Renowned investment guru, Jeremy Grantham, recently filed his 13F report for the second quarter of 2023, which ended on June 30, 2023. Grantham is known for his long-term investment strategy and his focus on finding undervalued stocks. His investment philosophy is rooted in the belief that market inefficiencies and behavioral biases can be exploited to generate superior returns.
The guru's portfolio for Q2 2023 contained 676 stocks with a total value of $21.60 billion. The top holdings were Microsoft (MSFT, Financial) at 4.79%, Meta Platforms (META) at 3.26%, and UnitedHealth Group (UNH, Financial) at 3.02%.
Top Three Trades of the Quarter
Grantham's top three trades of the quarter involved Medtronic PLC (NYSE:MDT), Abbott Laboratories (NYSE:ABT), and UnitedHealth Group Inc (NYSE:UNH).
Medtronic PLC (NYSE:MDT)
Grantham reduced his investment in Medtronic by 2,762,941 shares, impacting the equity portfolio by 1.13%. During the quarter, the stock traded for an average price of $86. As of August 14, 2023, MDT had a price of $83.17 and a market cap of $110.68 billion. The stock has returned -9.39% over the past year. GuruFocus gives the company a financial strength rating of 6 out of 10 and a profitability rating of 7 out of 10. In terms of valuation, MDT has a price-earnings ratio of 29.50, a price-book ratio of 2.15, a EV-to-Ebitda ratio of 14.65, and a price-sales ratio of 3.54.
Abbott Laboratories (NYSE:ABT)
During the quarter, Grantham bought 1,215,172 shares of Abbott Laboratories, bringing his total holding to 2,863,665 shares. This trade had a 0.62% impact on the equity portfolio. The stock traded for an average price of $106.51 during the quarter. As of August 14, 2023, ABT had a price of $105.92 and a market cap of $183.93 billion. The stock has returned -3.11% over the past year. GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 9 out of 10. In terms of valuation, ABT has a price-earnings ratio of 36.17, a price-book ratio of 4.96, a price-earnings-to-growth (PEG) ratio of 2.29, a EV-to-Ebitda ratio of 18.93, and a price-sales ratio of 4.62.
UnitedHealth Group Inc (NYSE:UNH)
Grantham also bought 227,882 shares of UnitedHealth Group during the quarter, bringing his total holding to 1,356,123 shares. This trade had a 0.51% impact on the equity portfolio. The stock traded for an average price of $488.72 during the quarter. As of August 14, 2023, UNH had a price of $512.405 and a market cap of $472.91 billion. The stock has returned -4.51% over the past year. GuruFocus gives the company a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, UNH has a price-earnings ratio of 22.84, a price-book ratio of 5.77, a price-earnings-to-growth (PEG) ratio of 1.73, a EV-to-Ebitda ratio of 14.24, and a price-sales ratio of 1.38.
In conclusion, Grantham's Q2 2023 13F filing reveals his continued focus on finding value in the market, with significant trades in Medtronic, Abbott Laboratories, and UnitedHealth Group. His investment decisions reflect his long-term investment strategy and his belief in exploiting market inefficiencies and behavioral biases to generate superior returns.
