QVI Portfolios Review | Fall 2023 | #8
Part Eight of a Series | Information Technology Sector Holdings
Summary
This review of Quality Value Investing's portfolios covers the six information technology sector holdings: Microsoft, Apple, Intel, Littelfuse, Amdocs, and Cognizant Technology Solutions.
The post includes updates to QVI's checklist research and analysis of each company's current wealth and the stock price's present value.
Any changes in my view (buy, hold, sell) are reflected in the QVI Concentrated and Expanded Real-Time Portfolios.
This post, in its entirety, is exclusive to premium (paying) subscribers.
When referencing this report, premium (paying) subscribers can access their Quality Value Investing (QVI) Glossary of Investing Terms and Metric Targets. Unless noted, all data presented is sourced from Seeking Alpha Premium as of the market close on October 20, 2023, and intended for illustration only.
In this series, Quality Value Investing (QVI) reviews the holdings in the QVI Real-Time Portfolios by sector to update each stock pick’s performance, current wealth, and present value.
Today's post analyzes the six QVI information technology sector holdings: Microsoft (MSFT), Apple (AAPL), Intel (INTC), Littelfuse (LFUS), Amdocs (DOX), and Cognizant Technology Solutions (CTSH).
Company Current Wealth
To uncover the current wealth of the company, QVI defines the value proposition, measures select returns on management, and assesses enterprise downside risks.
Value Proposition
QVI’s value proposition section defines the competitive advantages of a company’s products or services to its customers compared to the industry, including the stock’s historical performance vs. the sector and market.
Value Proposition Elevator Pitches
Microsoft is the reigning king of productivity software, whether business, personal, cloud, or desktop.
Apple is the reigning king of productivity hardware and services, whether business or personal, mobile, wearables, television, or desktop, each anchored by its unparalleled iOS ecosystem.
Intel is one of the largest semiconductor companies in the world and holds the lion's share of the PC and server processor markets. Thus, its legacy status and market foothold should continue over the longer term.
Littelfuse is a near-century-old electronic component manufacturer that generates sustainable profit and cash flow. Unlike the consumer, energy, materials, and industrials sectors, the company operates with a lesser threat of low-cost producer commoditization in the technology space.
Amdocs provides various B2B technology products and services in 5G, automation, cloud, and digital. The company has close to one thousand relationships with loyal major content producers, communications services, and media providers worldwide.
Cognizant Technology Solutions assists clients from a representative majority of global healthcare, financial services, media, and internet companies to become data-enabled and data-driven in the digital era. The company has produced a timely, profitable, and enduring business model.
Performance vs. Sector and Market
The chart below illustrates each holding's performance against the Technology Select Sector SPDR® Fund ETF (XLK) and the SPDR® S&P 500 ETF Trust (SPY) since June 28, 2011, when QVI's first sector holding, MSFT, was added to the Concentrated Portfolio.
MSFT and AAPL far outperformed the sector and market in total return during the coverage timeframe. LFUS underperformed the tech sector while besting the broader market. DOX, INTC, and CTSH underperformed against the sector and market during the coverage window.
Next, we’ll look at each stock’s performance since being added to the QVI Real-Time Portfolios.