1 00:00:00,080 --> 00:00:02,560 Welcome back everyone. Christmas has come early in the 2 00:00:02,560 --> 00:00:05,320 form of the stock market. Go on up like crazy. 3 00:00:05,760 --> 00:00:09,000 Check this out from CNBC. We have the indices moving right 4 00:00:09,000 --> 00:00:11,600 now. As of right now we have the S&P 5 00:00:11,600 --> 00:00:18,800 500 almost up two percent, 1.87% Right now, the Nasdaq's up 2.2% 6 00:00:19,120 --> 00:00:22,600 and even the Russell the Russell 2000 is making a big move today 7 00:00:22,600 --> 00:00:26,240 in the green up 4 1/2%. Even the Dow Jones, which is 8 00:00:26,240 --> 00:00:29,960 usually a little bit behind, it's still up 1.4%. 9 00:00:30,280 --> 00:00:32,880 So stocks are zooming up and the reason why? 10 00:00:33,560 --> 00:00:37,040 Well, the inflation numbers came in and they were, they were. 11 00:00:37,160 --> 00:00:40,480 I don't know if he called a beat or a miss, but either way it was 12 00:00:40,480 --> 00:00:42,640 way lower than expected across the board. 13 00:00:42,640 --> 00:00:46,160 They beat on everything. We were expecting inflation to 14 00:00:46,160 --> 00:00:49,040 be here and it was a little bit underneath in all categories. 15 00:00:49,440 --> 00:00:53,480 J Pal's doing a great job bringing inflation down so far 16 00:00:53,480 --> 00:00:57,720 without ruining the economy. A lot of people have said that 17 00:00:57,720 --> 00:01:01,120 it's impossible, that it's going to be a hard, difficult landing, 18 00:01:01,440 --> 00:01:04,239 that we have to go through economic destruction, tons of 19 00:01:04,239 --> 00:01:08,920 job loss and maybe we will in the future, but not today, not 20 00:01:08,920 --> 00:01:10,880 today. As of right now, the market is 21 00:01:10,880 --> 00:01:14,040 in the green big time. The bulls are winning this 22 00:01:14,040 --> 00:01:16,800 battle and it's been a pretty exciting morning. 23 00:01:16,800 --> 00:01:18,480 And while this has been happening, I'll give you a quick 24 00:01:18,480 --> 00:01:21,120 glance at my portfolios. We have the story fund. 25 00:01:21,120 --> 00:01:23,840 This is my smaller, little bit more aggressive, a little bit 26 00:01:23,840 --> 00:01:27,680 more volatile portfolio. It's up $15,000 in the green now 27 00:01:27,800 --> 00:01:31,680 just today it is up 1.89%. So right there a little bit 28 00:01:31,680 --> 00:01:34,560 above the S&P 500, a little bit below the QQQ. 29 00:01:34,920 --> 00:01:38,680 But this portfolio has been having an incredible month. 30 00:01:39,040 --> 00:01:43,440 The one month on it is 12 percent, 12% in the past month. 31 00:01:43,800 --> 00:01:49,280 In fact in Netflix, Netflix is up 26% in the past 30 days. 32 00:01:49,720 --> 00:01:53,960 So huge recovery from one of my companies that say 24% position. 33 00:01:54,680 --> 00:01:57,680 And overall if we look at the returns of the Story Fund, we 34 00:01:57,680 --> 00:02:03,200 benchmark it against SPY, it is now within 1% of the S&P 500 35 00:02:03,560 --> 00:02:05,520 right there. The Story fund is this blue 36 00:02:05,520 --> 00:02:09,560 line, the S&P 500 is in red and the Story Fund had fallen 37 00:02:09,560 --> 00:02:11,400 behind. We've made some better 38 00:02:11,400 --> 00:02:13,960 decisions. We've caught back up and now we 39 00:02:13,960 --> 00:02:16,840 are basically neck and neck within 2%. 