"Tracking Al Gore's Generation Investment Management Portfolio – Q3 2022 Update"
"Generation Investment Management’s 13F portfolio value decreased from $18.35B to $16.86B this quarter.They increased Mercadolibre and Toast while decreasing Alphabet and Shopify. They also dropped Intel.The top three positions are Amazon.com, Charles Schwab, and Microsoft, 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 11/10/2022. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q2 2022.This quarter, Al Gore’s 13F portfolio value decreased ~8% from $18.35B to $16.86B. The number of positions decreased from 46 to 45. The top five stakes are Amazon.com, Charles Schwab, Microsoft, Henry Schein, and Trane Technologies. 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:Freshworks Inc. (FRSH): FRSH had an IPO in September 2021. Shares started trading at ~$47 and currently goes for $15.19. Generation IM’s stake is a minutely small 0.05% of the portfolio position.Stake Disposals:Intel Corporation (INTC): INTC was a ~3% of the portfolio position purchased during Q2 and Q3 2021 at prices between ~$52 and ~$68. There was a ~14% stake increase last quarter. The disposal this quarter was at prices between ~$26 and ~$41. The stock currently trades at $29.41. They realized losses.Illumina Inc. (ILMN): The very small 0.65% stake in ILMN was sold during the quarter.Stake Increases:Amazon.com (AMZN): AMZN is currently the top position at ~8% 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 ~$94. There was a ~40% stake increase over the last two quarters at prices between ~$104 and ~$170. There was marginal increase this quarter.Charles Schwab (SCHW): SCHW is the second largest position at 6.19% 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 $82.46. There was a ~15% stake 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.Trane Technologies plc (TT): TT is now a large (top five) ~5% 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 last quarter at prices between ~$121 and ~$155. The stock currently trades at ~$179. This quarter saw a ~9% further increase.Equifax Inc. (EFX): The 4.90% 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 ~$201. Last two quarters have seen minor increases.Analog Devices (ADI): ADI position is now at 4.12% 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 last quarter at prices between ~$144 and ~$169. The stock currently trades at ~$169. There was a ~12% further increase this quarter.Mercadolibre (MELI): The 3.36% of the portfolio stake in MELI was built during the last five quarters at prices between ~$635 and ~$1950. The stock is now at ~$945.Applied Materials (AMAT): The ~3% AMAT stake was established in Q2 2019 at prices between ~$39 and ~$45. There was a ~45% increase last quarter at prices between ~$86 and ~$129. The stock currently trades at ~$107. There was a ~10% further increase this quarter.Twilio Inc. (TWLO): TWLO is a ~2% of the portfolio position primarily built last quarter at prices between ~$79 and ~$175. The stock is now at $48.64. There was a ~14% stake increase this quarter.Cognizant Technology (CTSH), and Toast Inc. (TOST): These small (less than ~1.5% of the portfolio each) stakes were increased this quarter.Note: Generation IM’s original investment in Toast goes back to a funding round in 2017.Stake Decreases:Microsoft Corporation (MSFT): The large (top three) 5.32% MSFT stake was primarily built last quarter at prices between ~$242 and ~$315 and the stock currently trades at ~$255. There was a ~9% trimming this quarter.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 thru 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 ~$83 and the stake at ~5% of the portfolio. Last ten 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 ~9.5% ownership stake in Henry Schein.Becton Dickinson (BDX): The 4.20% 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. Last quarter saw a similar reduction at prices between ~$235 and ~$275. The stock currently trades at ~$252. There was marginal trimming this quarter.