VANGUARD GROUP INC recently filed their 13F report for the fourth quarter of 2022, which ended on 2022-12-31.
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.
Vanguard was established in 1975 by founder John C. Bogle as a mutual funds company. Its core purpose is to “take a stand for all investors, to treat them fairly, and to give them the best chance for investment success” and its competitive strategy is to cut costs to shareholders by redirecting net profits from economies of scale, eliminating sales commissions and keeping operating expenses low. Vanguard is owned by its funds, which, in turn, are owned by the investors. This client-owned structure allows Vanguard to lower costs and raise profits on fund returns. One of Vanguard’s most important strategies was the introduction of index mutual funds, giving the company a further competitive edge in cost efficiency. At the company’s onset, it grew mostly through word of mouth as clients spread the news about Vanguard’s services. By the 1980s, Vanguard had grown large enough to be able to provide services for retirement plans, institutions, and financial advisors. The increased cash flow allowed Vanguard to steadily lower the fund expense ratio from 0.89% at its inception to 0.38% by 1990 and to 0.18% by 2014. In 1996, Vanguard began to expand to locations outside the United States, first opening offices in Melbourne, Australia and later to London, Paris, Toronto, Singapore, and Tokyo, among other international locations. In the same year, John J. Brennan became Vanguard’s second CEO. From then on to 2003, Vanguard launched a series of new options such as the 529 college-saving plans, Admiral Shares, ETFs, and Target Retirement Funds, lowering fund costs even further and diversifying its line of products. In 2008, F. William McNabb III succeeded Brennan to become the third CEO. In 2013, Vanguard passed the 2 trillion assets mark and, just one year later, in 2014 passed the 3 trillion mark. Today Vanguard offers a variety of low-cost mutual funds such as the HealthCare Index Adm and FTSE Social Index Inv, ETFs such as Health Care and Small-Cap Growth, advice, and other related services that cater to over 20 million clients ranging from the individual investor to the corporate investor.
As of the latest 13F report, the guru’s equity portfolio contained 4526 stocks valued at a total of $3,552.44Bil. The top holdings were AAPL(2.81%), MSFT(2.81%), and AMZN(1.68%).
According to GuruFocus data, these were VANGUARD GROUP INC’s top five trades of the quarter.
Twitter Inc
The guru sold out of their 72,042,654-share investment in NYSE:TWTR. Previously, the stock had a 0.09% weight in the equity portfolio. Shares traded for an average price of $50.72 during the quarter.
On 02/12/2023, Twitter Inc traded for a price of $53.7 per share and a market cap of $41.09Bil. The stock has returned -2.03% over the past year.
GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Twitter Inc has a price-book ratio of 6.98, a EV-to-Ebitda ratio of 66.62 and a price-sales ratio of 8.22.
The price-to-GF Value ratio is 0.93, earning the stock a GF Value rank of 6.
Prologis Inc
During the quarter, VANGUARD GROUP INC bought 24,130,362 shares of NYSE:PLD for a total holding of 121,813,945. The trade had a 0.08% impact on the equity portfolio. During the quarter, the stock traded for an average price of $110.78.
On 02/12/2023, Prologis Inc traded for a price of $128.09 per share and a market cap of $118.24Bil. The stock has returned -11.57% 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, Prologis Inc has a price-earnings ratio of 23.76, a price-book ratio of 2.69, a price-earnings-to-growth (PEG) ratio of 5.80, a EV-to-Ebitda ratio of 21.81 and a price-sales ratio of 17.84.
The price-to-GF Value ratio is 0.97, earning the stock a GF Value rank of 6.
Duke Realty Corp
The guru sold out of their 50,723,773-share investment in NYSE:DRE. Previously, the stock had a 0.07000000000000001% weight in the equity portfolio. Shares traded for an average price of $48.2 during the quarter.
On 02/12/2023, Duke Realty Corp traded for a price of $48.2 per share and a market cap of $18.56Bil. The stock has returned -16.60% 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, Duke Realty Corp has a price-earnings ratio of 19.44, a price-book ratio of 2.94, a price-earnings-to-growth (PEG) ratio of 1.87, a EV-to-Ebitda ratio of 15.77 and a price-sales ratio of 16.85.
The price-to-GF Value ratio is 0.99, earning the stock a GF Value rank of 5.
Ferguson PLC
During the quarter, VANGUARD GROUP INC bought 18,647,616 shares of NYSE:FERG for a total holding of 25,853,710. The trade had a 0.06% impact on the equity portfolio. During the quarter, the stock traded for an average price of $116.43.
On 02/12/2023, Ferguson PLC traded for a price of $144.36 per share and a market cap of $29.81Bil. The stock has returned -2.97% 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, Ferguson PLC has a price-earnings ratio of 14.41, a price-book ratio of 5.87, a price-earnings-to-growth (PEG) ratio of 1.02, a EV-to-Ebitda ratio of 10.61 and a price-sales ratio of 1.05.
The price-to-GF Value ratio is 1.27, earning the stock a GF Value rank of 3.
Atlassian Corp
During the quarter, VANGUARD GROUP INC bought 12,799,917 shares of NAS:TEAM for a total holding of 13,536,164. The trade had a 0.05% impact on the equity portfolio. During the quarter, the stock traded for an average price of $159.19.
On 02/12/2023, Atlassian Corp traded for a price of $172.23 per share and a market cap of $44.14Bil. The stock has returned -50.29% over the past year.
GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Atlassian Corp has a price-book ratio of 76.44, a EV-to-Ebitda ratio of -413.73 and a price-sales ratio of 13.80.
The price-to-GF Value ratio is 0.46, earning the stock a GF Value rank of 4.
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.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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