Van Duyn Dodge and E. Morris Cox founded Dodge & Cox in 1930. The firm manages a portfolio with a total value of $106.414 billion. During the third quarter the guru’s largest sells were the following:
Its stake in EMC Corp. (EMC) was closed with an impact of -2.05% on the portfolio.
The company supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). It operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. Third-quarter revenue grew 1% year over year, and the company generated $1.4 billion in operating cash flow and $1.03 billion in free cash flow.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The return on equity (ROE) of 9.96% and return on assets (ROA) of 4.58% are outperforming 69% of the companies in the Global Data Storage industry. Financial strength has a rating of 6 out of 10 with cash to debt of 1.87 that is above the industry median of 1.35.
The guru exited Tyco International PLCĂ‚ (TYC) with an impact of -1.61% on the portfolio.
The company provides security, fire detection and suppression products and services and life safety products. Its brands include Tyco, SimplexGrinnell, Sensormatic, Wormald, Ansul, Simplex, Scott and ADT security. Third-quarter adjusted net sales was $9.4 billion compared to $8.7 billion in the prior-year quarter, and adjusted diluted EPS of $1.21 exceeded guidance of $1.17 to $1.20.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. ROE of 12.64% and ROA of 4.49% are outperforming 66% of the companies in the Global Security & Protection Services industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.14 that is below the industry median of 0.57.
The guru reduced its stake in Symantec Corp. (SYMC) by 44.45% with an impact of -0.63% on the portfolio.
The company provides security, backup and availability solutions. Its products and services protect people and information in any environment, from the smallest mobile device to the enterprise data center to cloud-based systems. Third-quarter GAAP revenue grew 8% year over year, but GAAP net income decreased 192% from the same quarter of a year before.
GuruFocus gives the stock a profitability and growth rating of 4 out of 10. ROE of 48.83% and ROA of 17.09% are outperforming 92% of the companies in the Global Software - Application industry. Financial strength has a rating of 5 out of 10 with cash to debt of 0.78 that is below the industry median of 6.37.
The largest shareholder among the gurus is Dodge & Cox with 6.24% of outstanding shares followed by Paul Singer (Trades, Portfolio) with 1.92%, Jim Simons (Trades, Portfolio) with 0.5%, John Burbank (Trades, Portfolio) with 0.45%, Richard Snow (Trades, Portfolio) with 0.37%, NWQ Managers (Trades, Portfolio) with 0.27%, Joel Greenblatt (Trades, Portfolio) with 0.2%, George Soros (Trades, Portfolio) with 0.1% and John Buckingham (Trades, Portfolio) with 0.04%.
The guru reduced his stake in Petroleo Brasileiro SA Petrobras ADRĂ‚ (PBR.A) by 35.29% with an impact of -0.4% on the portfolio.
The company operates as an integrated oil and gas company in Brazil. Its business is structured into segments such as Exploration & Production; Refining, Transportation & Marketing; Distribution; Gas & Energy; and Biofuel & International.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. ROE of -20.17% and ROA of -6.26% are underperforming 82% of the companies in the Global Oil & Gas Integrated industry. Financial strength has a rating of 4 out of 10 with cash to debt of 0.18 that is below the industry median of 0.42.
Charles Brandes (Trades, Portfolio) is another notable shareholder among the gurus with 0.25% of outstanding shares followed by Sarah Ketterer (Trades, Portfolio) with 0.09%, Soros with 0.02% and PRIMECAP Management (Trades, Portfolio) with 0.01%.
The investor reduced its stake in Walmart Stores Inc. (WMT) by 18.90% with an impact of -0.39% on the portfolio.
The company operates retail stores in various formats under various banners. Its operations comprise of three reportable business segments, Walmart U.S., Walmart International and Sam's Club, in three categories: retail, wholesale and others. Total revenue in the third quarter increased 0.7%, but net sales decreased 4.8%. The company reported a decrease of 10.4% for operating income.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. ROE of 18.56% and ROA of 7.17% are outperforming 80% of the companies in the Global Discount Stores industry. Financial strength has a rating of 6 out of 10 with cash to debt of 0.12 that is below the industry median of 0.48.
Another notable shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 0.42% of outstanding shares followed by Bill Gates (Trades, Portfolio) with 0.38%, Richard Pzena (Trades, Portfolio) with 0.17%, Ken Fisher (Trades, Portfolio) with 0.16%, Barrow, Hanley, Mewhinney & Strauss with 0.14%, Simons with 0.09% and T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.09%.
The guru reduced its stake in Microsoft Corp. (MSFT) by 13.67% with an impact of -0.36% on the portfolio.
The company is engaged in designing, manufacturing, selling devices and online advertising. Its products include operating systems for computing devices, servers, phones and other devices. Recently it announced it has completed the acquisition of LinkedIn (LNKD), and third-quarter diluted earnings per share was 60 cents GAAP and 76 cents non-GAAP.
GuruFocus gives the stock a profitability and growth rating of 7 out of 10. ROE of 22.30% and ROA of 8.80% are outperforming 77% of the companies in the Global Software - Infrastructure industry. Financial strength has a rating of 6 out of 10 with cash to debt of 1.83 that is below the industry median of 6.37.
The largest shareholder among the gurus is PRIMECAP Management with 0.73% of outstanding shares followed by Jeff Ubben (Trades, Portfolio) with 0.5%, Barrow, Hanley, Mewhinney & Strauss with 0.3%, Fisher with 0.24% and Jeremy Grantham (Trades, Portfolio) with 0.22%.
The guru reduced his stake in Merck & Co. Inc. (MRK) by 24.80% with an impact of -0.34% on the portfolio.
It is a health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health and consumer care products. Third-quarter worldwide sales grew 5%, GAAP earnings per share was 78 cents, and non-GAAP earnings per share was $1.07.
GuruFocus gives the stock a profitability and growth rating of 6 out of 10. ROE of 12.41% and ROA of 5.53% are outperforming 62% of the companies in the Global Drug Manufacturers - Major industry. Financial strength has a rating of 6 out of 10, with cash to debt of 0.52 that is below industry median on 1.69.
The largest shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with 1.51% of outstanding shares followed by Barrow, Hanley, Mewhinney & Strauss with 0.67%, Fisher with 0.25%, T Rowe Price Equity Income Fund with 0.12%, PRIMECAP Management with 0.11%, Brandes with 0.1%, Pzena with 0.05% and Simons with 0.05%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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