"Tracking Al Gore's Generation Investment Management Portfolio – Q2 2019 Update"
"Generation Investment Management’s 13F portfolio value increased ~6% from $13.68B to $14.51B this quarter.They added Cognizant and increased Alphabet while reducing Analog Devices.The top three positions are Alphabet, Dentsply Sirona, and Charles Schwab, 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 08/14/2019. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q1 2019.This quarter, Al Gore’s 13F portfolio value increased ~6% from $13.68B to $14.51B. The number of positions increased from 33 to 34. The top five stakes are Alphabet, Dentsply Sirona, Charles Schwab, Deere & Co., and Henry Schein. They account for ~30% 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:Cognizant Technology (CTSH), Nutanix (NTNX), and Applied Materials (AMAT): These are the new positions this quarter. The fairly large 4.57% of the portfolio CTSH stake was purchased at prices between $57 and $75 and the stock currently trades near the low end of that range at $61.48. NTNX is a medium-sized 2.58% position established at prices between $24.50 and $43.50 and it is now below that at $22.88. The small 1.41% AMAT stake was purchased at prices between $38.50 and $45.50 and it currently goes for $47.61.Stake Disposals:Covetrus Inc. (CVET): The 0.89% CVET stake came about as a result of its spinoff from Henry Schein in January. Terms called for Henry Schein shareholders to receive CVET shares in the ratio 1:0.4. Generation IM had a ~11M share position in Henry Schein for which they received ~4.4M shares. They sold ~15% of the position last quarter at prices between $31.50 and $46. The remaining stake was disposed this quarter at prices between $23 and $33. The stock is now at $13.46.Colgate-Palmolive (CL): The very small 0.67% CL position was disposed during the quarter.Stake Increases:Alphabet Inc. (GOOG): The 6.84% GOOG position saw a stake doubling in Q4 2018 at prices between $975 and $1203 and that was followed with a ~75% increase last quarter at prices between $1016 and $1232. Q3 2018 had also seen a two-thirds increase at prices between $1102 and $1268. The stock currently trades at $1168. For investors attempting to follow, GOOG is a good option to consider for further research. This quarter also saw a ~15% stake increase.Texas Instruments (TXN): The vast majority of the 4.58% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades well above that range at $122. Last two quarters saw marginal increases.Aptiv plc (APTV) previously Delphi Automotive: APTV is a 3.15% position. It was first purchased in Q4 2016 at prices between $46 and $55. The position has wavered. Recent activity follow: last quarter saw a ~40% stake increase at prices between $60.50 and $82.50 and that was followed with another one-third increase this quarter at prices between $64 and $91. The stock currently trades at $81.56.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff in November 2017.Equifax Inc. (EFX): The ~3% EFX stake was purchased last quarter at prices between $91 and $115 and the stock currently trades well above that range at $146. This quarter saw a ~27% stake increase at prices between $116 and $136.Microchip Technology (MCHP): The minutely small 0.25% of the portfolio stake in MCHP saw a ~9% stake increase this quarter.Stake Decreases:Dentsply Sirona (XRAY): XRAY is a large (top three) 6.79% portfolio stake built in 2014 at prices between $44 and $56. The position has wavered. Recent activity follow: Q1 2018 saw a ~18% stake increase and that was followed with a ~65% increase next quarter at prices between $42 and $51. Q3 2018 saw another ~25% increase at prices between $37.50 and $48.50. The stock currently trades at $51.73. This quarter saw a ~20% selling at prices between $49 and $59.Note: Generation IM has a ~8% ownership stake in Dentsply Sirona.Charles Schwab (SCHW): SCHW is a large (top three) 5.79% portfolio position. The stake is from Q4 2016 at prices between $31 and $40.50. Q2 2017 saw a two-thirds increase at prices between $37.50 and $43 and that was followed with a ~40% increase in the following quarter at around the same price range. Q4 2018 saw a ~22% stake increase at prices between $38 and $52 and that was followed with a ~50% stake increase last quarter at prices between $40.50 and $48. The stock is now at $37.96. For investors attempting to follow, SCHW is a good option to consider for further research. There was marginal trimming 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.Deere & Co. (DE): DE is a large (top five) 5.44% portfolio stake. The position is from 2015 at prices between $75 and $97. There was a two-thirds reduction over the first three quarters of 2017 at prices between $103 and $132. Q1 2018 saw another ~41% selling at prices between $148 and $172. The position was rebuilt over the next three quarters at prices between $131 and $162. The stock is now at ~$151. Last two quarters have seen only minor adjustments.Henry Schein (HSIC): HSIC became the largest position in Q4 2017 as it saw a ~550% increase at prices between $50.50 and $68.50. There was another ~22% increase next quarter at prices between $47 and $63.50. Last four quarters have seen selling: a combined ~25% reduction at prices between $57 and $71. The stock is now at $61.56 and the stake at ~5% of the portfolio. Generation IM has a ~7.5% ownership stake in Henry Schein.Note: The prices quoted above are adjusted for the spinoff of Covetrus Inc. in January. Also, HSIC split 2-for-1 last September.Thermo Fisher Scientific (TMO): TMO is a fairly large 4.59% 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. The next six quarters saw only minor activity. Last quarter saw a ~16% selling at prices between $212 and $276 and that was followed with a ~11% trimming this quarter. The stock currently goes for ~$284.Cooper Companies (COO): The bulk of the fairly large 4.37% 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. The stock currently trades well above those ranges at ~$300. Last two quarters have seen a ~43% selling at prices between $246 and $340. Generation IM is harvesting gains.Note: Generation IM has a ~3.5% ownership stake in Cooper Companies.Jones Lang LaSalle Inc. (JLL): JLL is a ~4% long-term position first purchased in 2008. By 2013, that original position was doubled to a fairly large ~5% stake thru 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. The stock currently trades at ~$132. Last seven quarters have seen only minor adjustments.