1 00:00:00,040 --> 00:00:02,760 Well, folks, it's finally that time again that we get the 13 F 2 00:00:02,760 --> 00:00:04,640 filings from the Super investors. 3 00:00:05,000 --> 00:00:07,440 That means that we get to look inside of their portfolios and 4 00:00:07,440 --> 00:00:10,360 see what they're doing. For example, we just heard news 5 00:00:10,360 --> 00:00:14,360 that Warren Buffett, the big man himself, he bought Google and he 6 00:00:14,360 --> 00:00:16,920 bought quite a bit of Google. This is a a big move in his 7 00:00:16,920 --> 00:00:19,800 portfolio. The stock is up around 5% on the 8 00:00:19,800 --> 00:00:22,000 day from that news and we're going to be discussing it. 9 00:00:22,000 --> 00:00:23,400 We're going to be breaking it down. 10 00:00:23,840 --> 00:00:25,280 Plus it doesn't just end with Berkshire. 11 00:00:25,280 --> 00:00:28,720 We have many more hedge fund managers and big time investors, 12 00:00:28,920 --> 00:00:32,400 super investors to go over, including Bill Ackman, what he's 13 00:00:32,400 --> 00:00:35,200 doing with his portfolio. We have Devcantesario with 14 00:00:35,200 --> 00:00:38,200 Valley Forge Capital Management. We have Terry Smith, Poland 15 00:00:38,200 --> 00:00:41,760 Capital, Chuck Akrey's firm, Value Act Capital, and Josh 16 00:00:41,760 --> 00:00:43,680 Terasov. These are all elite terror 17 00:00:43,680 --> 00:00:46,040 investors, the very top of the very top, and we're going to be 18 00:00:46,040 --> 00:00:47,760 going over all of their portfolios. 19 00:00:48,000 --> 00:00:51,320 In this video, we'll be giving some explanations, some context 20 00:00:51,320 --> 00:00:53,720 and analysis, and we'll be looking over all at the trends. 21 00:00:53,960 --> 00:00:56,480 What are these investors buying and what are they selling? 22 00:00:56,760 --> 00:00:59,160 So we'll be going over all of this in this episode. 23 00:00:59,200 --> 00:01:01,960 And then we also have our fail of the week, which in this case 24 00:01:02,200 --> 00:01:05,480 is a post from Bill Ackman where he's giving relationship and 25 00:01:05,480 --> 00:01:08,640 dating advice, telling people that all they really need to do, 26 00:01:08,640 --> 00:01:12,520 all guys need to do is go up to women and ask, may I meet you? 27 00:01:12,920 --> 00:01:14,520 That's right. May I meet you? 28 00:01:15,000 --> 00:01:17,080 This is caught the Internet by storm. 29 00:01:17,160 --> 00:01:19,360 Many people are trying out Bill Ackman's advice. 30 00:01:19,400 --> 00:01:20,000 May I? Meet you. 31 00:01:21,440 --> 00:01:25,080 May I meet you? Be going over many examples of 32 00:01:25,080 --> 00:01:27,920 people using the Bill Ackman pick up line in the fail of the 33 00:01:27,920 --> 00:01:29,920 week. So this is a stacked episode. 34 00:01:29,920 --> 00:01:32,920 We have a ton to get into before we do, I just have to say a 35 00:01:32,920 --> 00:01:35,200 quick thank you. Thank you everyone for sharing 36 00:01:35,200 --> 00:01:37,360 Qualtrim. I I know a lot of you have tried 37 00:01:37,360 --> 00:01:39,160 it. We've literally had thousands of 38 00:01:39,160 --> 00:01:42,040 new people join as members of this over just the past couple 39 00:01:42,040 --> 00:01:44,000 of weeks. So thank you for trying it out. 40 00:01:44,240 --> 00:01:47,960 If you haven't, you can try it out risk free with a 7 day free 41 00:01:47,960 --> 00:01:49,960 trial. Qualtrm turns you into a super 42 00:01:49,960 --> 00:01:53,240 investor by allowing you to see the fundamentals of a company in 43 00:01:53,240 --> 00:01:55,720 visual format. You can see them evolve over 44 00:01:55,720 --> 00:01:57,280 time. That way you don't get scared by 45 00:01:57,280 --> 00:02:00,480 stock price fluctuations. Try it out now risk free at 46 00:02:00,480 --> 00:02:02,400 qualtrm.com. Now as we kick things off, we 47 00:02:02,400 --> 00:02:04,920 get into the 13 F filings and we're going to start off with 48 00:02:04,920 --> 00:02:06,920 the big man himself, Warren Buffett. 49 00:02:07,240 --> 00:02:10,560 We heard the news, you probably heard it by now, but he bought 50 00:02:10,680 --> 00:02:14,080 Google stock and he likely bought it with his team. 51 00:02:14,080 --> 00:02:16,240 There's going to be people that point out that Warren Buffett 52 00:02:16,240 --> 00:02:19,480 has, he's hired lieutenants and people that follow his investing 53 00:02:19,480 --> 00:02:21,880 methodology. They follow the Warren Buffett 54 00:02:21,880 --> 00:02:24,520 way of buying stocks. But overall, Warren Buffett 55 00:02:24,520 --> 00:02:26,440 still today is the CEO of Berkshire. 56 00:02:26,440 --> 00:02:29,160 He's stepping down and this is the last move that he did as 57 00:02:29,160 --> 00:02:32,360 ACEO is he bought a very large position in Google. 58 00:02:32,760 --> 00:02:35,520 Now, when we look at overall the activity, we can take a look at 59 00:02:35,520 --> 00:02:41,120 the size of this. Right now it is A 1.62% 60 00:02:41,320 --> 00:02:43,560 position. So he went from not owning 61 00:02:43,560 --> 00:02:46,320 Google to buying it as almost a 2% position. 62 00:02:46,720 --> 00:02:49,760 Now you may scoff and say, well, it's just a 2% position, right? 63 00:02:49,840 --> 00:02:53,640 That's not a big deal. OK, This is not a 2% position of 64 00:02:53,640 --> 00:02:57,240 your 500K portfolio. This isn't like 50 grand. 65 00:02:57,760 --> 00:03:01,560 This is a lot of money. Look at how much money they 66 00:03:01,560 --> 00:03:08,120 manage just in their public account, $267 billion, over 1/4 67 00:03:08,240 --> 00:03:10,120 trillion. So when you're talking about 68 00:03:10,120 --> 00:03:14,360 percentages, every tiny fraction of a percent is a lot, but 69 00:03:14,360 --> 00:03:19,160 buying almost 2% is a ton. This is a massive position to to 70 00:03:19,160 --> 00:03:21,160 buy as a new company. It's a meaningful one. 71 00:03:21,400 --> 00:03:24,680 In fact, this immediately bumps it to around a top ten position 72 00:03:24,880 --> 00:03:28,360 in the public portfolio. So they bought this stock. 73 00:03:28,360 --> 00:03:31,280 They bought a meaningful amount. Warren Buffett for sure was 74 00:03:31,280 --> 00:03:35,000 informed about this purchase. He allowed it if not decided on 75 00:03:35,000 --> 00:03:38,480 it, and this was the final thing he did before stepping down as 76 00:03:38,480 --> 00:03:41,200 ACEO. This is overall an incredibly 77 00:03:41,200 --> 00:03:45,440 meaningful buy and I will just mention as one of the many 78 00:03:45,480 --> 00:03:49,160 Google investors, I just can't help but be happy about this. 79 00:03:49,320 --> 00:03:52,880 Isn't it a great feeling to be early on something to, to get 80 00:03:52,880 --> 00:03:54,960 into a stock well before others do? 81 00:03:55,600 --> 00:03:57,520 We got into the Google a long time ago. 82 00:03:57,800 --> 00:03:59,600 We were in it before Bill Ackman was. 83 00:03:59,840 --> 00:04:03,000 We beat him in the stock and then we even bought more after 84 00:04:03,000 --> 00:04:05,680 Bill Ackman. We recognize this stock was at a 85 00:04:05,680 --> 00:04:08,320 great stock and so many community members, so many 86 00:04:08,320 --> 00:04:12,440 people here piled money into Google once, once it came 87 00:04:12,440 --> 00:04:15,680 evident, once it became known that Google was not going to be 88 00:04:15,680 --> 00:04:19,000 disrupted by Chachi BT and especially once it became known 89 00:04:19,000 --> 00:04:20,440 that they're not going to have to sell Chrome. 90 00:04:20,959 --> 00:04:23,920 This stock has been a solid buy. It's been the best risk adjusted 91 00:04:23,920 --> 00:04:26,040 stock in the market for the past six months. 92 00:04:26,360 --> 00:04:30,080 I've continually highlighted it. And so having this play out this 93 00:04:30,080 --> 00:04:33,960 way where we have Warren Buffett giving the final stamp of 94 00:04:33,960 --> 00:04:37,640 approval buying this company, doing so even symbolically 95 00:04:37,640 --> 00:04:40,680 before he leaves Berkshire is a really good feeling. 96 00:04:40,680 --> 00:04:43,120 And you have to just, you just have to be happy about it. 97 00:04:43,400 --> 00:04:46,160 If you are in Google, and I don't know why you would not be 98 00:04:46,320 --> 00:04:49,280 if you're not in Google today, I don't know what your reasoning 99 00:04:49,280 --> 00:04:51,520 is. I, I can't, I don't know what's 100 00:04:51,520 --> 00:04:53,600 going through your head. Like what, what are you missing 101 00:04:53,600 --> 00:04:56,680 with Google? It's a low valuation, multiple 102 00:04:56,760 --> 00:04:59,200 huge catalysts. They're, they're at the 103 00:04:59,200 --> 00:05:02,360 forefront of like everything with AI, they're diversified. 