Dodge & Cox fund investing strategies originally
published at long-term-investments.blogspot.com. The Dodge & Cox fund
is a real equity based investment vehicle with around USD 81.3 billion in
assets under management.
The investment firm was founded in 1930, by Van
Duyn Dodge and E. Morris Cox. With this long history in background, there is also a long
performance review available.
Over the recent years, the fund’s performance
suffered a bit. There was a small underperformance of 2.7 percent over the recent
three years and 9.2 percent over the past five years. The excess gain to the
S&P 500 over the longer term was also small with up to 2.9 percent at the peak
(15 years).
They own in total 163 companies of which two were recently new in the fund. Kraft Foods Group and Abbvie are the two names.
Dodge & Cox have a real focus on financial, healthcare
and technology stocks. More than half of their funds (59.9 percent) are
invested in these three stock categories. The biggest impact on the buy side had the
technology sector which is now net 0.7 percentage points bigger compared to the previous quarter.
Dodge & Cox have a dividend focus and they like
large capitalized stocks. From their 20 biggest stock buys and sells in Q1/13 pay 17 a solid
dividend and 17 have a valuation over USD 10 billion. Hewlett Packard is the biggest
holding, worth around USD 4 billion. The latest big stock increases are up 26.03
percent year-to-date.
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Chevron (NYSE:CVX) has a market capitalization of $240.55 billion. The company employs 62,000 people, generates revenue of $241.909 billion and has a net income of $26.336 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $59.975 billion. The EBITDA margin is 24.79 percent (the operating margin is 19.15 percent and the net profit margin 10.89 percent).
Financial Analysis: The total debt represents 5.23 percent of the company’s assets and the total debt in relation to the equity amounts to 8.93 percent. Due to the financial situation, a return on equity of 20.30 percent was realized. Twelve trailing months earnings per share reached a value of $13.23. Last fiscal year, the company paid $3.51 in the form of dividends to shareholders. CVX shares were added by 42.5 percent and had an impact to the full portfolio of .39%
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.38, the P/S ratio is 0.99 and the P/B ratio is finally 1.77. The dividend yield amounts to 3.22 percent and the beta ratio has a value of 0.80.
 |
| Long-Term Stock Price Chart Of Chevron (CVX) |
 |
| Long-Term Dividend Payment History of Chevron (CVX) |
 |
| Long-Term Dividend Yield History of Chevron (CVX) |
Microsoft (NASDAQ:MSFT) has a market capitalization of $297.88 billion. The company employs 94,000 people, generates revenue of $73.723 billion and has a net income of $16.978 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $30.714 billion. The EBITDA margin is 41.66 percent (the operating margin is 29.92 percent and the net profit margin 23.03 percent).
Financial Analysis: The total debt represents 9.85 percent of the company’s assets and the total debt in relation to the equity amounts to 18.00 percent. Due to the financial situation, a return on equity of 27.51 percent was realized. Twelve trailing months earnings per share reached a value of $1.94. Last fiscal year, the company paid $0.80 in the form of dividends to shareholders. MSFT shares were added by 14.64 percent and had an impact to the full portfolio of .34%
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.38, the P/S ratio is 4.04 and the P/B ratio is finally 4.50. The dividend yield amounts to 2.58 percent and the beta ratio has a value of 0.99.
 |
| Long-Term Stock Price Chart Of Microsoft (MSFT) |
 |
| Long-Term Dividend Payment History of Microsoft (MSFT) |
 |
| Long-Term Dividend Yield History of Microsoft (MSFT) |
CIGNA (NYSE:CI) has a market capitalization of $21.69 billion. The company employs 35,800 people, generates revenue of $29.119 billion and has a net income of $1.624 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.037 billion. The EBITDA margin is 10.43 percent (the operating margin is 8.51 percent and the net profit margin 5.58 percent).
Financial Analysis: The total debt represents 9.65 percent of the company’s assets and the total debt in relation to the equity amounts to 53.10 percent. Due to the financial situation, a return on equity of 18.27 percent was realized. Twelve trailing months earnings per share reached a value of $4.52. Last fiscal year, the company paid $0.04 in the form of dividends to shareholders. CI shares were added by 314.36 percent and had an impact to the full portfolio of .32%
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.83, the P/S ratio is 0.74 and the P/B ratio is finally 2.22. The dividend yield amounts to 0.05 percent and the beta ratio has a value of 1.38.
 |
| Long-Term Stock Price Chart Of CIGNA (CI) |
 |
| Long-Term Dividend Payment History of CIGNA (CI) |
 |
| Long-Term Dividend Yield History of CIGNA (CI) |
Take a closer look at the full list of the latest big portfolio transactions from Dodge & Cox and the 20 biggest stock holdings. The average P/E ratio amounts to 19.97
and forward P/E ratio is 14.77. The dividend yield has a value of 1.98 percent.
Price to book ratio is 4.42 and price to sales ratio 2.47. The operating margin
amounts to 21.37 percent and the beta ratio is 0.97. Stocks from the list have
an average debt to equity ratio of 1.44.
