Here’s What Makes Salesforce (CRM) a Great Investment Choice

Oakmark Funds, an investment management firm, published its “Oakmark Fund” first quarter 2022 investor letter – a copy of which can be seen here.  A return of -3% was reported by the fund for the first quarter of 2022, outperforming its benchmark, the S&P 500 Index which had a -5% return for the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Oakmark Fund mentioned Salesforce, Inc. (NYSE:CRM) and explained its insights for the company. Founded in 1999, Salesforce, Inc. (NYSE:CRM)  is a San Francisco, California-based cloud-based software company with a $175.4 billion market capitalization. Salesforce, Inc. (NYSE:CRM)  delivered a -30.26% return since the beginning of the year, while its 12-month returns are down by -24.10%. The stock closed at $177.23 per share on April 21, 2022.

Here is what Oakmark Fund has to say about Salesforce, Inc. (NYSE:CRM) in its Q1 2022 investor letter:

“Over the past 20 years, Salesforce (NYSE:CRM) has become a dominant global player in sales, customer service, commerce and marketing software. CRM earns 80% gross margins, grows 20% organically and virtually all of its revenue is recurring. It’s a great business that we’ve admired from afar for a long time. More recently, the organization has made some changes at the top that prompted us to take a closer look at the stock. New CEO Bret Taylor and CFO Amy Weaver are bringing a culture of financial discipline. We believe this renewed focus on profitability, combined with Salesforce’s strong underlying business characteristics, will yield strong results. The current valuation of 5x next year’s revenues represents a significant discount compared to publicly traded comparables and private market values in the software space. We view this discount as an opportunity to invest in a great business at a good value.

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Our calculations show that Salesforce, Inc. (NYSE:CRM) ranks 12th on our list of the 30 Most Popular Stocks Among Hedge Funds. Salesforce, Inc. (NYSE:CRM) was in 110 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 119 funds in the previous quarter. Salesforce, Inc. (NYSE:CRM) delivered a -18.94% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Salesforce, Inc. (NYSE:CRM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.