104 00:05:02,360 --> 00:05:04,440 They have low downside. Like I don't know why you 105 00:05:04,440 --> 00:05:06,480 wouldn't be in Google today. I, I don't know what that 106 00:05:06,480 --> 00:05:10,400 argument would be, but for us that are the many investors that 107 00:05:10,400 --> 00:05:13,280 have identified this one, I think it's just a time to feel 108 00:05:13,280 --> 00:05:15,040 good about this buy to celebrate it. 109 00:05:15,440 --> 00:05:17,640 And I don't believe this story is over yet. 110 00:05:17,920 --> 00:05:20,840 When we look at Google stock, it's a company that I just think 111 00:05:20,840 --> 00:05:23,520 is going to keep going. Keep in mind Berkshire entered 112 00:05:23,520 --> 00:05:27,680 this position last quarter. Google wasn't that much, you 113 00:05:27,680 --> 00:05:29,760 know, it's up a bit. It's up like 10 or 15%. 114 00:05:29,760 --> 00:05:33,640 So they're in the green already. They're making money, but that 115 00:05:33,640 --> 00:05:38,280 was like like 24250. Now it's at 280 to 290 and we 116 00:05:38,280 --> 00:05:42,240 got the Buffett bump. We got 4.61% on the day. 117 00:05:43,040 --> 00:05:46,720 Let me give you a spoiler alert, OK, Google isn't done. 118 00:05:47,080 --> 00:05:49,360 It's not done today. The investors that we're going 119 00:05:49,360 --> 00:05:51,200 to go over that are selling their position. 120 00:05:51,400 --> 00:05:53,080 They're trimming their Google position. 121 00:05:53,480 --> 00:05:55,680 That's a mistake. They're going to be regretting 122 00:05:55,680 --> 00:05:56,880 that. I believe in just a couple 123 00:05:56,880 --> 00:06:00,360 years, because the way that this stock evolves, and I've, I've 124 00:06:00,360 --> 00:06:03,400 done this for a long period of time, when you know, a stock has 125 00:06:03,400 --> 00:06:07,320 erased the downside, when the downside in terms of competition 126 00:06:07,320 --> 00:06:10,760 has fizzled out and there's ample catalyst for real growth 127 00:06:10,760 --> 00:06:13,040 in the future and diversification. 128 00:06:13,360 --> 00:06:16,840 When the the story gets more evolved over time, that's a 129 00:06:16,840 --> 00:06:19,960 stock that's going to go higher. Google has multiple catalysts. 130 00:06:19,960 --> 00:06:23,440 Not only does it have a chance for multiple expansion from a 27 131 00:06:23,440 --> 00:06:26,760 PE to a 30, but it also has enormous earnings per share 132 00:06:26,760 --> 00:06:28,720 growth. It's at the forefront of AI. 133 00:06:29,120 --> 00:06:32,000 The robotaxi is a real thing. They're really executing on 134 00:06:32,000 --> 00:06:33,320 that. It's a valuable business. 135 00:06:33,720 --> 00:06:37,000 They have Gemini, they have, they are vertically integrated, 136 00:06:37,280 --> 00:06:39,800 they have cloud, they have YouTube. 137 00:06:40,120 --> 00:06:42,600 This company has it all. They have the world in their 138 00:06:42,600 --> 00:06:45,600 hands. Sundar Pichai is beholden to no 139 00:06:45,600 --> 00:06:47,040 one. He doesn't have to ask 140 00:06:47,040 --> 00:06:49,840 permission for anything. He can do whatever he wants. 141 00:06:49,840 --> 00:06:53,280 Like Google is winning in every category and again, it's at a 27 142 00:06:53,280 --> 00:06:57,600 PE reasonable valuation. Berkshire is not a company, 143 00:06:57,920 --> 00:07:00,640 they're not an investment team. They don't hold an investment 144 00:07:00,640 --> 00:07:03,720 philosophy where they only buy stuff because they intend to 145 00:07:03,720 --> 00:07:06,560 hold it for a month. It's true that not everything 146 00:07:06,560 --> 00:07:09,240 they buy works out. Sometimes they buy stuff and 147 00:07:09,240 --> 00:07:11,000 they end up saying oh that wasn't the Best Buy. 148 00:07:11,240 --> 00:07:14,360 Like anyone else, they're not perfect, but they buy things for 149 00:07:14,360 --> 00:07:17,160 the long term. They, especially when focusing 150 00:07:17,160 --> 00:07:20,840 on a buy as significant and meaningful as Google, an almost 151 00:07:20,840 --> 00:07:24,760 2% position, they're going to buy that one for the significant 152 00:07:24,760 --> 00:07:26,920 long term. So I think they're establishing 153 00:07:26,920 --> 00:07:30,120 this is another core position in the portfolio, one like 154 00:07:30,120 --> 00:07:34,000 Coca-Cola, American Express or you know, all the different 155 00:07:34,000 --> 00:07:36,360 companies that they buy. And they're going to continue 156 00:07:36,360 --> 00:07:39,280 holding this one for a long period of time, so long as the 157 00:07:39,280 --> 00:07:41,840 fundamentals continue to develop, which I believe they 158 00:07:41,840 --> 00:07:45,080 will. So this is such a, a validating 159 00:07:45,080 --> 00:07:48,760 thing to have the Berkshire crew buy this stock, to have Buffett 160 00:07:48,760 --> 00:07:50,640 do this at the end of his career. 161 00:07:50,800 --> 00:07:54,120 I think it's just awesome. When we look at My Portfolio, 162 00:07:54,440 --> 00:07:56,720 I've been an advocate of Google for some time now. 163 00:07:57,600 --> 00:08:00,800 I have it in both portfolios and I'm not someone that I just 164 00:08:00,800 --> 00:08:02,880 talked about a company because it's going up and it's great. 165 00:08:03,280 --> 00:08:05,240 I put my money where my mouth is. 166 00:08:05,560 --> 00:08:09,920 When I became bullish on Google, I bought the stock with a lot of 167 00:08:09,920 --> 00:08:11,760 money. I made it my most. 168 00:08:12,000 --> 00:08:13,880 It was one of my biggest buys that I've done. 169 00:08:14,400 --> 00:08:19,880 In the passive income portfolio alone, Google has a $104,500 170 00:08:19,880 --> 00:08:23,080 position, 38,500 of that being gains. 171 00:08:23,640 --> 00:08:26,880 So over 100K in this portfolio, 38,000 in gains. 172 00:08:27,160 --> 00:08:29,200 But then we hold it again in the story fund. 173 00:08:29,760 --> 00:08:32,000 If I flip over and load the story fund, we have it right 174 00:08:32,000 --> 00:08:35,960 here. We have Google again $68,000 175 00:08:35,960 --> 00:08:42,400 position, $40,000 in the green. So it's a $78,000 gain on a 176 00:08:42,400 --> 00:08:49,160 position that's now $173,000. So big position, but almost 80 K 177 00:08:49,160 --> 00:08:51,840 in the the green. I believe that today Google is 178 00:08:51,840 --> 00:08:54,360 my biggest winner in My Portfolio, the biggest gainer 179 00:08:54,360 --> 00:08:57,640 overall and I haven't sold a single share. 180 00:08:58,280 --> 00:08:59,760 Now again, there's going to be other investors that we 181 00:08:59,760 --> 00:09:01,800 highlight today. We go over different portfolios 182 00:09:02,120 --> 00:09:04,440 and many of them are are kind of taking a a victory lap and 183 00:09:04,440 --> 00:09:07,080 they're selling out of Google. They're reducing their position 184 00:09:07,520 --> 00:09:09,920 and I think that's a mistake. I agree more with the Buffett 185 00:09:09,920 --> 00:09:12,800 team that last quarter is a great time to get in. 186 00:09:12,800 --> 00:09:15,000 But I believe that there's going to be more of a story arc over 187 00:09:15,000 --> 00:09:17,920 the next five years. Google should have significant 188 00:09:17,920 --> 00:09:21,680 alpha over the next five years. So with this being really the 189 00:09:21,680 --> 00:09:24,360 only meaningful move, there's other things that they did. 190 00:09:24,360 --> 00:09:26,200 Of course, they're always changing around a few things 191 00:09:26,200 --> 00:09:28,680 here and there. Most of these are very small 192 00:09:28,680 --> 00:09:31,200 moves. Google's the biggest buy by far. 193 00:09:31,680 --> 00:09:33,920 Other than that, they they took a little bit more gains in their 194 00:09:33,920 --> 00:09:36,520 Apple position. Even though Apple stock has done 195 00:09:36,520 --> 00:09:39,560 well and there are some catalysts for Apple, it's not 196 00:09:39,560 --> 00:09:43,120 nearly as good as Google. Apple's at a higher valuation 197 00:09:43,160 --> 00:09:46,280 and it's growing slower, but the Moat is less than less than 198 00:09:46,280 --> 00:09:48,280 question. Google is at a much lower 199 00:09:48,280 --> 00:09:52,360 valuation, growing much faster. And I believe the Moat is very 200 00:09:52,360 --> 00:09:55,240 strong for Google as well. But Google does have more 201 00:09:55,240 --> 00:09:57,480 opinions about the Moat than Apple. 