Minnesota-based investment firm Mairs and Power recently disclosed its portfolio updates for the second quarter of 2023, which ended on June 30, 2023. The firm, known for its long-term, growth-focused investment strategy, manages a diverse portfolio of 226 stocks with a total value of $9.19 billion. The top holdings in the portfolio were Microsoft Corp (MSFT), Alphabet Inc (GOOG, Financial), and NVIDIA Corp (NVDA, Financial), representing 7.64%, 4.56%, and 4.28% of the portfolio respectively.
Top Three Trades of the Quarter
The firm's most significant transactions during the quarter involved Alliant Energy Corp (NAS:LNT), NVIDIA Corp (NAS:NVDA), and Alphabet Inc (NAS:GOOG).
Alliant Energy Corp (NAS:LNT)
Mairs and Power (Trades, Portfolio) increased its stake in Alliant Energy Corp by purchasing an additional 1,629,634 shares, bringing its total holding to 2,717,431 shares. This transaction had a 0.93% impact on the equity portfolio. During the quarter, the stock traded at an average price of $53.58. As of August 14, 2023, LNT's price was $51.2025 with a market cap of $12.94 billion. The stock has returned -16.57% over the past year. GuruFocus rates the company's financial strength and profitability 4 out of 10 and 7 out of 10, respectively. In terms of valuation, LNT has a price-earnings ratio of 19.54, a price-book ratio of 2.01, a PEG ratio of 4.65, a EV-to-Ebitda ratio of 13.02, and a price-sales ratio of 3.07.
NVIDIA Corp (NAS:NVDA)
The firm reduced its investment in NVIDIA Corp by selling 208,668 shares, which had a 0.67% impact on the equity portfolio. During the quarter, the stock traded at an average price of $331.15. As of August 14, 2023, NVDA's price was $434.69 with a market cap of $1,073.68 billion. The stock has returned 131.99% over the past year. GuruFocus rates the company's financial strength and profitability 8 out of 10 and 10 out of 10, respectively. In terms of valuation, NVDA has a price-earnings ratio of 226.40, a price-book ratio of 43.82, a PEG ratio of 11.67, a EV-to-Ebitda ratio of 156.27, and a price-sales ratio of 41.90.
Alphabet Inc (NAS:GOOG)
Mairs and Power (Trades, Portfolio) also reduced its investment in Alphabet Inc by selling 475,328 shares, which had a 0.57% impact on the equity portfolio. During the quarter, the stock traded at an average price of $115.57. As of August 14, 2023, GOOG's price was $131.335 with a market cap of $1,651.81 billion. The stock has returned 6.93% over the past year. GuruFocus rates the company's financial strength and profitability 9 out of 10 and 10 out of 10, respectively. In terms of valuation, GOOG has a price-earnings ratio of 27.83, a price-book ratio of 6.18, a PEG ratio of 1.10, a EV-to-Ebitda ratio of 17.48, and a price-sales ratio of 5.93.
In conclusion, Mairs and Power (Trades, Portfolio)'s Q2 2023 portfolio update reveals a strategic balance between buying and selling, with a focus on long-term growth prospects. The firm's investment decisions reflect its commitment to value investing and its confidence in the future performance of these companies.
