Dodge & Cox 13F Portfolio

The biggest buys table makes one thing obvious: they’re paying up for compounding machines with long runways. Visa, Thermo Fisher, and Roper dominate the dollar adds, alongside meaningful increases in Meta and TransUnion.

• Visa (classified here under payments, not real estate) goes from rounding error to a core line item with a +630554.9% share jump and about $1.86B added. That is Dodge & Cox saying card networks and cross‑border volumes are structurally underappreciated versus traditional banks.
• Thermo Fisher sees a +11767.4% increase, roughly $1.52B higher, a huge statement that life‑science tools and lab infrastructure are the more attractive side of healthcare spending than insurers right now.
• Roper’s +111.2% add (about $1.26B) is a classic move into asset‑light, niche software and data “mini monopolies,” locking in high-margin, inflation‑resistant cash flows.
• Meta’s position is up +29.4% (around $830.8M), indicating a willingness to buy scaled ad/AI platforms where the unit economics are already proven, rather than more speculative AI names.
• TransUnion’s +49.5% boost (roughly $577.6M) shows a clear, repeated pattern: they like information rails — consumer data and credit infrastructure — over traditional lending exposure.

Supporting adds in TE Connectivity, GE HealthCare, and AJ Gallagher extend that theme: own the vendors and distributors of critical infrastructure — electronic connectors, imaging equipment, and risk intermediation — instead of highly regulated balance‑sheet risk.

On the sell side, Dodge & Cox is not capitulating on losers; it is monetizing long‑earned gains. The biggest trims by dollars read like a harvest list of mature, well‑owned winners used as funding sources.

• FedEx is cut by -41.6%, freeing about $1.61B. After a strong run and substantial gain versus cost, they’re reducing exposure to a cyclical, labor‑intensive logistics operator just as they add to asset‑light fee businesses.
• Bank of New York Mellon is down -29.0%, roughly $982.4M out, despite being massively in the money versus their average buy price. That’s a clear de‑risking from custody and rate‑levered NIM into cleaner fee streams like Visa and TransUnion.
• GSK gets a -17.8% trim (about $548.6M), while health insurers Humana and UnitedHealth are pared by mid‑single digits. The message: less exposure to mature, policy‑sensitive payouts, more to tools (Thermo Fisher, GE HealthCare), specialty pharma (Regeneron), and medtech (Zimmer Biomet).
• Smaller but telling trims in Johnson Controls, MetLife, CVS, and Gilead free capital from classic value holdings that have already rerated. They’re not abandoning these sectors; they’re reallocating within them, away from balance-sheet risk and commodity pricing, toward recurring, high‑ROIC niches.

Headline sector weights barely budged, but the internal mix changed meaningfully. Finance dips only from 20.36% to 20.01%, yet underneath they’ve rotated from a heavy diet of banks and life insurers toward payments, specialty insurers, and data services.

Health care steps down from 19.25% to 18.48%, but the tilt shifts from big managed care and legacy pharma toward enablers: Thermo Fisher, GE HealthCare, Regeneron, and Zimmer Biomet. That’s a move from reimbursement risk to research, diagnostics, and procedure volume.

Technology jumps from 13.56% to 14.96%, but not via speculative small caps. Adds in Microsoft, Meta, Alphabet (via GOOGL), Roper, and TE Connectivity deepen exposure to scaled platforms, embedded software, and component suppliers — the infrastructure of AI and digitization rather than its most hyped front‑end brands.

Industrials tick up from 15.74% to 16.09%, but the character is changing: more measurement and life‑science tools (Thermo Fisher) and industrial software (Fortive), modest trims in more rate‑ and cycle‑sensitive names. Real estate, as categorized here, rises from 6.28% to 7.39% almost entirely because of Visa and incremental capital into SBA Communications — again, economic infrastructure, not property beta.

Consumer exposure drifts slightly lower in both discretionary and staples, as they shave FedEx, Suncor‑like cyclicals in energy, BKR, and some CVS, while maintaining Amazon and Booking as the scaled winners they still want to own.

Taken together, 2026 Q2 looks like Dodge & Cox consciously raising the floor on portfolio quality. They’re swapping portions of mature, re‑rated value names — banks, big pharmas, freight, and traditional insurers — into fee‑rich networks, data assets, and tools that should grow volumes even in a muddier macro tape.

The common thread across Visa, Thermo Fisher, Roper, Meta, TransUnion, and TE Connectivity is simple: structurally rising demand, high switching costs, and pricing power. These are businesses that turn economic complexity — more regulation, more data, more scientific R&D — into annuity‑like cash flows.

They’re also staying true to their house style. There’s no wholesale style drift into hyper‑growth or narrow AI bets; instead, they’re embedding AI and digitization exposure inside diversified, already profitable platforms, while pruning capital‑intensive cyclicals that have done their job.

If this quarter is a guide, expect future tweaks to follow the same pattern: incremental trims of over‑earning, rate‑sensitive or policy‑exposed names, and steady additions to the tollbooths on payments, clinical research, electronic connectivity, and risk information. The bet is not on a single macro outcome, but on owning the pipes and picks that get used regardless of who wins the next cycle.