Morningstar gave Fund family Dodge & Cox some high remarks in a newly published article entitled “Dodge & Cox Has Faced It All and Stood Tall”. It is an encouraging article to read, especially if you are considering investing in their mutual funds. Why not? The firm has 80 years of history behind it, deep bench in portfolio management talents, decent track record, and what else do you need?
The truth is, even a steady firm like Dodge & Cox has hiccups occasionally. 2008 was good year to have such misfortunes as so many people had them. Dodge & Cox Stock Fund’s performance in recent years is listed below:
According the Morningstar article, Dodge & Cox redeemed itself:
So you have it, the firm’s investment approach and everything. One would image as a fund as large as Dodge & Cox, the management would start to be sloppy and mimic that of S&P 500.
Hardly the case! Here are the top holdings as of June 30, 2010:
No. 1: Novartis AG (NVS, Financial), Weightings: 4.33% - 65,536,713 Shares
Novartis AG is committed to improving health and well-being through innovative products and services. Novartis Ag has a market cap of $121.92 billion; its shares were traded at around $53.29 with a P/E ratio of 11.6 and P/S ratio of 2.7. The dividend yield of Novartis Ag stocks is 3.1%. Novartis Ag had an annual average earning growth of 14.2% over the past 10 years. GuruFocus rated Novartis Ag the business predictability rank of 5-star.
No. 2: HewlettPackard Company (HPQ, Financial), Weightings: 4.16% - 70,236,339 Shares
Hewlett Packard is one of the global providers of computing and imaging solutions and services for business and home. Hewlettpackard Company has a market cap of $93.19 billion; its shares were traded at around $39.92 with a P/E ratio of 9.1 and P/S ratio of 0.8. The dividend yield of Hewlettpackard Company stocks is 0.8%. Hewlettpackard Company had an annual average earning growth of 26.5% over the past 5 years.
No. 3: Schlumberger Ltd. (SLB, Financial), Weightings: 3.86% - 50,978,444 Shares
Schlumberger Limited is a global technology services company consisting of two business segments, Schlumberger Oilfield Services and SchlumbergerSema. Schlumberger Ltd. has a market cap of $78.22 billion; its shares were traded at around $57.13 with a P/E ratio of 21.8 and P/S ratio of 3.4. The dividend yield of Schlumberger Ltd. stocks is 1.5%. Schlumberger Ltd. had an annual average earning growth of 23.4% over the past 5 years.
No. 4: GlaxoSmithKline plc (GSK, Financial), Weightings: 3.59% - 77,075,115 Shares
GlaxoSmithKline is one of the world's research based pharmaceutical and healthcare companies and is committed to improving the quality of human life by enabling people to do more, feel better and live longer. Glaxosmithkline Plc has a market cap of $110.22 billion; its shares were traded at around $38.91 with a P/E ratio of 12.5 and P/S ratio of 2.5. The dividend yield of Glaxosmithkline Plc stocks is 5.1%. Glaxosmithkline Plc had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Glaxosmithkline Plc the business predictability rank of 3-star.
No. 5: Comcast Corp. (CMCSA, Financial), Weightings: 3.22% - 135,445,387 Shares
Comcast Corp., among the world's communication companies, provides basic cable, digital cable and high speed internet services that connect people to what's important in their lives. Comcast Corp. has a market cap of $49.96 billion; its shares were traded at around $17.8 with a P/E ratio of 14.7 and P/S ratio of 1.4. The dividend yield of Comcast Corp. stocks is 2.1%. Comcast Corp. had an annual average earning growth of 14.9% over the past 10 years.
Check out the Dodge & Cox’s complete domestically traded stock portfolio here: http://www.gurufocus.com/holdings.php?GuruName=Dodge+%26+Cox
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Dodge & Cox for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
The truth is, even a steady firm like Dodge & Cox has hiccups occasionally. 2008 was good year to have such misfortunes as so many people had them. Dodge & Cox Stock Fund’s performance in recent years is listed below:
Performance of Dodge & Cox Stock FUND
| Year | Return (%) | S&P500 (%) | Excess Gain (%) |
|---|---|---|---|
| 2009 | 31.27 | 26.5 | 4.8 |
| 2008 | -43.41 | -37 | -6.4 |
| 2007 | 0.14 | 5.61 | -5.5 |
| 2006 | 18.52 | 15.79 | 2.7 |
| 2005 | 9.36 | 4.91 | 4.4 |
| 5-Year Cumulative | -3.6 | 2.2 | -5.8 |
| 2004 | 19.16 | 12 | 7.2 |
| 2003 | 32.35 | 28.7 | 3.6 |
| 2002 | -10.52 | -22.1 | 11.6 |
| 2001 | 9.33 | -11.9 | 21.2 |
| 2000 | 16.3 | -9.1 | 25.4 |
| 10-Year Cumulative | 73 | -8.1 | 81.1 |
| 1999 | 20.2 | 21 | -0.8 |
According the Morningstar article, Dodge & Cox redeemed itself:
Likewise, many investors found the firm's October 2008 market commentary published in the throes of the financial-market meltdown to be cold comfort. The missive acknowledged that 2008, the worst calendar year ever for its stock funds in absolute terms, was a difficult year and that, as fellow fund shareholders, the managers felt investors' pain. But the letter lacked a mea culpa for owning stocks such as American International Group (AIG) Wachovia, and Fannie Mae that the government either took over or forced into the arms of rivals at catastrophic discounts. Granted, in such an environment there was little the firm could have written to assuage everyone's angst, yet it seemed to point the finger more at the government than at itself.
