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DODGE & COX
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Stock Fund
Established 1965
Quarterly Report
March 31, 1995
1995
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DODGE & COX
Stock Fund
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Dodge & Cox
Investment Managers
35th Floor
One Sansome Street
San Francisco
California 94104
(415) 981-1710
For Fund literature and
information, please call:
(800) 621-3979
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DODGE & COX
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Stock Fund
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<CAPTION>
Portfolio of Investments March 31, 1995
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SHARES MARKET VALUE
<C> <C> <S> <C>
COMMON FINANCE: 19.8%
STOCKS: 465,000 American Express Co. ............................................... $ 16,216,875
93.9% 86,000 American International Group, Inc. ................................. 8,965,500
210,000 Bank of Boston Corp. ............................................... 6,247,500
232,000 BankAmerica Corp. .................................................. 11,194,000
145,000 Barnett Banks, Inc. ................................................ 6,597,500
130,000 Chubb Corp. ........................................................ 10,270,000
73,000 CIGNA Corp. ........................................................ 5,456,750
332,000 Citicorp ........................................................... 14,110,000
71,000 General Re Corp. ................................................... 9,372,000
336,300 Golden West Financial Corp. ........................................ 12,863,475
65,000 ITT Corp. .......................................................... 6,670,625
77,000 Lehman Brothers Holdings, Inc. ..................................... 1,386,000
175,000 Morgan (J.P.) & Co. ................................................ 10,675,000
310,000 Norwest Corp. ...................................................... 7,866,250
121,000 The St. Paul Cos., Inc. ............................................ 6,050,000
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133,941,475
CONSUMER: 18.6%
18,178 Cox Communications, Inc. Class A ................................... 304,482
243,000 Dayton-Hudson Corp. ................................................ 17,374,500
245,000 Dillard Department Stores, Inc. Class A ............................ 6,768,125
175,000 Fleming Cos., Inc. ................................................. 3,959,375
260,000 Fruit of the Loom, Inc. ............................................ 6,825,000
390,000 General Motors Corp. ............................................... 17,257,500
94,500 Genuine Parts Co. .................................................. 3,768,188
640,000 Kmart Corp. ........................................................ 8,800,000
475,000 Masco Corp. ........................................................ 13,121,875
325,000 Melville Corp. ..................................................... 12,106,250
270,000 Nordstrom, Inc. .................................................... 10,935,000
205,000 Procter & Gamble Co. ............................................... 13,581,250
210,908 Times Mirror Co. Series A .......................................... 4,059,979
125,000 Whirlpool Corp. .................................................... 6,843,750
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125,705,274
ELECTRONICS AND COMPUTERS: 10.5%
370,000 Digital Equipment Corp. ............................................ 14,013,750
92,000 Hewlett-Packard Co. ................................................ 11,074,500
205,000 International Business Machines Corp. .............................. 16,784,375
121,400 Motorola, Inc. ..................................................... 6,631,475
125,000 Sun Microsystems, Inc. ............................................. 4,328,125
315,600 Tandem Computers, Inc. ............................................. 4,891,800
148,000 Texas Instruments, Inc. ............................................ 13,098,000
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70,822,025
BASIC INDUSTRY: 9.7%
323,000 Aluminum Co. of America............................................. 13,364,125
130,000 Boise Cascade Corp. ................................................ 4,517,500
140,000 Dow Chemical Co. ................................................... 10,220,000
139,000 International Paper Co. ............................................ 10,442,375
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Stock Fund
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Portfolio of Investments March 31, 1995
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SHARES MARKET VALUE
<C> <C> <S> <C>
COMMON BASIC INDUSTRY (Continued)
STOCKS 340,000 James River Corp. of Virginia ...................................... $ 8,840,000
(Continued) 189,000 Nalco Chemical Co. ................................................. 6,355,125
294,000 Weyerhaeuser Co. ................................................... 11,429,250
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65,168,375
ENERGY: 8.1%
205,000 Amerada Hess Corp. ................................................. 10,121,875
108,000 Chevron Corp. ...................................................... 5,184,000
58,000 Exxon Corp. ........................................................ 3,871,500
269,000 Halliburton Co. .................................................... 9,784,875
63,000 Mobil Corp. ........................................................ 5,835,375
305,000 Phillips Petroleum Co. ............................................. 11,170,625
75,000 Royal Dutch Petroleum Co. .......................................... 9,000,000
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54,968,250
CAPITAL EQUIPMENT: 6.3%
243,000 Caterpillar, Inc. .................................................. 13,516,875
149,200 Deere & Co. ........................................................ 12,122,500