202 00:09:57,800 --> 00:10:00,240 So Apple's just trading at a higher valuation because there's 203 00:10:00,240 --> 00:10:03,360 less question about the future, the future disruption of the 204 00:10:03,360 --> 00:10:06,120 company. So I love the trade. 205 00:10:06,240 --> 00:10:07,600 I love Warren Buffett doing this. 206 00:10:08,080 --> 00:10:10,000 They've talked about Google for a long time. 207 00:10:10,080 --> 00:10:13,040 There is Berkshire meetings in 2019 when they're asked about 208 00:10:13,120 --> 00:10:15,320 why they didn't buy it. And Charlie Munger just said it 209 00:10:15,320 --> 00:10:17,920 was a mistake. They said that they they know 210 00:10:17,920 --> 00:10:21,640 they've been paying Google to do these ads for GEICO or they pay 211 00:10:21,640 --> 00:10:26,000 like $10.00 an ad, a click. And then when it, when somebody 212 00:10:26,000 --> 00:10:27,640 clicks through, they buy GEICO service. 213 00:10:27,640 --> 00:10:30,040 They earn a lot of money over the lifetime of that customer. 214 00:10:30,040 --> 00:10:32,840 So it was good for GEICO, but they looked at the Google side 215 00:10:33,320 --> 00:10:35,600 and they thought that click must have cost Google nothing. 216 00:10:35,960 --> 00:10:37,880 So we just paid them $10 per click. 217 00:10:38,320 --> 00:10:40,520 When they generate those clicks cost Google nothing. 218 00:10:40,880 --> 00:10:44,520 What a great business. Since that time period in 2019, 219 00:10:44,840 --> 00:10:47,120 what has happened? Google's no longer just a 220 00:10:47,120 --> 00:10:49,120 company that offers links that you pay for clicks. 221 00:10:49,560 --> 00:10:53,040 Now they're at the forefront of AI, quantum computing, the other 222 00:10:53,040 --> 00:10:54,600 bets that they're wasting money on. 223 00:10:54,680 --> 00:10:56,040 Many people thought they're wasting money. 224 00:10:56,360 --> 00:10:58,240 Yeah, that was a significantly good move. 225 00:10:58,640 --> 00:11:01,160 Sundar Pichai invested in robotaxi and figured it out 226 00:11:01,280 --> 00:11:04,200 where Apple did not. So they have the robotaxi 227 00:11:04,200 --> 00:11:06,960 business figured out. They also have YouTube that's 228 00:11:06,960 --> 00:11:08,600 growing. It's going to double in size, I 229 00:11:08,600 --> 00:11:09,840 believe over the next five years. 230 00:11:10,080 --> 00:11:12,360 You have Google Cloud that's going to over double in size 231 00:11:12,600 --> 00:11:14,040 over the next four to five years. 232 00:11:14,440 --> 00:11:17,640 They have vertically integrated the TP US. 233 00:11:17,640 --> 00:11:19,840 They've been investing in that so they're not as reliant on 234 00:11:19,840 --> 00:11:21,880 NVIDIA. There's so many good things 235 00:11:21,880 --> 00:11:25,320 going for this company. Wonderful by by Warren Buffett 236 00:11:25,440 --> 00:11:28,400 and the team in terms of who gets the credit. 237 00:11:29,480 --> 00:11:32,480 When you're the CEO of the company, the company that's 238 00:11:32,480 --> 00:11:36,520 known for being stock pickers it all, it ultimately comes back to 239 00:11:36,520 --> 00:11:38,160 you. This is the one. 240 00:11:38,160 --> 00:11:40,720 This is the area where even if his Lieutenant came up with the 241 00:11:40,720 --> 00:11:44,720 buy, even if they're the one that had the idea, Buffett owns 242 00:11:44,720 --> 00:11:46,680 the buy, just like he did with Apple. 243 00:11:47,040 --> 00:11:50,520 Apple originally wasn't Buffett's idea, but he's able to 244 00:11:50,520 --> 00:11:53,360 identify whether or not something is good or something 245 00:11:53,360 --> 00:11:55,760 is bad. He's able to identify whether an 246 00:11:55,760 --> 00:11:59,160 idea is one that he wants to embrace, and he's obviously 247 00:11:59,160 --> 00:12:02,560 chosen to embrace this idea. So I believe whether or not you 248 00:12:02,560 --> 00:12:05,680 give credit to the lieutenants or Buffett, who cares? 249 00:12:06,000 --> 00:12:08,840 Buffett is the executive. This is a final move that he 250 00:12:08,840 --> 00:12:10,560 did, and I think it's a great one. 251 00:12:10,640 --> 00:12:12,920 Now moving on, we get to Bill Ackman with Pershing Square 252 00:12:12,920 --> 00:12:14,280 Capital. Let's go ahead and take a look 253 00:12:14,280 --> 00:12:15,880 at his. I always like looking at what 254 00:12:15,880 --> 00:12:18,520 Bill Ackman's doing because he runs a fairly concentrated 255 00:12:18,520 --> 00:12:20,680 portfolio. He has companies that in many 256 00:12:20,680 --> 00:12:22,840 cases, I really like the companies he's invested in. 257 00:12:23,360 --> 00:12:25,840 So we look at the portfolio overall and I love the 258 00:12:25,840 --> 00:12:28,200 construction of it. We have Uber as the very top. 259 00:12:28,400 --> 00:12:30,080 This one has been a home run for him. 260 00:12:30,280 --> 00:12:33,040 He invested in it early this year and it's gone up quite a 261 00:12:33,040 --> 00:12:34,520 bit this year. So good investment by Bill 262 00:12:34,520 --> 00:12:36,320 Ackman. Then we have Brookfield Corp. 263 00:12:36,320 --> 00:12:39,560 This is another one that I think is a fairly risk, a low risk 264 00:12:39,560 --> 00:12:41,440 investment. It's more like an infrastructure 265 00:12:41,440 --> 00:12:44,320 play, a diversified investment. I think it'd be really tough to 266 00:12:44,320 --> 00:12:47,240 lose a lot of money on BN. This one's also done fairly well 267 00:12:47,240 --> 00:12:48,680 this year, keeping up with the market. 268 00:12:49,000 --> 00:12:52,240 We have Howard Hughes Holdings as a 10% position and then we 269 00:12:52,240 --> 00:12:54,600 get into Google. Now his Google position is 270 00:12:54,600 --> 00:12:56,280 really big. It's actually bigger than Howard 271 00:12:56,280 --> 00:13:00,360 Hughes because you have GOOG, which is 10.5, then you have 272 00:13:00,360 --> 00:13:05,120 GOOGL which is 8. So as an 18% Google position 273 00:13:05,120 --> 00:13:07,760 overall. And the one trade that he did, 274 00:13:07,760 --> 00:13:10,720 if we look at his activity this quarter, we can see that he 275 00:13:10,720 --> 00:13:15,440 trimmed a bit of Google. He trimmed about .86% of his 276 00:13:15,440 --> 00:13:18,160 portfolio, which is 500,000 shares. 277 00:13:18,360 --> 00:13:20,640 This is something that you'll see hedge fund managers do from 278 00:13:20,640 --> 00:13:23,200 time to time. They do have some liquidity 279 00:13:23,200 --> 00:13:24,720 needs. For example, of people are 280 00:13:24,720 --> 00:13:27,560 pulling money out of the fund, they have to raise that cash 281 00:13:27,560 --> 00:13:30,240 somewhere, so they are forced to sell a stock. 282 00:13:30,560 --> 00:13:33,080 Now I can't prove that that's what happened here with Google, 283 00:13:33,360 --> 00:13:35,600 but I believe there's a good chance it was either that or 284 00:13:35,600 --> 00:13:38,600 some rebalancing. I think that overall taking 285 00:13:38,600 --> 00:13:40,600 gains in Google today is mistake. 286 00:13:41,120 --> 00:13:43,080 Google's a company that I still believe is going to go much 287 00:13:43,080 --> 00:13:45,320 higher. It's going about $300 per share. 288 00:13:45,560 --> 00:13:48,800 I think the company today is worth at least $320 per share. 289 00:13:49,200 --> 00:13:50,600 So there's still some buffer room. 290 00:13:50,600 --> 00:13:52,960 The stock is still undervalued. If I was looking at Bill 291 00:13:52,960 --> 00:13:56,640 Ackman's portfolio, I would sooner sell a few companies in 292 00:13:56,640 --> 00:13:59,040 the portfolio and trim them out of it than Google. 293 00:13:59,040 --> 00:14:02,240 Bill Ackman holds a very concentrated portfolio of 294 00:14:02,240 --> 00:14:03,920 incredibly high quality companies. 295 00:14:04,040 --> 00:14:07,000 You can talk about valuation and which one is possibly the best 296 00:14:07,000 --> 00:14:10,240 idea, but when you have these type of stocks concentrated in a 297 00:14:10,240 --> 00:14:13,680 portfolio, the odds are really good of you outperforming the 298 00:14:13,680 --> 00:14:15,280 market. Especially with the type of 299 00:14:15,280 --> 00:14:18,160 companies that he invests in, these platform companies like 300 00:14:18,160 --> 00:14:21,760 Uber, infrastructure companies, high margin data companies. 301 00:14:21,920 --> 00:14:24,680 He also likes restaurants where he has a special knack for 302 00:14:24,680 --> 00:14:26,280 finding ones at a good valuation. 