David Rolfe (Trades, Portfolio), the chief investment officer of Wedgewood Partners, is known for approaching potential investments with the mindset of a business owner.
The guru's St. Louis-based firm strives to generate significant long-term wealth by analyzing a handful of undervalued companies that have a dominant product or service, consistent earnings, revenue and dividend growth, are highly profitable and have strong management teams.
As such, GuruFocus is pleased to have Rolfe as one of our speakers during the annual GuruFocus Value Conference in May.
The event, which will be held at the Hilton Omaha hotel, will start on Thursday, May 4 at 6 p.m. with our first speaker and a catered dinner. Then, the other speakers will present between 8 a.m. and 6 p.m. on Friday, May 5.
Tickets are still available, but seats are limited! Reserve your spot today.
Ahead of the conference, investors who plan to attend may want to learn more about Rolfe’s investments in order to effectively ask him questions about his strategy. His $544 millionequity portfolio consisted of 41 stocks as of the fourth quarter of 2022. Filings indicate the equity portfolio was most heavily invested in the technology and financial services sectors.
The 13F filing for the three months ended Dec. 31 shows the guru’s top five holdings were Apple Inc. (AAPL, Financial), Motorola Solutions Inc. (MSI, Financial), Tractor Supply Co. (TSCO, Financial), Visa Inc. (V, Financial) and UnitedHealth Group Inc. (UNH, Financial).
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.
Apple
During the fourth quarter, Rolfe increased the Apple (AAPL, Financial) position by 0.32% to 361,702 shares. As the fund’s largest holding, it accounts for 8.63% of the equity portfolio. GuruFocus estimates he has gained 83.36% on the investment so far.
The Cupertino, California-based tech company, which produces iPhones, Mac computers and other consumer electronics, has a $2.64 trillion market cap; its shares were trading around $167.09 on Wednesday with a price-earnings ratio of 28.37, a price-book ratio of 46.67 and a price-sales ratio of 6.98.
The GF Value Line suggests the stock is fairly valued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.
At 95 out of 100, the GF Score indicates the company has high outperformance potential. While it received solid ratings for profitability, growth and momentum, the financial strength and GF Value ranks were more moderate.
Of the gurus invested in Apple, Warren Buffett (Trades, Portfolio) has the largest stake with 5.66% of its outstanding shares. Ken Fisher (Trades, Portfolio), the Harbor Capital Appreciation Fund (Trades, Portfolio), Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Jeremy Grantham (Trades, Portfolio) and several other gurus also have notable positions.
Motorola Solutions
The investor trimmed his holding of Motorola Solutions (MSI, Financial) by 0.70% to 160,213 shares. Occupying 7.59% of the equity portfolio, it is the second-largest position. GuruFocus data shows Rolfe has gained approximately 60.11% on the investment to date.
The company headquartered in Chicago, which manufactures video and communications equipment, has a market cap of $48.29 billion; its shares were trading around $288.35 on Wednesday with a price-earnings ratio of 36.36, a price-book ratio of 417.90 and a price-sales ratio of 5.43.
According to the GF Value Line, the stock is modestly overvalued currently.
The GF Score of 78 implies the company is likely to have average performance going forward, driven by high ratings for profitability and momentum, middling marks for growth and financial strength and a low GF Value rank.
With 0.36% of Motorola Solutions’ outstanding shares, Mairs and Power (Trades, Portfolio) is the largest guru shareholder. Other top guru investors include Steven Cohen (Trades, Portfolio), Dodge & Cox, Lee Ainslie (Trades, Portfolio) and Grantham.
Tractor Supply
The guru curbed the Tractor Supply (TSCO, Financial) investment by 0.45% to 175,465 shares. As the third-largest holding, the stock makes up 7.25% of Rolfe’s equity portfolio. GuruFocus found he has gained around 38.17% on the long-held position.
The Brentwood, Tennessee-based retailer of farming and ranch supplies has a $26.91 billion market cap; its shares were trading around $244.85 on Wednesday with a price-earnings ratio of 25.22, a price-book ratio of 13.21 and a price-sales ratio of 1.92.
Based on the GF Value Line, the stock appears to be fairly valued currently.
The GF Score of 96 means the company has high outperformance potential on the back of solid ratings for three of the criteria. The financial strength and GF Value ranks, however, were more moderate.
Rolfe is the company’s largest guru shareholder with 0.16% of its outstanding shares. Mario Gabelli (Trades, Portfolio), Ray Dalio (Trades, Portfolio)’s Bridgewater Associates, Grantham, Joel Greenblatt (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Private Capital (Trades, Portfolio) and Baillie Gifford (Trades, Portfolio) also own the stock.
Visa
Rolfe reduced the Visa (V, Financial) holding by 0.60% in the most recent quarter to 190,076 shares. Now representing 7.25% of the equity portfolio as the fourth-largest position, GuruFocus says he has gained an estimated 116.87% on the investment over its lifetime.
The financial services company headquartered in San Francisco, which facilitates digital payments, has a market cap of $489.27 billion; its shares were trading around $232.79 on Wednesday with a price-earnings ratio of 32.56, a price-book ratio of 13.26 and a price-sales ratio of 16.38.
The GF Value Line suggests the stock is modestly undervalued.
Receiving solid ratings across the board, the company has high outperformance potential with a GF Score of 98.
Holding a 0.49% stake, Frank Sands (Trades, Portfolio) is Visa’s largest guru shareholder. The stock is also being held by Fisher, Buffett, Andreas Halvorsen (Trades, Portfolio), Chuck Akre (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio) and several others.
UnitedHealth Group
In the fourth quarter, the investor cut back the position in UnitedHealth (UNH, Financial) by 0.40% to 60,622 shares. As the fifth-largest position, it accounts for 5.90% of the equity portfolio. GuruFocus estimates Rolfe has gained 16.58% on the investment since establishing it in the third quarter of 2021.
The Minnetonka, Minnesota-based company, which offers managed health care and insurance services, has a $455.25 billion market cap; its shares were trading around $488.03 on Wednesday with a price-earnings ratio of 22.31, a price-book ratio of 5.30 and a price-sales ratio of 1.41.
According to the GF Value Line, the stock is fairly valued currently.
The company has high outperformance potential with a GF Score of 92. While it received solid ratings for three of the categories, the GF Value and momentum ranks were more moderate.
Of the gurus invested in UnitedHealth, the Vanguard Health Care Fund (Trades, Portfolio) has the largest stake with 0.64% of its outstanding shares. Dodge & Cox, Halvorsen, Ruane Cunniff (Trades, Portfolio), Barrow, Hanley, Mewinney & Strauss, Steve Mandel (Trades, Portfolio) and Grantham also have significant holdings.
Additional top holdings
Rounding out the rest of Rolfe’s top 10 holdings are Microsoft Corp. (MSFT, Financial), CDW Corp. (CDW, Financial), Alphabet Inc. (GOOGL, Financial), Edwards Lifesciences Corp. (EW, Financial) and Copart Inc. (CPRT, Financial).
