Ken Fisher (Trades, Portfolio) has released his portfolio for the fourth quarter. Top trades include changes in his BTC iShares Global Energy ETF (IXC, Financial) and Vanguard Intermediate-Term Corporate Bond ETF (VCIT, Financial) holdings as well as boosts in Apple Inc. (AAPL, Financial), Amazon.com Inc. (AMZN, Financial) and Microsoft Corp. (MSFT, Financial).
Fisher is the CEO and chief investment officer of Fisher Investments. The firm operates upon the idea that supply and demand of securities is the sole determinant of their pricing. They seek to add value by identifying information that is not widely known or has been incorrectly interpreted by other investors through a team of research analysts.
At the end of the fourth quarter, Fisher's portfolio contained 957 stocks, with 116 new holdings. It was valued at $133.25 billion and has seen a turnover rate of 5%. Top holdings include Apple, Amazon, Microsoft, Visa Inc. (V, Financial) and the Vanguard Intermediate-Term Corporate Bond ETF.
By weight, the top three sectors represented are technology (26.48%), consumer cyclical (13.81%) and financial services (12.71%).
BTC iShares Global Energy ETF
During the fourth quarter Fisher made an 87.90% cut in his holding of BTC iShares Global Energy ETF (IXC, Financial). The guru sold 20.56 million shares, which traded at an average price of $18.34 per share during the quarter. Overall, the sale had an impact of -0.30% on the portfolio and GuruFocus estimates the total loss on the holding at 6.43%.
As of Feb. 1, shares of the exchange-traded fund were trading at $21.03.
Vanguard Intermediate-Term Corporate Bond ETF
The fourth quarter saw a boost in Fisher's holding of Vanguard Intermediate-Term Corporate Bond ETF (VCIT, Financial). Fisher purchased an additional 4.04 million shares during the quarter, which traded at an average price of $96.37 each. The purchase had an overall impact of 0.29% on the portfolio and GuruFocus estimates that the holding has gained Fisher 8.10%.
On Feb. 1 shares of the ETF were trading at $96.26.
The fourth quarter saw the addition of 2.58 million shares of Apple (AAPL, Financial). The shares traded at an average price of $120.45 during the quarter and boosted the holding by 4.40%. GuruFocus estimates Fisher has gained a total of 270.37% on the holding and the purchase had an impact of 0.26% on the portfolio.
Apple designs a wide variety of consumer electronic devices, including smartphones, tablets, PCs, smartwatches and TV boxes. The iPhone makes up the majority of Apple's total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card and Apple Pay, among others. Apple's products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services.
Feb. 1 saw shares trading at $134.25 with a market cap of $2.26 trillion. The GF Value Line shows the shares trading at a significantly overvalued rating.
GuruFocus gives the company a financial strength rating of 6 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 1 out of 10. There is currently one severe warning sign issued for a declining operating margin percentage. 2020 saw cash flows reach an all-time high that more than supported dividend payouts.
Fisher's Amazon (AMZN, Financial) holding also saw a small 4.31% boost during the fourth quarter. He purchased 72,943 shares, which traded at an average price of $3,190.71 during the quarter. Overall, the purchase had an impact of 0.18% on the portfolio and GuruFocus estimates the holding has gained a total of 372.43%.
Amazon is among the world's highest-grossing online retailers, with $281 billion in net sales and approximately $365 billion in estimated physical/digital gross merchandise volume in 2019. Online product and digital media sales comprised 50% of net revenue in 2019, followed by commissions, related fulfillment and shipping fees and other third-party seller services.
On Feb. 1, the stock was trading at $3,325.91 per share with a market cap of $1.67 trillion. The GF Value Line shows the stock trading at a fair value rating.
GuruFocus gives the company a financial strength rating of 6 out of 10, a profitability rank of 8 out of 10 and a valuation rank of 1 out of 10. There is currently one severe warning sign issued for assets growing faster than revenue. Debt reached record levels in 2019, but the company's cash-to-debt ratio of 0.84 ranks it better than 59.63% of industry competitors.
Fisher also boosted his holding in Microsoft (MSFT, Financial) by 4.59% with the purchase of an additional 1.02 million shares. The shares were purchased throughout the quarter at an average price of $215.16. The purchase had an overall impact of 0.17% and GuruFocus has calculated the total estimated gain at 293.51%.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three overarching segments: productivity and business processes, intelligence cloud and more personal computing. Through acquisitions, Microsoft owns Xamarin, LinkedIn and GitHub.
Feb. 1 saw the stock trading at $240.22 per share with a market cap of $1.81 trillion. According to the GF Value Line, the stock is trading at a significantly overvalued rating.
GuruFocus gives the company a financial strength rating of 7 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 1 out of 10. There is currently one severe warning sign issued for assets growing faster than revenue. Microsoft's return on invested capital easily supports the weighted average cost of capital, which will allow value to grow moving into the future.
Disclosure: Author owns no stocks mentioned.
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