303 00:14:26,600 --> 00:14:29,320 Bill Ackman has been hit by the Chipotle holding. 304 00:14:29,400 --> 00:14:31,880 He has been reducing his Chipotle holding all throughout 305 00:14:31,880 --> 00:14:37,120 2023-2024 and early 2025, and he probably wished he reduced it 306 00:14:37,120 --> 00:14:40,360 even more because Chipotle has been clobbered. 307 00:14:40,640 --> 00:14:43,480 It's given up so much gains over the past year. 308 00:14:43,800 --> 00:14:46,520 So that's one where I think he's probably the most disappointed 309 00:14:46,520 --> 00:14:48,880 in his portfolio. Overall, this is a very strong 310 00:14:48,880 --> 00:14:50,680 portfolio. Again, I don't like to sell on 311 00:14:50,680 --> 00:14:51,880 Google. I think he should have picked a 312 00:14:51,880 --> 00:14:54,040 different company, but I still like what I see here. 313 00:14:54,040 --> 00:14:56,040 Now moving on, we get to TCI Fund. 314 00:14:56,200 --> 00:14:59,800 TCI is the children's investment fund and it's ran by a guy named 315 00:14:59,800 --> 00:15:03,520 Chris Hohn who is one of these legendary super investors. 316 00:15:04,240 --> 00:15:07,160 Because you may feel that your portfolio isn't properly 317 00:15:07,160 --> 00:15:10,160 diversified if you don't hold more than like 7 holdings. 318 00:15:10,600 --> 00:15:14,440 And again, your portfolio may be $1,000,000 or 500K or whatever 319 00:15:14,440 --> 00:15:16,200 stage react in your investment cycle. 320 00:15:16,400 --> 00:15:19,880 They continually grow over time. But imagine that your portfolio, 321 00:15:20,040 --> 00:15:25,280 imagine your portfolio was over $50 billion and you held. 322 00:15:25,680 --> 00:15:33,280 Let's see how many holdings 123456789, 9 positions and $53 323 00:15:33,400 --> 00:15:36,400 billion. That's how concentrated and how 324 00:15:36,400 --> 00:15:40,440 confident Chris Hoen is in his portfolio and in these 325 00:15:40,440 --> 00:15:42,680 positions. Now how can you do that? 326 00:15:43,000 --> 00:15:46,320 How can you comfortably and I think with the even level of 327 00:15:46,320 --> 00:15:49,840 prudence, put that much capital into that few investments? 328 00:15:50,360 --> 00:15:53,080 Well, the way that he does that is he does not take risk. 329 00:15:53,840 --> 00:15:58,520 The risk per position is so low, the company's moats are so wide, 330 00:15:58,840 --> 00:16:02,200 the company's business models are so indestructible that he's 331 00:16:02,200 --> 00:16:05,880 able to put 50 plus billion dollars into only these nine 332 00:16:05,880 --> 00:16:08,320 positions. So that's the calculation. 333 00:16:08,600 --> 00:16:11,960 Chris Ho knows if you don't have a diversified portfolio with 334 00:16:11,960 --> 00:16:15,240 dozens of positions, you have to be very careful for every 335 00:16:15,240 --> 00:16:17,600 position you take. Now, when we look at the overall 336 00:16:17,600 --> 00:16:20,440 portfolio, you have a lot of the usual suspects here. 337 00:16:20,600 --> 00:16:22,520 There's some outliers, but there's a lot of the usual 338 00:16:22,520 --> 00:16:24,400 suspects. You have the Visas, the 339 00:16:24,400 --> 00:16:27,880 Microsofts, the Moodys, the S&P Globals, the Canadian Pacifics. 340 00:16:27,880 --> 00:16:30,400 He loves the railroads. The biggest position by far, a 341 00:16:30,400 --> 00:16:34,400 27% waiting is in GE Aerospace and we'll get to that one in a 342 00:16:34,400 --> 00:16:36,160 minute. When we look at overall the 343 00:16:36,160 --> 00:16:39,880 trade, you'll note that the trade that he does here, the 344 00:16:39,880 --> 00:16:43,880 biggest one by far, is he trims about half of his Google 345 00:16:43,880 --> 00:16:46,680 position. So he just chopped Google in 346 00:16:46,680 --> 00:16:49,360 half last quarter. Now Google again has come up 347 00:16:49,360 --> 00:16:52,080 quite a bit from last quarter, the past three months, it's up a 348 00:16:52,080 --> 00:16:54,840 decent amount. So in hindsight, in a short term 349 00:16:54,840 --> 00:16:57,800 hindsight, this was a mistake. You can do some hindsight 350 00:16:57,800 --> 00:17:00,800 analysis, but I think that misses the point of what Chris 351 00:17:00,800 --> 00:17:02,800 Hohn does with his investment thesis. 352 00:17:02,800 --> 00:17:05,760 When I try to look at what Chris Hohn actually does, the way that 353 00:17:05,760 --> 00:17:10,040 he invests, he invests again by reducing risks per holding next 354 00:17:10,040 --> 00:17:12,520 to 0. It's not perfectly 0, but it's 355 00:17:12,520 --> 00:17:16,960 as close to 0 as it gets. So if there's any position at 356 00:17:16,960 --> 00:17:21,000 all that shows any level of risk, he's going to get rid of 357 00:17:21,000 --> 00:17:22,880 that company. He's going to, he's going to 358 00:17:22,880 --> 00:17:24,560 chop the position in half. He's going to cut it down. 359 00:17:25,119 --> 00:17:28,240 Not even if the risk is played out, not even if it's real, not 360 00:17:28,240 --> 00:17:31,160 even if it's, you know, played into the fundamentals. 361 00:17:31,400 --> 00:17:33,080 He's going to get out before that. 362 00:17:33,280 --> 00:17:36,960 Even if he believes there's any risk growing in a stock at all, 363 00:17:37,080 --> 00:17:40,040 he will exit the stock. And he's outlined this before. 364 00:17:40,320 --> 00:17:42,000 Here is a recent interview he did. 365 00:17:42,440 --> 00:17:45,200 He talks about his overall portfolio and he mentions that 366 00:17:45,200 --> 00:17:48,560 Google is the most risky stock in its portfolio. 367 00:17:48,960 --> 00:17:51,920 Maybe our most risky investment, one of our smallest investments 368 00:17:51,920 --> 00:17:55,360 as a result, it's it's and where we have some level of protection 369 00:17:55,360 --> 00:17:58,880 because it there are businesses like YouTube and and and their 370 00:17:58,880 --> 00:18:00,880 cloud business which represent half the market cap. 371 00:18:00,920 --> 00:18:05,840 It isn't all search, but search is is critical and and so can 372 00:18:05,840 --> 00:18:10,480 they out innovate competition. Yeah, there's a risk of search 373 00:18:10,480 --> 00:18:16,200 fragmenting, you know as competitors come in and try to 374 00:18:16,320 --> 00:18:21,080 but it's a question mark. We don't think so. 375 00:18:21,080 --> 00:18:25,480 We think they have a lot of advantages of their data to have 376 00:18:25,680 --> 00:18:31,680 to offer higher quality search results, but competition is 377 00:18:31,680 --> 00:18:32,720 increasing. He. 378 00:18:32,720 --> 00:18:34,840 Acknowledges the greatness of Google. 379 00:18:34,840 --> 00:18:36,440 He says that they're diversified. 380 00:18:36,800 --> 00:18:39,040 He says that they that he believes they have a lot of data 381 00:18:39,040 --> 00:18:41,080 advantages. But notwithstanding that, he 382 00:18:41,080 --> 00:18:44,920 says there is a question mark. Competition is increasing in 383 00:18:44,920 --> 00:18:48,680 this very lucrative high margin, valuable space of Google search. 384 00:18:48,800 --> 00:18:52,080 And for him, this calculation is different than most investors. 385 00:18:52,600 --> 00:18:54,760 He doesn't like battleground stocks. 386 00:18:54,960 --> 00:18:57,480 He doesn't like stocks where there's big disagreements or big 387 00:18:57,480 --> 00:19:00,400 question marks of how how things may turn out. 388 00:19:01,040 --> 00:19:03,200 Even though he believes that Google's likely to do really 389 00:19:03,200 --> 00:19:05,880 well, it's most likely to turn out really great. 390 00:19:06,320 --> 00:19:09,920 He just won't take any risk with any type of battleground stock. 391 00:19:09,920 --> 00:19:13,160 So as Google starts to show any level of competition in one of 392 00:19:13,160 --> 00:19:15,640 their core businesses where they historically didn't have as much 393 00:19:15,640 --> 00:19:18,840 competition, Chris Hohn just chops that position. 394 00:19:19,160 --> 00:19:21,960 He's chopped it nearly in half, and it looks like he put most of 395 00:19:21,960 --> 00:19:25,160 that capital in Visa, which is a stock that's not a battleground 396 00:19:25,160 --> 00:19:27,480 stock. There is no big unknowns or 397 00:19:27,480 --> 00:19:30,080 question marks with Visa. So Chris Hohn puts his money in 398 00:19:30,080 --> 00:19:32,280 that and he feels comfortable. He can sleep easy. 399 00:19:32,760 --> 00:19:35,120 He doesn't have to figure out the technological differences 400 00:19:35,360 --> 00:19:38,280 between Google and a perplexity or open AI. 401 00:19:38,280 --> 00:19:39,760 He doesn't have to care about that. 402 00:19:40,200 --> 00:19:42,760 He knows in Visa, there's just no question marks. 