"Tracking Al Gore's Generation Investment Management Portfolio – Q2 2018 Update"
"Generation Investment Management’s 13F portfolio value increased ~11% from $10.26B to $11.33B this quarter.They increased Dentsply Sirona & Cooper Companies while reducing JD.com and dropping Infosys.The top three positions are Henry Schein, Dentsply Sirona, and Cooper Companies and they add up to ~23% of the entire 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 08/14/2018. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q1 2018.This quarter, Al Gore’s 13F portfolio value increased ~11% from $10.26B to $11.33B. The number of positions increased from 31 to 33. The largest five stakes are Henry Schein, Dentsply Sirona, Cooper Companies, Jones Lang LaSalle, and Thermo Fisher Scientific and they together account for about one-third of the total portfolio value.Generation Investment Management’s  and Al Gore’s  are good precursors for anyone interested in investing based on sustainability analysis.New Stakes:Analog Devices (ADI) and Mercadolibre (MELI): These are medium-sized new positions established this quarter. ADI is a 3.52% position purchased at prices between $87 and $102 and the stock currently trades at $98.85. The 3.10% MELI stake was established at prices between $285 and $356 and it now goes for $342.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 last quarter at prices between $315 and $414.Colgate-Palmolive (CL) and Microchip Technology (MCHP): These are very small (less than ~1% of the portfolio each) positions established this quarter.Stake Disposals:MuleSoft (MULE): MULE was a very small 1.55% of the portfolio established last quarter. In March, Salesforce.com agreed to buy MuleSoft in a cash-and-stock deal ($36 per share cash and 0.0711 shares of Salesforce.com for each share held) and that transaction closed in May.Infosys Ltd. (INFY): The 3.34% INFY position saw a ~145% increase in Q4 2017 at prices between $14.50 and $16.25. The disposal this quarter was at prices between $16.50 and $20. The stock is now at $20.77.Stake Increases:Henry Schein (HSIC): HSIC became the largest position in Q4 2017 as it saw a ~550% increase at prices between $66.50 and $84.50. There was another ~22% increase last quarter at prices between $63 and $79.50. The stock is now at $77.68 and the stake is at ~9% of the portfolio. For investors attempting to follow Generation IM, HSIC is a good option to consider for further research. There was a ~5% increase this quarter.Note: HSIC stock split 2-for-1 last September. Generation IM has a ~9% ownership stake in Henry Schein.Dentsply Sirona (XRAY): XRAY is a large (top three) 6.74% portfolio stake built in 2014 at prices between $44 and $56. The position has wavered. Recent activity follow: Last quarter saw a ~18% stake increase and that was followed with a ~65% increase this quarter at prices between $42 and $51. The stock currently trades below those ranges at $39.92. For investors attempting to follow Generation IM, XRAY is a good option to consider for further research.Cooper Companies (COO): The bulk of the large (top five) 6.71% position in COO was purchased in Q4 2016 at prices between $159 and $183. The original stake was doubled last quarter at prices between $218 and $251 and that was followed with a ~37% increase this quarter at prices between $218 and $237. The stock is now at $256.Thermo Fisher Scientific (TMO): TMO is a large (top five) 5.44% 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 stock currently goes for ~$239. Last four quarters have seen only minor activity.Microsoft Corporation (MSFT): MSFT is a large 5.32% 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 $112. Last two quarters have seen minor increases.Automatic Data Processing (ADP): ADP is a ~5% portfolio stake purchased in Q4 2017 at prices between $109 and $119 and increased by ~160% last quarter at prices between $108 and $124. The stock currently trades well above those ranges at ~$147. This quarter also saw a ~15% increase.Charles Schwab (SCHW): SCHW is a 4.71% 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. The stock is now at $50.79. Last two quarters have seen minor increases.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.Cerner Corporation (CERN): CERN is a ~4% 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 last quarter at prices between $56.50 and $73. The stock currently trades at $65.11. This quarter saw a ~2% increase.Acuity Brands (AYI): AYI is a ~4% 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 now well below those ranges at ~$153. There was a ~12% increase in Q4 2017 at prices between $156 and $178.  Last two quarters have also seen minor increases. For investors attempting to follow Generation IM, AYI is a good option to consider for further research.Note: Generation IM controls ~9% of AYI.Sensata Technologies (ST): The bulk of the 3.72% ST position was purchased in Q2 2016 at prices between $33.50 and $39. Q2 2017 saw a two-thirds increase at prices between $39 and $43.50 and that was followed with ~12% increases each in the next two quarters. The stock currently goes for $52.95. Last two quarters have also seen marginal increases.Note: Generation IM has a ~5% ownership stake in Sensata Technologies NV.Ingersoll-Rand plc (IR): IR is a 3.33% portfolio position first purchased in 2015 at prices between $51 and $71. The stake saw a ~30% reduction in 2016 at prices between $50.50 and $78.50 and that was followed with another ~50% selling during Q1 to Q3 2017 at prices between $75 and $93. The stock is now at $101. There was a ~17% increase this quarter at prices between $80 and $93.Aptiv plc (APTV) previously Delphi Automotive: APTV is a 3.31% position. It was first purchased in Q4 2016 at prices between $46 and $55. The following quarter saw a ~28% selling at prices between $50 and $65 while Q2 2017 saw a ~60% increase at prices between $57 and $72. The stock currently trades at ~$88. Last quarter saw a ~12% stake increase and this quarter a marginal further increase.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff last November.Credicorp Ltd. (BAP): BAP is a ~3% 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. It is now at ~$218. Last three quarters have seen a combined ~32% increase at prices between $192 and $237.Deere & Co. (DE): DE is a 2.70% 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. Last quarter saw another ~41% selling at prices between $148 and $172 while this quarter there was a ~20% increase at prices between $135 and $159. The stock is now at $144.Allegion Pub (ALLE): The ALLE stake saw a ~350% increase this quarter to a 2.62% portfolio stake at prices between $75 and $87. The stock is currently at $87.22.Alphabet Inc. (GOOG), Amazon.com (AMZN), MasterCard Inc. (MA), SPDR Trust (SPY), Taiwan Semi (TSM), Texas Instruments (TXN), and Waters Corp. (WAT): These small (less than ~1.5% of the portfolio each) positions saw increases this quarter.Stake Decreases:Jones Lang LaSalle Inc. (JLL): JLL is a top-five 6.12% 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 H1 2016: ~200% increase at prices between $96 and $141. H2 2016 also saw a ~50% stake increase at prices between $91 and $120. That was followed with a ~30% increase in Q2 2017 at prices between $103 and $125. The stock currently trades at ~$153. Last three quarters have seen only minor adjustments.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.JD.com (JD): The original JD purchase in 2014 was in the low-20s. H1 2017 had seen a ~40% selling at prices between $25.50 and $43. There was an about turn in Q3 2017: ~73% increase at prices between $38 and $48 and that was followed with a ~52% increase next quarter at prices between $36.50 and $43. The pattern reversed this quarter: ~55% reduction at prices between $35 and $44. The stock is currently at $31.30.Becton Dickinson (BDX), Chipotle Mexican Grill (CMG), Nike Inc. (NKE), Salesforce.com (CRM), and Visa Inc. (V): These small (less than ~2% of the portfolio each) positions saw reductions 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 2018:Regulatory Filings thru 5/26/2018: 13G – 4/26 – XRAY – 11.8M shares – 5.2% of business, 13G – 4/26 – COO – 2.5M shares – 5.2% of business."