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Capital International Investors Buys 2, Sells 3 in 1st Quarter

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May 19, 2022
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Capital International Investors recently filed their 13F report for the first quarter of 2022, which ended on 2022-03-31.

The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.

Capital International Investors is a subsidiary of the Capital Research and Management Company which, in turn, is a wholly owned subsidiary of The Capital Group Companies. The company serves as one of its three equity divisions that manages equity assets for the parent company, with the other two companies being Capital World Investors and Capital Research Global Investors. Although it is an independent equity division, Capital International Investors has the flexibility to manage any of the investment objects or vehicles that the Capital Group currently holds. The company, taking the investing philosophies of its parent companies, operates through creating portfolios “from the bottom-up using rigorous fundamental research to find attractive investments and manage risks.” The research is all conducted within the company’s family branches and are produced to be only used by those companies and their subsidiaries, each divisional subsidiary having their own research teams with separate research directors. Though its investment decisions are independently managed, they are subject to the policies, restrictions, and oversight of the Capital Research and Management Company’s committees. Currently the independently action branch subsidiary has an estimated market value of approximately $55 trillion with its largest investment holdings in Verizon Communications, Microsoft, Texas Instruments, Conocophillips, and Merck & Co., in order of decreasing holdings. Capital International Investors mainly follows its parent company’s guidelines to focus on equity securities and fixed income securities but also invests in other areas. Its most heavily invested sector allocation is in health care, making up approximately 15%, and, in order of decreasing allocation amounts, finance, information technology, consumer discretionary, and utilities and telecommunications. The company caters to a wide client base, including individuals, corporate and public pension and profit sharing plans, pooled investment vehicles, governmental entities, corporations, and institutions mainly in Asia, Australia, and New Zealand. Victor Kohn currently serves as the president of Capital International Investors in addition to his role as Chief Executive Officer and president of Capital International.

As of the latest 13F report, the guru’s equity portfolio contained 454 stocks valued at a total of $438,612,000,000. The top holdings were MSFT(6.09%), AVGO(4.29%), and AMZN(2.93%).

According to GuruFocus data, these were Capital International Investors’s top five trades of the quarter.

AbbVie Inc


During the quarter, Capital International Investors bought 18,882,699 shares of NYSE:ABBV for a total holding of 30,497,767. The trade had a 0.7% impact on the equity portfolio. During the quarter, the stock traded for an average price of $145.09.

On 05/19/2022, AbbVie Inc traded for a price of $151.72 per share and a market cap of $268,105,942,000. The stock has returned 34.67% over the past year.

GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 10 out of 10.

In terms of valuation, AbbVie Inc has a price-earnings ratio of 22.14, a price-book ratio of 16.73, a price-earnings-to-growth (PEG) ratio of 1.55, a EV-to-Ebitda ratio of 13.66 and a price-sales ratio of 4.84.

The price-to-GF Value ratio is 1.19, earning the stock a GF Value rank of 3.

Danaher Corp


Capital International Investors reduced their investment in NYSE:DHR by 7,691,628 shares. The trade had a 0.53% impact on the equity portfolio. During the quarter, the stock traded for an average price of $282.37.

On 05/19/2022, Danaher Corp traded for a price of $249.31 per share and a market cap of $181,267,510,000. The stock has returned -2.18% over the past year.

GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, Danaher Corp has a price-earnings ratio of 28.85, a price-book ratio of 4.15, a price-earnings-to-growth (PEG) ratio of 1.55, a EV-to-Ebitda ratio of 20.10 and a price-sales ratio of 6.04.

The price-to-GF Value ratio is 0.86, earning the stock a GF Value rank of 9.

Activision Blizzard Inc


Capital International Investors reduced their investment in NAS:ATVI by 35,461,749 shares. The trade had a 0.5% impact on the equity portfolio. During the quarter, the stock traded for an average price of $77.76.

On 05/19/2022, Activision Blizzard Inc traded for a price of $77.74 per share and a market cap of $60,783,465,000. The stock has returned -16.30% over the past year.

GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 9 out of 10.

In terms of valuation, Activision Blizzard Inc has a price-earnings ratio of 24.59, a price-book ratio of 3.42, a price-earnings-to-growth (PEG) ratio of 4.17, a EV-to-Ebitda ratio of 15.83 and a price-sales ratio of 7.34.

The price-to-GF Value ratio is 1.02, earning the stock a GF Value rank of 6.

Gilead Sciences Inc


Capital International Investors reduced their investment in NAS:GILD by 30,413,697 shares. The trade had a 0.47% impact on the equity portfolio. During the quarter, the stock traded for an average price of $64.

On 05/19/2022, Gilead Sciences Inc traded for a price of $63.27 per share and a market cap of $79,360,410,000. The stock has returned -4.02% over the past year.

GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, Gilead Sciences Inc has a price-earnings ratio of 17.68, a price-book ratio of 4.00, a EV-to-Ebitda ratio of 11.20 and a price-sales ratio of 2.92.

The price-to-GF Value ratio is 0.84, earning the stock a GF Value rank of 9.

Pfizer Inc


During the quarter, Capital International Investors bought 37,310,556 shares of NYSE:PFE for a total holding of 38,530,003. The trade had a 0.44% impact on the equity portfolio. During the quarter, the stock traded for an average price of $51.88.

On 05/19/2022, Pfizer Inc traded for a price of $50.65 per share and a market cap of $284,191,873,000. The stock has returned 29.79% over the past year.

GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 8 out of 10.

In terms of valuation, Pfizer Inc has a price-earnings ratio of 11.62, a price-book ratio of 3.46, a price-earnings-to-growth (PEG) ratio of 1.11, a EV-to-Ebitda ratio of 8.66 and a price-sales ratio of 3.15.

The price-to-GF Value ratio is 0.62, earning the stock a GF Value rank of 8.


Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.

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