"Tracking William Nygren’s Harris Associates Portfolio – Q3 2021 Update"
"Harris Associates’ 13F portfolio value decreased from $62.80B to $62.77B this quarter.They increased Fiserv, Humana, and Alibaba while decreasing CNH Industrial, Liberty Global, and Automatic Data Processing.The top three positions are Alphabet, Bank of America, and Charter Communications, and they add up to ~16% of the portfolio.This article part of a series that provides an ongoing analysis of the changes made to Harris Associates 13F stock portfolio on a quarterly basis. It is based on Harris Associates’ regulatory  filed on 11/15/2021. William Nygren’s 13F portfolio value decreased marginally from $62.80B to $62.77B this quarter. The portfolio is diversified with recent 13F reports showing around 200 positions. There are 56 securities that are significantly large (more than ~0.5% of the portfolio each) and they are the focus of this article. The largest five stakes are Alphabet, Bank of America, Charter Communications, CNH Industrial, and Citigroup. They add up to ~23% of the portfolio. Please visit our  series to get an idea of their investment philosophy and our  for the fund’s moves during Q2 2021.Harris Associates currently has ~$125B under management. Their flagship mutual funds are the Oakmark Fund (OAKMX) incepted in 1991 and the Oakmark International (OAKIX) incepted in 1992. Both funds have produced substantial alpha during their lifetimes: 13.09% annualized return compared to 10.55% for the S&P 500 index for OAKMX and 9.28% annualized return for OAKIX compared to 6.28% annualized for the MSCI World ex-US Index. The other mutual funds in the group are Oakmark Select (OAKLX), Oakmark Equity and Income (OAKBX), Oakmark Global (OAKGX), Oakmark Global Select (OAKWX), and Oakmark International Small Cap (OAKEX).Note: The top holdings in the Oakmark International Fund are not in the 13F report as they are not 13F securities. The positions are Lloyds Banking Group (LYG), Bayer (BAYRY), Intesa Sanpaolo (ISNPY), Daimler (DDAIF), BNP Paribas (BNPQF), BMW (BMWYY), Allianz (ALIZF), Credit Suisse Group (CS), and Glencore (GLCNF).Stake Increases:Citigroup Inc. (C): The ~3% Citigroup position was built in 2014 at prices between ~$46 and ~$56. The stake was almost doubled over the next three years at prices between ~$37.50 and ~$76. Since 2018, there had been a combined ~30% selling at prices between ~$35 and ~$82. The stock currently trades at $59.60. Last four quarters have seen minor increases.Fiserv Inc. (FISV): FISV is a 2.81% of the portfolio position primarily built over the last three quarters at prices between ~$106 and ~$119. The stock currently trades at the low end of that range at ~$106.Humana Inc. (HUM): The 2.37% of the portfolio HUM stake was built in Q1 2021 at prices between ~$375 and ~$448 and the stock currently trades at ~$456. Last two quarters have seen a ~44% stake increase at prices between ~$389 and ~$471.Keurig Dr. Pepper (KDP): KDP is a 2.58% of the portfolio position established in Q3 2020 at prices between ~$27 and ~$31 and doubled next quarter at around the same price range. Q1 2021 saw a ~25% further increase at prices between ~$30.50 and ~$35.50. The stock currently trades at $35.87. There were minor increases in the last two quarters.Booking Holdings (BKNG): BKNG is now a medium-sized 2.53% of the portfolio position. It was a minutely small stake first purchased in 2016 and was increased substantially next year at prices between $1465 and $2035. H1 2019 saw the stake almost doubled at prices between $1665 and $1880. H2 2019 had seen minor trimming. There was a ~25% stake increase in Q1 2020 at prices between ~$1152 and ~$2087. The stock is currently at ~$2385. Last four quarters had seen a combined ~20% trimming while this quarter there was a marginal increase.Ally Financial (ALLY): ALLY is a 1.98% of the portfolio position first purchased in 2015 at prices between $18.50 and $24. Next year saw the position more than doubled at prices between $15.50 and $20.50. Last ten quarters had seen a ~40% selling at prices between ~$12 and ~$55. The stock is now at $47.24. There was a marginal increase this quarter.Note: They have a ~6.5% ownership stake in Ally Financial.Netflix Inc. (NFLX): NFLX is a 1.90% of the portfolio stake purchased in 2017 at prices between ~$131 and ~$200. Next year also saw a ~50% stake increase at prices