Chris Davis Trims Praxair, American Express, Costco Positions

Guru's largest sales of the 4th quarter

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Feb 15, 2018
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Chris Davis (TradesPortfolio) is the portfolio manager of the Davis Financial Fund. He sold shares of the following stocks in the fourth quarter.

The guru reduced his Praxair Inc. (PX, Financial) holding by 99.69%, impacting the portfolio by -1.51%.

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The industrial gas supplier has a market cap of $44.04 billion and an enterprise value of $59.92 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. The return on equity (ROE) of 21.78% and return on assets (ROA) of 6.25% are outperforming 59% of companies in the Global Specialty Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.07 is below the industry median of 0.75.

First Eagle Investment (Trades, Portfolio) is the company's largest shareholder among the gurus with 0.76% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 0.52% and Diamond Hill Capital (Trades, Portfolio) with 0.37%.

Davis trimmed his CarMax Inc. (KMX, Financial) position by 99.86%. The trade had an impact of -1.31% on the portfolio.

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The auto dealership has a market cap of $11.46 billion and an enterprise value of $24.45 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. While the ROE of 22.01% is outperforming the sector, the ROA of 4.20% is underperforming 51% of companies in the Global Auto and Truck Dealerships industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.19 is below the industry median of 0.48.

The company's largest guru shareholder is PRIMECAP with 0.77% of outstanding shares, followed by Ruane Cunniff (Trades, Portfolio) with 5.32% and Chuck Akre (Trades, Portfolio) with 2.85%.

The Delphi Technologies PLC (DLPH, Financial) position was cut 80.42%. The transaction had an impact of -1.21% on the portfolio.

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The auto parts supplier, which manufactures integrated powertrain technologies, has a market cap of $4.5 billion and an enterprise value of $5.36 billion.

GuruFocus gives the company a profitability and growth rating of 3 out of 10. The ROE of 33.74% and ROA of 11.80% are outperforming 87% of companies in the Global Auto Parts industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.12 is below the industry median of 0.59.

Larry Robbins (Trades, Portfolio) is the company's largest shareholder among the gurus with 2.68% of outstanding shares, followed by Bill Nygren (Trades, Portfolio) with 2.48%, Davis with 0.8% and Jeremy Grantham (Trades, Portfolio) with 0.16%.

The investor reduced his American Express Co. (AXP, Financial) stake by 28.57%, impacting the portfolio by -1.2%.

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The credit card company has a market cap of $81.23 billion and an enterprise value of $106.17 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. While the ROE of 12.89% is outperforming the sector, the ROA of 1.63% is underperforming 51% of companies in the Global Credit Services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.56 is below the industry median of 0.61.

With 17.65% of outstanding shares, Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder, followed by Dodge & Cox with 3.13%.

Davis curbed his UnitedHealth Group Inc. (UNH, Financial) holding by 94.89%. The trade had an impact of -1.03% on the portfolio.

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The diversified health care company has a market cap of $219.63 billion and an enterprise value of $235.83 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The ROE of 24.16% and ROA of 7.79% are outperforming 68% of companies in the Global Health Care Plans industry. Its financial strength is rated 6 out of 10 with a cash-debt ratio of 0.49.

Of the gurus invested in the company, the Vanguard Health Care Fund (Trades, Portfolio) has the largest position with 1.27% of outstanding shares, followed by Dodge & Cox with 0.99%, Steve Mandel (Trades, Portfolio) with 0.45% and Grantham with 0.3%.

The Costco Wholesale Corp. (COST, Financial) position was reduced by 99.02%, impacting the portfolio by -0.96%.

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The retailer has a market cap of $90.86 billion and an enterprise value of $80.73 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. The ROA of 24.69% and ROA of 7.56% are outperforming 86% of companies in the Global Discount Stores industry. It financial strength is rated 7 out of 10. The cash-debt ratio of 1.06 is above the industry median of 0.45.

Buffett is the company's largest guru shareholder with 0.99% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.53%, Davis with 0.32% and Grantham with 0.32%.

Davis' Occidental Petroleum Corp. (OXY, Financial) holding was trimmed by 44%. The transaction had an impact of -0.75% on the portfolio.

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The oil producer has a market cap of $53.35 billion and enterprise value of $61.37 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The ROE of 2.53% and ROA of 1.29% are outperforming 66% of companies in the Global Oil and Gas E&P industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.49.

Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder with 2.52% of outstanding shares, followed by Davis with 0.81% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.48%.

The Visa Inc. (V, Financial)Â position was reduced by 70.14%, impacting the portfolio by -0.74%.

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The electronic payments company has a market cap of $275.15 billion and an enterprise value of $285.7 billion.

GuruFocus gives the company a profitability and growth rating of 9 out of 10. The ROE of 22.26% and ROA of 10.98% are outperforming 86% of companies in the Global Credit Services industry. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.70 is above the industry median of 0.61.

The company's largest shareholder among the gurus is Frank Sands (Trades, Portfolio) with 0.98% of outstanding shares, followed by Fisher with 0.73% and Buffett with 0.47%.

Disclosure: I do not own any stocks mentioned in this article.