40 00:02:17,320 --> 00:02:19,720 So it's anyone's game. Now the story fund is in a 41 00:02:19,720 --> 00:02:21,480 position where we can surpass SPY. 42 00:02:21,600 --> 00:02:24,480 If we get more good Netflix reports, more subscriber gains, 43 00:02:24,480 --> 00:02:27,880 more cash flow, as well as Amazon, these two companies 44 00:02:27,880 --> 00:02:29,680 alone will pull this portfolio ahead. 45 00:02:29,760 --> 00:02:31,400 So that's exciting. And then the passive income 46 00:02:31,400 --> 00:02:33,560 portfolio is also having an incredible performance. 47 00:02:33,880 --> 00:02:36,240 It's been doing really well. It's been keeping up with these 48 00:02:36,240 --> 00:02:38,960 gains. Today it's $110,000 in the 49 00:02:38,960 --> 00:02:41,240 green. I think this marks an all time 50 00:02:41,240 --> 00:02:44,120 high. Just today it's up to .1%. 51 00:02:44,720 --> 00:02:48,920 So this more conservative portfolio is making better gains 52 00:02:48,920 --> 00:02:51,640 today. On a big Green Day, VG's up 4%. 53 00:02:51,640 --> 00:02:54,520 On the day, that's pretty big. Costco's up 2% today. 54 00:02:54,560 --> 00:02:57,040 That was a company that I recently visited at Costco last 55 00:02:57,040 --> 00:02:59,120 Saturday, and boy was that a mistake. 56 00:02:59,120 --> 00:03:00,680 Don't go into Costco on a Saturday. 57 00:03:01,000 --> 00:03:04,600 Way too busy, jam packed the entire time in the financial 58 00:03:04,600 --> 00:03:06,320 category. These companies are killing it, 59 00:03:06,320 --> 00:03:08,960 but especially into it. I've been trying to get people 60 00:03:08,960 --> 00:03:11,560 at least interested in looking at into it and I haven't done a 61 00:03:11,560 --> 00:03:13,080 good job. I feel like not a lot of people 62 00:03:13,080 --> 00:03:16,800 have looked at this company, but it's up 4% on the day and I just 63 00:03:16,800 --> 00:03:18,480 bought into this company this year. 64 00:03:18,480 --> 00:03:21,400 I bought into it on a dip. We're already in the green by 65 00:03:21,400 --> 00:03:23,640 $10,000. In fact, I think out of all my 66 00:03:23,640 --> 00:03:26,840 investing positions, this is the fastest 1 to $10,000 in the 67 00:03:26,840 --> 00:03:28,320 green. Now I know during times like 68 00:03:28,320 --> 00:03:30,600 this when the stock market's racing up, when it's in the 69 00:03:30,600 --> 00:03:34,120 green, when we have a lot of momentum, it's really exciting 70 00:03:34,120 --> 00:03:36,560 and I do think it's fun to be a part of it and celebrate the 71 00:03:36,560 --> 00:03:38,680 gains we're making. But this is also the exact 72 00:03:38,680 --> 00:03:41,640 moment when we should be cautious, level headed, rational 73 00:03:42,000 --> 00:03:45,080 when we don't want to get caught up in the FOMO, the fear of 74 00:03:45,080 --> 00:03:47,280 missing out, pulling us into bad investments. 75 00:03:47,280 --> 00:03:49,920 So even though the portfolio's had an incredible performance 76 00:03:49,920 --> 00:03:53,080 this year, it's doing well. I'm going to remain very 77 00:03:53,080 --> 00:03:56,360 cautious and disciplined with my approach looking for reasonable 78 00:03:56,360 --> 00:03:59,240 valuations and companies that I still think have really good 79 00:03:59,400 --> 00:04:01,360 risk rewards. Now that we've seen a little bit 80 00:04:01,360 --> 00:04:04,240 of My Portfolio, I want to change gears and go over some 81 00:04:04,240 --> 00:04:06,400 super investors. It's that time of year again 82 00:04:06,400 --> 00:04:09,640 where the 13 F filings are due, meaning that investors that 83 00:04:09,640 --> 00:04:13,800 