State Farm Mutual Automobile Insurance Company 13F Portfolio

With no disclosed “biggest buys,” the signal this quarter is the absence of change. State Farm chose to sit tight in precisely the names that have already produced outsized gains versus their cost basis, which is its own form of aggressive conviction.

The clearest example is Eli Lilly at 8.83% of the book and up 2,814.2% versus their average buy price. They did not trim a single share. That restraint says more about their view on the durability of its obesity and diabetes franchise than any press release could.

Health care more broadly — Lilly, Johnson & Johnson, Merck, AbbVie, Abbott, Zoetis, Amgen — sits at 22.16% of the portfolio, up slightly from 22.06%. That tiny uptick, combined with zero selling in these names, tells you State Farm sees these as core growth-and-defense assets rather than trade fodder.

On the technology side, they similarly froze positions in what you could call the AI capital equipment and software toll road: ASML, Microsoft, Alphabet (both share classes), Meta, Texas Instruments, and Intuit are all untouched. The bet is clear: own the infrastructure of computation and data, not the story stocks.

Consumer staples and energy — Archer Daniels Midland, Coca-Cola, McCormick, Corteva, Exxon Mobil, Chevron — are likewise held steady. These serve as ballast: global, cash-rich incumbents that can fund liabilities without forcing sales in more volatile growth names.

The few trades State Farm did make are notable mainly because they stand out against a backdrop of stasis. They are not thesis reversals; they are risk trims in long-standing, high-gain positions and a decisive step back from one challenged semi.

The only truly meaningful move is in Intel:

• Intel (INTC): cut shares by 9.5%, reducing the stake by about $354.4M to 2.30% of the book. Given a 312.6% gain versus cost and mounting competitive questions, this looks like a belated recognition that capital is better locked into higher-quality silicon and AI plays.

The rest of the selling is surgical profit-taking in secular winners and a patience test in a challenged consumer franchise:

• Apple (AAPL): a 0.6% trim after an 808.3% gain hardly changes the thesis; it simply nudges back a position that had swelled with performance.
• KLA (KLAC): down 0.5% after a 2,086.8% gain; they are shaving a monster winner, not walking away from the semiconductor tooling theme.
• Corning (GLW): a 1.4% cut after a 981.1% gain suggests a little less appetite for cyclical, capex-linked optical demand.
• Caterpillar (CAT): a 0.4% trim to a still-dominant 10.57% position, up 898.6% from cost, is classic risk-budgeting.
• Disney (DIS): a 4.4% reduction in a modest 0.95% stake hints at fatigue with its slow operational cleanup, especially given more compelling uses of capital elsewhere in the book.

Taken together, the selling is about margin-of-safety and opportunity cost, not a change in the underlying preference for industrials, semis, and branded platforms.

The sector-allocation bar chart will look almost identical to last quarter’s. That is deliberate. Industrials at 27.17%, technology at 24.7%, and health care at 22.16% form a durable three-pillar core, and each only moved by about 0.1–0.2%.

The net message: State Farm is expressing views at the stock level, not with big sector bets. Industrials (Caterpillar, Illinois Tool Works, Nucor, Vulcan Materials, Deere, Union Pacific, Emerson, Donaldson, ADP) dominate because the fund clearly believes in long-lived infrastructure, logistics, and equipment demand — the tangible backbone of both reshoring and ongoing global growth.

Technology exposure ticks slightly down as Intel is cut and small slivers of Apple, KLA, and Corning are sold, but the resulting weight is still anchored in high-quality, quasi-oligopoly names across chips (ASML, Texas Instruments), software (Microsoft, Intuit), and advertising/search (Alphabet, Meta). That is an upgrade in quality, not a retreat from tech.

Health care’s modest rise reflects the full retention of large pharma and biotech stakes. Consumer discretionary (Walmart, Procter & Gamble, Disney, GATX, ADT, Colgate-Palmolive) and consumer staples (Archer Daniels Midland, Coca-Cola, McCormick, Corteva) remain mid-single digits, reinforcing their role as cash-neutral ballast, not alpha engines.

Finance (Wells Fargo, M&T, Northern Trust, RenaissanceRe, Hagerty) and energy (Exxon Mobil, Chevron) each sit just under 5%, showing a measured appetite for rate- and commodity-linked earnings without letting either dominate the risk budget.

Looking through this 13F, the next few years of State Farm’s equity strategy are unlikely to be about timing macro cycles. They are about riding structural compounders — in industrials, pharma, and AI infrastructure — while slowly pruning what no longer meets that bar.

The unwavering commitment to Lilly, Johnson & Johnson, ASML, Microsoft, Alphabet, and Caterpillar tells you where they believe durable excess returns still sit. These are the names they are content to own through drawdowns because the earnings power is too strong and too entrenched to trade around.

Conversely, the decisive cut in Intel and the modest trims in Apple, KLA, Corning, and Disney are a roadmap to how they will behave when either the competitive edge erodes or the risk/reward skews too far. Expect more of that: incremental, position-specific capital recycling, not headline-grabbing rotations.

The tolerance for underwater holdings like Pfizer (down 17.4% versus cost), ADT (down 9.8%), and near-flat Hagerty shows they are willing to hold through noise when the balance sheet and franchise quality check out. That is classic insurer behavior: match long-duration liabilities with long-duration assets.

For observers, the key takeaway is simple. Unless fundamentals break in a core name, State Farm’s default is to do very little — and let time, not trading, do the heavy lifting.