"Tracking Al Gore's Generation Investment Management Portfolio – Q4 2018 Update"
"Generation Investment Management’s 13F portfolio value decreased ~5% from $12.53B to $11.92B this quarter.They increased Texas Instruments, Alphabet, and Salesforce.com while dropping MasterCard and Nike during the quarter.The top three positions are Henry Schein, Analog Devices, and Cooper Companies, and they add up to ~23% 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 02/14/2019. Please visit our  Portfolio series to get an idea of their investment philosophy and our  for the fund’s moves in Q3 2018.This quarter, Al Gore’s 13F portfolio value decreased ~5% from $12.53B to $11.92B. The number of positions increased from 31 to 32. The top five stakes are Henry Schein, Analog Devices, Cooper Companies, Dentsply Sirona, and Deere & Co. They account for ~36% 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:TE Connectivity (TEL), NVidia Corp (NVDA), and DocuSign Inc. (DOCU): These are the new stakes this quarter. TEL is a medium-sized 2.88% position established at prices between $71 and $87 and the stock currently trades at $81.12. The 1.44% NVDA stake was purchased at prices between $127 and $289 and it is now at $149. DOCU is a minutely small 0.01% position.Stake Disposals:MasterCard Inc. (MA) and Nike Inc. (NKE): These small (less than ~1.5% of the portfolio each) positions were reduced last quarter and disposed this quarter.Stake Increases:Analog Devices (ADI): ADI is now a large (top three) 7.69% position. It was established in Q2 2018 at prices between $87 and $102 and doubled last quarter at prices between $91 and $100. This quarter saw another ~25% stake increase at prices between $78 and $94. The stock currently trades above those ranges at $106.Dentsply Sirona (XRAY): XRAY is a large (top five) ~7% 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. Last quarter saw another ~25% increase at prices between $37.50 and $48.50. The stock currently trades at $48.22. For investors attempting to follow Generation IM, XRAY is a good option to consider for further research. There was a marginal increase this quarter.Note: Generation IM has a 9.75% ownership stake in Dentsply Sirona.Deere & Co. (DE): DE is a large (top five) ~6% 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 last three quarters at prices between $131 and $162. The stock is now at ~$158.Charles Schwab (SCHW): SCHW is a fairly large ~5% 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 $44.02. This quarter saw a ~22% stake increase at prices between $38 and $52.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.Texas Instruments (TXN): The vast majority of the 4.51% TXN stake was purchased this quarter at prices between $88 and $109. The stock currently trades at $105.Sensata Technologies (ST): The bulk of the 4.37% 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 $48.91. This quarter saw a ~28% further increase at prices between $41 and $49.50.Note: Generation IM has a 7.8% ownership stake in Sensata Technologies NV.Alphabet Inc. (GOOG): The ~4% GOOG stake saw a stake doubling this quarter at prices between $975 and $1203. Last quarter had also seen a two-thirds increase at prices between $1102 and $1268. The stock currently trades at $1143.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 this quarter at prices between $77 and $91. The stock is currently at ~$88 and the stake is at 3.05%.Credicorp Ltd. (BAP): BAP is a 2.88% 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. Last four quarters had seen a combined ~44% increase at prices between $192 and $236. There was a marginal further increase this quarter. The stock is now at ~$236.Amazon.com (AMZN) and Salesforce.com (CRM): These small (less than ~1.5% of the portfolio each) positions were increased this quarter.Stake Decreases: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 next quarter at prices between $63 and $79.50. The stock is now well below those ranges at $57.40 and the stake is at 8.24% of the portfolio. For investors attempting to follow Generation IM, HSIC is a good option to consider for further research. Last two quarters saw minor trimming.Note: HSIC stock split 2-for-1 last September. Generation IM has a ~8.2% ownership stake in Henry Schein.Cooper Companies (COO): The bulk of the large (top three) ~7% 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 $288. This quarter saw a marginal increase.Note: Generation IM has a 6.66% ownership stake in Cooper Companies.Thermo Fisher Scientific (TMO): TMO is a large 5.67% 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 ~$251. Last six quarters have seen only minor activity.Jones Lang LaSalle Inc. (JLL): JLL is a 4.51% 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 ~$159. Last five quarters have seen only minor adjustments.Note: Generation IM has a 9.32% ownership stake in Jones Lang LaSalle.Automatic Data Processing (ADP): ADP is a 3.92% 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 stock currently trades well above those ranges at ~$150. Last two quarters had seen another ~16% increase at prices between $114 and $151 while this quarter saw similar selling at prices between $122 and $152.Microsoft Corporation (MSFT): MSFT is a 3.53% 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 $110. Last three quarters had seen minor increases while this quarter saw a one-third reduction at prices between $94 and $116.Acuity Brands (AYI): AYI is a 3.23% 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 ~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. There was a ~9% trimming this quarter.Note: Generation IM controls 8.34% of AYI.Cerner Corporation (CERN): CERN is a 2.77% 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 $55.40. This quarter also saw a ~20% selling at prices between $49 and $65.Mercadolibre (MELI): The 2.69% MELI stake was established in Q2 2018 at prices between $285 and $356 and it now goes for ~$451. There was a ~10% selling this quarter.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.Ingersoll-Rand plc (IR): IR is a 2.63% 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 ~$104. There was a ~17% increase in Q2 2018 at prices between $80 and $93 while this quarter saw similar selling at prices between $86 and $106.Aptiv plc (APTV) previously Delphi Automotive: APTV is a small 1.55% 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 well above those ranges at ~$82. Q1 2018 saw a ~12% stake increase while last quarter there was a ~25% selling at prices between $84 and $99. There was marginal trimming this quarter.Note: The prices quoted above are adjusted for the Delphi Technologies spinoff in November 2017.Becton Dickinson (BDX), Chipotle Mexican Grill (CMG), Colgate-Palmolive (CL), Microchip Technology (MCHP), SPDR Trust (SPY), 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 Q4 2018:"