403 00:19:43,080 --> 00:19:44,760 And that's his investment philosophy. 404 00:19:45,040 --> 00:19:47,480 He's willing to give up a little bit of upside to make sure his 405 00:19:47,480 --> 00:19:49,800 portfolio has no question marks in it. 406 00:19:50,160 --> 00:19:52,640 And again, that's something that's unique to Chris Hone. 407 00:19:53,200 --> 00:19:56,000 So while I fundamentally disagree with the sell on 408 00:19:56,000 --> 00:19:58,440 Google, you know how bullish I am on the company. 409 00:19:58,760 --> 00:20:01,680 I also respect what he's doing with this portfolio. 410 00:20:02,040 --> 00:20:03,800 I respect his investing philosophy. 411 00:20:04,320 --> 00:20:07,680 And I realize that he's in a different category managing $50 412 00:20:07,680 --> 00:20:12,040 billion than I am managing even a million plus dollars, very 413 00:20:12,040 --> 00:20:14,080 different levels. He's managing other people's 414 00:20:14,080 --> 00:20:16,120 money. He's being far more conservative 415 00:20:16,200 --> 00:20:18,320 with it. So this is part of the reason 416 00:20:18,320 --> 00:20:21,200 that TCI has done so well. It's beat out so many fund 417 00:20:21,200 --> 00:20:23,800 managers. It is concentrated, it's a low 418 00:20:23,800 --> 00:20:27,200 risk, but it's in high return capital companies, very good 419 00:20:27,200 --> 00:20:29,600 investment philosophy. And I believe that puts him as 420 00:20:29,600 --> 00:20:32,000 the top tier S tier of investors. 421 00:20:32,000 --> 00:20:34,800 One of the companies he continues to focus on his GE 422 00:20:34,800 --> 00:20:37,440 Aerospace. There's a business breakdown on 423 00:20:37,440 --> 00:20:38,640 this stock that I think is great. 424 00:20:38,640 --> 00:20:41,440 That goes over it, but I want to cover this one in more detail in 425 00:20:41,440 --> 00:20:44,080 the future as well. The basic summary of GE 426 00:20:44,080 --> 00:20:46,760 Aerospace and the reason that the stock has gone up so much. 427 00:20:47,040 --> 00:20:50,320 It's been such an incredible performer for Chris Hohn over a 428 00:20:50,320 --> 00:20:52,360 long period of time. Look at the performance of this 429 00:20:52,360 --> 00:20:54,480 stock. It's just left out of the 430 00:20:54,480 --> 00:20:57,880 conversation. It's up 500% over the past five 431 00:20:57,880 --> 00:21:01,280 years. Year to date, it's up 80%, but 432 00:21:01,280 --> 00:21:03,840 you're not hearing about it on CNBC or other places. 433 00:21:04,360 --> 00:21:06,120 And part of the reason why is because it's, it's one of these 434 00:21:06,120 --> 00:21:08,240 companies that's a little bit lesser focused on. 435 00:21:08,240 --> 00:21:11,080 It's not in this AI battle. But GE actually has a lot of 436 00:21:11,080 --> 00:21:14,280 similarities as an ASML. I feel like my investment in 437 00:21:14,280 --> 00:21:17,360 ASML is very similar to the investment in GE. 438 00:21:17,600 --> 00:21:20,520 We can look at ASML today and we'll, we'll talk about this one 439 00:21:20,520 --> 00:21:22,600 in the future. It's not up as much, it's up 440 00:21:22,600 --> 00:21:26,720 4546% year to date, but it it's very similar in thesis. 441 00:21:26,720 --> 00:21:30,400 And that is that they make equipment, they make things that 442 00:21:30,400 --> 00:21:33,480 are so difficult to manufacture, that takes such a big history 443 00:21:33,480 --> 00:21:37,200 and knowledge base, so many, so many learnings over so many 444 00:21:37,200 --> 00:21:41,080 years, so many unique partners and exclusive relationships that 445 00:21:41,080 --> 00:21:43,880 it's so difficult for other competitors to create the thing 446 00:21:43,880 --> 00:21:46,360 they did. Most of them don't even try. 447 00:21:46,840 --> 00:21:49,640 They know that if you try to compete with GE Aerospace, 448 00:21:50,040 --> 00:21:52,960 you're going to burn a ton of capital in the process. 449 00:21:53,480 --> 00:21:57,440 And GE is a company that makes things that are so complicated, 450 00:21:57,560 --> 00:22:00,400 these aerospace engines, no one else can do it. 451 00:22:00,680 --> 00:22:02,600 And they have a diversified customer base. 452 00:22:02,600 --> 00:22:04,840 They can sell them to lots of different airlines and different 453 00:22:04,840 --> 00:22:07,920 people that want them O their customer base is diversified. 454 00:22:08,160 --> 00:22:12,360 The product they solely own. It's very similar to an ASML 455 00:22:12,360 --> 00:22:15,040 type of relationship. Very well done by him and I 456 00:22:15,040 --> 00:22:16,880 think also a great buy into Visa. 457 00:22:17,200 --> 00:22:20,120 I think American Express, Visa MasterCard are all wonderful 458 00:22:20,120 --> 00:22:21,960 buys today. They've all been fundamentally 459 00:22:21,960 --> 00:22:23,800 doing great this year. But I believe that Visa, 460 00:22:23,800 --> 00:22:26,760 MasterCard have more upside today now with Chris Hoenn 461 00:22:26,760 --> 00:22:29,880 dramatically trimming his Google position, saying that it's more 462 00:22:29,880 --> 00:22:31,640 risky than any other stock he owns. 463 00:22:32,240 --> 00:22:35,600 I do think that he's wrong here. And I, I think it's worth 464 00:22:35,600 --> 00:22:38,040 highlighting that even the smartest, brightest minds, the 465 00:22:38,040 --> 00:22:41,360 best investors can be wrong on big decisions like this. 466 00:22:41,360 --> 00:22:44,040 And Chris Hoen is somebody that has been wrong before. 467 00:22:44,400 --> 00:22:47,000 I don't highlight this to criticize him, but just to give 468 00:22:47,000 --> 00:22:49,920 some context that we make, the judgement calls that we make. 469 00:22:50,000 --> 00:22:52,520 And in some cases we can be off on things. 470 00:22:52,960 --> 00:22:57,800 Chris Hoen back in 2022 wrote a letter, an open letter to 471 00:22:57,800 --> 00:23:01,200 Google, to the executives of the company, the board of directors. 472 00:23:01,760 --> 00:23:05,720 This was November 15th, 2022, where he he addresses Sundar 473 00:23:05,720 --> 00:23:08,800 Pichai directly, saying that they're a significant investor. 474 00:23:08,920 --> 00:23:11,680 They're expressing their views that the cost basis for Alphabet 475 00:23:11,680 --> 00:23:13,680 is too high. The management needs to take 476 00:23:13,680 --> 00:23:15,760 aggressive actions. The company has too many 477 00:23:15,760 --> 00:23:17,560 employees. The cost per employee is too 478 00:23:17,560 --> 00:23:19,360 high. Management should publicly 479 00:23:19,360 --> 00:23:23,760 disclose EBIT margin targets and substantially reduce the losses 480 00:23:23,960 --> 00:23:26,080 in other bets and increase share buybacks. 481 00:23:26,320 --> 00:23:29,440 He goes through all of this. He says that the company's just 482 00:23:29,600 --> 00:23:33,520 hiring way too many employees and he gives data of the, the 483 00:23:33,520 --> 00:23:36,240 growth in the compounding of hiring different employees. 484 00:23:36,520 --> 00:23:39,160 He says the compensation for these employees are way too 485 00:23:39,160 --> 00:23:41,320 high. And again, he he goes through 486 00:23:41,320 --> 00:23:43,640 and gives charts of how much Google's compensating their 487 00:23:43,640 --> 00:23:45,160 employees compared to other companies. 488 00:23:45,600 --> 00:23:47,640 And then finally he goes into the other bets. 489 00:23:48,120 --> 00:23:51,560 This is where he gives a criticism for Waymo and all of 490 00:23:51,560 --> 00:23:54,920 this. This entire letter was entirely 491 00:23:55,200 --> 00:23:57,600 wrong. Every bit of advice that Chris 492 00:23:57,600 --> 00:24:01,120 Hoen had was wrong. Now again, this isn't just to to 493 00:24:01,120 --> 00:24:03,240 bash Chris Hoen. I think he's one of the best 494 00:24:03,240 --> 00:24:06,200 investors, top tier. I have immense respect for him 495 00:24:06,720 --> 00:24:10,320 and his beliefs even in this case were were very justifiable. 