Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

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– By Graham Griffin

In GuruFocus’ Most Broadly Held Portfolio, the top-performing stocks as of this year include Apple Inc. (NASDAQ:AAPL), Amazon.com Inc. (NASDAQ:AMZN), Adobe Inc. (NASDAQ:ADBE), Microsoft Corp. (NASDAQ:MSFT) and KKR & Co. Inc. (NYSE:KKR). Each of these stocks is rounding out 2020 with at least a 35% year-to-date change.

Back in 2006, GuruFocus began tracking the most broadly held stocks across all guru holdings. By tracking these stocks, GuruFocus hopes to answer questions regarding what types of returns can be gained by investing like gurus. The top 25 of these stocks were compiled to form the Most Broadly Held Portfolio and have been updated and tracked each year since.

On Dec. 30, 2005, the portfolio was created based upon a $100,000 investment. As of this year, the portfolio has reached a value of $482,306.55 for a total gain of 382.31% since its inception.

Apple

Overall, Apple has the largest year-to-date gain in the portfolio at 84.82%. It was added to the portfolio on Jan. 2, 2012. The 336 shares that are owned in the portfolio were purchased for $14.47 per share. Since it was purchased, the holding has seen a total change of 830.18%.

Apple designs a wide variety of consumer electronic devices, including smartphones, tablets, PCs, smartwatches and TV boxes. The iPhone makes up the majority of Apple’s total revenue. In addition, the company offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card and Apple Pay. Apple’s products run internally developed software and semiconductors, and the company is well known for its integration of hardware, software and services.

As of Dec. 30, Apple stock was trading at $133.78 per share with a market cap of $2.28 trillion. According to the GF Value Line, the stock is trading at a significantly overvalued level.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

GuruFocus gives the company a financial strength rating of 6 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 1 out of 10. There is currently one severe warning sign for the declining operating margin percentage. As of September, Apple’s free cash flow was more than able to support dividend payouts alongside strong net income.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

Vanguard Group Inc. (Trades, Portfolio) is currently the top shareholder with 7.53% of shares outstanding. Other top shareholders include BlackRock Inc. (Trades, Portfolio), Warren Buffett (Trades, Portfolio), State Street Corp. (Trades, Portfolio) and FMR LLC (Trades, Portfolio).

Amazon

Coming in with the second-largest gain year to date in the portfolio, the Amazon holding boasts a 79.78% increase as of Dec. 30. The holding was established on Jan. 2 with the purchase of 8.07 shares. The shares were purchased for $1,898.01 per share. Since it was purchased at the beginning of the year, the holding has seen an overall change of 73.34%.

Amazon is among the world’s highest-grossing online retailers, with $281 billion in net sales and approximately $365 billion in estimated physical/digital gross merchandise volume in 2019. Online product and digital media sales comprised 50% of net revenue in 2019, followed by commissions, related fulfillment and shipping fees, and other third-party seller services.

On Dec. 30, Amazon was trading at $3,289.93 per share with a market cap of $1.65 trillion. The GF Value Line shows the stock trading at a modestly overvalued rating.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

GuruFocus gives the company a financial strength rating of 7 out of 10, a profitability rank of 8 out of 10 and a valuation rank of 1 out of 10. There is currently one severe warning sign issued for assets growing faster than revenue. An Altman Z-Score of 6.78 places the company well into the safe zone from bankruptcy and the Piotroski F-Score of 5 indicates normal financials for a stable business. Despite increasing levels of debt over the years, Amazon has a cash-to-debt ratio of 0.84 that ranks it higher than 60.75% of the industry.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

Vanguard Group is currenlty the top shareholder with 6.53% of shares outstanding. Other top shareholders include BlackRock, State Street, FMR and T Rowe Price Associates Inc. /MD/ (Trades, Portfolio).

Adobe

Adobe ranks third in the list with a 52.24% year-to-date change. The holding was also established at the beginning of 2020 with the purchase of 45.81 shares. The shares were added to the portfolio at $334.43 per share. Overall, the holding has seen a change of 48.99% since it was added.

Adobe provides content creation, document management and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content across multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions and publishing for legacy products.

The stock was trading at $497.81 with a market cap of $239.06 billion on Dec. 30. The GF Value Line gives the stock a rating of modestly overvalued.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

GuruFocus gives the company a financial strength rating of 7 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 2 out of 10. There are currently no severe warning signs issued for the company. The strong profitability rank is propped up by operating and net margin percentages that outdo at least 96% of industry competitors.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

Vanguard Group is the top shareholder with 8.10% of shares outstanding. Other top shareholders include BlackRock, FMR, State Street and Primecap Management (Trades, Portfolio).

Microsoft

Moving down the list, Microsoft comes in with a respectable 43.46% year-to-date increase. The holding was established right alongside the portfolio back on Jan. 2, 2006. The 148.81 shares were purchased at a price of $26.88 per share. Since the holding was established, it has seen an overall change of 726.25%.

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three overarching segments: productivity and business processes, intelligence cloud and more personal computing. Through acquisitions, Microsoft owns Xamarin, LinkedIn and GitHub.

On Dec. 30, the stock was trading at $221.68 per share with a market cap of $1.68 trillion. The GF Value Line gives the stock a significantly overvalued rating.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

GuruFocus gives the company a financial strength rating of 7 out of 10, a profitability rank of 9 out of 10 and a valuation rank of 1 out of 10. There is currently one severe warning sign issued for assets growing faster than revenue. The weighted average cost of capital is more than supported by the return on invested capital, which provides ample opportunity to grow value.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

Vanguard Group is the top shareholder with 8.24% of shares outstanding. Other top shareholders include BlackRock., State Street, FMR and T. Rowe Price Associates.

KKR & Co.

Rounding out the top five is KKR & Co. with a year-to-date change of 36.99%. The position was established at the beginning of 2020 with the purchase of 521.63 shares. The shares were purchased at $29.37 per share. Since it was first purchased, the holding has seen an overall change of 35.12%.

KKR is a leading investment firm. It manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. The company generates revenue from fees, performance income and investment income. Geographically, it has a presence in the Asia-Pacific, Americas, Europe and the Middle East regions.

As of Dec. 30, the stock was trading at $39.69 with a market cap of $22.59 billion. According to the GF Value Line, the stock is trading at a significantly overvalued rating.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rank of 5 out of 10. There are currently five severe warning signs, including new long-term debt and poor financial strength. The Altman Z-Score of 0.69 places the company in the distress column with bankruptcy a possibility in the next two years. Despite the poor financials, the company has managed to increase revenue and net income in recent years.

Top 5 Performers of GuruFocus' Most Broadly Held Portfolio
Top 5 Performers of GuruFocus’ Most Broadly Held Portfolio

Vanguard Group is currently the top shareholder with 8.23% of shares outstanding. Other top shareholders include ValueAct Holdings LP (Trades, Portfolio), BlackRock, Vulcan Value Partners LLC (Trades, Portfolio) and Principal Financial Group Inc. (Trades, Portfolio).

Disclosure: Author owns no stocks mentioned.

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This article first appeared on GuruFocus.

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