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Sensata Technologies (ST): The bulk of the ~4% ST position was purchased in Q2 2016 at prices between $33.50 and $39 and doubled over the next two years at higher prices. The stock currently goes for $45.41. Q4 2018 saw a ~28% increase at prices between $41 and $49.50. Last two quarters have seen only minor adjustments.Note: Generation IM has a ~8% ownership stake in Sensata Technologies NV.Analog Devices (ADI): ADI position is now at 3.89% 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. Q4 2018 saw another ~25% stake increase at prices between $78 and $94. The stock currently trades above those ranges at ~$106. There was a ~50% selling this quarter at prices between $96 and $117.Mercadolibre (MELI): The 3.40% MELI stake was established in Q2 2018 at prices between $285 and $356 and it now goes for ~$581. Last three quarters have seen a one-third selling at prices between $258 and $641. Generation IM is harvesting gains.Note: MELI had a previous round-trip: it was a very small 0.51% stake established in Q4 2017 at prices between $222 and $329 and disposed next quarter at prices between $315 and $414.Microsoft Corporation (MSFT): MSFT is a 3.37% portfolio position. The stake was first purchased in 2014 and more than doubled the following year at prices between $36 and $56. The position saw a ~50% selling in Q2 2017 at prices between $65 and $72.50 and that was followed with a ~25% reduction in Q4 2017 at prices between $74 and $87. The stock is now at ~$136. Q4 2018 saw a one-third reduction at prices between $94 and $116 and that was followed with a ~8% trimming last quarter. There was marginal trimming this quarter.Acuity Brands (AYI): AYI is a 3.21% of the portfolio stake purchased in Q1 2017 at prices between $199 and $240 and increased by ~85% the following quarter at prices between $163 and $204. The stock is currently well below those ranges at ~$121. There was a ~12% increase in Q4 2017 at prices between $156 and $178. For investors attempting to follow Generation IM, AYI is a good option to consider for further research. Last three quarters have seen only minor changes.Note: Generation IM controls ~8% of AYI.NVidia Corp (NVDA) and TE Connectivity (TEL): These two new stakes were established in Q4 2018. TEL is a medium-sized ~3% position purchased at prices between $71 and $87 and the stock currently trades at $89.05. The 1.40% NVDA stake was established at prices between $127 and $289 and it is now at ~$164. Last two quarters saw only minor changes to these two positions.Automatic Data Processing (ADP): ADP is a ~3% portfolio stake purchased in Q4 2017 at prices between $109 and $119 and increased by ~160% next quarter at prices between $108 and $124. The next two quarters had also seen a ~16% increase at prices between $114 and $151. Last three quarters saw a ~40% selling at prices between $122 and $170. The stock is now at $167.Ingersoll-Rand plc (IR): IR is a 2.49% portfolio position first purchased in 2015 at prices between $51 and $71. The position has wavered. Recent activity follow: there was a ~17% increase in Q2 2018 at prices between $80 and $93 while Q4 2018 saw similar selling at prices between $86 and $106. The stock is now at ~$119. Last two quarters have seen a combined ~17% selling at prices between $90 and $128.Credicorp Ltd. (BAP): BAP is a ~2% of the portfolio position established in Q2 2017 at prices between $152 and $183 and increased by ~22% in the following quarter at prices between $179 and $213. The four quarters thru Q3 2018 had seen a combined ~44% increase at prices between $192 and $236. The stock is now at ~$205. Last quarter saw a ~18% selling at prices between $222 and $251. There was marginal trimming this quarter.Cerner Corporation (CERN): CERN is a 1.67% of the portfolio position. The stake was established in 2015 and doubled in Q1 2016 at prices between $52 and $60. Q4 2016 also saw another ~50% stake increase at prices between $47 and $62. There was a ~37% selling in Q4 2017 at prices between $64.50 and $73.50 and that was followed with a one-third reduction next quarter at prices between $56.50 and $73. The stock currently trades at $67.39. Last two quarters had also seen a ~60% selling at prices between $49 and $65. There was marginal trimming this quarter.Allegion Pub (ALLE): The ALLE stake saw a ~350% increase in Q2 2018 at prices between $75 and $87 and that was followed with a ~20% increase next quarter at prices between $77 and $91. Last quarter saw an about turn: ~22% selling at prices between $81 and $94. That was followed with a ~45% selling this quarter at prices between $92 and $112. The stock is currently at $95.33 and the stake is now small at ~1.5%.Stericycle Inc. (SRCL): SRCL is a very small 0.84% of the portfolio position established last quarter at prices between $37 and $52 and it now goes for $44.51. This quarter saw marginal trimming.Amazon.com (AMZN), Becton Dickinson (BDX), SPDR Trust (SPY), Salesforce.com (CRM), Taiwan Semi (TSM), and Waters Corp. (WAT): These small (less than ~1.5% of the portfolio each) positions were reduced this quarter.Kept Steady:None.Below is a spreadsheet that highlights the changes to Al Gore's Generation Investment Management 13F stock portfolio as of Q2 2019:Regulatory Filings thru 6/8/2019: 13G – 5/13 – NTNX – 8.6M shares – 5.8% of business."