Dodge & Cox Sells Most of Stakes in Chevron, GlaxoSmithKline

Guru invests in stakes in UBS Group, Harley-Davidson

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Nov 17, 2015
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A team research approach guides Dodge & Cox’s investment decisions. The strategy works pretty well. Dodge & Cox enjoyed returns of more than 10% in 2014, which was good compared to many investors but modes compared to the returns from 2012 (22.01%) and 2013 (40.55%).

Dodge & Cox’s most noteworthy third-quarter transaction was its sale of nearly 95% of its stake in Chevron Corp. (CVX, Financial), a San Ramon, Calif.-based oil and gas company. Dodge & Cox sold 10,738,382 shares for an average price of $84.18 per share. The deal had a -0.93% impact on Dodge & Cox’s portfolio.

Chevron has a market cap of $171.32 billion and an enterprise value of $149.98 billion. It has a P/E of 19.8, a forward P/E of 23.4, a P/B of 1.1 and a P/S of 1.1. GuruFocus has given Chevron a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.

Brian Rogers (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Steven Cohen (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Richard Snow (Trades, Portfolio), James Barrow (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Bill Frels (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Tom Russo (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Manning & Napier Advisors Inc., Murray Stahl (Trades, Portfolio), First Eagle Investment (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), Meridian Funds (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio) and David Dreman (Trades, Portfolio) have shares of Chevron in their portfolios.

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Chevron sold for $91.03 per share Tuesday afternoon.

Dodge & Cox also sold part of its stake in GlaxoSmithKline PLC (GSK, Financial), a British pharmaceutical company. Dodge & Cox sold 12,274,083 shares – more than 98% of its stake – for an average price of $41.64 per share. The transaction had a -0.46% impact on Dodge & Cox’s portfolio.

GlaxoSmithKline has a market cap of $98.24 billion and an enterprise value of $107.36 billion. It has a P/E of 6.6, a forward P/E of 15.5, a P/B of 12 and a P/S of 2.7. GuruFocus has given GlaxoSmithKline a Financial Strength rating of 7/10 and a Profitability and Growth rating of 5/10.

HOTCHKIS & WILEY, Ken Fisher (Trades, Portfolio), Charles Brandes (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), John Rogers (Trades, Portfolio), Jim Simons (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), NWQ Managers (Trades, Portfolio), James Barrow (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Kahn Brothers (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Francis Chou (Trades, Portfolio) and First Eagle Investment (Trades, Portfolio) have shares of GlaxoSmithKline in their portfolios.

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Tuesday afternoon GlaxoSmithKline sold for $40.63 per share.

Dodge & Cox also sold nearly 82% of its stake in SunTrust Banks Inc. (STI, Financial), an Atlanta-based banking company. Dodge & Cox sold 11,972,490 shares for an average price of $41.85 per share. The deal had a -0.46% impact on Dodge & Cox’s portfolio.

SunTrust Banks has a market cap of $21.89 billion and an enterprise value of $28.82 billion. It has a P/E of 12.3, a forward P/E of 12.1, a P/B of 1 and a P/S of 2.8. GuruFocus has given SunTrust Banks a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.

HOTCHKIS & WILEY, Brian Rogers (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Arnold Schneider (Trades, Portfolio), Steven Cohen (Trades, Portfolio), David Dreman (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Ruane Cunniff (Trades, Portfolio), Ray Dalio (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio) and Joel Greenblatt (Trades, Portfolio) have shares of SunTrust Banks in their portfolios.

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SunTrust Banks sold for $42.95 per share Tuesday afternoon.

Dodge & Cox added 23,205,300 shares to its stake in Cisco Systems Inc. (CSCO, Financial), a San Jose, Calif.-based networking equipment company, for an average price of $27 per share. The transaction had a 0.61% impact on Dodge & Cox’s portfolio.

Cisco Systems has a market cap of $135.69 billion and an enterprise value of $100.64 billion. It has a P/E of 15.4, a forward P/E of 11.7, a P/B of 2.2 and a P/S of 2.8. GuruFocus has given Cisco Systems a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10.

Dodge & Cox is Cisco’s leading shareholder among the gurus. Donald Yacktman (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Yacktman Fund (Trades, Portfolio), First Pacific Advisors (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Steven Romick (Trades, Portfolio), Yacktman Focused Fund (Trades, Portfolio), Tweedy Browne (Trades, Portfolio), Brian Rogers (Trades, Portfolio), Diamond Hill Capital (Trades, Portfolio), Richard Pzena (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Tweedy Browne (Trades, Portfolio) Global Value, James Barrow (Trades, Portfolio), Manning & Napier Advisors Inc., Chuck Royce (Trades, Portfolio), Ray Dalio (Trades, Portfolio), John Hussman (Trades, Portfolio), Jim Simons (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Robert Olstein (Trades, Portfolio), John Buckingham (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Caxton Associates (Trades, Portfolio), Mark Hillman (Trades, Portfolio), David Dreman (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Jeff Auxier (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), Murray Stahl (Trades, Portfolio), Meridian Funds (Trades, Portfolio), RS Investment Management (Trades, Portfolio), Bill Frels (Trades, Portfolio), Frank Sands (Trades, Portfolio), Richard Snow (Trades, Portfolio), Lee Ainslie (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and Arnold Van Den Berg (Trades, Portfolio) have shares of Cisco in their portfolios.

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Tuesday afternoon Cisco Systems sold for $26.81 per share.

Dodge & Cox bought a 30,534,700-share stake in UBS Group AG (UBS, Financial), a Swiss financial services company, for an average price of $21.23 per share. The deal had a 0.57% impact on Dodge & Cox’s portfolio.

UBS Group has a market cap of $71.9 billion and an enterprise value of $76.16 billion. It has a P/E of 11.9, a forward P/E of 10.5, a P/B of 1.3 and a P/S of 2.4. GuruFocus has given UBS Group a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.

Dodge & Cox is UBS Group’s leading shareholder among the gurus. Ken Fisher (Trades, Portfolio), Richard Pzena (Trades, Portfolio), Charles Brandes (Trades, Portfolio), Sarah Ketterer (Trades, Portfolio), Signature Select Canadian Fund (Trades, Portfolio), Jim Simons (Trades, Portfolio) and RS Investment Management (Trades, Portfolio) have shares of UBS Group in their portfolios.

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UBS Group sold for $19.16 per share Tuesday afternoon.

Dodge & Cox acquired a 7,221,700-share stake in Harley-Davidson Inc. (HOG, Financial), a Milwaukee-based motorcycle company, for an average price of $56.42 per share. The transaction had a 0.4% impact on Dodge & Cox’s portfolio.

Harley-Davidson has a market cap of $9.28 billion and an enterprise value of $14.8 billion. It has a P/E of 13, a forward P/E of 11.9, a P/B of 3.9 and a P/S of 1.7. GuruFocus has given Harley-Davidson a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Dodge & Cox is Harley-Davidson’s leading shareholder among the gurus. HOTCHKIS & WILEY, Bill Nygren (Trades, Portfolio), Joel Greenblatt (Trades, Portfolio), Tom Gayner (Trades, Portfolio), Ken Fisher (Trades, Portfolio), Manning & Napier Advisors Inc., Paul Tudor Jones (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) have shares of Harley-Davidson in their portfolios.

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Tuesday afternoon Harley-Davidson sold for $48.35 per share.

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