The T. Rowe Price Capital Appreciation Fund (“PRWCX”) invests at least half of its total assets in stocks, with the remaining fund assets invested in convertible securities and bonds. The fund attributes up to 25% of its holdings to foreign securities. The fund's strategic objective is to provide long-term capital appreciation. PRWCX's expense ratio is 0.7%. As of June 30, 2016, the fund manages $25.8 billion, and the following is their largest top holdings.
Abott Laboratories (ABT)
Headquartered in Lake Bluff, Illinois, and founded in 1888, Abbott Laboratories (NYSE: ABT) is part of the old guard in the pharmaceuticals sector, which also includes Pfizer (NYSE: PFE), Eli Lilly and Company (NYSE: LLY) and Merck & Co. Inc. (NYSE: MRK).
AutoZone (NYSE: AZO) is an auto parts retailer whose 93% of profits are generated from domestic operations.
Bank of New York Mellon (BK)
Founded in 2007, Bank of New York Mellon (NYSE: BK) is the culmination of a merger of two of America’s most venerable banks. The Bank of New York was founded in 1784, Mellon Financial in 1869. The former was primarily a short-term business lender, the latter a wealth management firm. The resultant firm services more assets than any company on Earth, a total of $29 trillion under custody. With $1.7 trillion under management, Bank of New York Mellon is the 5th-largest asset manager in the world.
Becton Dickinson & Co. (BDX)
Investments in Becton Dickinson & Co. (NYSE: BDX) make up 2.26% of the mutual fund's assets. Becton Dickinson is a medical technology company that provides medical devices, instrument systems and reagents used by the health care industry. Becton Dickinson stock is classified as speculative growth and has a market capitalization of $31.8 billion. Becton Dickinson reported revenue of $10.28 billion, up from $8.4 billion in 2014. However, net income for Becton Dickinson dropped from $1.29 billion in 2013 to $1.19 billion in 2014 and $695 million in 2015. The company's debt-to-equity (D/E) ratio is 1.5. Becton Dickinson's YTD return as of March 17, 2016 was -3.71%.
Another 4.05% of the T. Rowe Price Capital Appreciation Fund portfolio is invested in Danaher Corporation (NYSE: DHR). Danaher is an industrial company that designs, manufactures and markets products for professional, medical, industrial and commercial use. Danaher's P/E ratio is 25.5, which is considerably lower than the industry average of 36.7. Its price-to-sales (P/S) ratio is 3.2, which beats the industry average of two.