manage over $100 million are legally obligated to disclose 84 00:04:13,840 --> 00:04:16,560 their holdings and their positions that they had last 85 00:04:16,560 --> 00:04:18,240 quarter. This gives us unique insight 86 00:04:18,240 --> 00:04:20,399 into what they're holding, what they're buying and what they've 87 00:04:20,399 --> 00:04:22,240 recently sold. And from that we can try to 88 00:04:22,240 --> 00:04:25,440 reverse engineer what their investing strategy is, what 89 00:04:25,440 --> 00:04:28,000 their thoughts are, what's going behind these moves. 90 00:04:28,360 --> 00:04:30,720 So what we have here is a list of super investors that we're 91 00:04:30,720 --> 00:04:33,640 going to be looking at. We have Terry Smith, Chris Hohn, 92 00:04:33,880 --> 00:04:37,240 Josh Tarasov, Michael Bury and Thomas Russo. 93 00:04:37,320 --> 00:04:39,800 These are all incredible super investors and I'm excited to go 94 00:04:39,800 --> 00:04:42,120 through their portfolios. So let's go ahead and see what 95 00:04:42,120 --> 00:04:42,920 we can learn. Now. 96 00:04:42,920 --> 00:04:44,920 The first super investor we're going to be looking at is Terry 97 00:04:44,920 --> 00:04:46,880 Smith. He is the fund Smith investor 98 00:04:46,880 --> 00:04:50,040 from the UK He's very competitive and he focuses on 99 00:04:50,040 --> 00:04:52,800 companies that he considers to be very high quality. 100 00:04:53,080 --> 00:04:56,360 Now quality is ambiguous. What does that mean? 101 00:04:56,600 --> 00:04:58,920 Well, Terry Smith defines quality as companies that have 102 00:04:58,920 --> 00:05:03,800 persistently high ROCE returns on capital employed. 103 00:05:04,200 --> 00:05:07,320 That's very similar to high returns on invested capital or 104 00:05:07,320 --> 00:05:10,000 returns on capital. They'll measure basically the 105 00:05:10,000 --> 00:05:12,480 same thing. So Terry Smith is an investor 106 00:05:12,680 --> 00:05:14,480 that will invest in companies like Microsoft. 107 00:05:14,760 --> 00:05:18,080 Because if we go to Microsoft and we look at their ROCE, which 108 00:05:18,080 --> 00:05:21,480 we have measured here right in Qualtrum, you'll notice that 109 00:05:21,480 --> 00:05:26,560 it's very high, 28 percent, 30 percent, 29%. 110 00:05:26,960 --> 00:05:29,440 This is pretty high. If we look at other companies, 111 00:05:29,440 --> 00:05:33,200 for example, like Ford or any airlines or a lot of different 112 00:05:33,200 --> 00:05:37,880 industries, we can look at the ROCE of Ford and it's 7%, ten 113 00:05:37,880 --> 00:05:41,480 percent, 5%, very low. He's never going to buy 114 00:05:41,480 --> 00:05:44,480 companies like this because he doesn't consider this quality. 115 00:05:44,480 --> 00:05:46,800 So let's go ahead and take a look at Terry Smith's portfolio. 116 00:05:47,200 --> 00:05:50,320 We'll bring it up here. And as you can see, it has a lot 117 00:05:50,320 --> 00:05:54,560 of these companies, Microsoft, Meta, Philip Morris, ADP, Visa 118 00:05:54,880 --> 00:05:57,040 and again, all of these have that same metric. 119 00:05:57,360 --> 00:06:01,120 We look at his activity and we filter by what he's actually 120 00:06:01,120 --> 00:06:03,000 changed. His biggest sell is Estee 121 00:06:03,000 --> 00:06:05,520 Lauder. His biggest buy is Marriott. 122 00:06:05,840 --> 00:06:08,760 So we basically sold out of Estee Lauder and he put that 123 00:06:08,760 --> 00:06:10,720 money into Marriott. Let's go ahead and take a look 124 00:06:10,720 --> 00:06:12,120 at each. We're using Qualtrum here. 125 00:06:12,120 --> 00:06:14,240 This website's available to Patreon members. 