According to the Aggregated Portfolio of Gurus, a Premium feature based on mutual fund portfolio filings and 13F equity portfolio filings, five stocks that Bill Nygren (Trades, Portfolio)’s Oakmark Fund and David Rolfe (Trades, Portfolio)’s Wedgewood Partners both agree on as of the fourth quarter of 2022 are Alphabet Inc. (GOOGL, Financial), The Walt Disney Co. (DIS, Financial), Booking Holdings Inc. (BKNG, Financial), Warner Bros. Discovery Inc. (WBD, Financial) and Meta Platforms Inc. (META, Financial).
GuruFocus brings back its annual value conference for the first time in three years
On May 4 and 5, GuruFocus will host its annual value conference for the first time in three years. The conference will take place at the Hilton Omaha hotel in Omaha, Nebraska.
Several gurus will speak at the conference, including Keynote Speaker Bernard Horn (Trades, Portfolio) from Polaris Capital Management, Rolfe from Wedgewood Partners, William Smead from Smead Value Fund (Trades, Portfolio), and Brian Yacktman and Elliott Savage from YCG LLC. Roberg Bierig, a co-portfolio manager of Nygren’s Oakmark Fund, will also speak at the conference.
Seats are limited, so register now to secure your spot! Hurry, prices increase on April 1!
Oakmark Fund overview
Managed by Nygren, Bierig and Michael Nicolas, the Oakmark Fund invests in companies in which the fund managers believe trade at a substantial discount to fair value. The fund believes that over time, the share price will increase to reflect the true value of the business. Emphasis is placed on key factors, including free cash flow, intelligent use of excess cash and high levels of manager ownership.
As of December 2022, the fund’s $13.80 billion equity portfolio contains 58 stocks with a quarterly turnover ratio of 9%. The top four sectors in terms of weight are financial services, communication services, consumer cyclical and technology, accounting for 32.39%, 17.92%, 14.24% and 13.47% of the equity portfolio.
Investors should be aware that portfolio updates for mutual funds do not necessarily provide a complete picture of a guru’s holdings. The data is sourced from the quarterly updates on the website of the fund(s) in question. This usually consists of long equity positions in U.S. and foreign stocks. All numbers are as of the quarter’s end only; it is possible the guru may have already made changes to the positions after the quarter ended. However, even this limited data can provide valuable information.
Wedgewood Partners overview
Like the Oakmark Fund, Rolfe’s St. Louis-based firm also applies an “invest as business owners” approach. The firm seeks companies that have a dominant product or service that has little or no substitutes, a sustainable level of growing revenue, a high level of profitability and a shareholder-oriented management team.
As of December 2022, Wedgewood’s $544 million 13F equity portfolio contains 41 stocks with a quarterly turnover ratio of 1%. The top four sectors in terms of weight are technology, financial services, consumer cyclical and health care, representing 32.09%, 22.81%, 14.95% and 10.71% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Alphabet
Oakmark and Wedgewood have a combined weight of 8.70% in Class A shares of Alphabet (GOOGL, Financial). The stock represents Oakmark’s top holding with a weight of 3.56%.
Shares of Alphabet traded around $102.44 on Friday, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.70.
The Mountain View, California-based online media giant has a GF Score of 96 out of 100: Even though the company’s momentum ranks just 4 out of 10, Alphabet has a rank of 10 out of 10 for profitability and growth and a rank of 9 out of 10 for financial strength and GF Value.
Other gurus with holdings in Alphabet include Ken Fisher (Trades, Portfolio)’s Fisher Investments and PRIMECAP Management (Trades, Portfolio).
Walt Disney
Oakmark and Wedgewood have a combined weight of 1.25% in Walt Disney (DIS, Financial).
Shares of Walt Disney traded around $99.35 on Friday, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.63.
The Burbank, California-based entertainment giant has a GF Score of 78 out of 100 based on a rank of 8 out of 10 for profitability and GF Value, a growth rank of 4 out of 10 and a rank of 5 out of 10 for financial strength and momentum.
Booking Holdings
Oakmark and Wedgewood have a combined weight of 5.26% in Booking Holdings (BKNG, Financial).
Shares of Booking Holdings traded around $2,643.77 on Friday, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.77.
The Norwalk, Connecticut-based travel giant has a GF Score of 84 out of 100 based on a rank of 9 out of 10 for momentum and GF Value, a profitability rank of 8 out of 10, a financial strength rank of 6 out of 10 and a growth rank of 5 out of 10.
Warner Bros. Discovery
Oakmark and Wedgewood have a combined weight of 1.33% in Warner Bros. Discovery (WBD, Financial).
Shares of Warner Bros. Discovery traded around $15 on Friday, approximately 59% of its GF Value. Despite this, GuruFocus’ GF Value Line labeled the New York-based media company a possible value trap due to the company’s low financial strength rank of 3 out of 10.
Despite having low financial strength, Warner Bros. Discovery has a GF Score of 87 out of 100 based on a growth rank of 9 out of 10, a momentum rank of 7 out of 10 and a rank of 8 out of 10 for GF Value and profitability.
Meta Platforms
Oakmark and Wedgewood have a combined weight of 5.48% in Meta Platforms (META, Financial).
Shares of Meta traded around $210.64 on Friday, showing the stock is significantly undervalued based on its price-to-GF Value ratio of 0.56.
The Menlo Park, California-based social media giant has a GF Score of 97 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10 and a rank of 8 out of 10 for financial strength, GF Value and momentum.
Register now to hear Rolfe, Horn and other gurus speak at the GuruFocus Value Conference!
Prices increase by $100 on April 1!
