Exploring Dodge & Cox's Strategic Moves in Q1 2025

Dodge & Cox recently submitted their 13F filing for the first quarter of 2025, offering a glimpse into their strategic investment decisions during this period. Founded in 1930 by Van Duyn Dodge and E. Morris Cox, Dodge & Cox is renowned for its team-based research approach to investment. The firm relies on its Investment Policy Committees to make decisions, ensuring continuity in its investment philosophy and culture. Dodge & Cox focuses on identifying superior relative value, avoiding popular choices that come with high prices. Their strategy involves long-term ownership of companies whose current valuations do not reflect their long-term earnings and cash-flow potential.

Warning! GuruFocus has detected 5 Warning Sign with SCHW.Fortive Corp: A Significant Addition in Dodge & Cox's Portfolio

Summary of New Buy

Dodge & Cox added a total of four stocks to their portfolio, with the most significant addition being Millicom International Cellular SA (NASDAQ:TIGO). They acquired 8,701,732 shares, accounting for 0.15% of the portfolio, with a total value of $263.4 million. The second-largest addition was Chubb Ltd (NYSE:CB), with 722 shares valued at approximately $218,040. The third-largest addition was Patria Investments Ltd (NASDAQ:PAX), with 19,800 shares valued at $223,540.

Key Position Increases

Dodge & Cox increased stakes in a total of 46 stocks. The most notable increase was in Fortive Corp (NYSE:FTV), with an additional 14,120,456 shares, bringing the total to 21,900,363 shares. This adjustment represents a significant 181.5% increase in share count, impacting the portfolio by 0.59%, with a total value of $1,602,668,560. The second-largest increase was in Air Products & Chemicals Inc (NYSE:APD), with an additional 2,096,568 shares, bringing the total to 8,759,722. This adjustment represents a 31.47% increase in share count, with a total value of $2,583,417,210.

Summary of Sold Out

Dodge & Cox completely exited four holdings in the first quarter of 2025. They sold all 14,252,820 shares of Occidental Petroleum Corp (NYSE:OXY.WS), resulting in a -0.23% impact on the portfolio. Additionally, they liquidated all 6,669,575 shares of Brighthouse Financial Inc (NASDAQ:BHF), causing a -0.19% impact on the portfolio.

Key Position Reduces

Dodge & Cox reduced positions in 115 stocks. The most significant changes include a reduction in Wells Fargo & Co (NYSE:WFC) by 12,824,735 shares, resulting in an 18.2% decrease in shares and a -0.52% impact on the portfolio. The stock traded at an average price of $75.08 during the quarter and has returned -4.10% over the past three months and 9.73% year-to-date. They also reduced T-Mobile US Inc (NASDAQ:TMUS) by 3,550,128 shares, resulting in a 37.84% reduction in shares and a -0.46% impact on the portfolio. The stock traded at an average price of $246.5 during the quarter and has returned -12.83% over the past three months and 6.95% year-to-date.

Story Continues

Portfolio Overview

As of the first quarter of 2025, Dodge & Cox's portfolio included 214 stocks. The top holdings were 3.96% in Charles Schwab Corp (NYSE:SCHW), 3.85% in Fiserv Inc (NYSE:FI), 3.23% in Johnson Controls International PLC (NYSE:JCI), 3.2% in RTX Corp (NYSE:RTX), and 2.84% in CVS Health Corp (NYSE:CVS).Fortive Corp: A Significant Addition in Dodge & Cox's Portfolio

The holdings are mainly concentrated in all 11 industries: Healthcare, Financial Services, Technology, Industrials, Communication Services, Consumer Cyclical, Energy, Basic Materials, Real Estate, Consumer Defensive, and Utilities.Fortive Corp: A Significant Addition in Dodge & Cox's Portfolio

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.

View Comments