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 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. Since then, the activity has been minor. The stock currently trades at ~$167.Note: Generation IM has a ~9% ownership stake in Jones Lang LaSalle.Baxter International (BAX): BAX is now the 3.79% 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 ~40% selling over the last two quarters at prices between ~$64 and ~$90. The stock currently trades at $53.22. There was another ~9% trimming this quarter.Gartner Inc. (IT): The 3.67% 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 ~$352. Last three quarters have seen only minor adjustments.MasterCard Inc. (MA): MA is a 3.35% of the portfolio position purchased last quarter at prices between ~$309 and ~$379 and the stock currently trades at ~$360. There was marginal trimming this quarter.Salesforce.com (CRM): The 2.79% of the CRM position was first purchased in  Q4 2016. The bulk of the current stake was built over the last two quarters at prices between ~$156 and ~$256. The stock currently trades at ~$145. There was marginal trimming this quarter.Thermo Fisher Scientific (TMO): TMO is a 2.68% 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 ~$563. Last two quarters have seen only minor adjustments.Nutanix (NTNX): The 2.60% NTNX stake was established in Q2 2019 at prices between ~$25 and ~$43. The stock currently trades at $30.53. Last several quarters have seen only minor adjustments.Clarivate plc (CLVT): CLVT is a 2.57% 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 $10.12. Last two quarters have seen only minor adjustments.Note: Generation IM has a ~6.5% ownership stake in Clarivate plc.CBRE Group (CBRE): CBRE is a 2.22% 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 $79.25. Last two quarters have seen only minor adjustments.Alibaba Group Holdings (BABA): BABA is a 2.14% of the portfolio position purchased in Q4 2020 at prices between ~$222 and ~$317. The stake was increased by ~150% over H1 2021 at prices between ~$206 and ~$271. That was followed with a ~25% stake increase next quarter at prices between ~$140 and ~$222. Q4 2021 saw a ~20% reduction while next quarter there was a similar increase. The stock currently trades at ~$90. Last two quarters have seen only minor adjustments.Cooper Companies (COO): The bulk of the ~2% 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. The stock currently trades at ~$322. Last two quarters also saw minor trimming.Carlisle Companies (CSL) and Ptc Inc. (PTC): These two stakes were established in Q4 2021. CSL is a 1.90% of the portfolio position established at prices between ~$201 and ~$248 and it is now at ~$260. This quarter saw a one-third reduction at prices between ~$241 and ~$316. The 1.72% PTC position was purchased over the last three quarters at prices between ~$98 and ~$130 and it now goes for ~$127. There was marginal trimming this quarter.Alphabet Inc. (GOOG): GOOG stake is currently at 1.68% of the portfolio. The bulk of the stake was established in the three quarters thru Q1 2019 at prices between ~$49 and ~$63. Q2 & Q3 2019 had also seen 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 last quarter at prices between ~$106 and ~$145. This quarter also saw a ~27% selling at prices between ~$96 and ~$123. The stock currently trades at ~$101. They are harvesting gains.Note: the prices quoted above are adjusted for the 20-for-1 stock split in July.Steris plc (STE): STE is a 1.18% of the portfolio stake primarily built in Q1 2021 at prices between ~$171 and ~$203. There was a ~60% selling over the last three quarters at prices between ~$193 and ~$253. The stock currently trades at ~$192. This quarter saw marginal trimming.10x Genomics (TXG), Abiomed Inc. (ABMD),  Coupang (CPNG), H World Group (HTHT), Microchip Technology (MCHP), Palo Alto Networks (PANW), Shopify (SHOP), Taiwan Semi (TSM), Texas Instruments (TXN), and Trimble Inc. (TRMB): These small (less than ~2% of the portfolio each) stakes were reduced during the quarter.Kept Steady:Remitly Global (RELY): RELY had an IPO last September. Shares started trading at ~$38 and currently goes for $10.49. Generation IM’s stake is at 0.73% of the portfolio.Note: Generation IM has a 6.75% 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 $2.29. Generation IM’s 0.11% of the portfolio stake goes back to a funding round in 2019.Note: Generation IM has a 10.6% ownership stake in the business.Asana Inc. (ASAN), Gogoro Inc. (GGR), 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 Q3 2022:Source: John Vincent. Data constructed from Generation IM’s 13F filings for Q2 2022 and Q3 2022.Regulatory filings from 5/28/2022 to 9/1/2022: None."