Ken Fisher's Top 5 Trades in the 2nd Quarter

Firm's top trades include boosts to Johnson & Johnson and Apple

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Aug 11, 2022
Summary
  • Firm boosts holdings in Johnson & Johnson, Apple and Microsoft.
  • Trims holdings in Eli Lily and Adobe.
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Ken Fisher (Trades, Portfolio), CEO and chief investment officer of Fisher Investments, disclosed in a regulatory filing that his firm’s top five trades during the second quarter included boosts to its holdings in Johnson & Johnson (JNJ, Financial), Apple Inc. (AAPL, Financial) and Microsoft (MSFT, Financial) and reductions to its positions in Eli Lily & Co. (LLY, Financial) and Adobe Inc. (ADBE, Financial).

The son of Phil Fisher wrote several finance books, including the 1984 Dow Jones bestseller “Super Stocks.” Fisher’s firm invests based on the idea that supply and demand of securities solely determine the price of securities and that all widely known information has been priced into the market. The Camas, Washington-based firm seeks to add value by identifying information that is not widely known or interpreting the information differently than other market participants do.

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As of June, the firm’s $141.04 billion 13F equity portfolio contains 1,004 stocks, with 93 new positions and a quarterly turnover ratio of 4%. The top four sectors in terms of weight are technology, health care, financial services and consumer cyclical, with weights of 28.12%, 12.44%, 10.81% and 10.38%.

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Investors should be aware that the 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but the reports can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.

Johnson & Johnson

Fisher purchased 5,091,698 shares of Johnson & Johnson (

JNJ, Financial), expanding the position by 797.78% and its equity portfolio by 0.64%.

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Shares of Johnson & Johnson averaged $178.16 during the second quarter; the stock is fairly valued based on Thursday’s price-to-GF-Value ratio of 0.95.

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The New Brunswick, New Jersey-based drug manufacturer has a GF Score of 91 out of 100 based on a rank of 9 out of 10 for profitability and momentum, a growth rank of 8 out of 10, a financial strength rank of 7 out of 10 and a GF Value rank of 6 out of 10.

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Other gurus with holdings in Johnson & Johnson include

Ray Dalio (Trades, Portfolio)’s Bridgewater Associates and Jeremy Grantham (Trades, Portfolio)’s GMO.

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Apple

Fisher added 1,719,927 shares of Apple (

AAPL, Financial), increasing the holding to 65,669,735 shares.

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Shares of Apple averaged $151.81 during the second quarter; the stock is fairly valued based on Thursday’s price-to-GF-Value ratio of approximately 1.

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The Cupertino, California-based tech giant has a GF Score of 98 out of 100, driven by a rank of 10 out of 10 for profitability, growth and momentum despite financial strength and GF Value ranking just between 6 and 7 out of 10.

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Other gurus with holdings in Apple include

Warren Buffett (Trades, Portfolio)’s Berkshire Hathway Inc. (BRK.A, Financial)(BRK.B, Financial) and Spiros Segalas (Trades, Portfolio)’ Harbor Capital Appreciation Fund.

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Microsoft

Fisher added 822,443 shares of Microsoft (

MSFT, Financial), increasing the position to 28,694,382 shares.

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Shares of Microsoft averaged $271.99 during the second quarter; the stock is fairly valued based on Thursday’s price-to-GF-Value ratio of 0.94.

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The Redmond, Washington-based software giant has a GF Score of 98 out of 100 based on a rank of 10 out of 10 for profitability and growth and a rank of 8 out of 10 for financial strength and momentum despite GF Value ranking just 7 out of 10.

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Eli Lily

The firm sold 1,569,338 shares of Eli Lily (

LLY, Financial), slicing 20.91% of the position and 0.27% of its equity portfolio.

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Shares of Eli Lily averaged $299.95 during the second quarter; the stock is significantly overvalued based on Thursday’s price-to-GF-Value ratio of 1.37.

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The Indianapolis-based drug manufacturer has a GF Score of 75 out of 100 based on a profitability rank of 9 out of 10, a growth rank of 8 out of 10, a financial strength rank of 6 out of 10, a momentum rank of 3 out of 10 and a GF Value rank of 1 out of 10.

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Adobe

The firm sold 358,557 shares of Adobe (

ADBE, Financial), trimming 5.48% of the position and 0.10% of its equity portfolio.

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Shares of Adobe averaged $407.76 during the second quarter; the stock is modestly undervalued based on Thursday’s price-to-GF-Value ratio of 0.71.

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The San Jose, California-based software company has a GF Score of 94 out of 100 based on a rank of 10 out of 10 for growth and GF Value, a profitability rank of 9 out of 10, a financial strength rank of 8 out of 10 and a momentum rank of 4 out of 10.

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Disclosures

I am/we currently own positions in the stocks mentioned, and have NO plans to sell some or all of the positions in the stocks mentioned over the next 72 hours. Click for the complete disclosure
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