496 00:24:10,600 --> 00:24:13,280 In fact, I believed I agreed with a lot of the criticisms 497 00:24:13,280 --> 00:24:15,600 here. But it shows how much time can 498 00:24:15,600 --> 00:24:19,480 change opinions on things. For example, the first argument 499 00:24:19,480 --> 00:24:21,960 that he made was headcount is too high. 500 00:24:22,680 --> 00:24:25,640 The reason that Google accelerated the headcount, and 501 00:24:25,640 --> 00:24:28,320 this is something that the Information did a report on, the 502 00:24:28,320 --> 00:24:32,800 reason it accelerated at a 20% Kegar was because of Google 503 00:24:32,800 --> 00:24:36,200 Cloud. Google needed rapid increases in 504 00:24:36,200 --> 00:24:38,640 employees. They needed to compensate them 505 00:24:38,640 --> 00:24:42,160 to get the best of the best. SO Google spent their huge cash 506 00:24:42,160 --> 00:24:43,880 pile. They spent that. 507 00:24:43,880 --> 00:24:45,600 They have enough money to buy anything they want. 508 00:24:45,920 --> 00:24:47,480 So they're not at a lack of capital. 509 00:24:47,720 --> 00:24:50,760 They were at a lack of employees and a lack of talent. 510 00:24:51,120 --> 00:24:52,880 They have money to solve those problems. 511 00:24:53,120 --> 00:24:56,760 So Sundar intelligently made the calculation that we're not going 512 00:24:56,760 --> 00:24:59,320 to be cheap on our employees. We're not going to try to 513 00:24:59,320 --> 00:25:02,240 underpay them and get second tier, third tier employees. 514 00:25:02,520 --> 00:25:03,600 We're going to hire aggressively. 515 00:25:03,600 --> 00:25:05,680 We're going to hire the best. We're going to pay them whatever 516 00:25:05,680 --> 00:25:07,040 we need to get the best employees. 517 00:25:07,640 --> 00:25:10,920 So what did he build from all these employees? 518 00:25:11,440 --> 00:25:16,720 Google Cloud, which has Gemini and DeepMind and the TP use 519 00:25:16,880 --> 00:25:18,320 everything that comes along with that. 520 00:25:18,640 --> 00:25:20,120 That requires a lot of employees. 521 00:25:20,480 --> 00:25:23,640 This has been one of the best decisions Sundar has done is 522 00:25:23,640 --> 00:25:26,400 hiring all these employees, getting that running, and now 523 00:25:26,400 --> 00:25:30,160 they have an amazing cloud business attracting enormous 524 00:25:30,160 --> 00:25:32,920 amounts of revenue and clients and growing the MO of Google, 525 00:25:33,120 --> 00:25:35,320 diversifying itself from Google search. 526 00:25:36,160 --> 00:25:39,240 So the first criticism that Chris Hung gives turned out to 527 00:25:39,240 --> 00:25:41,560 be wrong. The employee count was not too 528 00:25:41,560 --> 00:25:44,840 high given the situation. They weren't paying people too 529 00:25:44,840 --> 00:25:47,840 much given the situation. Although there was some waste at 530 00:25:47,840 --> 00:25:50,520 the company and some ways to trim like there is any big 531 00:25:50,520 --> 00:25:52,800 company. Sundar Pichai had a meaningful 532 00:25:52,800 --> 00:25:55,680 reason to hire aggressively and pay aggressively. 533 00:25:56,400 --> 00:25:59,520 The next thing that he was completely wrong on was the 534 00:25:59,760 --> 00:26:02,880 Waymo Other Bets. He says the biggest component of 535 00:26:02,880 --> 00:26:06,080 Other Bets is Waymo. Unfortunately, enthusiasm for 536 00:26:06,080 --> 00:26:09,840 self driving cars has collapsed and competitors have exited the 537 00:26:09,840 --> 00:26:12,040 market. Ford and Volkswagen recently 538 00:26:12,040 --> 00:26:15,040 decided to shut down their self driving car venture saying 539 00:26:15,040 --> 00:26:17,960 quote, we looked at it in every way we could and we just don't 540 00:26:17,960 --> 00:26:20,000 see profitability. A long way out. 541 00:26:20,440 --> 00:26:24,040 Waymo has not justified its excessive investment and its 542 00:26:24,040 --> 00:26:26,280 losses should be reduced dramatically. 543 00:26:26,880 --> 00:26:31,320 So he's calling for instead of Google to be building Waymo 544 00:26:31,600 --> 00:26:33,000 again. This is in 2022. 545 00:26:33,640 --> 00:26:35,160 He's telling them to shut down Waymo. 546 00:26:35,480 --> 00:26:39,840 Stop losing money in that little endeavor and instead buy back 547 00:26:39,840 --> 00:26:41,560 shares. That's what you should do, 548 00:26:41,560 --> 00:26:43,880 Sundar. Don't invest in Robotaxi, just 549 00:26:43,880 --> 00:26:46,840 buy back a few more shares now. What do you think has moved the 550 00:26:46,840 --> 00:26:49,200 stock more for Google over the next three years? 551 00:26:50,080 --> 00:26:54,640 The explosive accelerated growth of Waymo or what could have been 552 00:26:54,640 --> 00:26:57,800 saved, which is around $2 billion in share buybacks, maybe 553 00:26:57,800 --> 00:27:00,880 buying back another .2% of shares outstanding. 554 00:27:01,760 --> 00:27:04,640 Obviously, Waymo has been a way bigger contributor to share 555 00:27:04,640 --> 00:27:07,720 price improvement. They've generated 10s, if not 556 00:27:07,720 --> 00:27:11,160 hundreds of billions of dollars worth of value worth of market 557 00:27:11,160 --> 00:27:15,800 cap in Google by investing in Waymo and ignoring the letter of 558 00:27:15,800 --> 00:27:18,600 Chris Hohn. Cause Sundar Pichai knew that 559 00:27:18,600 --> 00:27:21,640 even though Ford couldn't figure it out, even though these other 560 00:27:21,640 --> 00:27:24,720 companies like Apple couldn't figure it out, we know how we 561 00:27:24,720 --> 00:27:27,520 can get the job done. So Waymo's now expanding to all 562 00:27:27,520 --> 00:27:29,680 different cities. It's expanding on freeways. 563 00:27:29,680 --> 00:27:33,040 It's going into airports. They have path to profitability. 564 00:27:33,240 --> 00:27:35,760 They're already on a per unit basis almost profitable in 565 00:27:35,760 --> 00:27:37,840 California. There's so many good things 566 00:27:37,840 --> 00:27:40,080 coming from that. And the the reason that I 567 00:27:40,080 --> 00:27:42,960 highlight this again is to show that even though he's selling 568 00:27:42,960 --> 00:27:45,920 out of Google, he's had takes on Google. 569 00:27:46,240 --> 00:27:47,680 They haven't been accurate before. 570 00:27:48,200 --> 00:27:51,440 And I think that this is another one that Google's more risky 571 00:27:51,440 --> 00:27:54,640 than these other companies, I think is just frankly not true. 572 00:27:55,040 --> 00:27:58,360 So even though I have great respect for Chris Hoen, I, I 573 00:27:58,360 --> 00:28:00,640 think that overall his portfolio is fantastic. 574 00:28:00,880 --> 00:28:02,240 I just wanted to point this out now. 575 00:28:02,240 --> 00:28:04,640 Next, we have one of my favorite super investors, which is of 576 00:28:04,640 --> 00:28:07,320 course, Dev Cantosario from Valley Forge Capital. 577 00:28:07,600 --> 00:28:09,760 He's someone that I just see eye to eye with. 578 00:28:09,960 --> 00:28:12,240 We agree on a lot. I don't agree with him on 579 00:28:12,360 --> 00:28:14,520 everything. There's a time period where he 580 00:28:14,520 --> 00:28:16,320 sold out of Amazon towards the bottom. 581 00:28:16,320 --> 00:28:19,160 I didn't love that, but he bought into it and that one did 582 00:28:19,160 --> 00:28:21,240 great. And that's the story of Valley 583 00:28:21,240 --> 00:28:24,000 Forge Capital Management. Even the mistakes that Dev makes 584 00:28:24,400 --> 00:28:26,600 are not that big. He usually makes up for it like 585 00:28:26,600 --> 00:28:29,240 in the next trade he makes way more money than the mistake he 586 00:28:29,240 --> 00:28:30,520 made. It's been the story of an 587 00:28:30,520 --> 00:28:34,000 investor that focuses on extraordinarily high quality 588 00:28:34,000 --> 00:28:36,400 companies. High quality meaning super wide 589 00:28:36,400 --> 00:28:40,840 moats, high returns on capital. They have very capital efficient 590 00:28:40,840 --> 00:28:43,120 business models. Not a lot of money spent on 591 00:28:43,120 --> 00:28:46,000 stock based comp, not a lot of money spent on CapEx. 592 00:28:46,280 --> 00:28:48,720 He invests in these companies that have a lot of pricing 593 00:28:48,720 --> 00:28:50,840 power. He says that pricing power is 594 00:28:50,840 --> 00:28:54,160 the key to a high quality company, the ability to raise 595 00:28:54,160 --> 00:28:56,760 prices consistently above the rate of inflation. 596 00:28:57,360 --> 00:29:01,400 And he also loves data centric companies, ones that just sell 597 00:29:01,400 --> 00:29:03,320 something that has 0 marginal cost. 598 00:29:03,480 --> 00:29:07,560 It's quality after quality with no compromises in the portfolio. 599 00:29:07,560 --> 00:29:11,120 So when we look at this overall, if we were to take the current 600 00:29:11,240 --> 00:29:15,240 percent allocation so far, Dev Cantisari's performance year to 601 00:29:15,240 --> 00:29:20,880 date is -2.3%. So the market's up 15%, the 602 00:29:20,880 --> 00:29:25,720 QQQ's up around 20% or 18% or whatever it may be, and here we 603 00:29:25,720 --> 00:29:30,200 have him sitting at -2.3%. That looks bad. 604 00:29:30,280 --> 00:29:32,960 And many investors would look at that if they were performing 605 00:29:32,960 --> 00:29:35,640 that way, and they would believe that they're doing something 606 00:29:35,640 --> 00:29:37,560 wrong. They're making some big mistake. 