9% of his entire portfolio holdings and 0.81% of the company’s shares outstanding.

During the third quarter Barrow increased his position by 0.63%. Barrow purchased a total of 270,340 shares in the price range of $41.08 to $44.63, with an estimated average quarterly price of $42.69 per share. Since his buy the price per share has dropped approximately -1%.

Barrow’s historical holding history:



Wells Fargo is a financial services companies, providing a range of retail banking and brokerage, asset and wealth management and corporate and investment banking products and services to customers.

Wells Fargo’s historical revenue and net income:



The analysis on Wells Fargo reports that the company’s operating margin is expanding, its dividend yield is close to a 3-year high, its price is near a 10-year high and its revenue has been in decline over the past three years.

The top guru shareholders of WFC:

1. Warren Buffett: 463,131,623 shares, representing 8.72% of the company’s shares outstanding and 21.5% of his entire portfolio.

2. Dodge & Cox: 74,139,268 shares, representing 1.4% of the company’s shares outstanding and 3.6% of his total portfolio.

3. Chris Davis: 60,400,962 shares, representing 1.14% of the company’s shares outstanding and 6.3% of his total portfolio.

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



Wells Fargo has a market cap of $222.71 billion. Its shares were traded at around $42.28 with a P/E ratio of 11.10, a P/S ratio of 2.70 and a P/B ratio of 1.50. The company offers a dividend yield of 2.60%. Wells Fargo had an annual average earnings growth of 1.60% over the past ten years.

Medtronic (MDT)

The guru’s third largest position goes to Medtronic where he owns 32,327,133 shares of the company’s stock. His holdings make up for 2.8% of his entire portfolio and 3.21% of the company’s shares outstanding.

During the third quarter Barrow increased his holdings by a slight 0.25%. The guru purchased 82,111 shares in the quarterly price range of $51.51 to $55.88, with an estimated average quarterly price of $53.81 per share. Since then the price per share has gone up about 7.4%.

Barrow’s historical holdings history:



The company is engaged in providing medical technology- alleviating pain, restoring health, and extending life for people. Medtronic develops, manufactures, and markets its medical devices in more than 140 countries.

Medtronic’s historical revenue and net income:



The analysis on Medtronic reports that the company has shown predictable revenue and earnings growth as well as an expanding operating margin. It also notes that the company’s dividend yield is near a 3-year low, it has issued $411 million in debt over the past three years and the price is sitting at around its 10-year high.

The top guru shareholders of Medtronic:

1. James Barrow: 32,327,133 shares, representing 3.21% of the company’s shares outstanding.

2. PRIMECAP: 32,130,321 shares, representing 3.19% of the company’s shares outstanding.

3. Vanguard Health Care Fund: 10,532,800, representing 1.05% of the company’s shares out.

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



Medtronic has a market cap of $57.74 billion. Its shares are currently trading at around $57.89 with a P/E ratio of 16.50, a P/S ratio of 3.60 and a P/B ratio of 3.20. The company had an annual average earnings growth of 5.60% over the past ten years.

GuruFocus rated Medtronic the business predictability rank of 3.5-star.

Pfizer (PFE)

The guru’s fourth largest holding is in Pfizer where he maintains 60,897,666 shares of the company’s stock. Barrow’s position represents 2.8% of his entire portfolio holdings and 0.92% of Pfizer’s shares outstanding.

During the third quarter Barrow purchased 66,702 shares, representing a 0.11% increase to his holdings in the company. The guru bought these shares in the quarterly price range of $27.65 to $29.67, with an estimated average quarterly price of $28.68 per share. Since then the price per share is up about 9.7%.

James Barrow’s holding history as of the third quarter:



Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions which include areas of immunology, inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain.

Pfizer’s historical revenue and net income:



The analysis on Pfizer reports that the company’s revenue has been in decline over the past year, the dividend yield is near a 5-year low, the price is near a 5-year high and its operating margin is expanding.

The top guru shareholders of Pfizer:

1. Dodge & Cox: 68,191,798 shares representing 1.03% of the company’s shares outstanding and 2.3% of their total portfolio.

2. James Barrow: 60,897,666 shares representing 0.92% of the company’s shares outstanding and 2.8% of his total assets managed.

3. Jeremy Grantham: 58,022,697 shares representing 0.88% of the company’s shares outstanding and 4.2% of his total portfolio.

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



Pfizer has a market cap of $204.61 billion. Its shares are currently trading at around $31.57 with a P/E ratio of 8.90, a P/S ratio of 4.00 and a P/B ratio of 2.60. Pfizer’s stock currently holds a dividend yield of 3.10%. The company had an annual average earnings growth of 4.80% over the past ten years.

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

JPMorgan Chase (JPM)

James Barrow’s fifth largest stock is JPMorgan Chase where he holds on to 32,794,291 shares of the company’s stock. His position in JPMorgan represents 2.7% of his total portfolio as well as 0.87% of the company’s shares outstanding.

During the third quarter he upped his stake 1.88% by purchasing a total of 604,098 shares of company stock. He purchased these shares in the quarterly price range of $50.32 to $56.67, with an estimated average quarterly price of $53.64 per share. Since then the price per share is up a minor 0.4%.

Barrow’s historical holding history:



JPMorgan Chase is a financial services firm and banking institutions in the United States of America with operations worldwide.

JPMorgan Chase’s historical revenue and net income:



The analysis on the company reports that JPMorgan Chase’s dividend yield is close to a one-year low, their operating margin is expanding, the company has shown predictable revenue and earnings growth and the price is nearing a 10-year high.

The top guru shareholders of JPMorgan Chase:

1. James Barrow: 32,794,291 shares, representing 0.87% of the company’s shares outstanding and 2.7% of his total portfolio.

2. Brian Rogers: 13,781,200 shares, representing 0.37% of the company’s shares outstanding and 2.7% of his total assets managed.

3. Ken Fisher: 13,148,692 shares, representing 0.35% of the company’s shares outstanding and 1.7% of his total portfolio.

The Peter Lynch Chart suggests that JPMorgan is currently undervalued:



JPMorgan Chase has a market cap of $200.89 billion. Its shares are currently trading at around $53.44 with a P/E ratio of 12.1, a P/S ratio of 2.10 and a P/B ratio of 1.00. The dividend yield of JPMorgan is at 2.50%. The company had an annual average earnings growth of 6.00% over the past ten years.

GuruFocus rated JPMorgan Chase the business predictability rank of 3.5-star.

Check out James Barrow’s complete third quarter portfolio here.

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Rating: 4.5/5 (2 votes)

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