"Tracking Al Gore's Generation Investment Management Portfolio – Q4 2019 Update"
"Generation Investment Management’s 13F portfolio value increased 7.5% from $14.54B to $15.64B this quarter.They added Baxter International and increased Twilio while decreasing Analog Devices and Deere.The top three positions are Alphabet, Charles Schwab, and Cognizant Technology and they add up to ~24% 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 02/14/2020. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q3 2019.This quarter, Al Gore’s 13F portfolio value increased 7.5% from $14.54B to $15.64B. The number of positions increased from 36 to 39. The top five stakes are Alphabet, Charles Schwab, Cognizant Technology, Dentsply Sirona, and Jones Lang LaSalle. They account for ~35% 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:Baxter International (BAX): BAX is a medium-sized 3.65% of the portfolio stake established this quarter at prices between $76.50 and $88.50 and the stock currently trades at $87.65.Illumina Inc. (ILMN): ILMN is a small 1.24% of the portfolio position purchased this quarter at prices between $288 and $336 and the stock is now below that range at $276.Penumbra Inc. (PEN) and CBRE Group (CBRE): These are minutely small (less than 0.5% of the portfolio each) stakes established this quarter.Stake Disposals: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. Q1 2019 saw an about turn: ~22% selling at prices between $81 and $94. That was followed with a ~60% selling over the last two quarters at prices between $92 and $112. The disposal this quarter was at prices between $100 and $126. The stock is currently at $123.Stake Increases:Charles Schwab (SCHW): SCHW is a large (top three) ~9% 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. Last five quarters have also seen a ~160% stake increase at prices between $35.50 and $51.50. The stock is now near the low end of those ranges at $34.80. For investors attempting to follow, SCHW is a good option to consider for further research.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.Cognizant Technology (CTSH) and Nutanix (NTNX): These two positions established in Q2 2019 were increased over the last two quarters. The large (top three) 5.93% of the portfolio CTSH stake was purchased at prices between $57 and $75. There was a ~42% stake increase over the last two quarters at prices between $58.75 and $66.50. The stock currently trades near the low end of those ranges at $59.93. For investors attempting to follow, CTSH is a good option to consider for further research. NTNX is a medium-sized 2.90% position established at prices between $24.50 and $43.50 and it is now below that range at $21.64. Last two quarters saw marginal increases. Generation IM has a ~8.3% ownership stake in Nutanix.Jones Lang LaSalle Inc. (JLL): JLL is a 5.32% 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 ~$149.Note: Generation IM has a 9.3% ownership stake in Jones Lang LaSalle.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. The five quarters thru Q3 2019 saw selling: a combined ~30% reduction at prices between $58 and $71. The stock is now at $59.25 and the stake at 4.40% of the portfolio. Generation IM has a ~7% ownership stake in Henry Schein. This quarter saw a ~3% stake increase.Note: The prices quoted above are adjusted for the spinoff of Covetrus Inc. last January. Also, HSIC split 2-for-1 in September 2017.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 $38.37. Q4 2018 saw a ~28% increase at prices between $41 and $49.50. Last four quarters have seen only minor adjustments.Note: Generation IM has a ~7.4% ownership stake in Sensata Technologies NV.Aptiv plc (APTV) previously Delphi Automotive: APTV is a 3.59% position. It was first purchased in Q4 2016 at prices between $46 and $55. The stake has wavered. Recent activity follows: Q1 2019 saw a ~40% stake increase at prices between $60.50 and $82.50 and that was followed with another one-third increase next quarter at prices between $64 and $91. The stock currently trades at ~$78.50.  Last two quarters have seen minor increases.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff in November 2017.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. The stock currently trades well above those ranges at ~$325. Last three quarters had seen a ~53% selling at prices between $246 and $342. Generation IM is harvesting gains. There was a marginal increase this quarter.Note: Generation IM has a 3.1% ownership stake in Cooper Companies.TE Connectivity (TEL): TEL is a medium-sized 3.30% position purchased in Q4 2018 at prices between $71 and $87 and the stock currently trades at $81.37. Last three quarters had seen only minor adjustments. This quarter saw a ~18% stake increase at prices between $85.50 and $96.Mercadolibre (MELI): The 2.55% MELI stake was established in Q2 2018 at prices between $285 and $356 and it now goes for ~$628. Last four quarters had seen a ~42% selling at prices between $285 and $690. Generation IM is harvesting gains. This quarter saw a marginal increase.