194,000 General Electric Co. ............................................... 10,500,250
125,000 Sundstrand Corp. ................................................... 6,296,875
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42,436,500
BUSINESS PRODUCTS AND SERVICES: 5.3%
345,000 Donnelley (R.R.) & Sons Co. ........................................ 11,859,375
185,000 Federal Express Corp. .............................................. 12,510,625
100,000 Xerox Corp. ........................................................ 11,737,500
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36,107,500
PUBLIC UTILITIES: 5.2%
225,600 Ameritech Corp. .................................................... 9,306,000
108,000 Carolina Power & Light Co. ......................................... 2,929,500
165,000 Central & South West Corp. ......................................... 4,001,250
67,000 Consolidated Natural Gas Co. ....................................... 2,587,875
108,000 FPL Group, Inc. .................................................... 3,928,500
60,000 Pacific Gas & Electric Co. ......................................... 1,492,500
129,000 SCEcorp ............................................................ 2,015,625
145,000 Texas Utilities Co. ................................................ 4,603,750
183,000 Unicom Corp. ....................................................... 4,346,250
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35,211,250
PHARMACEUTICAL AND HEALTH: 3.7%
95,000 Pfizer, Inc. ....................................................... 8,146,250
270,000 SmithKline Beecham plc ADR ......................................... 10,125,000
187,000 Upjohn Co. ......................................................... 6,685,250
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24,956,500
DIVERSIFIED TECHNOLOGY: 3.4%
176,000 Grace (W.R.) & Co. ................................................. 9,372,000
109,000 Minnesota Mining & Manufacturing Co. ............................... 6,335,625
173,000 Raychem Corp. ...................................................... 7,028,125
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22,735,750
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Stock Fund
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Portfolio of Investments March 31, 1995
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SHARES MARKET VALUE
<C> <C> <S> <C>
COMMON TRANSPORTATION: 3.3%
STOCKS 640,000 Canadian Pacific Ltd. .............................................. $ 9,600,000
(Continued) 226,000 Union Pacific Corp. ................................................ 12,430,000
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22,030,000
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TOTAL COMMON STOCKS (cost $465,641,114) .................. 634,082,899
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PREFERRED CONSUMER: 0.3%
STOCKS: 90,092 Times Mirror Co. Conversion Preferred Series B ...................... 1,936,978
0.3% ------------
TOTAL PREFERRED STOCKS (cost $1,936,755) ................. 1,936,978
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PAR VALUE
SHORT-TERM $ 3,550,000 Barclays American, Variable Demand Note 5.73%, 1995.................. 3,550,000
INVESTMENTS: 4,866,678 General Mills, Inc., Variable Demand Note 5.73%, 1995 ............... 4,866,678
5.9% 13,197,534 Pitney Bowes Credit Corp., Variable Demand Note 5.73%, 1995.......... 13,197,534
11,417,362 Southwestern Bell Telephone Co., Variable Demand Note 5.71%, 1995.... 11,417,362
6,677,505 Wisconsin Electric Power Corp., Variable Demand Note 5.77%, 1995..... 6,677,505
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TOTAL SHORT-TERM INVESTMENTS (cost $39,709,079)........... 39,709,079
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TOTAL INVESTMENTS (cost $507,286,948) ........... 100.1% 675,728,956
OTHER ASSETS LESS LIABILITIES ................... (0.1) (650,966)
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TOTAL NET ASSETS .................... 100.0% $675,077,990
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Capital shares outstanding 11,502,416 NET ASSET VALUE PER SHARE $58.69
(par value $1.00 each)
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Stock Fund
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Condensed Statement of Operations
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For the Three Months Ended March 31, 1995
<S> <C>
Investment income........................................................... $ 4,125,869
Expenses.................................................................... 930,229
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Net investment income....................................................... $ 3,195,640
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Net realized gain from security transactions (based on identified cost)..... $ 3,685,439
Change in unrealized appreciation of investments............................ 49,537,269
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Net realized and unrealized gain on investments............................. $53,222,708
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Condensed Financial Information
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Net Asset Value Per Share Distributions Per Share
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Year Ended Capital
December 31 Net Assets Actual Adjusted* Income Gains
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<S> <C> <C> <C> <C> <C>
1985 $ 38,493,089 $30.95 $32.47 $ 1.01 $ 1.23
1986 45,062,188 31.66 37.33 .94 3.90
1987 67,466,098 32.94 40.68 1.03 1.58
1988 81,579,776 35.26 44.92 1.07 1.11
1989 125,161,597 42.57 55.30 1.23 .82
1990 172,969,111 38.79 50.74 1.35 .28
1991 281,296,392 44.85 59.92 1.24 .87
1992 335,922,835 48.37 64.82 1.11 .16
1993 435,895,275 53.23 75.21 1.04 2.84
1994 543,475,451 53.94 77.46 1.15 .89
1995 (3/31) 675,077,990 58.69 84.57 .28** .18**
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$11.45 $13.86
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* Adjusted for assumed reinvestment of capital gains
distributions.
** Distributions of $.28 per share from net investment
income and $.18 per share from net capital gains were
paid March 20, 1995 to shareholders of record March
15, 1995. The capital gain distribution of $.18 per
share includes a net short-term capital gain of $.06
per share which was distributed to shareholders as
ordinary income.
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<CAPTION>
Average annual total return for periods ended March 31, 1995 1 Year 5 Years 10 Years 20 Years
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<S> <C> <C> <C> <C>
Dodge & Cox Stock Fund 16.11% 12.14% 15.47% 15.03%
S&P 500 Index 15.56 11.41 14.44 13.92
</TABLE>
The average annual total return figures include
reinvestment of dividend and capital gain
distributions. These results represent past
performance; past performance is no guarantee of
future results. Investment return and share price
will vary, and shares may be worth more or less at
redemption than at original purchase.
* * *
The financial information has been taken from the
records of the Fund and has not been audited by our
independent accountants who do not express an opinion
thereon. The financial statements of the Fund will be
subject to audit by our independent accountants as of
the close of the calendar year.
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DODGE & COX
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Stock Fund
Officers and Directors
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John A. Gunn, President and Director
President, Dodge & Cox
Joseph M. Fee, Vice President and Director
Retired Officer, Dodge & Cox
W. Timothy Ryan, Secretary-Treasurer and Director
Senior Vice-President, Dodge & Cox
Katherine Herrick Drake, Assistant
Secretary-Treasurer and Director
Vice-President, Dodge & Cox
Harry R. Hagey, Assistant Secretary-
Treasurer and Director
Chairman & CEO, Dodge & Cox
Max Gutierrez, Jr., Director
Partner, Brobeck, Phleger & Harrison, Attorneys
Robert C. Harris, Director
Of Counsel to Heller, Ehrman, White & McAuliffe,
Attorneys
Frank H. Roberts, Director
Retired Partner, Pillsbury, Madison & Sutro,
Attorneys
John B. Taylor, Director
Professor of Economics, Stanford University
Will C. Wood, Director
Principal, Kentwood Associates, Financial Advisers
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MANAGERS
Dodge & Cox
One Sansome Street, 35th Floor
San Francisco, California 94104
Telephone (415) 981-1710
CUSTODIAN & TRANSFER AGENT
Firstar Trust Company
P. O. Box 701
Milwaukee, Wisconsin 53201-0701
Telephone (800) 621-3979
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
San Francisco, California
LEGAL COUNSEL
Heller, Ehrman, White & McAuliffe
San Francisco, California
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This report is submitted for the general information
of the shareholders of the Fund. The report is not
authorized for distribution to prospective investors
in the Fund unless it is accompanied by an effective
prospectus.
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DODGE & COX
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Stock Fund
General Information
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DODGE & COX The Fund enables investors to obtain the benefits
STOCK FUND of experienced and continuous investment supervision.
The Fund is invested in a broadly diversified and
carefully selected list of common stocks to provide
shareholders with an opportunity for long-term growth
of principal and income.
INVESTMENT Since 1930, Dodge & Cox has been providing
COUNSEL professional investment management for individuals,
MANAGEMENT trustees, corporations, pension and profit-sharing
funds, and charitable institutions. In addition,
Dodge & Cox manages the Dodge & Cox Balanced Fund and
the Dodge & Cox Income Fund. Dodge & Cox is not
engaged in the brokerage business nor in the business
of dealing in or selling securities.
NO SALES CHARGE There are no commissions on the purchase or
redemption of shares of the Fund.
GIFTS Dodge & Cox Stock Fund shares provide a convenient
method for making gifts to children and to other
family members. Fund shares may be held by an adult
custodian for the benefit of a minor under a Uniform
Gifts/Transfers to Minors Act. Trustees and guardians
may also hold shares for a minor's benefit.
REINVESTMENT Shareholders may direct that dividend and capital
PLAN gains distributions be reinvested in additional Fund
shares.
AUTOMATIC Shareholders may make regular monthly or quarterly
INVESTMENT PLAN investments of $100 or more through automatic
deductions from their bank accounts.
WITHDRAWAL PLAN Shareholders owning $10,000 or more of the Fund's
shares may elect to receive periodic monthly or
quarterly payments of at least $50. Under the plan,
all dividend distributions are automatically
reinvested at net asset value with the periodic
payments made from the proceeds of the redemption of
sufficient shares.
The above plans are completely voluntary and involve
no service charge of any kind.
IRA PLAN The Fund has available an Individual Retirement Plan
(IRA) for shareholders of the Fund.
Fund literature and details on all of these plans are
available from the Fund upon request.
DODGE & COX STOCK FUND
c/o Firstar Trust Company
P.O. Box 701
Milwaukee, Wisconsin 53201-0701
Telephone (800) 621-3979
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