Dodge & Cox

Dodge & Cox

Last Update: 08-11-2017

Number of Stocks: 180
Number of New Stocks: 5

Total Value: $118,582 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Dodge & Cox Watch

  • Express Scripts Is on Sale

    Express Scripts Holding Co. (NASDAQ:ESRX) acts as a third-party administrator of prescription drug programs. It is a good business. In fact, it is the largest pharmacy benefits manager (PBM) in the United States, generating revenue from the delivery of prescription drugs to client-pharmacies, processing pharmacy claims, compliance programs and data analysis.


    The stock is trading at essentially the same price it was five years ago even though the company’s earnings are up more than $2 billion and it remains on track to see north of $7 a share in 2017, and even more in 2018. What is more, it is trading at a 10 times multiple because of a disagreement with Anthem Inc. (NYSE:ANTM) over cost savings. CEO Tim Wentworth indicated he does not expect the relationship to be mended before the contract concludes in 2019.

      


  • Dodge & Cox Funds Comments on Anadarko Petroleum

    Anadarko Petroleum (NYSE:APC) (a 1.3% position) is an independent oil and gas exploration and production (E&P) company, one of three held in the Fund. The company’s stock price has been negatively impacted in 2017 by a gas leak that caused a fatal explosion. While tragic, this incident did not materially impact our long-term investment outlook for the company. Recent meetings with company management affirmed our belief that Anadarko remains an attractive investment over our three- to five-year investment horizon.


    As a leading global explorer with strong operational capabilities, Anadarko has a record of success in generating high returns on capital over energy price cycles. In the coming years, we believe the key differentiators for E&Ps will be a company’s asset quality and its ability to develop those assets, particularly large-scale unconventional resources. Anadarko is well positioned to manage these challenges. For example, in the DJ Basin in Colorado, Anadarko systematically developed all of the needed infrastructure to execute its plan, which allowed the company to achieve growth targets at competitive costs; Anadarko is now applying the same approach of systematic field and infrastructure development to the Permian Basin.

      


  • Dodge & Cox Funds Comments on AstraZeneca

    AstraZeneca (NYSE:AZN), which is based in the United Kingdom, is a global pharmaceutical company with strengths in treatments for cancer, respiratory illnesses, cardiovascular problems, and infectious diseases. In the second half of 2016, the share price was under pressure due to concerns about recent and upcoming patent expirations for several of its major drugs. Despite this headwind, we added to the Fund’s holding in early 2017 after reaffirming our investment thesis.


    The company’s long -term growth outlook is favorable given its robust new drug pipeline, particularly in oncology (cancer treatment). AstraZeneca has an attractive position in the revolutionary field of cancer immunotherapy, which harnesses the disease-fighting capabilities of the body’s immune system to attack cancerous tumors. We have conducted extensive due diligence, which included industry conferences and management meetings, and we continue to believe the immuno-oncology (IO) field holds great promise. Since the IO market is in its very early stages, sponsors and the scientific community are

      


  • Dodge & Cox Stock Fund 2nd Quarter Commentary

    TO OUR SHAREHOLDERS

      


  • 7 Undervalued Stocks With Rising Book Values

    The following companies have grown their book values per share (BV/S) over the last 10 years.


    BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically, it is what shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Since the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

      


  • Dodge & Cox Stock Fund 2nd Quarter Commentary

    The Dodge & Cox Stock Fund had a total return of 1.8% for the second quarter of 2017, compared to 3.1% for the S&P 500 Index. For the six months ended June 30, 2017, the Fund had a total return of 6.8%, compared to 9.3% for the S&P 500.

      


  • Growing Revenue and EPS

    The following companies have boosted their revenue and earnings over the last five years.


    Goldman Sachs Group Inc. (GS) has a five-year revenue growth rate of 6% and a five-year earnings per share (EPS) growth rate of 19%. The stock is trading with a price-earnings (P/E) ratio of 12.2 and has a negative six-month return of -5.8%.

      


  • CarMax Reports Fiscal 1st-Quarter Results

    CarMax Inc. (NYSE:KMX) – the biggest used vehicles dealer in the U.S. – released its first-quarter 2018 financial results on June 21. The quarter ended on May 31.


    CarMax closed the quarter reporting a net profit of $211.7 million and EPS – on a diluted basis – of $1.13, a 25.6% increase year over year, and beat analysts’ expectations on earnings by 15 cents. The difference between the actual EPS and forecasted EPS generated a positive surprise of 15.30%.

      


  • Gurus’ Holdings With Negative Performances

    While gurus hold positions in these companies, the stock prices and returns continue to fall. These are the worst-performing stocks over the last three months with a long-term presence in more than three gurus’ portfolios.


    Harley-Davidson Inc. (HOG) had a negative performance of 5.1% over the last six months. Three mutual funds hold the stock with a total weight of 0.20% on their portfolios.

