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Jerome Dodson Adds to 9 Positions in 4th Quarter

- By David Goodloe

Parnassus Investments founder and President Jerome Dodson (Trades, Portfolio) made no new buys in the fourth quarter, but he added to nine existing positions in his portfolio.


The guru added 65,000 shares to the position in Allergan PLC (AGN), a multinational pharmaceutical company, for an average price of $207.16 per share. The transaction, which boosted his holding by nearly 63%, had an impact of 1.7% on his portfolio.

Vanguard Health Care Fund (Trades, Portfolio) is Allergan's leading shareholder among the gurus with a stake of 12,066,307 shares. The stake is 3.6% of Allergan's outstanding shares.

Allergan has a price-earnings (P/E) ratio of 6.41, a forward P/E of 15.38, a price-book (P/B) ratio of 1.29 and a price-sales (P/S) ratio of 6.44. GuruFocus gives Allergan a Financial Strength rating of 5/10 and a Profitability and Growth rating of 4/10 with return on equity (ROE) of 18.53% that is higher than 79% of the companies in the Global Drug Manufacturers - Specialty and Generic industry and return on assets (ROA) of 11.06% that is higher than 80% of the companies in that industry.



Allergan sold for $245.29 per share at market close Wednesday. The DCF Calculator gives Allergan a fair value of $-33.6.

The guru nearly tripled the holding in McKesson Corp. (MCK), a San Francisco-based health care company, with the purchase of 79,000 shares for an average price of $147.1. The deal had a 1.37% impact on the portfolio.

Vanguard is also McKesson's leading shareholder with a stake of 7,165,280 shares. The stake is 3.38% of McKesson's outstanding shares.

McKesson has a P/E ratio of 17.66, a forward P/E ratio of 12.41, a P/B ratio of 4.39 and a P/S ratio of 0.17. GuruFocus gives McKesson a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10 with ROE of 21.65% that is higher than 90% of the companies in the Global Medical Distribution industry and ROA of 3.35% that is lower than 54% of the companies in that industry.



McKesson sold for $148.97 per share Wednesday. The DCF Calculator gives McKesson a fair value of $168.15 with an 11% margin of safety.

The guru invested in 300,000 shares of Progressive Corp. (PGR), an Ohio-based insurance company, for an average price of $33.07 per share. The transaction increased the position by 60% and had a 1.32% impact on the portfolio.

PRIMECAP Management (Trades, Portfolio) is Progressive's leading shareholder among the gurus with a stake of 9,629,400 shares. The stake is 1.66% of Progressive's outstanding shares.

Progressive has a P/E ratio of 22.67, a forward P/E ratio of 19.16, a P/B ratio of 2.90 and a P/S ratio of 0.98. GuruFocus gives Progressive a Financial Strength rating of 5/10 and a Profitability and Growth rating of 7/10 with ROE of 13.31% that is higher than 78% of the companies in the Global Insurance - Property and Casualty industry and ROA of 3.23% that is higher than 66% of the companies in that industry.



Progressive sold for $39.87 per share Wednesday. The DCF Calculator gives Progressive a fair value of $18.83.

The guru raised the holding in Gilead Sciences Inc. (GILD), a California-based biopharmaceutical company, by 40% with the purchase of 140,000 shares for an average price of $74.33 per share. The deal had a 1.24% impact on the portfolio.

Jim Simons (Trades, Portfolio) is Gilead's leading shareholder among the gurus with a stake of 5,274,948 shares. The stake is 0.4% of Gilead's outstanding shares.

Gilead has a P/E ratio of 7.06, a forward P/E ratio of 7.45, a P/B ratio of 4.86 and a P/S ratio of 3.15. GuruFocus gives Gilead a Financial Strength rating of 7/10 and a Profitability and Growth rating of 9/10 with ROE of 81.11% that is higher than 98% of the companies in the Global Biotechnology industry and ROA of 25.66% that is higher than 96% of the companies in that industry.



Gilead Sciences sold for $70.19 per share Wednesday. The DCF Calculator gives Gilead Sciences a fair value of $106.48 with a 34% margin of safety.

The guru increased the holding in KLA-Tencor Corp. (KLAC), a California-based semiconductor equipment and materials company, by nearly 31% with the purchase of 60,000 shares for an average price of $76.38 per share. The transaction had a 0.58% impact on the portfolio.

PRIMECAP is KLA-Tencor's leading shareholder among the gurus with a stake of 14,008,696 shares. The stake is 8.94% of KLA-Tencor's outstanding shares.