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.Salesforce.com (CRM): The original CRM stake was established in 2016 at prices between $60 and $84. Last quarter saw a stake doubling at prices between $140 and $160. The stock currently trades at ~$170 and the stake is at 2.29% of the portfolio. There was a marginal increase this quarter.Equifax Inc. (EFX): The ~2% EFX stake was purchased in Q1 2019 at prices between $91 and $115 and the stock currently trades well above that range at $158. Q2 2019 saw a ~27% stake increase at prices between $116 and $136 while last quarter there was similar selling at prices between $135 and $147. This quarter saw a ~7% stake increase.Twilio Inc. (TWLO) and Huazhu Group (HTHT): These two positions established last quarter saw increases this quarter. TWLO is a 2.11% of the portfolio stake established at prices between $107 and $150 and increased by ~260% this quarter at prices between $91 and $117. The stock currently trades at ~$106. For investors attempting to follow, TWLO is a good option to consider for further research. The minutely small 0.32% HTHT position was purchased at prices between $30 and $38.50 and increased by ~50% this quarter at prices between $32 and $38.50. It is now at ~$34.90.Cerner Corporation (CERN): CERN is a 2.11% 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. Last four quarters had also seen a ~60% selling at prices between $49 and $76. This quarter saw an about turn: ~50% stake increase at prices between $65 and $73.50. The stock currently trades at ~$72.50.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 ~$192. Q1 2019 saw a ~18% selling at prices between $222 and $251. Last three quarters have seen only minor adjustments.Becton Dickinson (BDX), Microchip Technology (MCHP), SPDR Trust (SPY), Stericycle Inc. (SRCL), and Waters Corp. (WAT): These very small (less than ~1.5% of the portfolio each) stakes were increased during the quarter.Stake Decreases:Alphabet Inc. (GOOG): GOOG is currently the largest position at ~9% of the portfolio. The bulk of the stake was established in the three quarters thru Q1 2019 at prices between $975 and $1268. Last two quarters had also seen a ~45% stake increase at prices between $1110 and $1250. The stock currently trades at $1319. This quarter saw a ~7% trimming.Dentsply Sirona (XRAY): XRAY is a large (top three) ~6% portfolio stake built in 2014 at prices between $44 and $56. The position has wavered. Recent activity follows: 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 $45.32. Q2 2019 saw a ~20% selling at prices between $49 and $59 and that was followed with minor trimming over the last two quarters.Note: Generation IM has a ~7.3% ownership stake in Dentsply Sirona.Thermo Fisher Scientific (TMO): TMO is a fairly large 4.30% 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 over the last four quarters at prices between $221 and $327. The stock currently goes for ~$313.Texas Instruments (TXN): The vast majority of the ~4% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades at $115. Last two quarters have seen a combined ~15% trimming.Microsoft Corporation (MSFT): MSFT is a 2.76% 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 ~$166. Q4 2018 saw a one-third reduction at prices between $94 and $116. This quarter saw another ~25% selling at prices between $135 and $159. Generation IM is harvesting gains.Trane Technologies plc (TT) previously Ingersoll-Rand plc (IR): TT is a ~2% portfolio position first purchased in 2015 at prices between $51 and $71. The position has wavered. Recent activity follows: 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 ~$112. Last year saw a ~27% selling at prices between $93 and $135.Note: Trane Technologies shareholders received approximately 0.88861 shares of the new Ingersoll-Rand (IR) for each share held in a transaction with Gardner Denver that closed earlier this month.Analog Devices (ADI): ADI position is now at 2.10% 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 at ~$109. There was a ~50% selling in Q2 2019 at prices between $96 and $117 and that was followed with a similar reduction over the last two quarters at prices between $104 and $125.Acuity Brands (AYI): AYI is a 1.71% 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 ~$101. There was a ~22% selling last quarter at prices between $120 and $140 and that was followed with a ~25% selling this quarter at prices between $115 and $138.Note: Generation IM controls ~5% of AYI.Applied Materials (AMAT): The small 1.65% AMAT stake was purchased in Q2 2019 at prices between $38.50 and $45.50 and it currently goes for ~$59. Last quarter saw a marginal increase while this quarter there was a ~8% trimming.Automatic Data Processing (ADP): ADP is a 1.55% 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 four quarters saw a ~50% selling at prices between $122 and $173. That was followed with another one-third selling this quarter at prices between $156 and $172. The stock is now at $161.Deere & Co. (DE): DE was a large top five 5% portfolio stake as of last quarter. The position was 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. Last quarter saw a ~11% trimming and that was followed with a ~85% reduction this quarter at prices between $163 and $180. The stock is now at ~$159.NVidia Corp (NVDA): A 1.40% NVDA stake was established in Q4 2018 at prices between $127 and $289. Last quarter saw the position reduced by ~90% to a minutely small stake at prices between $149 and $185. The stock currently trades at $273. This quarter saw the position almost sold out at prices between $173 and $239.Amazon.com (AMZN) and Taiwan Semi (TSM): These two very small (less than ~0.5% 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 Q4 2019:"