Renowned investor Daniel Loeb recently disclosed his firm's portfolio updates for the second quarter of 2023, which ended on June 30, 2023. Known for his value-oriented investment philosophy, Loeb has built a reputation for identifying undervalued companies with potential for significant appreciation. His firm's Q2 2023 portfolio contained 45 stocks, with a total value of $6.83 billion. The top holdings were PCG (13.67%), DHR (9.14%), and AMZN (7.83%).
Top Three Trades of the Quarter
The following were Loeb's top three trades of the quarter, which significantly impacted the firm's portfolio.
Colgate-Palmolive Co (CL, Financial)
Loeb's firm completely sold out its 11,050,000-share investment in Colgate-Palmolive Co (CL), which previously held a weight of 13.59% in the portfolio. The shares were traded at an average price of $77.37 during the quarter. As of August 14, 2023, CL's price was $75.72, with a market cap of $62.60 billion. The stock has returned -3.29% over the past year. GuruFocus gives the company a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10. In terms of valuation, CL has a price-earnings ratio of 42.07, a EV-to-Ebitda ratio of 20.45, and a price-sales ratio of 3.37.
Amazon.com Inc (AMZN, Financial)
The firm established a new position in Amazon.com Inc (AMZN), purchasing 4,100,000 shares, which now constitute 7.83% of the equity portfolio. The shares were traded at an average price of $114.02 during the quarter. As of August 14, 2023, AMZN's price was $140.57, with a market cap of $1,450.37 billion. The stock has returned -2.08% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10. In terms of valuation, AMZN has a price-earnings ratio of 110.69, a price-book ratio of 8.60, a price-earnings-to-growth (PEG) ratio of 4.77, a EV-to-Ebitda ratio of 23.97, and a price-sales ratio of 2.72.
Alphabet Inc (GOOGL, Financial)
Loeb reduced his firm's investment in Alphabet Inc (GOOGL) by 3,325,000 shares, impacting the equity portfolio by 5.64%. The shares were traded at an average price of $114.92 during the quarter. As of August 14, 2023, GOOGL's price was $131.33, with a market cap of $1,659.53 billion. The stock has returned 7.85% over the past year. GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, GOOGL has a price-earnings ratio of 27.82, a price-book ratio of 6.21, a price-earnings-to-growth (PEG) ratio of 1.10, a EV-to-Ebitda ratio of 17.46, and a price-sales ratio of 5.94.
In conclusion, Daniel Loeb (Trades, Portfolio)'s Q2 2023 portfolio update reveals a strategic shift in investments, with significant changes in holdings of Colgate-Palmolive, Amazon, and Alphabet. These trades reflect Loeb's value-oriented investment philosophy and his ability to identify potential opportunities in the market.
