As our gurus release their third-quarter portfolios, the Dow Jones Industrial Average closed above 28,000 for the first time in history on Friday.
The 30-stock index closed at 28,004.89, up 222.93 points from Thursday’s close of 27,781.96, as investors cheered improving trade talks between the U.S. and China. CNBC's Fred Imbert reported that White House economic advisor Larry Kudlow said the two countries were close to a trade deal.
Five stocks that propelled the Dow to a new milestone were Apple Inc. (AAPL, Financial), Intel Corp. (INTC, Financial), JPMorgan Chase & Co. (JPM, Financial), United Technologies Corp. (UTX, Financial) and The Home Depot Inc. (HD, Financial). According to the All-in-One Screener, a Premium feature of GuruFocus, the five stocks have outperformed the three-month Standard & Poor’s 500 Index's total return by at least 10%.
Apple
Apple, the top holding of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), outperformed the S&P 500 by 23.52% over the past three months.
GuruFocus ranks the Cupertino, California-based tech giant’s profitability 10 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and operating margins that outperform 96.61% of global competitors.
Even though Berkshire slightly reduced its position in Apple during the third quarter, the holding occupies 25.96% of the equity portfolio, up from the second-quarter weight of 23.74%.
Intel
Intel outperformed the S&P 500 by 20.32% during the past three months according to the screener.
GuruFocus ranks the Santa Clara, California-based semiconductor company’s profitability 9 out of 10 on several positive investing signs, which include a strong Piotroski F-score of 7 and operating margins that have increased approximately 5% per year on average over the past five years and are outperforming approximately 95% of global competitors.
JPMorgan
JPMorgan Chase has outperformed the S&P 500 by 17.17% over the past three months. According to GuruFocus, the bank’s net margin and return on equity are outperforming 67.94% and 77.09% of global competitors.
Berkshire owns 59,514,932 shares of JPMorgan as of third quarter-end, unchanged from the second quarter.
United Technologies
United Technologies has outperformed the S&P 500 by 13.94% over the past three months. GuruFocus ranks the Farmington, Connecticut-based aerospace and defense company’s profitability 8 out of 10: Even though the business predictability ranks just two stars, United Technologies’ Joel Greenblatt (Trades, Portfolio) return on capital outperforms 93.22% of global competitors.
Dodge & Cox has the largest stake in United Technologies with 17,026,208 shares.
Home Depot
Home Depot has outperformed the S&P 500 by 11.62% over the past three months. GuruFocus ranks the Atlanta-based home improvement retailer’s profitability 8 out of 10 on several positive investing signs, which include expanding profit margins and returns on assets that are outperforming 98.03% of global competitors.
Disclosure: No positions.
Read more here:
- Prem Watsa’s Top 4 Buys of the 3rd Quarter
- 5 Magic Formula Leisure Stocks With High Business Quality
- Strong Earnings: Buffett’s Apple Sweetens Dow’s Treat to Investors
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