126 00:06:14,720 --> 00:06:17,520 Now, Estee Lauder has been in the gutter this year. 127 00:06:17,520 --> 00:06:20,600 It's down 51%. It's had a terrible performance. 128 00:06:20,880 --> 00:06:24,200 The revenue has been declining, the free cash flow has gone 129 00:06:24,200 --> 00:06:26,480 negative and the earnings have declined. 130 00:06:26,840 --> 00:06:30,280 I was lucky enough to sell out of Estee Lauder pretty high 131 00:06:30,640 --> 00:06:33,200 because I listened to the earnings reports from the 132 00:06:33,200 --> 00:06:35,160 management and I was not impressed. 133 00:06:35,680 --> 00:06:38,960 I saw so many red flags them talking about troubles in China 134 00:06:39,280 --> 00:06:43,200 then blaming a different factors that are outside of the company 135 00:06:43,200 --> 00:06:46,520 over and over and over again. When I see that happen when a 136 00:06:46,520 --> 00:06:49,160 company point the finger at something else, that's not 137 00:06:49,160 --> 00:06:51,280 something I like to see. So typically I move out of those 138 00:06:51,280 --> 00:06:53,760 companies. We can also see that the ROCE of 139 00:06:53,760 --> 00:06:57,040 the company's dropping overtime which is not a good sign. 140 00:06:57,040 --> 00:06:59,680 So Estee Lauder is a company where the fundamentals are 141 00:06:59,680 --> 00:07:02,480 deteriorating to some extent that is undeniable. 142 00:07:02,880 --> 00:07:05,360 And Terry Smith does not hold companies where the fundamentals 143 00:07:05,360 --> 00:07:07,160 deteriorate. He switches in for companies 144 00:07:07,160 --> 00:07:08,920 with strong fundamentals. So let's go ahead and take a 145 00:07:08,920 --> 00:07:10,680 look at Marriott here, We'll bring it up. 146 00:07:11,200 --> 00:07:14,960 This company has a decent free cash flow, yield, A20, 4PE 147 00:07:14,960 --> 00:07:17,520 ratio. As you know, Marriott's asset 148 00:07:17,520 --> 00:07:20,160 light, they don't really own a lot of their real estate. 149 00:07:20,160 --> 00:07:23,040 They just license their name and their hotel operator. 150 00:07:23,640 --> 00:07:26,600 And we've seen a bit of rebound in the travel industry. 151 00:07:26,920 --> 00:07:29,160 So the cash flows seem to be on track. 152 00:07:29,160 --> 00:07:31,640 They're going back up. It looks like the metrics here 153 00:07:31,640 --> 00:07:35,480 are good overall and if we look at the ROCE of the company, you 154 00:07:35,480 --> 00:07:39,280 notice the exact opposite trend. So this does not surprise me at 155 00:07:39,280 --> 00:07:41,320 all. With Terry Smith, this is right 156 00:07:41,320 --> 00:07:43,400 in line with his investment philosophy. 157 00:07:43,520 --> 00:07:45,600 I think he's doing exactly what he says he'll do. 158 00:07:45,680 --> 00:07:47,720 Overall, his portfolio looks mostly the same. 159 00:07:47,720 --> 00:07:50,960 He still has a huge holding in Microsoft, over 10% and then 160 00:07:50,960 --> 00:07:53,480 every other position is about 7% or below. 161 00:07:53,480 --> 00:07:57,560 He has a little bit of meta, Phillip Morris, ADP, Visa, 162 00:07:57,560 --> 00:08:01,520 McCormick, Pepsi, all these really cash flow positive 163 00:08:01,520 --> 00:08:04,760 companies that have higher ROCE than the index. 