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T. Rowe Price CIO Brian Rogers Joins GuruFocus for Q&A – Ask an Investing Question

Holly LaFon

Holly LaFon

272 followers

GuruFocus welcomes Brian Rogers (Trades, Portfolio) to Q&A with our readers. Brian is chairman and chief investment officer of T. Rowe Price, a firm with $692.4 billion in assets as of Dec. 31, 2013. He is also fund manager of the T. Rowe Price Equity Income Fund (PRFDX), a portfolio with net assets of $28.5 billion, which seeks dividend income and long-term capital growth through investment in value-oriented stocks.

To ask him your investing question, post it in the comments section below. 

Portfolio, Investing and Outlook

After a number of positive developments that sent markets up in 2013, Brian sees a potential correction coming in 2014. He is positive on the outlook for equities in the long run, however, as the U.S. continues to see fundamental and economic data improvement and more confident consumers. These factors may “set the stage for a continuation of the bull market,” he wrote in his fourth quarter commentary.

In the past six months, Rogers has invested most heavily in Deere (DE), Stanley Black & Decker (SWU), GlaxoSmithKline (GSK) and Potash Corporation of Saskatchewan (POT). These companies, he said, “share the common characteristics of attractive valuations, good dividend histories, strong financial positions, and a recent pattern of disappointing stock market returns.”

The top sector allocations of Rogers’ portfolio are Financials (20.7%), Industrials and Business Services (14.3%) and Energy (13.8%).

He commented on his sector allocation going into 2014:

“During the quarter, our stock selection in the energy, consumer staples, and information technology sectors detracted from portfolio results. Stock selection in financials and industrials and business services, plus an overweight allocation to the latter, was beneficial. The portfolio also has fairly high exposure to the consumer discretionary sector, which is composed of a diverse group of industries, including retailers, media companies, diversified consumer services, and automakers. We particularly favor the media industry, where the portfolio holds companies that produce or distribute content and typically generate strong cash flow, much of which is returned to shareholders in the form of dividends and stock buybacks.”

Rogers' largest positions currently are General Electric (GE), JPMorgan Chase (JPM) and Chevron (CVX). Also recently, he has taken significant positions in Apple Inc. (AAPL) and Avon Products (AVN), which has experienced a management change and business restructuring in recent years.

General Electric holding history:

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To ask Brian Rogers (Trades, Portfolio) an investing question, simply post it in the comments section below. We will send the questions to him and publish his responses shortly.

See the T Rowe Price Equity Income Fund portfolio here.


Rating: 5.0/5 (4 votes)

Voters:

Comments

snowballbuilder
Snowballbuilder - 8 months ago

goodmorning mr Rogers , my question is:

how much cash do you take in your fund ?

is the cash position stable or you tend to build up cash while the market become expensive ?

and a last one if is possible: how is your current personal private asset allocation ?

(% cash&cash equiv. , %bond , %equity, %alternative)

thanks and best regards

GANDIV
GANDIV - 8 months ago
Mr Brian Rogers (Trades, Portfolio),

We have known you from your successful investments since you purchase Bharat Forge @ Rs.60 around 2002-03. We are impressed by the cherry picking skills your fund managers have demonstrated.

We being in India are always curious to know of FII flow to India.

As you are well aware of the Indian ground reality, which sectors would receive inflow of FII funds?

Under which scenario you foresee hot money withdrawal from FII?

Regards,

Manish

shb600
Shb600 premium member - 8 months ago

T appears to be much cheap than cable stock competitors. Do you think this is warranted? How will the spinoff GE is doing improve it's PE multiple? Any target? What is a fair value P/B over next few years for large cap banks like WFC,BAC,USB? You are not a concentrated investor. Do you think investors who are very concentrated 10-20 stocks are fooling themselves into thinking they can know ever know all the risks of a stock?

chuckpetersen
Chuckpetersen premium member - 8 months ago

Hi Brian; Is there one global company on your radar that has truly "disruptive" technology that a person could invest in for the next 10 years and have it be a "gamechanger"??? THANK YOU. Chuck Petersen

deeplydiscounted
Deeplydiscounted premium member - 8 months ago

Is NTE a good turn around situation?

iamjvc3
Iamjvc3 premium member - 8 months ago

Brian,

I own TROW shares - so keep up the good work! Can you provide some color on your sell discipline? How do you think about portfolio turnover and position sizing? Thanks.

