Jeremy Grantham (Trades, Portfolio) is the Chairman of the Board of Grantham Mayo Van Otterloo, a Boston based asset management firm. The following are his largest trades of the second quarter.
The guru almost closed his stake in Amazon Inc. (AMZN), reducing it by 97.56% with an impact of -2.76% on the portfolio.
Amazon is an online retailer that sells its products through the website which provides services, such as advertising and co-branded credit card agreements. It also offers electronic devices like Kindle e-readers and Fire tablets. During the second quarter, operating cash flow increased 42% and net sales grew 31%. Operating income was $1.3 billion in the second quarter, compared with $464 million in second quarter 2015.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with a ROE of 14.02% and a ROA of 3.21%, which are outperforming 55% of the companies in the Global Specialty Retail industry. Financial strength has a rating of 7 out of 10, with a cash to debt ratio of 2.01, which is above the industry median of 0.94.
The largest shareholder among the gurus is Andreas Halvorsen (Trades, Portfolio) with 0.69% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 0.5%, Chris Davis (Trades, Portfolio) with 0.47%, Spiros Segalas (Trades, Portfolio) with 0.46% and Ken Fisher (Trades, Portfolio) with 0.42%.
The guru almost closed his stake in Charles Schwab Corp. (SCHW) with a decrease of 99.70% and with an impact of -2.32% on the portfolio.
The company is a savings and loan holding company, which through its subsidiaries is engaged in securities brokerage, banking and related financial services. It operates in two segments, namely, Investor Services and Advisor Services. Second quarter revenues grew 17% year-over-year and net income was $452 million, up 10% from $412 million for the first quarter of 2016 and up 28% from $353 million for the second quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with a ROE of 11.24% and a ROA of 0.91%, which are underperforming 55% of the companies in the Global Capital Markets industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 1.65.
Dodge & Cox is the largest shareholder of the company among the gurus, with 7.78% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 4.14%, Frank Sands (Trades, Portfolio) with 2.63% and Chris Davis (Trades, Portfolio) with 1.17%.
The investor almost closed his stake in Charter Communications Inc Class A. (CHTR) with a decrease of 98.33% and with an impact of -1.54% on the portfolio.
The company is a cable operator, providing services in the United States. It offers cable video programming, Internet services and voice services, as well as video services such as video on demand, HD television and DVR service. During the second quarter, adjusted EBITDA of $3.5 billion grew 9.0% year-over-year and, on a pro forma basis, total customer relationships increased 173,000 during the second quarter, compared to 54,000 during the second quarter of 2015.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with a ROA of 35.13% and a ROC of 4.96%, which are outperforming 67% of the companies in the Global Pay TV industry. Financial strength has a rating of 3 out of 10, with a cash to debt ratio of 0.01, which is below the industry median of 0.51.
The largest shareholder among the gurus is Dodge & Cox with 4.19% of outstanding shares, followed by Warren Buffett (Trades, Portfolio) with 3.45%, Steve Mandel (Trades, Portfolio) with 1.77% and Chase Coleman (Trades, Portfolio) with 1.57%.
The guru reduced his stake in Alphabet Inc Class C. (GOOG) by 51.39%, with an impact of -1.4% on the portfolio.
The company, through its subsidiary Google Inc., is engaged in improving the ways people connect with information and products including Search, Android, YouTube, Apps, Maps and Ads. It also produces internet-connected home devices and provides internet services. During the last quarter, revenue grew 21% from the same quarter of a year before and 25% on a constant currency basis, reflecting the successful investments they made over many years in rapidly expanding areas.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10, with a ROE of 14.99% and a ROA 12.24%, which are outperforming 71% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 9 out of 10, with a cash to debt ratio of 18.67, which is above the industry median of 12.90.
Dodge & Cox is the largest shareholder of the company among the gurus, with 0.46%, followed by PRIMECAP Management (Trades, Portfolio) with 0.36%, Chris Davis (Trades, Portfolio) with 0.2%, Frank Sands (Trades, Portfolio) with 0.14% and Mason Hawkins (Trades, Portfolio) with 0.14.
The investor almost exited his stake in Chipotle Mexican Grill Inc Class A. (CMG) with a decrease of 99.62% and with an impact of -1.17% on the portfolio.
It operates Chipotle Mexican Grill restaurants, which serves a menu of burritos, tacos, burrito bowls and salads. Second quarter revenue decreased 16.6% and comparable restaurant sales decreased 23.6%. Diluted earnings per share was 87 cents, a decrease from $4.45.
GuruFocus gives the stock a profitability and growth rating of 9 out of 10, with a ROE of 10.80% and  a ROA of 8.33%, which are outperforming 58% of the companies in the Global Restaurants industry. Financial strength has a rating of 9 out of 10, with no debt.
The largest shareholder of the company among the gurus is Frank Sands (Trades, Portfolio) with 6.17% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 2.01%, Steven Cohen (Trades, Portfolio) with 0.7%, Manning & Napier Advisors Inc. with 0.08% and Mario Cibelli (Trades, Portfolio) with 0.05%.
The investor closed his stake in Baidu Inc ADR. (BIDU), with an impact of -1.11% on the portfolio.
It a Chinese language Internet search provider. The company offers a Chinese-language search platform on its website, Baidu.com. During the second quarter, revenue grew 10.2% from the same quarter of a year before and had a 16.3% year-over-year increase. The company reported 17.4% decrease for operating profit.
GuruFocus gives the stock a profitability and growth rating of 8 out of 10, with a ROA of 43.35% and a ROC of 22.61%, which are outperforming 94% of the companies in the Global Internet Content & Information industry. Financial strength has a rating of 7 out of 10, with a cash to debt ratio of 1.94, which is below the industry median of 12.90.
Frank Sands (Trades, Portfolio) is the largest shareholder of the company among the gurus, with 2.15% of outstanding shares, followed by Dodge & Cox with 1.58%, Sarah Ketterer (Trades, Portfolio) with 0.79% and Ruane Cunniff (Trades, Portfolio) with 0.75%.
The guru reduced his stake in Wal-Mart Stores Inc. (WMT) by 80.71% and with an impact of -0.98% on the portfolio.
The company operates retail stores in various formats under various banners. Its operations comprise of three reportable business segments, Walmart U.S., Walmart International and Sam's Club in three categories- retail, wholesale and others. During the second quarter, total revenue was $120.9 billion, an increase of 0.5% and on a constant currency basis, total revenue was $123.6 billion, an increase of 2.8% and net sales were $31.3 billion, an increase of 2.2%.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10, with a ROE of 18.855% and a ROA of 7.37%, which are outperforming 79% of the companies in the Global Discount Stores industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.16, which is below the industry median of 0.53.
The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 1.29% of outstanding shares, followed by Dodge & Cox with 0.91%, Bill Gates (Trades, Portfolio) with 0.37%, Richard Pzena (Trades, Portfolio) with 0.17% and Ken Fisher (Trades, Portfolio) with 0.16%.
Disclosure:The author holds a long position in WMT, but doesn't hold a position in any other company mentioned in this article at the time of publication, and has no intention of changing that position within the next 72 hours. See my current holdings here.
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