607 00:29:37,680 --> 00:29:40,400 After all, why would your portfolio go down while the rest 608 00:29:40,400 --> 00:29:43,080 of the market's going up? But notice what Devcantasaria 609 00:29:43,080 --> 00:29:45,320 does. Does he panic and start changing 610 00:29:45,320 --> 00:29:48,200 everything with his portfolio? Does he abandoned all the 611 00:29:48,200 --> 00:29:50,800 research and all the analysis that he did before? 612 00:29:51,480 --> 00:29:54,600 No, he just continues to keep his portfolio virtually the 613 00:29:54,600 --> 00:29:57,160 exact same if his stocks are down year to date. 614 00:29:57,360 --> 00:30:01,120 If many of these stocks are down like 15 or 20% year to date, why 615 00:30:01,120 --> 00:30:03,600 isn't he buying the dip? In this interview, he's asked 616 00:30:03,600 --> 00:30:06,520 about his cash strategy. Listen to what he says here. 617 00:30:06,640 --> 00:30:10,280 We have in our history been at much higher cash positions. 618 00:30:10,280 --> 00:30:15,400 Today, we're less than 1% cash and that is a reflection of the 619 00:30:15,400 --> 00:30:19,000 opportunity that we see today on a risk reward basis. 620 00:30:19,080 --> 00:30:21,400 Now, that interview was a few years ago, but he's continually 621 00:30:21,400 --> 00:30:24,160 reiterated the same thing. He doesn't like to hold a lot of 622 00:30:24,160 --> 00:30:26,480 cash. So it makes sense that right now 623 00:30:26,720 --> 00:30:28,760 he's not selling because he doesn't want to sell. 624 00:30:29,080 --> 00:30:32,200 But he's also not buying because unless investors or other people 625 00:30:32,200 --> 00:30:35,000 give him more cash to invest, he doesn't have some huge cash 626 00:30:35,000 --> 00:30:37,680 position to deploy. Now, those are what I consider 627 00:30:37,680 --> 00:30:40,000 the big investors, ones that I think are the most meaningful to 628 00:30:40,000 --> 00:30:42,440 pay attention to. We have some other notable ones 629 00:30:42,440 --> 00:30:45,240 that we can take a peek at. We have Terry Smith here. 630 00:30:45,720 --> 00:30:48,680 I have not personally been too impressed with Terry Smith's 631 00:30:48,680 --> 00:30:50,520 fund Smith. Over the past couple of years. 632 00:30:50,920 --> 00:30:54,800 They have made a series of buy and sell mistakes, holding the 633 00:30:54,800 --> 00:30:57,520 wrong companies, selling or buying the wrong companies at 634 00:30:57,520 --> 00:31:00,280 the wrong time, selling companies right before they go 635 00:31:00,280 --> 00:31:02,520 up, buying them right before they go down. 636 00:31:02,720 --> 00:31:05,160 We've seen this happen and performance has suffered on a 637 00:31:05,160 --> 00:31:07,760 relative basis. I have, I haven't been impressed 638 00:31:07,760 --> 00:31:10,760 with Terry Smith's moves for some time and this is another 639 00:31:10,760 --> 00:31:13,840 quarter where I leave wondering why he's making the decisions he 640 00:31:13,840 --> 00:31:15,200 is. Next up, we have pulling 641 00:31:15,200 --> 00:31:17,400 capital. Now this isn't like a single 642 00:31:17,400 --> 00:31:19,400 investor. This is their growth fund and 643 00:31:19,400 --> 00:31:21,920 they have a ton of managers. It's a whole investment team. 644 00:31:22,240 --> 00:31:24,760 It's really a big institution. They do a lot of research. 645 00:31:24,760 --> 00:31:27,520 They have like multiple portfolio managers for every 646 00:31:27,640 --> 00:31:29,760 everything they do. When we look at their most 647 00:31:29,760 --> 00:31:32,760 recent trades, we can take a look here, The biggest one was 648 00:31:32,760 --> 00:31:35,160 buying Broadcom. So that seems a little bit like 649 00:31:35,160 --> 00:31:36,680 a momentum buy. They're buying a name that's 650 00:31:36,680 --> 00:31:38,800 gone up a lot. Broadcom has a lot of tailwinds 651 00:31:39,120 --> 00:31:41,760 and they initiated a position or they at least added a huge 652 00:31:41,760 --> 00:31:45,160 percentage to NVIDIA. So Broadcom and NVIDIA, they 653 00:31:45,160 --> 00:31:49,280 want to increase exposure to the chips, play to the GPU's, and 654 00:31:49,280 --> 00:31:52,000 then you have a bunch of other trades that are below 2%. 655 00:31:52,440 --> 00:31:55,080 And this is what they do. They're constantly doing this 656 00:31:55,080 --> 00:31:58,800 type of momentum rebalancing and they've even said in their 657 00:31:58,800 --> 00:32:01,520 letters that this isn't helping with their performance all that 658 00:32:01,520 --> 00:32:03,120 much. After that, we get into Chuck 659 00:32:03,120 --> 00:32:04,960 Ockery with Aucry Capital Management. 660 00:32:05,520 --> 00:32:08,520 Now, it's still under Chuck Ockery's name 'cause he's an 661 00:32:08,520 --> 00:32:12,280 absolute legend, but the name's a bit of a a misnomer now 662 00:32:12,360 --> 00:32:15,800 because Aucry, at least Chuck Ockery, is not managing this 663 00:32:15,800 --> 00:32:18,200 fund anymore. He stepped down a little bit 664 00:32:18,200 --> 00:32:21,240 like what Buffett's doing, and the team at Aucry Capital 665 00:32:21,240 --> 00:32:23,760 Management is trying to manage it in his stead. 666 00:32:24,320 --> 00:32:26,640 Now we have some reductions. They've continually been 667 00:32:26,640 --> 00:32:31,560 reducing MasterCard, Brookfield, Visa, Moody's, O'Reilly, all 668 00:32:31,560 --> 00:32:33,600 these companies that they've held for a long period of time. 669 00:32:34,040 --> 00:32:36,240 But if we look at what they did, I actually like some of the 670 00:32:36,240 --> 00:32:38,280 moves they made. I've been critical of them in 671 00:32:38,280 --> 00:32:40,240 the past, but I like these most recent moves. 672 00:32:40,800 --> 00:32:45,760 They built a sizable position in FICO, so they bought it during 673 00:32:45,760 --> 00:32:47,760 the sell off. I don't know if they bought the 674 00:32:47,760 --> 00:32:50,960 absolute low, we can't tell, but they bought FICO, which is one 675 00:32:50,960 --> 00:32:52,240 of the stocks that's down this year. 676 00:32:52,560 --> 00:32:54,680 They sold out of MasterCard and bought into it, which I think is 677 00:32:54,680 --> 00:32:56,640 a good trade. I actually think this is a great 678 00:32:56,640 --> 00:32:57,680 one. It's the first one that I've 679 00:32:57,680 --> 00:33:00,760 seen this team do that. I agree 100% with it. 680 00:33:00,800 --> 00:33:02,720 Next we get to Alter Rock Partners. 681 00:33:02,720 --> 00:33:05,240 This is another one that has a ton of money that they manage 682 00:33:05,240 --> 00:33:08,400 over $5 billion and they only have 9 positions. 683 00:33:08,720 --> 00:33:11,480 So it's a a little bit like Chris Hohn to just a smaller 684 00:33:11,480 --> 00:33:13,720 extent. What I see here as well, they 685 00:33:13,920 --> 00:33:16,920 have added a lot, a lot of conviction to one position, 686 00:33:17,200 --> 00:33:20,600 which is Amazon. I love seeing that Amazon, I 687 00:33:20,600 --> 00:33:23,360 think is, is one of the two big tech companies. 688 00:33:23,360 --> 00:33:26,200 The two big tech companies that I'm the most bullish on is 689 00:33:26,200 --> 00:33:29,320 Google and Amazon first and foremost of those two companies. 690 00:33:29,320 --> 00:33:32,880 So I love the new buy into Amazon adding 20% to the 691 00:33:32,920 --> 00:33:36,040 position, making it another 5% increase. 692 00:33:36,360 --> 00:33:38,880 They're doing the same thing that a lot of Google investors 693 00:33:38,880 --> 00:33:40,920 are doing. I believe it's a mistake. 694 00:33:40,960 --> 00:33:44,120 They reduce their Google position by 67%. 695 00:33:44,360 --> 00:33:46,320 Next we get to value Act Capital. 696 00:33:46,400 --> 00:33:50,160 They manage over $5 billion. They've done the opposite trade 697 00:33:50,160 --> 00:33:52,640 of Altarock. They've trimmed their Amazon 698 00:33:52,640 --> 00:33:55,720 position a bit, but they've also bought Mongo DB. 699 00:33:55,800 --> 00:33:58,440 They bought Rocket Companies, they bought Toast, and they 700 00:33:58,440 --> 00:34:00,600 bought Visa, and they added to Meta. 701 00:34:01,000 --> 00:34:03,000 So they have a whole slew of companies here that they've been 702 00:34:03,000 --> 00:34:04,560 buying. The most notable thing that 703 00:34:04,560 --> 00:34:07,040 they've done is they've bought into Toast and they've added a 704 00:34:07,040 --> 00:34:09,520 lot to Mongo DB. Those are two companies that I 705 00:34:09,520 --> 00:34:12,159 think are interesting, but Mongo and Toast do not have the Moat 706 00:34:12,159 --> 00:34:14,400 that I'd look for when I'm buying a new position. 