Dodge & Cox Portfolio Q2'2025: Top Holdings & Recent Changes
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Dodge & Cox, a renowned investment firm, continues to refine its strategy in the ever-changing market landscape. Their Q2 2025 portfolio reflects a thoughtful approach to asset allocation, with a market value of $178.0 billion. Notably, they have reduced positions in several key holdings, including Johnson Controls International plc by 5.50% and RTX Corporation by 1.42%.
Portfolio Overview: Strategic Adjustments
Portfolio Highlights (Q2 2025): - Market Value: $178.0 billion - Top 10 Holdings: 29.3% of the portfolio - Portfolio Size: 219 positions +5 - Average Holding Period: 42 quarters - Turnover: 5.9%
Dodge & Cox's portfolio is characterized by a long-term investment approach, with an average holding period of 42 quarters. This strategy reflects their commitment to quality over short-term gains. The recent adjustments, such as reducing positions in Johnson Controls International plc and RTX Corporation, indicate a cautious stance amidst market volatility.
Holdings Overview: Key Positions
The portfolio is anchored by several key holdings, including Johnson Controls International plc at 4.0%, RTX Corporation at 3.4%, and Fiserv, Inc. at 2.9%. Notable reductions include Microsoft Corporation by 8.31% and Booking Holdings Inc. by 5.87%. These adjustments suggest a focus on maintaining a balanced portfolio while responding to market conditions.
What the Portfolio Reveals
Dodge & Cox's recent moves highlight several strategic insights: - Quality Over Growth: The firm prioritizes established companies with strong fundamentals, as seen in their holdings of CVS Health Corporation and Charter Communications, Inc.. - Sector Focus: They maintain a diverse sector allocation, with significant positions in financials and healthcare. - Risk Management: The reductions in several key holdings indicate a cautious approach to risk management, reflecting a desire to maintain portfolio stability.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| The Charles Schwab Corp. | $7,696.8M | 4.3% | Reduce 4.95% |
| Johnson Controls International plc | $7,068.4M | 4.0% | Reduce 5.50% |
| RTX Corporation | $6,096.9M | 3.4% | Reduce 1.42% |
| Fiserv, Inc. | $5,123.9M | 2.9% | Reduce 2.85% |
| CVS Health Corporation | $5,055.5M | 2.8% | Reduce 0.23% |
| Charter Communications, Inc. | $4,548.6M | 2.6% | Reduce 3.30% |
| MetLife, Inc. | $4,276.9M | 2.4% | Reduce 1.36% |
| Booking Holdings Inc. | $4,228.9M | 2.4% | Reduce 5.87% |
| Wells Fargo & Co. | $4,065.8M | 2.3% | Reduce 11.94% |
| Microsoft Corporation | $4,050.0M | 2.3% | Reduce 8.31% |
The concentration of Dodge & Cox's portfolio in their top 10 holdings is moderate, with these positions accounting for 29.3% of the total portfolio. This balance reflects their strategy of maintaining a diversified portfolio while focusing on quality companies.
Investment Lessons from Dodge & Cox
Dodge & Cox's portfolio offers several key investment lessons: - Long-Term Focus: Their average holding period of 42 quarters underscores the importance of patience in investing. - Quality Over Quantity: The firm prioritizes strong fundamentals over rapid growth, as seen in their selection of established companies. - Risk Management: The recent reductions in several positions highlight the need for ongoing portfolio rebalancing to manage risk.
Looking Ahead: What Comes Next?
As Dodge & Cox continues to navigate the market landscape, their strategy will likely remain focused on quality and stability. With a significant portfolio size and moderate turnover, they are well-positioned to adapt to changing market conditions. The recent adjustments suggest a cautious approach, which may indicate a readiness to deploy capital in new opportunities as market conditions improve.
FAQ about Dodge & Cox's Portfolio
Q: What is the significance of Dodge & Cox's recent portfolio adjustments?
A: The adjustments reflect a cautious stance amidst market volatility, focusing on maintaining a balanced portfolio while responding to market conditions.
Q: How does Dodge & Cox's portfolio concentration impact their investment strategy?
A: The moderate concentration in top holdings allows for a balance between diversification and focus on quality companies, which is central to their long-term investment approach.
Q: How can investors track Dodge & Cox's portfolio changes?
A: Investors can track Dodge & Cox's portfolio changes through 13F filings and platforms like ValueSense, which provide insights into their investment strategies.
Q: What sectors does Dodge & Cox focus on?
A: Dodge & Cox maintains a diverse sector allocation, with significant positions in financials and healthcare, reflecting their commitment to quality across various industries.
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