"Tracking Al Gore's Generation Investment Management Portfolio – Q4 2022 Update"
"Generation Investment Management’s 13F portfolio value increased from $16.86B to $17.32B this quarter.They increased Cooper Companies, Texas Instruments, Toast, and Twilio while reducing Becton Dickinson, Salesforce.com, Alibaba Group Holdings, and H World Group. They also dropped Alphabet.The top three positions are Charles Schwab, Amazon.com, and Henry Schein, and they add up to ~19% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Generation Investment Management’s 13F portfolio on a quarterly basis. It is based on Al Gore’s regulatory  filed on 2/13/2023. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q3 2022.This quarter, Al Gore’s 13F portfolio value increased ~3% from $16.86B to $17.32B. The number of positions decreased from 45 to 41. The top five stakes are Charles Schwab, Amazon.com, Henry Schein, Microsoft, and Equifax. They account for around ~29% of the total 13F portfolio value. Generation Investment Management’s  and Al Gore’s  are good precursors for anyone interested in investing based on sustainability analysis.New Stakes:Dentsply Sirona (XRAY): XRAY is a 0.87% of the portfolio position purchased this quarter at prices between ~$27 and ~$34 and the stock currently trades above that range at $36.76.Note: XRAY is a frequently traded stock in Generation IM’s portfolio.Stake Disposals:Abiomed Inc. (ABMD): ABMD was a ~2% of the portfolio stake established during Q1 2022. Johnson & Johnson (JNJ) acquired ABMD in a $380 per share all-cash deal that closed in December.Alphabet Inc. (GOOG): The bulk of the 1.68% stake in GOOG was established in the three quarters through Q1 2019 at prices between ~$49 and ~$63. Q2 & Q3 2019 also saw a ~45% stake increase at prices between ~$56 and ~$63. The five quarters through Q4 2020 saw the stake reduced by ~60% at prices between ~$53 and ~$91. Q4 2021 saw another ~20% selling at prices between ~$133 and ~$151. That was followed with a ~50% reduction in Q2 2022 at prices between ~$106 and ~$145. Last quarter also saw a ~27% selling at prices between ~$96 and ~$123. The disposal this quarter was at prices between ~$83.50 and ~$105. The stock currently trades at ~$106. They harvested gains.Note: the prices quoted above are adjusted for the 20-for-1 stock split last July.Coupang (CPNG), Shopify (SHOP), and Taiwan Semi (TSM): These small (less than ~0.60% of the portfolio each) stakes were disposed during the quarter.Stake Increases:Charles Schwab (SCHW): SCHW is currently the largest position at ~7% of the portfolio. The stake was first purchased in Q4 2016 at prices between $31 and $40.50. Since then, the position was increased substantially at prices between ~$30 and ~$50. Q1 2021 saw a ~37% selling at prices between ~$51.50 and ~$68. That was followed with a ~20% reduction next quarter at prices between ~$63.50 and ~$76. The stock is now at $52.89. There was a ~15% stake increase last quarter and that was followed with a marginal further increase this quarter.Note: SCHW has seen a previous round-trip. A large ~7.2M share stake purchased in 2013 in the high-teens price-range was disposed the following year at much higher prices.Amazon.com (AMZN): AMZN is currently the second largest position at ~6% of the portfolio. It was purchased during H1 2021 at prices between ~$158 and ~$175 and the stock currently trades well below that range at $98.71. There was a ~40% stake increase during H1 2022 at prices between ~$104 and ~$170. The last two quarters have also seen minor increases.Microsoft Corporation (MSFT): The large (top five) 5.59% MSFT stake was primarily built during Q2 2022 at prices between ~$242 and ~$315 and the stock currently trades at ~$278. There was a ~9% trimming last quarter while this quarter saw a ~5% increase.Analog Devices (ADI): ADI position is now at 4.84% of the portfolio. It was established in Q2 2018 at prices between $87 and $102 and doubled next quarter at prices between $91 and $100. The stake has wavered. Recent activity follows. Q3 2020 saw a stake doubling at prices between ~$112 and ~$125. Q2 to Q4 2021 had seen the position reduced by ~47% at prices