      


  • CarMax to Report 1st-Quarter Fiscal 2018 Results

    CarMax Inc. (NYSE:KMX) – the biggest used vehicles dealer in the U.S. – will release the first-quarter 2018 financial results on June 21 before the New York Stock Exchange opens.


    The first quarter of fiscal 2018 ended this year May 31.

      


  • Ronald Muhlenkamp Adds 7 New Stocks to Portfolio

    Muhlenkamp & Co. Inc. founder Ronald Muhlenkamp (Trades, Portfolio) purchased seven new holdings in the first quarter. They are Twenty-First Century Fox Inc. (NASDAQ:FOXA), Dow Chemical Co. (DOW), Microchip Technology Inc. (NASDAQ:MCHP), Cabot Oil & Gas Corp. (NYSE:COG), Eldorado Gold Corp. (NYSE:EGO), Ameriprise Financial Inc. (NYSE:AMP) and The Cooper Companies Inc. (NYSE:COO).


    A long-term investor, Muhlenkamp buys profitable companies that are trading at a good value based on price-earnings (P/E) and return on equity. His current portfolio consists of 81 stocks, which is valued at $326 million.

      


  • Dodge & Cox Buys Express Scripts, Bristol-Myers, HP

    Dodge & Cox was founded in 1930 by Van Duyn Dodge and E. Morris Cox, and it manages a portfolio of 179 stocks. During the first quarter the guru traded shares in the following companies.


    Express Scripts Holding Co. (ESRX)’s stake was raised by 35.99% with an impact of 0.43% on the portfolio.

      


  • Charles Brandes Sells Western Digital, Citigroup, JPMorgan

    Charles Brandes (Trades, Portfolio) is the chairman of Brandes Investment Partners. During the first quarter the guru sold shares in the following stocks:


    The investor closed his position of Corning Inc. )GLW) with an impact of -1.69% on the portfolio.

      


  • Charles Brandes Invests in Health Care in 1st Quarter

    Charles Brandes (Trades, Portfolio)’ Brandes Investment Partners gained 49 new holdings during the quarter. Among the purchases were several health care stocks. His three largest new health care holdings are AstraZeneca PLC (NYSE:AZN), CVS Health Corp. (NYSE:CVS) and Gilead Sciences Inc. (NASDAQ:GILD).


    As a disciple of Benjamin Graham, Brandes buys companies that are selling at a discount to their intrinsic values. This approach to delivering long-term returns has helped his firm’s performance since its inception in 1974.

      


  • 6 High Performing Stocks in Most Broadly Owned Portfolio

    The Most Broadly Owned Portfolio, which contains the top 25 company stocks based on number of guru holders, outperformed the Standard & Poor’s 500 benchmark in at least five of the past seven years.


    As of May 1, the model portfolio had a cumulative gain of 156.87% since its inception on Dec. 30, 2005. The high portfolio performance is driven by the gains from six companies: Apple Inc. (NASDAQ:AAPL), Bank of America Corp. (NYSE:BAC), Comcast Corp. (NASDAQ:CMCSA), Cisco Systems Inc. (NASDAQ:CSCO), Alphabet Inc. (NASDAQ:GOOGL) and Phillip Morris International Inc. (NYSE:PM).

      


  • T Rowe Price's 1st-Quarter Stock Sells

    The T Rowe Price Equity Income Fund (Trades, Portfolio), which has a conservative, value-oriented approach to pursuing dividend income and long-term capital growth, sold the following stocks during the first quarter: 


    The fund closed its position in Union Pacific Corp. (UNP) with an impact of -0.67% on the portfolio.

      


  • Jerome Dodson Buys 2 Stocks, Sells 2 in 1st Quarter

    Jerome Dodson (Trades, Portfolio)’s Parnassus Fund established two new positions and sold out of two others in the first quarter of the year. He bought Cognizant Technology Solutions Corp. (NASDAQ:CTSH) and Novartis AG (NYSE:NVS). He sold Qualcomm Inc. (NASDAQ:QCOM) and Applied Materials Inc. (NASDAQ:AMAT).


    Dodson founded his firm, Parnassus Investments, in 1984. He serves as president and is the lead portfolio manager for several funds, including the Parnassus Fund, the Asia Fund and the Endeavor Fund. The firm invests across the capitalization spectrum in companies with wide moats, compounding growth, quality management teams and that are trading at a significant discount to their intrinsic value.

      


  • Dodge & Cox Funds First Quarter Commentary

    The Dodge & Cox Stock Fund had a total return of 5.0% for the first quarter of 2017, compared to 6.1% for the S&P 500 Index.


    The Fund underperformed the S&P 500 by 1.1 percentage points during the quarter.