164 00:08:05,160 --> 00:08:06,840 This is really what he leans into. 165 00:08:07,240 --> 00:08:08,400 I don't see any problem with this. 166 00:08:08,400 --> 00:08:10,920 I think Terry Smith is doing exactly what he's always done. 167 00:08:11,160 --> 00:08:13,840 Now this next investor, Chris Hohn, I believe is the real 168 00:08:13,840 --> 00:08:15,800 deal. He's one of the top five working 169 00:08:15,800 --> 00:08:18,200 today. He manages A portfolio, get 170 00:08:18,200 --> 00:08:24,440 this, the portfolio size is 28 billion dollars, $28 billion and 171 00:08:24,440 --> 00:08:27,480 he has a total of 9 holdings. So if you want to talk about 172 00:08:27,480 --> 00:08:31,400 concentration, think about concentrating $28 billion into 173 00:08:31,400 --> 00:08:34,240 nine different positions. He's able to do this and he's 174 00:08:34,240 --> 00:08:37,080 able to outperform for a long period of time because he 175 00:08:37,080 --> 00:08:39,679 concentrates into incredibly high quality companies. 176 00:08:39,960 --> 00:08:42,120 He understands these companies inside and out. 177 00:08:42,400 --> 00:08:45,120 So he has a very good risk assessment of what he's buying. 178 00:08:45,440 --> 00:08:47,800 Now let's go ahead and take a look at his portfolio here and 179 00:08:47,800 --> 00:08:50,080 the trades that he did last quarter. 180 00:08:50,400 --> 00:08:55,240 This is it, Q 3/20/23. He sold his entire stake in 181 00:08:55,240 --> 00:08:59,360 Microsoft. This was a 12% position. 182 00:08:59,720 --> 00:09:02,720 This could either be good or bad depending on when he sold, 183 00:09:03,000 --> 00:09:06,120 because Microsoft just went through a massive rally. 184 00:09:06,400 --> 00:09:08,600 If we bring up Microsoft here, let's just take a look at the 185 00:09:08,600 --> 00:09:12,120 past month. It's up 10% in the past month, 186 00:09:12,520 --> 00:09:16,320 so if he sold down here right before a big rally, that was 187 00:09:16,320 --> 00:09:18,760 probably a bit of a bummer. I think he'd be bummed out if he 188 00:09:18,760 --> 00:09:21,560 sold just before this massive rally this month. 189 00:09:21,880 --> 00:09:24,280 And unfortunately with the filings, we don't know exactly 190 00:09:24,280 --> 00:09:26,640 when he sold. So this could be either good or 191 00:09:26,640 --> 00:09:31,280 bad, but my guess is he probably sold it just a bit too early 192 00:09:31,440 --> 00:09:33,920 before this big rally. That would be my guess. 193 00:09:34,360 --> 00:09:36,600 Either way, he still made a lot of money with Microsoft. 194 00:09:36,600 --> 00:09:40,160 This was still a hugely positive holding, outperforming the 195 00:09:40,160 --> 00:09:41,880 index. So he still did well, but he 196 00:09:41,880 --> 00:09:44,000 probably would have done a little bit better by just 197 00:09:44,000 --> 00:09:46,560 holding onto it the current day. If I had to guess why he sold 198 00:09:46,560 --> 00:09:49,200 Microsoft, I think it's almost entirely due to valuation. 199 00:09:49,480 --> 00:09:53,120 Microsoft has done so well for such a good period of time and 200 00:09:53,120 --> 00:09:56,000 the valuation has expanded. So I think that's the reason 201 00:09:56,000 --> 00:09:58,320 why. Now the next things he did was 202 00:09:58,320 --> 00:10:00,720 he sold a little bit of Visa, a little bit of trimming of 203 00:10:00,720 --> 00:10:03,840 Google, a little bit of S&P Global, a little bit of Moody's. 204 00:10:04,160 --> 00:10:07,480 I don't read into this too much. When it's less than a percent, 205 00:10:07,840 --> 00:10:10,760 that can mean because