Rogers told investors in his second quarter letter he was moving out of certain sectors.
“By the end of the period, we were net sellers of financials, health care, and industrials and business services stocks, and we replaced them with companies in the consumer discretionary sector and other areas where we currently are finding better value.”
He also gave his take on the economy, saying he is optimistic about the outlook for stocks overall:
“We don't expect to see a repeat of the expansion in price/earnings multiples that drove stocks last year. Stocks are more likely to be influenced by corporate earnings growth, which we think will continue at a moderate pace through the rest of the year. Valuations are reasonable from a historical perspective-not overly expensive but not undervalued either-and we believe stock market performance should be more or less in line with the rate of earnings growth. We would not be surprised to see a correction on the order of 5% or 10%, but equities face little competition from other investments at the moment, with low money market and bond yields. We don't expect the bull market to end anytime soon, although further advances are likely to be more muted than they were in 2013.”
Rogers’ three new second quarter stocks are: Qualcomm Inc. (NASDAQ:QCOM), IBM (NYSE:IBM) and ConAgra Foods Inc. (NYSE:CAG).
Qualcomm Inc. (NASDAQ:QCOM)
Rogers purchased 1.75 million shares of Qualcomm in the second quarter, when the price averaged $80. The holding comprises 0.49% of his portfolio.
Qualcomm Inc. (Qualcomm) in the state of Delaware, develops designs, manufactures and markets digital wireless telecommunications products and services. Qualcomm Inc. has a market cap of $134.08 billion; its shares were traded at around $79.44 with a P/E ratio of 19.80 and P/S ratio of 5.40. The dividend yield of Qualcomm Inc. stocks is 1.80%. Qualcomm Inc. had an annual average earnings growth of 14.0% over the past 10 years. GuruFocus rated Qualcomm Inc. the business predictability rank of 5-star.
Rogers purchased 750,000 shares of IBM in the second quarter, when it had an average price of $188. The holding is 0.48% of his portfolio.
IBM Corp was incorporated in the State of New York on June 16, 1911. IBM Corp has a market cap of $190.79 billion; its shares were traded at around $188.49 with a P/E ratio of 13.0 and P/S ratio of 2.10. The dividend yield of IBM Corp stocks is 2.10%. IBM Corp had an annual average earnings growth of 11.10% over the past 10 years. GuruFocus rated IBM Corp the business predictability rank of 4.5-star.
ConAgra Foods (NYSE:CAG)
Rogers purchased 250,000 shares of ConAgra Foods, which had an average price of $31. The holding represents 0.026% of his portfolio.
ConAgra Foods Inc. was initially incorporated as a Nebraska corporation in 1919 and was reincorporated as a Delaware corporation in December 1975. Conagra Foods Inc. has a market cap of $13.03 billion; its shares were traded at around $30.95 with a P/E ratio of 16.0 and P/S ratio of 0.70. The dividend yield of Conagra Foods Inc. stocks is 3.20%. Conagra Foods Inc. had an annual average earnings growth of 5.30% over the past 10 years.
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