The value-minded investor had more than 40% of his portfolio in cash in the end of the second quarter as markets continued their ascent.
“It remains challenging to find those investments that appropriately discount a reasonable worst case scenario,” Romick said in his second quarter letter. “Until such time as that changes, we continue to add depth and breadth to our library of prospective investments so as to be ready when opportunities arise.”
Times began to change with the onset of volatility going into the third quarter, and Romick bought more than one new holding for the first time since 2014. The three new third-quarter positions were: Halliburton Co. (HAL, Financial), American Express Co. (AXP, Financial) and Esterline Technologies (ESL, Financial).
Romick’s third quarter portfolio also had a value of $9.4 billion, with 14% quarter-over-quarter turnover and a topic sector of Technology, representing 35.8% of all holdings.
Romick purchased 1,012,740 shares of Halliburton Co., a 0.38% portfolio weight. The company’s third quarter share price averaged $39.
Halliburton Co. was established in 1919 and incorporated under the laws of the State of Delaware in 1924. Halliburton Co. has a market cap of $33.94 billion; its shares were traded at around $39.71 with a P/E ratio of 22.45 and P/S ratio of 1.11. The dividend yield of Halliburton Co. stocks is 1.83%. Halliburton Co. had an annual average earnings growth of 13.4% over the past 10 years. GuruFocus rated Halliburton Co. the business predictability rank of 2.5-star.
Romick purchased 643,400 shares of American Express Co., a 0.51% portfolio weight. The company’s share price averaged $77.
American Express Co. began operations as a joint stock association on March 28, 1850. American Express Co. has a market cap of $76.86 billion; its shares were traded at around $76.76 with a P/E ratio of 13.54 and P/S ratio of 2.35. The dividend yield of American Express Co. stocks is 1.45%. American Express Co. had an annual average earnings growth of 9.7% over the past 10 years.
Romick purchased 2,636,450 shares of Esterline Technologies, a 2.03% portfolio weight and 8.9% of the company’s shares outstanding. Esterline’s share price averaged $85.
Esterline Technologies Corp., a Delaware corporation formed in 1967 is a specialized manufacturing company mainly serving aerospace and defense customers. Esterline Technologies has a market cap of $2.28 billion; its shares were traded at around $77.15 with a P/E ratio of 45.31 and P/S ratio of 1.24. Esterline Technologies had an annual average earnings growth of 11.4% over the past 10 years. GuruFocus rated Esterline Technologies the business predictability rank of 3.5-star.