between ~$146 and ~$189. There was a ~80% stake increase in Q2 2022 at prices between ~$144 and ~$169. The stock currently trades at ~$189. The last two quarters have also seen ~15% further increase.Applied Materials (AMAT): The 3.91% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. There was a ~45% increase during Q2 2022 at prices between ~$86 and ~$129. The stock currently trades at ~$123. There was a ~15% further increase over the last two quarters.Mercadolibre (MELI): The 3.45% of the portfolio stake in MELI was built during the last five quarters at prices between ~$635 and ~$1950. The stock is now at ~$1192. This quarter also saw a minor ~3% further increase.Nutanix (NTNX): The 3.32% NTNX stake was established in Q2 2019 at prices between ~$25 and ~$43. The stock currently trades at $25.05. The last several quarters have seen only minor adjustments.Note: they have a ~9.6% ownership stake in the business.Cooper Companies (COO): The bulk of the ~3% position in COO was purchased in Q4 2016 at prices between $159 and $183. The original stake was doubled in Q1 2018 at prices between $218 and $251 and that was followed with a ~37% increase next quarter at prices between $218 and $237. There was a ~25% reduction in Q2 2021 at prices between ~$372 and ~$412. Q1 2022 also saw a ~15% selling at prices between ~$380 and ~$428. This quarter saw a ~30% stake increase at prices between ~$249 and ~$334. The stock currently trades at ~$345.Texas Instruments (TXN): The bulk of the 2.58% stake in TXN was established this quarter at prices between ~$148 and ~$180. The stock is now at the top end of that range at ~$180.Twilio Inc. (TWLO): TWLO is a ~2% of the portfolio position primarily built during Q2 2022 at prices between ~$79 and ~$175. The stock is now well below that range at $62.38. There was a two-thirds stake increase in the last two quarters at prices between ~$43 and ~$98.Toast Inc. (TOST): The ~2% TOST stake saw a ~45% stake increase this quarter at prices between ~$17 and ~$22. The stock currently trades below that range at $16.11.Note: Generation IM’s original investment in Toast goes back to a funding round in 2017. They have a 6.19% ownership stake in the business.Freshworks Inc. (FRSH), Gogoro Inc. (GGR) and Trimble Inc. (TRMB): These small (less than ~0.60% of the portfolio each) stakes were increased this quarter.Stake Decreases:Henry Schein (HSIC): HSIC became the largest position in Q4 2017 as it saw a ~550% stake increase at prices between $50.50 and $68.50. There was another ~22% increase next quarter at prices between $47 and $63.50. The five quarters through Q3 2019 saw a combined ~30% reduction at prices between $58 and $71 while Q1 2020 there was a similar increase at prices between ~$43 and ~$74. The stock is now at ~$78 and the stake at ~5% of the portfolio. The last eleven quarters have seen only minor adjustments.Note: The prices quoted above are adjusted for the spinoff of Covetrus Inc. last January. Also, HSIC split 2-for-1 in September 2017. Generation IM has a ~9% ownership stake in Henry Schein.Equifax Inc. (EFX): The 5.38% EFX stake was purchased in Q1 2019 at prices between $91 and $115. Q4 2020 saw a whopping ~175% stake increase at prices between ~$137 and ~$195. Q2 to Q4 2021 saw the position sold down by ~70% at prices between ~$181 and ~$297. The stake was doubled next quarter at prices between ~$208 and ~$286. The stock is now at ~$196. The last three quarters have seen only minor adjustments.Trane Technologies plc (TT): TT is now a large 5.30% of the portfolio position. The stake saw a ~150% stake increase in Q1 2022 at prices between ~$143 and ~$195. That was followed with a ~40% increase next quarter at prices between ~$121 and ~$155. The stock currently trades at ~$183. The last two quarters have seen only minor adjustments.Jones Lang LaSalle Inc. (JLL): JLL is a 4.11% long-term position first purchased in 2008. By 2013, that original position was doubled to a fairly large ~5% stake through consistent buying every year. The next two years saw selling: ~75% overall reduction at prices between $103 and $178. The pattern reversed in 2016: ~500% increase at prices between $91 and $141. That was followed with a ~30% increase in Q2 2017 at prices between $103 and $125. Since then, the activity has been minor. The stock currently trades at ~$137.