707 00:34:14,480 --> 00:34:17,400 Lastly, we have Josh Tarasov. This is another investor that I 708 00:34:17,400 --> 00:34:19,560 like to follow. He manages a much smaller 709 00:34:19,560 --> 00:34:22,000 portfolio, but I still like the trades that he does. 710 00:34:22,000 --> 00:34:25,679 In this case, really all he did this quarter was he sold BAM, 711 00:34:25,679 --> 00:34:28,440 which is Brookfield Asset Management and he bought 712 00:34:28,440 --> 00:34:31,040 Brookfield Corporation. So investors, if you're invested 713 00:34:31,040 --> 00:34:34,159 in Brookfield, you may take notice of that trade and maybe 714 00:34:34,159 --> 00:34:36,120 the reasons behind it. So there we have a look at some 715 00:34:36,120 --> 00:34:38,520 of the best super investors in the world, many of them buying 716 00:34:38,520 --> 00:34:40,320 Google, some of them trimming the position. 717 00:34:40,480 --> 00:34:43,320 We see a slight preference of Visa over MasterCard. 718 00:34:43,520 --> 00:34:45,760 We also see investors buying into FICO. 719 00:34:46,080 --> 00:34:48,480 But overall they're just holding to their strategies. 720 00:34:48,480 --> 00:34:50,360 Their portfolios are mostly the same. 721 00:34:50,480 --> 00:34:54,400 We see no widespread panic, no selling as these investors stick 722 00:34:54,400 --> 00:34:56,239 to their game plan. Now moving on, we get to the 723 00:34:56,239 --> 00:34:58,640 fail of the week. This time it features a post 724 00:34:58,640 --> 00:35:00,160 from none other than Bill Ackman. 725 00:35:00,200 --> 00:35:04,520 We just went over his portfolio, but now we're going over his his 726 00:35:04,560 --> 00:35:07,440 solutions to social problems and cultural problems. 727 00:35:07,960 --> 00:35:10,840 Bill Ackman is somebody that there's no problem he can't 728 00:35:10,840 --> 00:35:14,800 solve, whether it's political, financial, or even in everyday 729 00:35:14,800 --> 00:35:17,600 relationships. He hears about this this issue 730 00:35:17,600 --> 00:35:20,920 that he describes as young men not being able to meet women. 731 00:35:20,920 --> 00:35:23,120 So let's go ahead and just take a look at this post. 732 00:35:23,120 --> 00:35:25,600 This is just recently. We have it from Bill Ackman 733 00:35:25,600 --> 00:35:28,000 here. He says, I hear from many young 734 00:35:28,000 --> 00:35:30,800 men that they find it difficult to meet young women in public 735 00:35:30,800 --> 00:35:33,000 settings. In other words, the online 736 00:35:33,000 --> 00:35:35,960 culture has destroyed the ability to spontaneously meet 737 00:35:35,960 --> 00:35:38,240 strangers. As such, I thought I would share 738 00:35:38,240 --> 00:35:41,280 a few words that I used in my youth to meet someone that I 739 00:35:41,280 --> 00:35:45,600 found compelling. I would ask, quote, may I meet 740 00:35:45,600 --> 00:35:48,080 you? May I meet you? 741 00:35:48,800 --> 00:35:51,240 So Bill Ackman apparently would go up and ask may I meet you to 742 00:35:51,240 --> 00:35:55,200 different women before engaging further in conversation. 743 00:35:55,360 --> 00:35:58,440 It inevitably enabled the opportunity for a further 744 00:35:58,440 --> 00:36:00,680 conversation. I met a lot of really 745 00:36:00,680 --> 00:36:03,320 interesting people this way. I think the combination of 746 00:36:03,320 --> 00:36:05,960 proper grammar and politeness was the key to its 747 00:36:05,960 --> 00:36:08,240 effectiveness. You might give it a try. 748 00:36:08,560 --> 00:36:12,080 And yes, I think it should also work for women seeking men as 749 00:36:12,080 --> 00:36:16,320 well as same sex interactions. Just two cents from an older 750 00:36:16,320 --> 00:36:19,040 happily married guy concerned about our next generation's 751 00:36:19,040 --> 00:36:21,920 happiness and population replacement rates. 752 00:36:22,080 --> 00:36:24,440 Now this went hyper viral online. 753 00:36:24,760 --> 00:36:28,880 It filled my feed and I saw a lot of people immediately jump 754 00:36:28,880 --> 00:36:31,240 to this advice. We have Nick O'Neill taking this 755 00:36:31,240 --> 00:36:34,520 advice to heart, putting it into action immediately on the 756 00:36:34,520 --> 00:36:37,640 streets of New York City. Harry is going to a woman asking 757 00:36:37,640 --> 00:36:42,600 her if if he can meet her. Hi, Excuse me. 758 00:36:43,000 --> 00:36:45,880 May I meet you? May I meet you? 759 00:36:45,880 --> 00:36:52,240 Later, Bill Ackman suggested that we have a crisis of men 760 00:36:52,240 --> 00:36:55,320 unwilling to approach women and just suggested that I say may I 761 00:36:55,320 --> 00:37:01,000 meet you? OK, we'll meet later. 762 00:37:05,480 --> 00:37:07,080 Noel Ackman's really fell through. 763 00:37:07,080 --> 00:37:14,200 With that advice. Crazy OK, it's just so good. 764 00:37:14,800 --> 00:37:17,320 This is one of the many memes shared on this, but it wasn't 765 00:37:17,320 --> 00:37:19,160 the only one Let's go ahead and take a look at some others. 766 00:37:19,560 --> 00:37:23,440 I spent I did scroll on social media yesterday and I will say 767 00:37:23,440 --> 00:37:25,840 that this this brought me a lot of joy seeing some of the 768 00:37:25,840 --> 00:37:28,520 reactions to this. We have Greg, notable account on 769 00:37:28,520 --> 00:37:31,000 X. You miss 100% of the shots that 770 00:37:31,000 --> 00:37:33,720 you don't take. We have Sydney Sweeney's 771 00:37:33,720 --> 00:37:36,120 Instagram account. We have Greg's message right 772 00:37:36,120 --> 00:37:37,360 there. May I meet you. 773 00:37:38,000 --> 00:37:40,000 Best of luck, Greg. I hope it works out with Sydney 774 00:37:40,000 --> 00:37:41,720 Sweeney. We have high yield Harry, a 775 00:37:41,720 --> 00:37:46,000 financial account, meaning Kendall Roy on the phone talking 776 00:37:46,000 --> 00:37:47,400 to someone. Yeah. 777 00:37:47,720 --> 00:37:50,440 May I meet you. This is Kendall Roy from 778 00:37:50,440 --> 00:37:52,360 Succession. I played by Jeremy Strong. 779 00:37:52,640 --> 00:37:55,000 Great meme, great format. Good one there from High Yield 780 00:37:55,000 --> 00:37:57,400 Harry. Ramp Capital with another meme. 781 00:37:58,080 --> 00:38:01,240 Hey, may I meet you? This one is this one of course 782 00:38:01,240 --> 00:38:05,080 is Shane Gillis on tires. That one got 24,000 likes. 783 00:38:05,080 --> 00:38:08,080 So these are super viral memes. Now you probably don't want to 784 00:38:08,080 --> 00:38:10,240 look like this when you ask a woman may I meet you? 785 00:38:10,520 --> 00:38:14,160 Trung Fain's account says may I meet you and it has the Baron 786 00:38:14,280 --> 00:38:17,520 Harkinen in one of his black mud baths. 787 00:38:17,520 --> 00:38:20,360 This is from Dune. So there you have another meme. 788 00:38:20,360 --> 00:38:22,240 Pretty good one solid meme from him. 789 00:38:22,320 --> 00:38:27,080 Then we got Robert Stirling with the OJ Simpson car chase meme 790 00:38:27,640 --> 00:38:31,040 with a bunch of police officers with a text over it May I meet 791 00:38:31,040 --> 00:38:35,120 you and OJ Simpson driving away fleeing all the all the men 792 00:38:35,120 --> 00:38:37,480 saying may I meet you And this is what's going on with Twitter 793 00:38:37,480 --> 00:38:39,600 over the weekend. We have the real Madhu Guru 794 00:38:39,640 --> 00:38:43,040 tweeting, taking a break from Gemini to ship an urgent change 795 00:38:43,040 --> 00:38:45,440 to Google Calendar. And right at the top there you 796 00:38:45,440 --> 00:38:50,160 can see it says may I meet you and then plus meet me. 797 00:38:50,160 --> 00:38:52,880 So we even have product leads at Google over Gemini and the 798 00:38:52,880 --> 00:38:56,320 calendar getting in on the fun posting memes of the Bill Ackman 799 00:38:56,360 --> 00:38:58,240 pick up line. So there we have it folks. 800 00:38:58,240 --> 00:39:01,280 All we have to do to solve this problem of men meeting women is 801 00:39:01,280 --> 00:39:03,080 just to go up and ask, may I meet you? 802 00:39:03,080 --> 00:39:04,600 That's going to be it for this episode. 803 00:39:04,880 --> 00:39:06,480 Hope you enjoyed. See you in the next one.