Understanding the Investment Shifts of a Storied Firm in Q4 2023
Dodge & Cox (Trades, Portfolio), a venerable investment firm established in 1930, has long been recognized for its collective research approach and value-oriented investment philosophy. The firm's Investment Policy Committees are at the heart of its decision-making process, ensuring that investment choices are the product of collaborative thought and a shared commitment to finding superior relative value. This strategy is rooted in the belief that investing in undervalued assets offers the best potential for capital growth, with a focus on long-term ownership of companies whose future financial prospects are not yet reflected in their current market valuations.
Summary of New Buys
Dodge & Cox (Trades, Portfolio) welcomed a total of 6 new stocks to its portfolio in the fourth quarter of 2023. Noteworthy new acquisitions include:
- International Flavors & Fragrances Inc (IFF, Financial), with 15,440,725 shares, making up 0.79% of the portfolio and valued at $1.25 billion.
- Broadcom Inc (AVGO, Financial), comprising 55,745 shares, which accounts for roughly 0.04% of the portfolio, with a total value of $62,225,540.
- HDFC Bank Ltd (HDB, Financial), with 561,469 shares, representing 0.02% of the portfolio and a total value of $37,680,190.
Key Position Increases
The firm also bolstered its stakes in 32 existing holdings, with significant increases in:
- Avantor Inc (AVTR, Financial), adding 47,904,427 shares for a total of 61,196,331 shares, marking a 360.4% surge in share count and a 0.7% portfolio impact, valued at $1.39 billion.
- RTX Corp (RTX, Financial), with an additional 9,659,760 shares, bringing the total to 42,189,300 shares. This represents a 29.7% increase in share count, with a total value of $3.54 billion.
Summary of Sold Out Positions
In a significant move, Dodge & Cox (Trades, Portfolio) exited 4 holdings entirely in the last quarter of 2023, including:
- VMware Inc (VMW, Financial), selling all 19,732,814 shares, which had a -2.21% impact on the portfolio.
- Liberty Global Ltd (LBTYK, Financial), liquidating all 8,961,768 shares, causing a -0.11% portfolio impact.
Key Position Reductions
Concurrently, the firm reduced its position in 111 stocks. The most substantial reductions were seen in:
- UBS Group AG (UBS, Financial), cutting 44,571,466 shares, resulting in a -32.56% decrease and a -0.74% portfolio impact. UBS traded at an average price of $26.3 during the quarter and has seen a 9.07% return over the past 3 months and a -10.13% year-to-date change.
- Dell Technologies Inc (DELL, Financial), with a -97.78% reduction of 10,730,269 shares, impacting the portfolio by -0.5%. Dell's average trading price was $70.68 for the quarter, with a 14.30% return over the past 3 months and an 8.98% year-to-date increase.
Portfolio Overview
As of the fourth quarter of 2023, Dodge & Cox (Trades, Portfolio)'s portfolio comprised 195 stocks. The top holdings included 3.78% in Charles Schwab Corp (SCHW, Financial), 3.67% in Wells Fargo & Co (WFC, Financial), 3.07% in Occidental Petroleum Corp (OXY, Financial), 2.94% in Fiserv Inc (FI, Financial), and 2.8% in Alphabet Inc (GOOG, Financial). The firm's investments are predominantly concentrated across 11 industries, reflecting a diverse yet focused approach to value investing.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
