Seattle-based investor Bill Smead last week disclosed the stocks he purchased during the second quarter for his concentrated Smead Value Fund (Trades, Portfolio), Qualcomm Inc. (QCOM, Financial) and Schlumberger Ltd. (SLB, Financial).
Including the new stocks, Smead’s fund ended the quarter with 27 positions, valued around $1.09 billion. The investor also exited a position in The Kroger Co. (KR, Financial).
Smead Value Fund (Trades, Portfolio) typically invests in 25 to 30 companies at a time, focusing U.S. large caps. It has three primary points to its investing philosophy: valuation, quality of business and business-owner mentality.
The most-represented sector in Smead’s portfolio is financial services, which covers 29.59% of stocks. Consumer cyclical, the next largest sector, occupies 27.31% of the portfolio, and health care stocks are a further 16.61%.
In addition to the new buys during the quarter, Smead added to three existing positions.
New buys
Qualcomm Inc. (QCOM, Financial)
Smead acquired 429,203 shares of Qualcomm, giving it 2.64% portfolio weight. The stock’s second-quarter share price averaged $67.
Qualcomm Inc. has a market cap of $94.32 billion; its shares were traded around $77.59 with a price-earnings ratio of 27.52 and price-sales ratio of 3.88. The trailing 12-month dividend yield of Qualcomm Inc. is 3.19%. The forward dividend yield of Qualcomm Inc. is 3.23%. Qualcomm Inc. had an annual average earnings growth of 3.70% over the past 10 years.
Schlumberger Ltd. (SLB, Financial)
Smead acquired 545,225 shares of Schlumberger Ltd., giving it 1.74% portfolio weight. The stock’s second-quarter share price averaged $42.
Schlumberger Ltd. has a market cap of $47.11 billion; its shares were traded around $34.06 Thursday with a price-earnings ratio of 22.71 and price-sales ratio of 1.44. The trailing 12-month dividend yield of Schlumberger Ltd. is 5.89%. The forward dividend yield of Schlumberger Ltd. is 5.94%.
Additions
AmerisourceBergen Corp. (ABC, Financial)
Smead purchased 67,099 shares of AmerisourceBergen Corp., increasing the position by 29.78% to 292,408 shares. The stock’s second-quarter share price averaged $77.
AmerisourceBergen Corp. has a market cap of $17.83 billion; its shares were traded around $85.61 Thursday with a price-earnings ratio of 19.07 and price-sales ratio of 0.10. The trailing 12-month dividend yield of AmerisourceBergen Corp. is 1.87%. The forward dividend yield of AmerisourceBergen Corp stocks is 1.85%. AmerisourceBergen Corp. had an annual average earnings growth of 10.70% over the past 10 years. GuruFocus rated AmerisourceBergen Corp. the business predictability rank of 4-star.
Wells Fargo & Co. (WFC, Financial)
Smead purchased 97,218 shares of Wells Fargo & Co., increasing the position by 13.8% to 802,384 shares. The stock’s second-quarter share price averaged $48.
Wells Fargo & Co. has a market cap of $201.23 billion; its shares were traded around $45.67 Thursday with a price-earnings ratio of 9.44 and price-sales ratio of 2.46. The trailing 12-month dividend yield of Wells Fargo & Co. is 4.01%. The forward dividend yield of Wells Fargo & Co. is 4.53%.
Walgreens Boots Alliance Inc. (WBA, Financial)
Smead purchased 928,465 shares of Walgreens Boots Alliance, increasing the position by 7.63% to 928,465 shares. The holding represented 4.21% of the portfolio. The stock’s second-quarter share price averaged $56.
Walgreens Boots Alliance Inc has a market cap of $45.99 billion; its shares were traded around $50.92 Thursday with a price-earnings ratio of 9.99 and price-sales ratio of 0.35. The trailing 12-month dividend yield of Walgreens Boots Alliance Inc. is 3.50%. The forward dividend yield of Walgreens Boots Alliance Inc. is 3.60%. Walgreens Boots Alliance Inc. had an annual average earnings growth of 5.90% over the past 10 years. GuruFocus rated Walgreens Boots Alliance Inc. the business predictability rank of 3.5-star.
See the Smead Value Fund (Trades, Portfolio) portfolio here.
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