Brief Summary
This video analyzes the recent trades of 11 prominent investors, including Warren Buffett, Bill Ackman, and Terry Smith, to gain insights into their investment strategies and market outlook. The analysis reveals a common theme of cautious buying and a preference for holding existing positions, suggesting a defensive posture in the face of market uncertainty. Several investors are holding significant cash reserves, indicating a belief that the market is overvalued.
- Investors are being disciplined and reserved with their buying, preferring to hold existing positions.
- Many investors are holding significant cash reserves, suggesting a belief that the market is overvalued.
- Google is a common holding among these investors, indicating its perceived value and potential for growth.
Intro
This video analyzes the recent trades of 11 prominent investors, including Warren Buffett, Bill Ackman, and Terry Smith, to gain insights into their investment strategies and market outlook. The goal is to provide context and understanding of what these investors are thinking and doing with their portfolios.
Warren Buffett
Warren Buffett's portfolio is worth approximately $266 billion, with Apple and financials being significant holdings. He has been reducing his Apple stake due to its high valuation and slower growth prospects. He has also sold down his Bank of America position, likely due to concerns about market overheating. Buffett has made new, small investments in Domino's Pizza and Pool Corp, indicating his approval of these companies. Overall, Buffett is in a defensive mode, holding a large amount of cash and not actively buying stocks.
Bill Ackman
Bill Ackman, who runs Pershing Square Capital, has a portfolio worth approximately $12 billion. His largest holding is Universal Music Group. He has significantly increased his stake in Brookfield Corp, an asset manager with a history of strong returns. He has also increased his stake in Nike, buying into the company during a dip. Ackman's portfolio is considered strong, with both Nike and Brookfield Corp being seen as good buys.
Terry Smith
Terry Smith, who manages over $25 billion, has a conservative portfolio with 40 different positions. His biggest trade was selling down his McCormick position, a spice maker that he believes is losing market share. Smith's portfolio is heavily weighted towards Microsoft and Meta. His strategy is to protect capital and grow it slowly over time.
Dev Kantesaria
Dev Kantesaria, who manages over $4.5 billion, has a highly concentrated portfolio with Fair Isaac (FICO) being his largest holding at 35%. He has been gradually selling down his FICO position after a significant price surge. He has used the proceeds to increase his stake in ASML, a company that manufactures lithography machines critical for semiconductor production. Kantesaria believes ASML is well-positioned to benefit from the growth of AI.
Josh Tarasoff
Josh Tarasoff, who manages a little over $300 million, has a highly concentrated portfolio with only nine positions. He has been selling down positions in Brookfield Corp, Microsoft, Amazon, and Tesla to meet investor redemptions. His portfolio lacks a clear structure, and his recent trades have been questionable.
Pat Dorsey
Pat Dorsey, who manages over $1 billion, has made a questionable investment in AppLovin, an AI marketing company. He bought into the company at an unknown price point during a period of significant share price growth. He has also sold down his SmartSheet position to buy more AppLovin. Dorsey's recent trades are difficult to assess due to the lack of information about his purchase price for AppLovin.
Polen Capital
Polen Capital Management, which manages $38 billion, has made some questionable trades. They sold their entire Salesforce position to buy more Apple and Oracle. While Oracle is considered a good buy, the sale of Salesforce is seen as a mistake, as the company still has significant growth potential. They have also trimmed their positions in Microsoft and Nike. Despite these questionable trades, Polen Capital's overall strategy and portfolio are considered strong.
Chris Hohn
Chris Hohn, who manages $44 billion, has a highly concentrated portfolio with only 10 holdings. His largest holding is General Electric. He has a history of investing in high-quality, monopolistic companies and holding them for the long term. His biggest trade was a small trim of his Microsoft position to buy more Canadian National Railway. Hohn's portfolio is considered one of the best performing hedge funds.
Michael Burry
Michael Burry, known for his role in "The Big Short," has made a significant bet on China, increasing his holdings in JD.com, Pinduoduo, and Alibaba. He believes these Chinese retailers offer attractive value. Burry also holds Shift 4 Payments, a payment processor with a growing market share. His portfolio is difficult to follow due to his use of options.
AltaRock
AltaRock Partners, which manages $5 billion, has a highly concentrated portfolio with only nine positions. They have increased their Amazon position and sold down their Visa position to buy more Mastercard. They believe Mastercard is better positioned for growth than Visa due to its international expansion. Their portfolio is similar to other high-quality investor portfolios, with holdings in FICO, Mastercard, Visa, Moody's, Google, Microsoft, and Amazon. Their unique holding is TransDigm, a company that specializes in aerospace parts.
Chuck Akre
Chuck Akre, who has retired from managing his portfolio, has a team that is implementing his strategy. They have been selling down their Moody's position, a move that is difficult to understand. They have also added to their Airbnb position, a company with strong network effects and an asset-light business model. While the team's recent trades are questionable, their overall portfolio is still considered strong.
Conclusion and Warnings
The video concludes by highlighting common themes among the investors' portfolios. They are being disciplined and reserved with their buying, holding a lot of cash and not actively buying stocks. They are also holding onto their existing positions, with few making significant sales. Google is a common holding among these investors. The video warns viewers against blindly following any investor's trades, as each investor has their own unique strategy and risk tolerance.