KLA-Tencor has a P/E ratio of 16.62, a forward P/E ratio of 16.92, a P/B ratio of 14.80 and a P/S ratio of 4.41. GuruFocus gives KLA-Tencor a Financial Strength rating of 6/10 and a Profitability and Growth rating of 6/10 with ROE of 131.74% that is higher than 100% of the companies in the Global Semiconductor Equipment & Materials industry and ROA of 17.69% that is higher than 96% of the companies in that industry.



KLA-Tencor sold for $91.44 per share Wednesday. The DCF Calculator gives KLA-Tencor a fair value of $58.86.

The guru raised the position in Alliance Data Systems Corp. (ADS), a Texas-based loyalty and marketing solutions company, by 25% with the purchase of 100,000 shares for an average price of $217.99 per share. The deal had a 0.56% impact on the portfolio.

Jeff Ubben (Trades, Portfolio) was Alliance Data Systems' leading shareholder among the gurus at the close of the fourth quarter with a stake of 5,246,500 shares. The stake is 9.38% of Alliance Data Systems' outstanding shares.

Alliance Data Systems has a P/E ratio of 33.62, a forward P/E ratio of 13.28, a P/B ratio of 8.62 and a P/S ratio of 2.05. GuruFocus gives Alliance Data Systems a Financial Strength rating of 4/10 and a Profitability and Growth rating of 8/10 with ROE of 24.23% that is higher than 88% of the companies in the Global Credit Services industry and ROA of 2.21% that is lower than 51% of the companies in that industry.



Alliance Data Systems sold for $247.62 per share Wednesday. The DCF Calculator gives Alliance Data Systems a fair value of $149.61.

The guru invested in 73,000 shares of Pentair PLC (PNR), a water and fluid controls company based in the U.K., for an average price of $58.07 per share, increasing the holding by more than 19%. The transaction had a 0.51% impact on the portfolio.

T Rowe Price Equity Income Fund (Trades, Portfolio) is Pentair's leading shareholder among the gurus with a stake of 2.775 million shares. The stake is 1.53% of Pentair's outstanding shares.

Pentair has a P/E ratio of 21.00, a forward P/E ratio of 16.81, a P/B ratio of 2.58 and a P/S ratio of 1.92. GuruFocus gives Pentair a Financial Strength rating of 5/10 and a Profitability and Growth rating of 5/10 with ROE of 12.51% that is higher than 75% of the companies in the Global Diversified Industrials industry and ROA of 4.44% that is higher than 61% of the companies in that industry.



Pentair sold for $59.86 per share Wednesday. The DCF Calculator gives Pentair a fair value of $27.93.

The guru bought 150,000 shares of Axalta Coating Systems Ltd. (AXTA), a Philadelphia-based company that develops and manufactures coatings for a variety of applications, for an average price of $26.32 per share. The deal, which boosted the holding by 30%, had a 0.5% impact on the portfolio.

Warren Buffett (Trades, Portfolio) is Axalta's leading shareholder among the gurus with a stake of 23,324,000 shares. The stake is 9.7% of Axalta's outstanding shares.

Axalta has a P/E ratio of 228.79, a forward P/E ratio of 20.16, a P/B ratio of 6.34 and a P/S ratio of 1.77. GuruFocus gives Axalta a Financial Strength rating of 5/10 and a Profitability and Growth rating of 6/10 with ROE of 2.70% and ROA of 0.53% that are lower than 99.99% of the companies in the Global Specialty Chemicals industry.



Axalta sold for $29.74 per share Wednesday. The DCF Calculator gives Axalta a fair value of $1.39.

The guru purchased 91,000 shares of Patterson Companies Inc. (PDCO), a Minnesota-based medical supplies conglomerate, for an average price of $43.14 per share. The transaction increased the holding by nearly 21% and had a 0.46% impact on the portfolio.

Mairs and Power (Trades, Portfolio) is Patterson Companies' leading shareholder among the gurus with 2,308,802 shares. The stake is 2.36% of Patterson Companies' outstanding shares.

Patterson Companies has a P/E ratio of 25.23, a forward P/E of 17.95, a P/B ratio of 3.14 and a P/S ratio of 0.78. GuruFocus gives Patterson Companies a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with ROE of 12.46% that is higher than 61% of the companies in the Global Medical Distribution industry and ROA of 4.92% that is higher than 72% of the companies in that industry.



Patterson Companies sold for $45.89 per share Wednesday. The DCF Calculator gives Patterson Companies a fair value of $19.8.

Disclosure: I do not own any stocks mentioned in this article.

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This article first appeared on GuruFocus.

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