These are the 20 biggest stock transactions of Dodge & Cox:
|
Ticker
|
Company
|
Action
|
Impact
|
Change from Average
|
Comment
|
|
|
|
|
|
|
|
|
CVX
|
Chevron Corp
|
Add
|
0.39%
|
7.00%
|
Add 42.5%
|
|
GOOG
|
Google, Inc.
|
Add
|
0.37%
|
19.00%
|
Add 39.09%
|
|
MSFT
|
Microsoft Corporatio...
|
Add
|
0.34%
|
29.00%
|
Add 14.64%
|
|
CI
|
Cigna Corp
|
Add
|
0.32%
|
29.00%
|
Add 314.36%
|
|
S
|
Sprint Nextel Corp
|
Add
|
0.23%
|
11.00%
|
Add 9.53%
|
|
TWC
|
Time Warner Cable In...
|
Add
|
0.22%
|
24.00%
|
Add 13.41%
|
|
HPQ
|
Hewlett-Packard Co
|
Add
|
0.21%
|
41.00%
|
Add 4.62%
|
|
SYMC
|
Symantec Corp
|
Add
|
0.15%
|
6.00%
|
Add 8.64%
|
|
NOK
|
Nokia Oyj
|
Add
|
0.10%
|
6.00%
|
Add 26.06%
|
|
MSI
|
Motorola Solutions, ...
|
Reduce
|
N/A
|
-1.00%
|
Reduce -26.58%
|
|
NTRS
|
Northern Trust Corpo...
|
Sold Out
|
N/A
|
16.00%
|
Sold Out
|
|
L
|
Loews Corporation
|
Reduce
|
N/A
|
6.00%
|
Reduce -20.49%
|
|
KRFT
|
Kraft Foods Group In...
|
Buy
|
N/A
|
18.00%
|
New holding, 3946 sh.
|
|
JW.A
|
John Wiley & Sons, I...
|
Sold Out
|
N/A
|
13.00%
|
Sold Out
|
|
ABBV
|
AbbVie Inc
|
Buy
|
N/A
|
22.00%
|
New holding, 37865 sh.
|
|
IPG
|
Interpublic Group of...
|
Reduce
|
N/A
|
27.00%
|
Reduce -29.21%
|
|
GIS
|
General Mills, Inc.
|
Reduce
|
N/A
|
16.00%
|
Reduce -50%
|
|
CL
|
Colgate-Palmolive Co...
|
Reduce
|
N/A
|
6.00%
|
Reduce -36.36%
|
|
CMCSK
|
Comcast Corp
|
Reduce
|
N/A
|
12.00%
|
Reduce -32.41%
|
|
DUK
|
Duke Energy Corporat...
|
Reduce
|
N/A
|
3.00%
|
Reduce -24.07%
|
Here is the full table with
some fundamentals (TTM):
 |
| Dodge & Cox Biggest Stock Buys and Sells As of Q1/13 (Click to enlarge) |
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These are the biggest stock holdings of Dodge & Cox:
|
Ticker
|
Company
|
Value ($1000)
|
% Weighting as of Q1/13
|
Change to previous Quarter
|
|
HPQ
|
Hewlett-Packard Co
|
3,905,810
|
4.80%
|
4.62%
|
|
NVS
|
Novartis AG
|
3,384,280
|
4.20%
|
-1.93%
|
|
GSK
|
GlaxoSmithKline PLC
|
2,937,390
|
3.60%
|
-1.08%
|
|
WFC
|
Wells Fargo & Co
|
2,778,020
|
3.40%
|
-1.75%
|
|
COF
|
Capital One Financial
|
2,671,030
|
3.30%
|
0.11%
|
|
CMCSA
|
Comcast Corp
|
2,698,840
|
3.30%
|
-11.29%
|
|
SLB
|
Schlumberger NV
|
2,564,120
|
3.20%
|
-1.60%
|
|
TWX
|
Time Warner Inc
|
2,381,560
|
2.90%
|
-2.93%
|
|
MRK
|
Merck & Co Inc
|
2,267,490
|
2.80%
|
-2.26%
|
|
SNY
|
Sanofi
|
2,281,770
|
2.80%
|
-3.39%
|
|
S
|
Sprint Corp
|
2,175,340
|
2.70%
|
9.53%
|
|
GE
|
General Electric Co
|
2,188,490
|
2.70%
|
-3%
|
|
MSFT
|
Microsoft Corporation
|
2,233,520
|
2.70%
|
14.64%
|
|
NWSA
|
News Corporation
|
1,996,880
|
2.50%
|
-11.57%
|
|
PFE
|
Pfizer Inc
|
2,013,260
|
2.50%
|
-2.09%
|
|
SCHW
|
Charles Schwab Corp
|
1,669,010
|
2.10%
|
-1.45%
|
|
BK
|
Bank of New York
Mellon
|
1,694,720
|
2.10%
|
-2.12%
|
|
GS
|
Goldman Sachs Group Inc
|
1,703,610
|
2.10%
|
-3.66%
|
|
FDX
|
FedEx Corporation
|
1,704,740
|
2.10%
|
-3.17%
|
|
TEL
|
TE Connectivity Ltd
|
1,509,480
|
1.90%
|
-1.17%
|
Related stock ticker symbols:
DUK, ABBV, KRFT,
CVX, GIS, MSFT, SYMC, CL, TWC, HPQ, NTRS, IPG, JW-A, MSI, L, CI, GOOG, NOK, S,
Selected Articles:
*I am long KRFT, GIS, CL. I
receive no compensation to write about these specific stocks, sector or theme.
I don't plan to increase or decrease positions or obligations within the next
72 hours.
For the other stocks: I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.