between ~$210 and ~$410. There was a ~55% selling last year at prices between ~$299 and ~$557. Last quarter saw a roughly one-third increase at prices between ~$485 and ~$555. The stock is now at ~$614. There was a marginal increase this quarter.Alibaba Group Holdings (BABA), APA Corporation (APA), Berkshire Hathaway (BRK.B), Charles Schwab (SCHW), ConocoPhillips (COP), EOG Resources (EOG), General Dynamics (GD), Grupo Televisa (TV), Gartner Inc. (IT), Lear Corp (LEA), Ryanair Holdings (RYAAY), Reinsurance Group of America (RGA), Tenet Healthcare (THC), and Wells Fargo (WFC): These small (less than ~1.5% of the portfolio each) stakes were increased during the quarter.Note: Although the position size relative to the 13F portfolio is very small, they have significant ownership stakes in the following businesses: APA Corporation, Grupo Televisa, Lear Corp and Tenet Healthcare.Stake Decreases:Alphabet Inc. (GOOG) (GOOGL): GOOG is currently the largest 13F position by far at 8.53% of the portfolio. The bulk of the stake was purchased in 2014 at prices between ~$515 and ~$595. Next year also saw a ~20% stake increase at prices between ~$495 and ~$750. The two years through Q4 2020 had seen a ~28% selling at prices between ~$1054 and ~$1828. The stock currently trades at ~$2928. Last three quarters have seen only minor adjustments.Bank of America (BAC): BAC was a minutely small position in their first 13F filing in 1999. It became a significant part of the portfolio in 2011. The 2012 to 2015 timeframe saw the stake built from 9.8M shares to 138M shares at prices between ~$6 and ~$18. The next 3 years saw a ~40% reduction at prices between ~$12 and ~$33. Last two years saw another ~30% selling at prices between ~$20 and ~$43. The stock is now at $44.28 and it is a top-three stake at ~4% of the portfolio.Charter Communications (CHTR): CHTR is a large (top three) 3.62% of the portfolio stake. It was established in 2015 when around 2M shares were purchased at prices between ~$150 and ~$190. 2017 saw a stake doubling at prices between ~$298 and ~$395. 2018 also saw a ~55% stake increase at prices between ~$260 and ~$390. The two years through Q4 2020 had seen a ~58% selling at prices between ~$275 and ~$680. There was a ~20% stake increase in the last two quarters at prices between ~$597 and ~$722. The stock currently trades at ~$640. This quarter saw marginal trimming.CNH Industrial (CNHI): CNHI is a top-five 3.28% of the portfolio position purchased in Q4 2020 at prices between $7.75 and $13 and the stock currently trades well above that range at $18.40. Last three quarters saw a ~40% selling at prices between ~$12.50 and ~$18.40.Note: Regulatory filings since the quarter ended show them owning 129.9M shares (9.6% of the business) of CNH Industrial. This is compared to 134.56M shares in the 13F report.HCA Healthcare (HCA): HCA is now a ~3% of the portfolio stake. A large position was built over the 2016-2017 timeframe at prices between $64 and $89. Q4 2018 saw that original stake reduced by ~50% at prices between ~$120 and ~$144. Next quarter also saw a ~15% stake reduction. There was a one-third increase in Q2 2020 at prices between $82 and $118. That was followed with a ~15% stake increase next quarter at prices between ~$94 and ~$138. Last four quarters have seen a ~14% selling at prices between ~$124 and ~$262. The stock currently trades at ~$252.General Motors (GM): GM is a 2.92% of the portfolio position. It is a very long-term stake. The original position was minutely small in 2007 and it was disposed the following year. In 2013, a huge ~70M share stake was established at prices between $27 and $41. The position size peaked at ~81M shares in 2015. The stake was sold down by ~25% in the 2016-2019 timeframe at prices between $28 and $46. That was followed with a ~45% reduction in the last five quarters at prices between ~$18 and ~$64. The stock currently trades at ~$56. There was marginal trimming this quarter.American International Group (AIG): AIG is a 2.71% of the portfolio position first purchased in 2012 at prices between ~$23 and ~$36. The stake was almost doubled over the next two years at prices between $35 and $56.50. 2016 saw a one-third selling at prices between $50 and $66. 