      


  • JPMorgan’s 1st-Quarter Earnings Boosted by Trading

    JPMorgan Chase & Co. (NYSE:JPM), the nation’s largest bank by assets, released its first-quarter 2017 earnings on April 13, reporting a 17% increase in profit from trading.


    The company recorded profit of $6.4 billion, or $1.65 a share, up from a profit of $5.52 billion, or $1.35 per share, in the same quarter of 2016. The bank also had a 6% increase in net revenue to $25.6 billion. Net interest income for the quarter grew 6% to $12.06 billion.

      


  • 7 Stocks With Growing Book Values

    The following companies have grown their book values per share (BV/S) over the last 10 years.


    BV/S is calculated as total equity minus preferred stock, divided by shares outstanding (EOP). Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets minus total liabilities. Because the BV/S may not reflect the company’s true value, some investors check the tangible book value to confirm their investment ideas.

      


  • American Express Announces Quarterly Dividend

    American Express (NYSE:AXP) has announced a quarterly dividend of 32 cents with an ex-dividend date of April 5. The dividend is unchanged from the previous two quarters. American Express currently has a forward dividend yield of 1.62%.


      


  • Stocks With Growing Book Values and Margins of Safety

    The following companies have a growing book value per share (BV/S) over the last 10 years.


    BV/S is calculated as (total equity – preferred stock)/shares outstanding (EOP). Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets less total liabilities. Because the BV/S may not reflect the company’s true value, some investors check even the tangible book value to confirm their investment ideas.

      


  • JPMorgan Increases Quarterly Dividend

    JPMorgan (NYSE:JPM) has increased its quarterly dividend to 50 cents from 48 cents. The dividend has an ex-dividend date of April 4. With the dividend the stock now has a forward dividend yield of 2.30%.


    Year to date JPMorgan has a return of 0.86%. Its 12-month return is 46.32%, and its three-year return is 44.64%. It has benefited from a positive outlook on regulations for the banking industry and increasing Federal Reserve interest rates. Momentum has slowed recently with uncertainty around the Trump administration’s new policy proposals for financial services following a lack of support for health care reform.

      


  • Pioneer Investments Exits Wells Fargo, Coca-Cola, Buys Walt Disney

    Pioneer Investment Management operates in wide areas of investment vehicles: mutual funds, single manager hedge funds, funds of hedge funds, structured products, segregated and managed accounts and institutional funds. During the fourth quarter of 2016, the firm traded shares in the following stocks:


    The guru almost closed its stake in Wells Fargo & Co. (WFC). It was reduced by 97.32% with an impact of -0.6% on the portfolio.

      


  • Scott Black Sells Time Warner, Union Pacific, Tegna

    Scott Black (Trades, Portfolio) is the chairman, president, chief investment officer and chief compliance officer at Delphi Management Inc. During the fourth quarter he sold shares in the following stocks:


    The investor exited his position in Time Warner Inc. (TWX) with an impact of -1.52% on the portfolio.

      


  • Microsoft Announces Quarterly Dividend

    Microsoft (NASDAQ:MSFT) has announced a quarterly dividend of 39 cents with an ex-dividend date of May 16 and a payable date of June 8. With the quarterly dividend the firm’s forward dividend yield is now 2.41% which is slightly higher than its trailing 12-month dividend of 2.32%.


    The firm has kept its dividend at 39 cents for the past three quarters.

      


  • The Dodge & Cox Case for Active Investing

    Dodge & Cox (Trades, Portfolio), a mutual fund that can be found among the investing gurus at GuruFocus, is an institutional investor. And, one with a unique style.


    It is a style that has worked. The San Francisco-based firm reports in its year-end message that its flagship Stock Fund had a total return of 21.3% in 2016, well ahead of the 12% posted by the S&P 500 Index.

      


  • Scott Black Continues to Buy Allergan, CVS Health, 6 Others

    Scott Black (Trades, Portfolio) is the chairman, president, chief investment officer and chief compliance officer at Delphi Management Inc. He manages a portfolio composed of 93 stocks with a total value of $171 million. In the third and fourth quarters of 2016 the guru bought shares in the following stocks:


    Southern Missouri Bancorp Inc. (SMBC)

      


  • The Complete List of 4th Quarter 2016 Hedge Fund Letters to Investors

    This wide-ranging list is published here thanks to Vintage Value Investing.


    February 10, 2017

      


  • Will YouTube TV Kill Big Cable?

    YouTube, which has entertained the world with kittens and helped fix innumerable clogged drains, has announced it will launch YouTube TV, a low-cost cable TV service. In other words fewer channels than conventional cable at a lower price. YouTube TV plans to offer some 40 channels for just $35 a month and add a number of features, including a virtual DVR (digital video recorder).


    It’s the latest spinoff from the Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) empire, which wisely purchased YouTube some years ago and has since built it into a powerhouse in its own right. By the end of 2016, fans were watching YouTube 1 billion hours a day.

      


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