Wedgewood Partners’ David Rolfe (Trades, Portfolio) gained three new holdings during the first quarter and sold two others. His new positions are Edwards Lifesciences Corp. (EW, Financial), Celgene Corp. (CELG, Financial) and Boeing Co. (BA, Financial).
As Wedgewood’s chief investment officer, Rolfe believes long-term wealth is created by investing as owners of a company. The firm seeks profitable companies with a dominant product or service that grows its earnings, revenues and dividends consistently. Shareholder-friendly management is another quality the investment team values. Rolfe’s current portfolio is composed of 37 stocks, which is valued at $3.8 billion.
Rolfe purchased 1.14 million shares of Edwards Lifesciences for an average price of $93.92 per share, giving it 2.7% portfolio space.
The heart valve and repair products manufacturer has a market cap of $23.8 billion; its shares were trading around $113.43 on Tuesday with a price-earnings (P/E) ratio of 37.7, a price-book (P/B) ratio of 8.7 and a price-sales (P/S) ratio of 7.8.
The Peter Lynch chart below shows the stock is trading above its fair value.
GuruFocus ranked the company’s financial strength 7 of 10 and its profitability and growth 9 of 10. It does not currently pay a dividend. Over the past three years, Edwards Lifesciences has grown its earnings per share by 15.1% per year and its revenue by 14.8% per year.
Frank Sands (Trades, Portfolio) is the company’s largest guru shareholder with 3.8% of its outstanding shares. In total, 12 gurus hold the stock.
The investor bought 192,000 shares of Celgene for an average price of $119.67 per share, expanding the portfolio 0.6%.
The biopharmaceutical company has a market cap of $92.9 billion; its shares were trading around $119.04 on Tuesday with a P/E ratio of 44.7, a P/B ratio of 12.2 and a P/S ratio of 8.2.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked Celgene’s financial strength 5 of 10 and its profitability and growth 8 of 10. It does not currently pay a dividend. Over the past three years, the company has grown its EPS by 14% per year and its revenue by 22.8% per year.
Among the gurus invested in Celgene, Spiros Segalas (Trades, Portfolio) is the largest shareholder with 0.7% of outstanding shares. In all, 19 gurus own the stock.
Rolfe purchased 1,250 shares of Boeing for an average price of $170.33 per share, giving it 0.01% portfolio space.
The aircraft manufacturer has a market cap of $110.09 billion; its shares were trading around $183.05 on Tuesday with a P/E ratio of 22.4, a P/B ratio of 1,169.2 and a P/S ratio of 1.24.
The Peter Lynch chart below indicates the stock is trading above its fair value.
GuruFocus ranked Boeing’s financial strength 5 of 10 and its profitability and growth 8 of 10. The company pays a quarterly dividend of $1.42. The trailing dividend yield is 2.7%, and the forward dividend yield is 3.1%. Over the past five years, Boeing has grown its dividend by 23.4% per year.
Segalas is the largest guru shareholder with 0.44% of its outstanding shares. In total, 18 gurus have a position in the stock.
During the quarter, Rolfe sold out of LKQ Corp. (LKQ, Financial) and Mead Johnson Nutrition Co. (MJN, Financial).
He sold his remaining 3.8 million shares of LKQ for $31.11 per share. The divestment of the auto parts company impacted the portfolio by -2.8%.
He sold 1.45 million shares of Mead Johnson for $82.24 per share. The removal of the pediatric nutrition products manufacturer curbed the portfolio by -2.5%.
Disclosure: I do not own any stocks mentioned in the article.
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