Soul-Searching
Behind the scenes, however, Dodge & Cox managers did a lot of soul-searching and process- and portfolio-vetting. The firm redoubled efforts to analyze companies' short-term liquidity needs and started paying more attention to Washington, D.C. In the face of intense pressure, though, the firm stuck with the process that had served it and its clients for 80 years. That approach, while value-oriented and contrarian, doesn't rely on any one set of measures or screens but rather is built on patient and thorough bottom-up research of individual companies to determine if their businesses look strong enough and their shares cheap enough on a variety of metrics to hold for at least three to five years. Dodge & Cox doesn't lean on any one person either. Analysts and managers work as a team; anyone can advocate an idea, but they have to win over, or at least answer the objections of, their peers before getting it in any of the portfolios. A team approach can lead to group-think or paralysis, but over the decades Dodge & Cox has refined its team method into an effective tool.
So you have it, the firm’s investment approach and everything. One would image as a fund as large as Dodge & Cox, the management would start to be sloppy and mimic that of S&P 500.
Hardly the case! Here are the top holdings as of June 30, 2010:
No. 1: Novartis AG (NVS, Financial), Weightings: 4.33% - 65,536,713 Shares
Novartis AG is committed to improving health and well-being through innovative products and services. Novartis Ag has a market cap of $121.92 billion; its shares were traded at around $53.29 with a P/E ratio of 11.6 and P/S ratio of 2.7. The dividend yield of Novartis Ag stocks is 3.1%. Novartis Ag had an annual average earning growth of 14.2% over the past 10 years. GuruFocus rated Novartis Ag the business predictability rank of 5-star.
No. 2: HewlettPackard Company (HPQ, Financial), Weightings: 4.16% - 70,236,339 Shares
Hewlett Packard is one of the global providers of computing and imaging solutions and services for business and home. Hewlettpackard Company has a market cap of $93.19 billion; its shares were traded at around $39.92 with a P/E ratio of 9.1 and P/S ratio of 0.8. The dividend yield of Hewlettpackard Company stocks is 0.8%. Hewlettpackard Company had an annual average earning growth of 26.5% over the past 5 years.
No. 3: Schlumberger Ltd. (SLB, Financial), Weightings: 3.86% - 50,978,444 Shares
Schlumberger Limited is a global technology services company consisting of two business segments, Schlumberger Oilfield Services and SchlumbergerSema. Schlumberger Ltd. has a market cap of $78.22 billion; its shares were traded at around $57.13 with a P/E ratio of 21.8 and P/S ratio of 3.4. The dividend yield of Schlumberger Ltd. stocks is 1.5%. Schlumberger Ltd. had an annual average earning growth of 23.4% over the past 5 years.
No. 4: GlaxoSmithKline plc (GSK, Financial), Weightings: 3.59% - 77,075,115 Shares
GlaxoSmithKline is one of the world's research based pharmaceutical and healthcare companies and is committed to improving the quality of human life by enabling people to do more, feel better and live longer. Glaxosmithkline Plc has a market cap of $110.22 billion; its shares were traded at around $38.91 with a P/E ratio of 12.5 and P/S ratio of 2.5. The dividend yield of Glaxosmithkline Plc stocks is 5.1%. Glaxosmithkline Plc had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Glaxosmithkline Plc the business predictability rank of 3-star.
No. 5: Comcast Corp. (CMCSA, Financial), Weightings: 3.22% - 135,445,387 Shares
Comcast Corp., among the world's communication companies, provides basic cable, digital cable and high speed internet services that connect people to what's important in their lives. Comcast Corp. has a market cap of $49.96 billion; its shares were traded at around $17.8 with a P/E ratio of 14.7 and P/S ratio of 1.4. The dividend yield of Comcast Corp. stocks is 2.1%. Comcast Corp. had an annual average earning growth of 14.9% over the past 10 years.
Check out the Dodge & Cox’s complete domestically traded stock portfolio here: http://www.gurufocus.com/holdings.php?GuruName=Dodge+%26+Cox
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Dodge & Cox for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
