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Smead Value Fund Buys 2 Stocks in 2nd Quarter

Seattle-based investor Bill Smead last week disclosed the stocks he purchased during the second quarter for his concentrated Smead Value Fund (Trades, Portfolio), Qualcomm Inc. (NASDAQ:QCOM) and Schlumberger Ltd. (NYSE:SLB).

Including the new stocks, Smead's fund ended the quarter with 27 positions, valued around $1.09 billion. The investor also exited a position in The Kroger Co. (NYSE:KR).

Smead Value Fund (Trades, Portfolio) typically invests in 25 to 30 companies at a time, focusing U.S. large caps. It has three primary points to its investing philosophy: valuation, quality of business and business-owner mentality.

The most-represented sector in Smead's portfolio is financial services, which covers 29.59% of stocks. Consumer cyclical, the next largest sector, occupies 27.31% of the portfolio, and health care stocks are a further 16.61%.

In addition to the new buys during the quarter, Smead added to three existing positions.

New buys

Qualcomm Inc. (NASDAQ:QCOM)

Smead acquired 429,203 shares of Qualcomm, giving it 2.64% portfolio weight. The stock's second-quarter share price averaged $67.

Qualcomm Inc. has a market cap of $94.32 billion; its shares were traded around $77.59 with a price-earnings ratio of 27.52 and price-sales ratio of 3.88. The trailing 12-month dividend yield of Qualcomm Inc. is 3.19%. The forward dividend yield of Qualcomm Inc. is 3.23%. Qualcomm Inc. had an annual average earnings growth of 3.70% over the past 10 years.

Schlumberger Ltd. (NYSE:SLB)

Smead acquired 545,225 shares of Schlumberger Ltd., giving it 1.74% portfolio weight. The stock's second-quarter share price averaged $42.

Schlumberger Ltd. has a market cap of $47.11 billion; its shares were traded around $34.06 Thursday with a price-earnings ratio of 22.71 and price-sales ratio of 1.44. The trailing 12-month dividend yield of Schlumberger Ltd. is 5.89%. The forward dividend yield of Schlumberger Ltd. is 5.94%.

Additions

AmerisourceBergen Corp. (NYSE:ABC)

Smead purchased 67,099 shares of AmerisourceBergen Corp., increasing the position by 29.78% to 292,408 shares. The stock's second-quarter share price averaged $77.

AmerisourceBergen Corp. has a market cap of $17.83 billion; its shares were traded around $85.61 Thursday with a price-earnings ratio of 19.07 and price-sales ratio of 0.10. The trailing 12-month dividend yield of AmerisourceBergen Corp. is 1.87%. The forward dividend yield of AmerisourceBergen Corp stocks is 1.85%. AmerisourceBergen Corp. had an annual average earnings growth of 10.70% over the past 10 years. GuruFocus rated AmerisourceBergen Corp. the business predictability rank of 4-star.

Wells Fargo & Co. (NYSE:WFC)

Smead purchased 97,218 shares of Wells Fargo & Co., increasing the position by 13.8% to 802,384 shares. The stock's second-quarter share price averaged $48.

Wells Fargo & Co. has a market cap of $201.23 billion; its shares were traded around $45.67 Thursday with a price-earnings ratio of 9.44 and price-sales ratio of 2.46. The trailing 12-month dividend yield of Wells Fargo & Co. is 4.01%. The forward dividend yield of Wells Fargo & Co. is 4.53%.

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Smead purchased 928,465 shares of Walgreens Boots Alliance, increasing the position by 7.63% to 928,465 shares. The holding represented 4.21% of the portfolio. The stock's second-quarter share price averaged $56.

Walgreens Boots Alliance Inc has a market cap of $45.99 billion; its shares were traded around $50.92 Thursday with a price-earnings ratio of 9.99 and price-sales ratio of 0.35. The trailing 12-month dividend yield of Walgreens Boots Alliance Inc. is 3.50%. The forward dividend yield of Walgreens Boots Alliance Inc. is 3.60%. Walgreens Boots Alliance Inc. had an annual average earnings growth of 5.90% over the past 10 years. GuruFocus rated Walgreens Boots Alliance Inc. the business predictability rank of 3.5-star.

See the Smead Value Fund (Trades, Portfolio) portfolio here.

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This article first appeared on GuruFocus.