"Tracking Al Gore's Generation Investment Management Portfolio – Q3 2019 Update"
"Generation Investment Management’s 13F portfolio value increased marginally from $14.51B to $14.54B this quarter.They increased Alphabet, Charles Schwab, Cognizant, and Salesforce.com while decreasing Nvidia.The top three positions are Alphabet, Charles Schwab, and Dentsply Sirona 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 11/18/2019. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q2 2019.This quarter, Al Gore’s 13F portfolio value increased marginally from $14.51B to $14.54B. The number of positions increased from 34 to 36. The top five stakes are Alphabet, Charles Schwab, Dentsply Sirona, Cognizant Technology, and Deere & Co. They account for ~34% 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:Twilio Inc. (TWLO) and Huazhu Group (HTHT): These are the two new positions this quarter. TWLO is a small 0.70% of the portfolio stake established at prices between $107 and $150 and the stock currently trades below that range at $96.23. For investors attempting to follow, TWLO is a good option to consider for further research. The minutely small 0.19% HTHT position was purchased at prices between $30 and $38.50 and it is now at ~$34.Stake Disposals:None.Stake Increases:Alphabet Inc. (GOOG): The bulk of the 9.58% GOOG position was established in the three quarters thru Q1 2019 at prices between $975 and $1268. Last two quarters have also seen a ~45% stake increase at prices between $1110 and $1250. The stock currently trades at $1345.Charles Schwab (SCHW): SCHW is a large (top three) 7.79% 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. Last four quarters have also seen a ~130% stake increase at prices between $36 and $59.50. The stock is now at $49.60. 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), Nutanix (NTNX), and Applied Materials (AMAT): These three positions established last quarter saw increases this quarter. The large (top five) 5.41% of the portfolio CTSH stake was purchased at prices between $57 and $75. There was a ~25% stake increase this quarter at prices between $58.75 and $66.50. The stock currently trades at $60.68. For investors attempting to follow, CTSH is a good option to consider for further research. NTNX is a medium-sized 2.61% position established at prices between $24.50 and $43.50 and it is now at $31.91. This quarter saw a marginal increase. The small 1.58% AMAT stake was purchased at prices between $38.50 and $45.50 and it currently goes for $59.04. This quarter saw a marginal increase.Jones Lang LaSalle Inc. (JLL): JLL is a 4.57% 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 ~$169. Last two years have seen only minor adjustments. This quarter saw a ~12% stake increase.Note: Generation IM has a ~10% 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 $52.05. Q4 2018 saw a ~28% increase at prices between $41 and $49.50. Last three quarters have seen only minor adjustments.Note: Generation IM has a ~8% ownership stake in Sensata Technologies NV.Microsoft Corporation (MSFT): MSFT is a 3.49% 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 ~$152. Q4 2018 saw a one-third reduction at prices between $94 and $116 and that was followed with a ~8% trimming next quarter. Last two quarters have seen only minor adjustments.Aptiv plc (APTV) previously Delphi Automotive: APTV is a 3.41% position. It was first purchased in Q4 2016 at prices between $46 and $55. The position has wavered. Recent activity follow: Q1 2019 saw a ~40% stake increase at prices between $60.50 and $82.50 and that was followed with another one-third increase last quarter at prices between $64 and $91. The stock currently trades at ~$93.  There was a marginal increase this quarter.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff in November 2017.TE Connectivity (TEL): TEL is a medium-sized ~3% position purchased in Q4 2018 at prices between $71 and $87 and the stock currently trades at ~$93. Last three quarters have seen only minor adjustments.Ingersoll-Rand plc (IR): IR is a 2.41% 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 ~$133. Last two quarters had seen a combined ~17% selling at prices between $90 and $128. This quarter saw minor trimming.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. Q1 2019 saw a ~18% selling at prices between $222 and $251. Last two quarters have seen only minor adjustments.Salesforce.com (CRM): The original CRM stake was established in 2016 at prices between $60 and $84. This quarter saw a stake doubling to a 2.25% of the portfolio stake at prices between $140 and $160. The stock currently trades at $156.Becton Dickinson (BDX), Microchip Technology (MCHP), SPDR Trust (SPY), and Stericycle Inc. (SRCL): These very small (less than ~1% of the portfolio each) stakes were increased during the quarter.Stake Decreases: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 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 $56.78. Last quarter saw a ~20% selling at prices between $49 and $59 and that was followed with a ~2% trimming this quarter.Note: Generation IM has a ~8% ownership stake in Dentsply Sirona.Deere & Co. (DE): DE is a large (top five) ~5% 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 ~$170. This quarter saw a ~11% trimming.Texas Instruments (TXN): The vast majority of the 4.87% TXN stake was purchased in Q4 2018 at prices between $88 and $109. The stock currently trades well above that range at $124. Last three 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 five quarters have seen selling: a combined ~30% reduction at prices between $58 and $71. The stock is now at $69.10 and the stake at 4.36% of the portfolio. Generation IM has a ~7% 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 4.29% 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 combined ~30% selling over the last three quarters at prices between $212 and $305. The stock currently goes for ~$318.Analog Devices (ADI): ADI position is now at 3.59% 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 ~$116. There was a ~50% selling last quarter at prices between $96 and $117. This quarter also saw a ~7% trimming.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 ~$307. Last three quarters have seen a ~53% selling at prices between $246 and $342. Generation IM is harvesting gains.Mercadolibre (MELI): The 2.64% MELI stake was established in Q2 2018 at prices between $285 and $356 and it now goes for ~$580. Last four quarters have seen a ~42% selling at prices between $285 and $690. 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.Acuity Brands (AYI): AYI is a 2.43% 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 ~$132. There was a ~22% selling this quarter at prices between $120 and $140.Note: Generation IM controls ~6% of AYI.Automatic Data Processing (ADP): ADP is a 2.42% 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. The stock is now at $167.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 $136. Last quarter saw a ~27% stake increase at prices between $116 and $136.Cerner Corporation (CERN): CERN is a 1.42% 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 have also seen a ~60% selling at prices between $49 and $76. The stock currently trades at $71.50.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 stock is currently at $126 and the stake is now small at ~1%.NVidia Corp (NVDA): A 1.40% NVDA stake was established in Q4 2018 at prices between $127 and $289. This quarter saw the position reduced by ~90% to a minutely small 0.16% stake at prices between $149 and $185. The stock currently trades at $217.Amazon.com (AMZN), 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 Q3 2019:"