2017-2018 timeframe saw a similar increase at prices between $37.50 and $67. The three quarters through Q3 2019 had seen a ~20% reduction at prices between $40 and $57.50 while the next three quarters saw minor increases. The stock is now at $55.27. Last five quarters have seen only minor adjustments.Liberty Global (LBTYK): LBTYK is a 2.21% position established in 2017 at prices between $28 and $37. Next year saw a ~15% stake increase at prices between ~$20 and ~$37. Q2 & Q3 2019 had seen a ~30% selling at prices between $24 and $27.50 while the next quarter saw a similar increase at prices between $20.50 and $25. H1 2020 had seen a ~30% selling at prices between ~$15 and ~$23. The two quarters through Q1 2021 had seen a one-third increase at prices between ~$18.50 and ~$26.60. Last two quarters have seen a ~18% selling at prices between ~$25 and ~$30. The stock is now at $28.14.Note: Oakmark has a ~22% ownership stake in Liberty Global.Meta Platforms (FB) previously Facebook: FB is a ~2% of the portfolio position. The stake saw a ~42% stake increase in Q1 2020 at prices between ~$146 and ~$223. The stock currently trades at ~$330. Last several quarters have seen only minor adjustments.TE Connectivity (TEL): TEL is a very long-term stake first purchased in 2011 in the high-20s price range. Recent quarters have seen minor selling. There was a 16% reduction in Q2 2020 at prices between ~$59 and ~$92. That was followed with a ~45% reduction over the last four quarters at prices between ~$80 and ~$140. The stock currently trades at ~$157 and the stake is at ~2% of the portfolio. There was a minor ~2% trimming this quarter.Hilton Worldwide (HLT): The 1.98% of the portfolio HLT stake was built during the four quarters thru Q1 2019 at prices between $66.50 and $85.75. There was a ~18% selling in Q1 2021 at prices between ~$99 and ~$127. The stock currently trades at ~$153. Last two quarters have seen marginal trimming.Comcast Corp (CMCSA): CMCSA is a very long-term 1.54% of the portfolio stake that has been in the portfolio for well over 15 years. The first significant buying happened in 2004 when around 10M shares were purchased in the $6 to $8 price-range. The interim period saw some selling but in 2011 there was a 4x stake increase at prices between ~$10 and ~$13. The next five years saw a ~80% reduction at prices between ~$12 and ~$35. 2017-2018 timeframe saw the stake rebuilt at prices between $31 and $43. Since then, the activity has been minor. The stock is now at ~$49.Constellation Brands (STZ): STZ is now a 1.35% of the portfolio stake. The position saw a ~50% stake increase in Q1 2020 at prices between ~$106 and ~$208. The next three quarters had seen a ~23% selling at prices between ~$130 and ~$220. The stock currently trades at ~$243. Last three quarters have seen only minor adjustments.Regeneron Pharmaceuticals (REGN): REGN is 1.28% of the portfolio position. The bulk of the original stake was built in H1 2018 at prices between $320 and $385. Q2 2019 saw a ~45% increase at prices between $300 and $415. Last year had seen a ~88% selling at prices between ~$339 and ~$658 while Q1 2021 saw a stake doubling at prices between ~$447 and ~$548. That was followed with a ~40% stake increase last quarter at prices between ~$473 and ~$575. The stock is now at ~$618. There was a ~8% trimming this quarter.American Express (AXP), Automatic Data Processing (ADP), CBRE Group (CBRE), Capital One Financial (COF), CVS Health (CVS), Cenovus Energy (CVE), DXC Technology (DXC), eBay Inc. (EBAY), General Electric (GE), Goldman Sachs (GS), Howmet Aerospace (HWM), Interpublic Group (IPG), Johnson Controls (JCI), Liberty Broadband (LBRDK), MasterCard Inc. (MA), Moody’s Corp (MCO), Open Text Corp (OTEX), Oracle Corp (ORCL), State Street Corp (STT), Visa Inc. (V), and WorkDay Inc. (WDAY): These small (less than ~2% of the portfolio each) stakes were reduced this quarter.Note: They have a significant ownership in Cenovus Energy.Kept Steady:None.Note: Although the stakes as percentage of the 13F portfolio are very small, Oakmark has significant ownership stakes in the following businesses: Envista Holdings (NVST), GoHealth (GOCO), LivaNova plc (LIVN), and Qurate Retail (QRTEA).Below is a spreadsheet that shows the changes to William Nygren’s Harris Associates 13F portfolio holdings as of Q3 2021:Source: John Vincent. Data constructed from Harris Associates' 13F filings for Q2 2021 and Q3 2021.Regulatory filings from 6/25/2021 thru 9/1/2021: 13G/A – 8/10 – CNHI – 129.9M shares – 9.6% of business."