In GuruFocus’ Most Broadly Held Portfolio, the stocks with the biggest year-to-date returns are Wells Fargo & Co. (WFC, Financial), Alphabet Inc. (GOOG, Financial)(GOOGL, Financial), American Express Co. (AXP, Financial) and Goldman Sachs Group Inc. (GS, Financial).
Back in 2006, GuruFocus began tracking the most broadly held stocks across all guru holdings. By tracking these stocks, GuruFocus hopes to answer questions regarding what types of returns can be gained by investing like gurus. The top 25 of these stocks were compiled to form the Most Broadly Held Portfolio and have been updated and tracked each year since.
On Dec. 30, 2005, the portfolio was created based upon a $100,000 investment. As of this year, the portfolio has reached a value of $567,624.42 for a total gain of 476.62% since its inception.
Wells Fargo (WFC, Financial) was initially added to the portfolio on Jan. 2, 2012. The 181 shares of the company were purchased for $27.56 per share. Year to date, the company has racked up 57.12% positive change and the holding has an overall gain of 72.61% since it was purchased.
Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking and wealth and investment management. It is almost entirely focused on the U.S.
On Oct. 5, the stock was trading at $48.11 per share with a market cap of $197.6 billion. According to the GF Value Line, the stock is trading at a fair value rating.
GuruFocus gives the company a financial strength rating of 3 out of 10, a profitability rank of 5 out of 10 and a valuation rank of 7 out of 10. There is one severe warning sign issued for poor financial strength. The company’s cash flows have taken a hit in recent years and dividend payouts have been reduced accordingly.
The Most Broadly Held Portfolio maintains a position in both the Class C and Class A shares of Alphabet (GOOG, Financial)(GOOGL, Financial). The two positions were added in 2019 and 2015 respectively. The 12 Class C shares landed in second place in the portfolio at a year-to-date gain of 52.71% with the 16 Class A shares coming close behind at a gain of 52.52%.
Alphabet is a holding company, with Google, the internet media giant, as a wholly-owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone and smart homes products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster internet access to homes (Google Fiber) and self-driving cars (Waymo).
GuruFocus gives the company a financial strength rating of 8 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 3 out of 10. There are currently two severe warning signs issued for a declining gross margin and a declining operating margin. The company’s return on invested capital has easily supported the weighted average cost of capital over the last decade.
American Express joined the portfolio at the beginning of 2021 with the addition of 139.6 shares. The shares were added to the portfolio at $120.91 per share, but share prices have risen consistently since the beginning of the year. With share prices now over $175, the holding has netted a year-to-date gain of 43.87%.
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, the company has operated in three segments: global consumer services, global commercial services and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services and business loans.
As of Oct. 5, the stock was trading at $175.47 per share with a market cap of $139.23. A significantly overvalued rating is given to the stock by the GF Value Line.
GuruFocus gives the company a financial strength rating of 3 out of 10, a profitability rank of 6 out of 10 and a valuation rank of 2 out of 10. There is currently one severe warning sign issued for poor financial strength. The company consistently raised revenue over the years before the pandemic reached full swing.
Top guru shareholders in American Express (AXP, Financial) include Warren Buffett (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Dodge & Cox, Chris Davis (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio).
The model holding in Goldman Sachs was added at the beginning of 2017 with a total of 44 shares. The shares were added to the portfolio at the price of $239.45 per share. The holding has solidified a 43.59% year-to-date gain and a total estimated gain of 61.38% since it was first added to the portfolio.
Goldman Sachs is a leading global investment banking firm whose activities are organized into investment banking (20% of net revenue), global markets (40%), asset management (25%) and consumer and wealth management (15%) segments. Approximately 60% of the company's net revenue is generated in the Americas, 15% in Asia and 25% in Europe, the Middle East and Africa. In 2008, Goldman reorganized itself as a financial holding company regulated by the Federal Reserve System.
On Oct. 5, the stock was trading at $386.37 per share with a market cap of $130.49 billion. According to the GF Value Line, the stock is trading at a fair value rating.
GuruFocus gives the company a financial strength rating of 3 out of 10, a profitability rank of 6 out of 10 and a valuation rank of 10 out of 10. There is currently one severe warning sign issued for poor financial strength. The company’s cash-to-debt ratio of 0.73 ranks worse than 72.69% of industry competitors with consistently high levels of debt.
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