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Yahoo Finance Plus Al Gore's Firm Packs Into Amazon in the 1st Quarter
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- STE
- BABA
- BABAF
- BAX
- By James Li
Generation Investment Management, the firm co-founded by Al Gore (Trades, Portfolio) and David Blood, disclosed this week that its top four buys during the first quarter included a new buy in Amazon.com Inc. (NASDAQ:AMZN) and position boosts in Steris PLC (NYSE:STE), Alibaba Group Holding Ltd. (NYSE:BABA) and Baxter International Inc. (NYSE:BAX).
Based in London, Generation takes a long-term investing prospective, focusing on sustainability within markets by investing in companies that strategically manage their economic, social and environmental performances. The firm applies a fundamental, bottom-up strategy to build its equity portfolio.
As of March 31, Generation's $23.86 billion equity portfolio contains 40 stocks, with three new positions and a turnover ratio of 11%. The top three sectors in terms of weight are technology, health care and industrials, representing 37.00%, 30.03% and 8.81% of the equity portfolio.
Amazon.com
Generation purchased 302,175 shares of Amazon.com (NASDAQ:AMZN), giving the position 3.92% weight in the equity portfolio. Shares averaged $3,171.97 during the first quarter; the stock is fairly valued based on Thursday's price-to-GF Value ratio of 0.944.
GuruFocus ranks the Seattle-based e-commerce giant's profitability 8 out of 10 on several positive investing signs, which include a five-star business predictability rank, expanding operating margins and returns that are outperforming over 87% of global competitors.
Other gurus with holdings in Amazon.com include Baillie Gifford (Trades, Portfolio), Ken Fisher (Trades, Portfolio)'s Fisher Investments and Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B).
Steris
Generation purchased 2,706,752 shares of Steris (NYSE:STE), expanding the stake 604.84% and the equity portfolio 2.16%. Shares averaged $185.48 during the first quarter; the stock is modestly undervalued based on Thursday's price-to-GF Value ratio of 0.90.
GuruFocus ranks the Irish medical device company's profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins that outperform over 78% of global competitors.
Alibaba
Generation purchased 1,452,645 shares of Alibaba (NYSE:BABA), boosting the position 94.03% and the equity portfolio 1.38%. Shares averaged $245.98 during the first quarter; the stock is significantly undervalued based on Thursday's price-to-GF Value ratio of $245.98.
GuruFocus ranks the Chinese e-commerce giant's financial strength and profitability 8 out of 10 on several positive investing signs, which include a strong Altman Z-score of 5.02 and debt ratios, profit margins and returns that outperform over 82% of global competitors.
Charlie Munger (Trades, Portfolio)'s Daily Journal (NASDAQ:DJCO) and Mohnish Pabrai (Trades, Portfolio) introduced a stake in Alibaba to their U.S.-based equity portfolios during the first quarter.
Baxter
Generation purchased 3,558,552 shares of Baxter (NYSE:BAX), increasing the position by 20.42% and the equity portfolio by 1.26%. Shares averaged $79.39 during the first quarter; the stock is fairly valued based on Thursday's price-to-GF Value ratio of 0.95.
GuruFocus ranks the Deerfield, Illinois-based medical device company's profitability 7 out of 10 on the back of profit margins and returns outperforming over 68% of global competitors.
Disclosure: Long Alibaba.
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This article first appeared on GuruFocus.