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Gartner Inc. (IT): The ~4% of the portfolio IT stake was built in 2020 at prices between ~$83 and ~$164. The five quarters through Q4 2021 had seen a ~60% selling at prices between ~$120 and ~$340. The stock is now at ~$309. The last few quarters have seen minor trimming.MasterCard Inc. (MA): MA is a 3.76% of the portfolio position purchased during Q2 2022 at prices between ~$309 and ~$379 and the stock currently trades at ~$354. There was minor trimming in the last two quarters.Baxter International (BAX): BAX is now at 3.20% of the portfolio. It was established in Q4 2019 at prices between $76.50 and $88.50 and increased by ~50% next quarter at prices between ~$72 and ~$93. Q1 2021 saw another ~20% stake increase at prices between ~$76 and ~$86. There was a ~50% selling over the last four quarters at prices between ~$50 and ~$87. The stock currently trades at $38.12.Becton Dickinson (BDX): The 2.84% BDX position was built in 2020 at prices between $201 and $284. There was a ~30% stake increase in Q4 2021 at prices between ~$236 and ~$257. Q2 2022 saw a similar reduction at prices between ~$235 and ~$275. That was followed with a ~40% further selling this quarter at prices between ~$218 and ~$257. The stock currently trades at ~$236.Thermo Fisher Scientific (TMO): TMO is a 2.82% portfolio position first purchased in Q3 2016 and more than doubled the following quarter at prices between $141 and $159. Q2 2017 saw another ~20% increase at prices between $152 and $176. There was a one-third selling in 2019 at prices between $221 and $327. 2020 had seen another ~60% selling at prices between ~$255 and ~$528. The stake was rebuilt in Q2 2021 at prices between ~$441 and ~$509. There was a ~50% reduction over the two quarters through Q1 2022 at prices between ~$524 and ~$667. The stock currently goes for ~$555. The last two quarters have seen minor trimming.CBRE Group (CBRE): CBRE is a 2.43% of the portfolio position built during Q2 & Q3 2020 at prices between ~$35 and ~$56. There was a ~45% selling over the four quarters through Q1 2022 at prices between ~$80 and ~$109. The stock is now at $68.91. The last three quarters have seen only minor adjustments.Clarivate plc (CLVT): CLVT is a 2.20% of the portfolio stake purchased in Q3 2021 at prices between ~$21.50 and ~$27.15. There was a one-third stake increase next quarter at prices between ~$20.50 and ~$25.25. Q1 2022 also saw a similar increase at prices between ~$12.25 and ~$24.50. The stock currently trades below the low end of those ranges at $9.43. The last three quarters have seen only minor adjustments.Note: Generation IM has a ~6.8% ownership stake in Clarivate plc.10x Genomics (TXG), Alibaba Group Holdings (BABA), Carlisle Companies (CSL), Cognizant Technology (CTSH), H World Group (HTHT), Microchip Technology (MCHP), and Palo Alto Networks (PANW), Ptc Inc. (PTC), Salesforce.com (CRM), and Steris plc (STE): These small (less than ~2% of the portfolio each) stakes were reduced during the quarter.Kept Steady:Remitly Global (RELY): RELY had an IPO in September 2021. Shares started trading at ~$38 and currently goes for $16.56. Generation IM’s stake is at 0.73% of the portfolio.Note: Generation IM has a ~6.5% ownership stake in the business.Sophia Genetics (SOPH): Sophia Genetics had an IPO last July. Shares started trading at ~$16.75 and currently goes for $4.42. Generation IM’s 0.08% of the portfolio stake goes back to a funding round in 2019.Note: Generation IM has a ~10.5% ownership stake in the business.Asana Inc. (ASAN), Proterra Inc. (PTRA), and SPDR S&P 500 ETF (SPY): These minutely small (less than ~0.20% of the portfolio each) stakes were kept steady this quarter.Note: Generation IM’s original investment in Proterra goes back to a funding round in 2017.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q4 2022:Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q3 2022 and Q4 2022.Regulatory filings from 9/1/2022 to 12/4/2022:  None."