According to top-holdings statistics, a GuruFocus Premium feature, the top-five holdings of Al Gore (Trades, Portfolio)’s Generation Investment Management as of the third quarter are Alphabet Inc. (GOOG, Financial), Charles Schwab Corp. (SCHW, Financial), Dentsply Sirona Inc. (XRAY, Financial), Cognizant Technology Solutions Corp. (CTSH, Financial) and Deere & Co. (DE, Financial).
Gore, former U.S. vice president under Bill Clinton, co-founded the London-based firm in 2004 with David Blood. Generation focuses on a long-term investment prospective, emphasizing the sustainability within markets with companies that strategically manage their economic, social and environmental performances.
As of quarter-end, Generation’s $14.55-billion equity portfolio contains 36 stocks, including two new positions. The top-three sectors in terms of portfolio weight are technology, health care and industrials, with weights of 31.27%, 20.39% and 16.43%.
Alphabet
Generation owns 1,142,934 Class C shares of Alphabet, up 24.5% from the prior quarter. Shares, which occupy 9.58% of the equity portfolio, averaged $1,182.53 during the third quarter.
The Mountain View, California-based company operates a wide range of online services, including the Google search engine and video-sharing platform YouTube. GuruFocus ranks Alphabet’s financial strength 9 out of 10 and profitability 10 out of 10 on several positive investing signs, which include strong interest coverage and Altman Z-scores, a 3.5-star business predictability rank, and operating margins that are outperforming 76.83% of global competitors despite contracting approximately 2.3% per year on average over the past five years.
Other gurus with large holdings in Alphabet include Dodge & Cox and PRIMECAP Management (Trades, Portfolio).
Charles Schwab
Generation owns 27,092,510 shares of Charles Schwab, up 29.63% from the prior quarter. Shares, which occupy 7.79% of the equity portfolio, averaged $40.33 during the third quarter.
On Monday, San Francisco-based Charles Schwab and Omaha, Nebraska-based TD Ameritrade Holding Corp. (AMTD, Financial) said the two companies reached a definitive merger agreement in which Charles Schwab will acquire TD Ameritrade in an all-stock transaction worth approximately $26 billion. Per the merger terms, TD Ameritrade shareholders will receive 1.0837 shares of Charles Schwab. The transaction represents a 17% premium over the 30-day volume-weighted average price exchange ratio as of Nov. 20.
GuruFocus ranks Charles Schwab’s financial strength 4 out of 10: Although the company’s debt ratios are outperforming over 55% of global competitors, Charles Schwab’s equity-to-asset ratio of 0.08 underperforms 92% of global peers.
Dentsply Sirona
Generation owns 16,590,781 shares of Dentsply Sirona, down 1.77% from the prior quarter. Shares, which occupy 6.08% of the equity portfolio, averaged $53.76 during the third quarter.
The York, Pennsylvania-based company manufactures and distributes dental supplies and equipment through several product segments. GuruFocus ranks Dentsply Sirona’s profitability 6 out of 10: Operating margins are outperforming 66.05% of global competitors despite contracting approximately 9.3% per year on average over the past five years.
Cognizant
Generation owns 13,055,572 shares of Cognizant, up 24.84% from the prior quarter. Shares, which occupy 5.41% of the equity portfolio, averaged $63.20 during the third quarter.
The Teaneck, New Jersey-based company provides technology consulting, application outsourcing, systems integration, business process services and cloud services. GuruFocus ranks Cognizant’s profitability 9 out of 10 on several positive investing signs, which include a four-star business predictability rank and operating margins that are outperforming 81.70% of global competitors despite contracting approximately 2.1% per year on average over the past five years.
Deere
Generation owns 4,244,436 shares of Deere, down 10.91% from the prior quarter. Shares, which occupy 4.92% of the equity portfolio, averaged $159.93 during the third quarter.
The Moline, Illinois-based company said on Wednesday that net income for the quarter ending Nov. 3 was $722 million, or $2.27 per share, compared with net income of $785 million, or $2.42 per share, from the prior-year quarter. For fiscal 2019, net income was $3.253 billion, or $10.15 per share, compared with net income of $2.368 billion, or $7.24 per share in the prior fiscal year.
GuruFocus ranks Deere’s profitability 7 out of 10: Operating margins are outperforming 76.14% of global competitors despite contracting approximately 7.2% per year on average over the past five years.
Disclosure: No positions.
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