JVC

angelcriptanense
Angelcriptanense - 8 months ago

What do you think about Aflac? Can be possible a default in Japan who affect to the company?

Thanks

kermitp
Kermitp - 8 months ago

First, Thank you for taking our questions.

When you are considering adding a stock to your portfolio how do you balance between the stocks performance and the dividend performance? How much weight do you give to dividend perfromance and what are some of the guidelines you use to make your final decision to buy or pass on a stock?

Do you consider the high yield dividend stocks at all?

Thanks again

deeplove813
Deeplove813 - 8 months ago

TROW SHARES HERE...............

magoutthere
Magoutthere - 8 months ago

Brian,

Thank you for giving your time to answer questions. What is your view on european banks such as BCS and DB which are below book value? Worthwhile long term investments?

ronb63
Ronb63 - 8 months ago

brian; whats the best oil driller for the next 2-3 years. thanks

chris mydlo
Chris mydlo - 8 months ago

Hello Brian,

Which figure do you use to discount cash flows for you valuations? Some people will use the long-term treasury rate, others will use a historic return of the stock market. The CFA institute uses required return minus growth (r-g).

Thank you,

Chris

Tannor
Tannor premium member - 8 months ago

Hi Brian,

Thanks for taking the time to answer our questions. I have a few questions, any of which I would be more than delighted to have answered.

1st: What percentage of personal assets are invested in the fund.

2nd: What are the most important intangible aspects of a business that you look for? (sound management aside)

3rd: Do you find the mutual fund industry ethics (as a whole) to be out of line with the clients best interests and do you believe marketing/sales costs should be wrapped into the MER? (Essentially having clients pay to collect AUM which usually deteriorates performance)

Thanks again, Cheers.

-Tannor

chiavacci
Chiavacci premium member - 8 months ago

Brian,

Thank you for taking time to answer questions.

If you had to invest 10% of your liquid net worth in one publically traded company and could not sell that position for at least 10 years, what characteristics would you look for?

Or, if you prefer to think of this in terms of 3 or 4 positions representing 30-40% of your net worth, what characteristics would you take into account most?

Furthermore, can you think of any names out today that meet this criteria and would be worth buying?

Thanks again.

andreasv
Andreasv - 8 months ago

Brian,

Thanks for you time. Two question from Germany:

- In the last months we saw quite some up and downs in the price of gold. Which miners would you prefer? And from which miners would you stay away from?
AUY, NEM, GFI, GG, ABX, KGC, IAG, EGO, AU, GOLD, HMY or
PPP, AGI ??

- which Oil services sector or stocks do think will outperfom the other OIL sectors?

Thanks in advance.

Andreas

Calm1
Calm1 - 8 months ago

1. What are a couple of good dividend paying (and growing dividends) companies that you would recommend to buy now as a long term investment (10 year+)?

2. If you had recommend one investing related book or newsletter, what would it be?

Thanks,

zniaz241
Zniaz241 - 8 months ago

Thank you for taking our questions!

1) What are some areas of the market that you view as being inefficient (or, at least, less efficient) because of institutional restrictions (e.g. limited mandates, size, etc) and might allow the diligent individual investor to outperform? Are there spots/markets where you would like to invest, but are limited from doing so because of '40 Act and mutual fund regulations in general? If so, could you elaborate?

2) What are your thoughts on portfolio concentration given this issue seems to divide many in the investment community?

scoobydo
Scoobydo - 8 months ago

What is your outlook for the price of natural gas in 2014?

Thank you.

Please leave your comment:


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