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Al Gore's Firm Packs Into Amazon in the 1st Quarter

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- 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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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).

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

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.

Al Gore's Firm Packs Into Amazon in the 1st Quarter
Al Gore's Firm Packs Into Amazon in the 1st Quarter

Disclosure: Long Alibaba.

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This article first appeared on GuruFocus.