According to GuruFocus top 10 holdings data, Dodge & Cox’s top five holdings as of the third quarter are Comcast Corp. (CMCSA, Financial), Wells Fargo & Co. (WFC, Financial), Microsoft Corp. (MSFT, Financial), Charter Communications Inc. (CHTR, Financial) and Novartis AG (NVS, Financial).
The firm's nine-person investment policy committee makes investing decisions through a well-tuned, group decision-making process. Dodge & Cox seeks long-term investments in companies where the current valuations are lower than intrinsic values based on earnings and cash flow prospects.
Comcast
The firm’s largest holding, Comcast, represents 3.59% of the equity portfolio.
CEO Brian Roberts said on Oct. 25 that Comcast Cable’s EBITDA increased “the fastest in six years,” driven by solid broadband net additions and strong performance across the Philadelphia-based company’s TV businesses, which include NBC, MSNBC and CNBC. A game show called “Deal or No Deal” premieres Wednesday night on CNBC following a holiday special episode that aired Monday night on NBC.
GuruFocus ranks Comcast’s profitability 8 out of 10 on several positive indicators, which include expanding profit margins and returns on equity that outperform over 93% of global pay TV companies. Additionally, the company’s business predictability ranks 3.5 stars out of five on consistent revenue growth over the past 10 years.
Other gurus with large holdings in Comcast include First Eagle Investment (Trades, Portfolio) and Mason Hawkins (Trades, Portfolio)’ Southeastern Asset Management.
Wells Fargo
Wells Fargo, the firm’s second-largest holding, represents 3.21% of the equity portfolio.
CNBC columnist Thomas Franck said on Tuesday large banks like Wells Fargo, Bank of America Corp. (BAC, Financial) and JPMorgan Chase & Co. (JPM, Financial), several of Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio)’s largest holdings, tumbled over 4% on Tuesday due to the yield curve inverting.
GuruFocus ranks the San Francisco-based bank’s financial strength 4 out of 10 on a few weak indicators, which include an equity-to-asset ratio of 0.11 and increasing long-term debt over the past three years. Despite this, the website lists several positive investing signs, which include a dividend yield near a two-year high and a price-book ratio near a two-year low.
Microsoft
Microsoft, the company founded by Bill Gates (Trades, Portfolio), represents the firm’s third-largest holding. Shares sit in 3.19% of the equity portfolio.
GuruFocus ranks Microsoft’s profitability 8 out of 10 on several positive investing signs, which include operating margins that outperform 95% of global competitors and a three-year EBITDA growth rate that ranks higher than 77% of global application software companies. The website gives Microsoft a 4.5-star business predictability rank on strong and consistent revenue and earnings growth over the past 10 years.
Charter Communications
The firm’s fourth-largest holding, Charter Communications, represents 2.97% of the equity portfolio.
GuruFocus ranks the Stamford, Connecticut-based cable provider’s profitability 8 out of 10 on several positive investing signs, which include a solid Piotroski F-score of 7 and net profit margins that outperform 92% of global competitors. Additionally, the company’s return on assets is near a 10-year high of 7.15%.
Other gurus with large holdings in Charter include Buffett and Bill Nygren (Trades, Portfolio).
Novartis
The firm’s fifth-largest holding, Novartis, represents 2.92% of the portfolio.
GuruFocus ranks the Swiss drug manufacturer’s profitability 8 out of 10 on several positive indicators, which include a Piotroski F-score of a perfect 9 and net profit margins that outperform over 92% of global competitors.
See also
Dodge & Cox’s other large holdings include Express Scripts Holding Co. (ESRX, Financial), Charles Schwab Corp. (SCHW), Alphabet Inc. (GOOG), Capital One Financial Corp. (COF) and Johnson Controls International PLC (JCI).
Disclosure: No positions.
Read more here:
