The Evolution of Ironwood Investment Counsel's Q3 to Q4 2022 Holdings

As we enter a new year, many investors are analyzing and adjusting their portfolios based on the previous year's performance. Ironwood Investment Counsel LLC is no exception, and recently released their Q4 2022 13F holdings report, showing some notable shifts from their Q3 report.

The report includes 53 holdings, including companies such as Microsoft, Apple, Johnson & Johnson, and Schwab Fundamental US Small Company ETF. In this blog post, we'll take a closer look at the changes in Ironwood's holdings from Q3 to Q4 of 2022, analyzing the stocks that saw significant shifts and the potential reasons behind these changes.

Main Body:

Microsoft (MSFT)

Ironwood increased their holdings of Microsoft by 1.1%, owning an additional 1,076 shares. The value of the shares increased by 4.1% from Q3 2022 to Q4 2022, reaching $23,414,000. Microsoft had a strong year in 2021, with continued growth in their cloud services division Azure, as well as an increase in hardware sales. Ironwood's decision to increase their holdings of Microsoft reflects their confidence in the company's ability to continue to perform well in the coming years.

Apple (AAPL)

While Apple remained one of Ironwood's top holdings, their position saw a slight decrease of 0.7%, owning 983 fewer shares. Additionally, the value of Apple's shares decreased by 6.7%, reaching $17,621,000. This decline in value is likely due to concerns about Apple's supply chain and logistics, as well as decreased demand for the iPhone due to competitors offering similar, and often cheaper, products. However, with Apple's focus on continued innovation and development of new products, it is possible that they will see a return of growth in the coming year.

Schwab Fundamental US Small Company ETF (FNDA)

Ironwood's decision to increase their holdings of the Schwab Fundamental US Small Company ETF by a significant 699.3% is perhaps the most notable change in their Q4 holdings. They owned an additional 132,648 shares, bringing their total holdings to 153,805 shares. The value of these shares increased from $899,000 to $7,185,000. This increase in holdings of ETFs reflects Ironwood's desire to diversify their holdings and take advantage of the potential benefits of this investment strategy.

McKesson Corp (MCK)

Ironwood's decision to reduce their holdings of McKesson Corp by 32.6% and dispose of 5,774 shares is surprising, given this is a top holding for the company. The value of these shares decreased by 25.1%, reaching $4,576,000. This shift may reflect Ironwood's concerns regarding the long-term risks involved in investing in healthcare companies, or specific concerns regarding the performance of McKesson Corp. Given that the healthcare sector is generally considered a safe investment strategy, this decision may be seen as somewhat risky.

Conclusion:

Overall, Ironwood Investment Counsel LLC's Q4 holdings reflect some interesting shifts from their Q3 report. The notable increases in holdings of Microsoft and the Schwab Fundamental US Small Company ETF reflect a continued desire for diversification and a focus on strong performers, while the reduction in holdings of Apple and McKesson Corp may reflect concerns about risks and limitations in their respective sectors. As always, it is important for investors to stay vigilant and monitor their portfolios to ensure their investment strategies remain sound and profitable.