Dodge & Cox, a renowned investment management firm, recently submitted their 13F report for the second quarter of 2023, which concluded on June 30, 2023. The firm is known for its value-oriented, long-term, and independent approach to investing, focusing on rigorous analysis of individual companies. This philosophy has guided the firm's investment decisions since its inception in 1930.
The firm's portfolio for Q2 2023 comprised 190 stocks with a total value of $149.86 billion. The top holdings were Occidental Petroleum Corporation (OXY) with 3.58%, Wells Fargo & Company (WFC) with 3.42%, and Alphabet Inc. (GOOG) with 3.25%.
Top Three Trades of the Quarter
The following were Dodge & Cox's most significant transactions during the quarter:
Molson Coors Beverage Co (NYSE:TAP)
The firm reduced its investment in Molson Coors Beverage Co by 11,472,654 shares, impacting the equity portfolio by 0.55%. The stock traded at an average price of $69.77 during the quarter. As of August 14, 2023, TAP's price was $64.42 with a market cap of $13.91 billion. The stock has returned 16.90% over the past year. GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 6 out of 10. In terms of valuation, TAP has a price-earnings ratio of 401.44, a price-book ratio of 1.07, a EV-to-Ebitda ratio of 17.09, and a price-sales ratio of 1.26.
General Electric Co (NYSE:GE)
Dodge & Cox reduced their investment in General Electric Co by 10,190,400 shares, impacting the equity portfolio by 0.66%. The stock traded at an average price of $101.37 during the quarter. As of August 14, 2023, GE's price was $115.51 with a market cap of $125.42 billion. The stock has returned 85.66% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 5 out of 10. In terms of valuation, GE has a price-earnings ratio of 14.33, a price-book ratio of 4.02, a EV-to-Ebitda ratio of 8.70, and a price-sales ratio of 1.74.
Norfolk Southern Corp (NYSE:NSC)
During the quarter, Dodge & Cox purchased 4,302,589 shares of Norfolk Southern Corp, resulting in a total holding of 4,306,139 shares. This trade had a 0.65% impact on the equity portfolio. The stock traded at an average price of $212.41 during the quarter. As of August 14, 2023, NSC's price was $214.78 with a market cap of $48.83 billion. The stock has returned -15.85% over the past year. GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10. In terms of valuation, NSC has a price-earnings ratio of 19.34, a price-book ratio of 3.86, a price-earnings-to-growth (PEG) ratio of 2.33, a EV-to-Ebitda ratio of 12.36, and a price-sales ratio of 3.87.
In conclusion, Dodge & Cox's Q2 2023 13F filing reveals a strategic approach to portfolio management, with significant transactions in Molson Coors Beverage Co, General Electric Co, and Norfolk Southern Corp. The firm's investment decisions reflect its commitment to value investing and long-term growth.
