When he reported Wedgewood Partners' portfolio for the first quarter of 2020 last week, Chief Investment Officer David Rolfe (Trades, Portfolio) disclosed he drastically reduced several long-held positions and established three new holdings.
The guru's St. Louis-based firm approaches potential investments with the mindset of a business owner, analyzing a handful of undervalued companies that have a dominant product or service, consistent earnings, revenue and dividend growth, are highly profitable and have strong management teams.
Taking these criteria into consideration, Rolfe made three new buys, sold out of two positions and trimmed or added to a number of other holdings during the quarter. The most significant trade was an 86.65% reduction in the Fastenal Co. (NASDAQ:FAST) stake. Rolfe also slimmed down his holdings of Booking Holdings Inc. (NASDAQ:BKNG) and Apple Inc. (NASDAQ:AAPL). His two largest new buys for the first quarter were Keysight Technologies Inc. (NYSE:KEYS) and Microsoft Corp. (NASDAQ:MSFT).
Fastenal
With an impact of -4.06% on the equity portfolio, Rolfe slashed his stake in Fastenal by selling 1.08 million shares. He now holds 166,760 shares, which represent 0.99% of the equity portfolio. The stock traded for an average price of $35.30 per share during the quarter.
GuruFocus estimates the guru has gained 14.29% on the investment since establishing it in the fourth quarter of 2016.
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The firm posted a return of 31.96% for 2019, slightly outperforming the S&P 500 Index's 31.49% return.
Disclosure: No positions.
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This article first appeared on GuruFocus.