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Jerome Dodson Exits 3M, Charles Schwab

Jerome Dodson (Trades, Portfolio), president and portfolio manager of Parnassus Investments, sold shares of the following stocks in the second quarter.

The guru closed out of his 3M Co. (NYSE:MMM) position. The trade had an impact of -2.99% on the portfolio.

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The manufacturer of popular products such as Scotch tape and Post-it Notes has a market cap of $102.19 billion and an enterprise value of $115.93 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 48.89% and return on assets of 13.01% are outperforming 89% of companies in the Industrial Products industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.18 is below the industry median of 0.86.

The largest guru shareholder of the company is First Eagle Investment (Trades, Portfolio) with 0.70% of outstanding shares, followed by Mairs and Power (Trades, Portfolio) with 0.30% and Jeremy Grantham (Trades, Portfolio) with 0.30%.

Dodson sold out of Zayo Group Holdings Inc. (NYSE:ZAYO). The portfolio was impacted by -2.70%.

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The company, which provides fiber-based communication infrastructure services, has a market cap of $7.95 billion and an enterprise value of $13.82 billion.


GuruFocus gives the company a profitability and growth rating of 8 out of 10. While the return on equity of 9.19% is outperforming the sector, the return on assets of 1.40% is underperforming 84% of companies in the Communication Equipment industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 1.5.

The largest guru shareholder of the company is Dodge & Cox with 12.21% of outstanding shares, followed by Louis Moore Bacon (Trades, Portfolio) with 0.47% and Pioneer Investments (Trades, Portfolio) with 0.47%.

The investor exited his Charles Schwab Corp. (NYSE:SCHW) position. The portfolio was impacted by -2.31%.

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The company, which is engaged in the brokerage, banking and asset management businesses, has a market cap of $57.43 billion.


GuruFocus gives the company a profitability and growth rating of 4 out of 10. While the return on equity of 17.13% is outperforming the sector, the return on assets of 1.35% is underperforming 74% of companies in the Brokers and Exchanges industry. Its financial strength is rated 5 out of 10 with no debt.

The company's largest guru shareholder is Dodge & Cox with 5.72% of outstanding shares, followed by PRIMECAP Management (Trades, Portfolio) with 2.36% and Al Gore (Trades, Portfolio) with 1.57%.

The guru exited his Belmond Ltd. (NYSE:BEL) holding, impacting the portfolio by -2.06%.

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The company, which operates boutique luxury hotel properties, has a market cap of $2.58 billion and an enterprise value of $3.23 billion.

GuruFocus gives the company a profitability and growth rating of 4 out of 10. The return on equity of -4.21% and return on assets of -1.68% are outperforming 100% of companies in the Travel and Leisure industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.14 is below the industry median of 0.51.

The company's largest guru shareholder is Mason Hawkins (Trades, Portfolio)' Southeastern Asset Management with 1.15% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.90% and Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.06%.

Dodson sold out of Mattel Inc. (NASDAQ:MAT), impacting the portfolio by -2.01%.

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The toy manufacturer has a market cap of $5 billion and an enterprise value of $8.07 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of -46.01% and return on assets of -5.22% are underperforming 100% of companies in the Travel and Leisure industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.06 is below the industry median of 0.51.

PRIMECAP Management is the largest guru shareholder of the company with 14.72% of outstanding shares, followed by the Dodge & Cox with 10.72% and Hawkins' firm with 10.38%.

The guru sold out of Axalta Coating Systems Ltd. (NYSE:AXTA), impacting the portfolio by -1.83%.

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The company, which manufactures coatings for the automotive industry, has a market cap of $7.07 billion and an enterprise value of $10.40 billion.

GuruFocus gives the company a profitability and growth rating of 7 out of 10. While the return on equity of 16.43% is outperforming the sector, the return on assets of 3.05% is underperforming 75% of companies in the Chemicals industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.15 is below the industry median of 0.64.

Warren Buffett (Trades, Portfolio) is the company's largest guru shareholder with 10.34% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 4.46% and Barrow, Hanley, Mewhinney & Strauss with 2.02%.

Disclosure: I do not own any stocks mentioned.

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This article first appeared on GuruFocus.