they're just they, they have some 206 00:10:10,760 --> 00:10:13,520 withdraws or they have some they, they have some 207 00:10:13,520 --> 00:10:15,320 redemptions. It can mean a couple different 208 00:10:15,320 --> 00:10:17,280 things. So this doesn't spook me out of 209 00:10:17,280 --> 00:10:19,760 these holdings. They're still heavily invested 210 00:10:19,760 --> 00:10:21,240 in them. Let's go ahead and take a look 211 00:10:21,240 --> 00:10:23,280 at his holdings here. Like I said, there's nine 212 00:10:23,280 --> 00:10:26,320 positions, There's really eight that he has a substantial 213 00:10:26,320 --> 00:10:28,880 holding in. So this is concentration. 214 00:10:29,080 --> 00:10:31,120 This is knowing what you're investing in and making 215 00:10:31,120 --> 00:10:33,400 substantial bets. The biggest companies that he's 216 00:10:33,400 --> 00:10:37,840 currently invested in is GE, and he's had this one right so far. 217 00:10:37,960 --> 00:10:41,160 He invested in this company while a lot of other people were 218 00:10:41,160 --> 00:10:43,600 completely bearish on it, and he won. 219 00:10:43,600 --> 00:10:47,320 It's up 76% year to date, so he really won on this one. 220 00:10:47,560 --> 00:10:49,920 So GE has been a massive success for him. 221 00:10:50,240 --> 00:10:52,400 Personally, I'm not touching the company. 222 00:10:52,760 --> 00:10:54,880 I won't touch GE. I don't know enough about it. 223 00:10:54,880 --> 00:10:57,800 I don't necessarily think it's that high quality, but I'm 224 00:10:57,800 --> 00:11:00,760 outside of this industry. I really don't understand it, so 225 00:11:00,760 --> 00:11:02,040 I'm staying far away. Now. 226 00:11:02,040 --> 00:11:04,720 GE makes up around 17% of the portfolio. 227 00:11:05,080 --> 00:11:09,520 The other 30% of it, 31%, are railroads. 228 00:11:09,640 --> 00:11:12,440 We have Canadian Pacific, Kansas City Southern and Canadian 229 00:11:12,440 --> 00:11:15,400 National Railway, around 15% in each of them. 230 00:11:15,760 --> 00:11:19,280 I currently hold Canadian Pacific, Kansas City Southern. 231 00:11:19,920 --> 00:11:22,600 I think the railroad has lower downside. 232 00:11:22,600 --> 00:11:25,080 I think it's a very stable business, high barriers to entry 233 00:11:25,440 --> 00:11:27,840 as well as it produces a significant amount of free cash 234 00:11:27,840 --> 00:11:30,600 flow every single year. Another thing about rail is 235 00:11:30,600 --> 00:11:33,760 there's likely going to be more onshoring of manufacturing with 236 00:11:33,760 --> 00:11:36,400 things being made in Mexico and the US and Canada. 237 00:11:36,680 --> 00:11:40,280 That means more stuff being shipped around within the US and 238 00:11:40,280 --> 00:11:41,640 that's where rail comes into play. 239 00:11:41,960 --> 00:11:44,880 So there are some secular trends working for these companies. 240 00:11:45,280 --> 00:11:48,800 Next up we have Visa. So we have Visa right here. 241 00:11:48,800 --> 00:11:51,640 He doesn't own any MasterCard. My bet's on MasterCard, but I 242 00:11:51,640 --> 00:11:54,560 just as easily own Visa. I view these companies as high 243 00:11:54,560 --> 00:11:57,360 quality tech companies that are data information companies. 244 00:11:57,600 --> 00:12:00,040 They're not just credit card companies, they're not just 245 00:12:00,040 --> 00:12:02,560 financial companies. This is an incredibly high 246 00:12:02,560 --> 00:12:05,640 quality tech focused financial network company. 247 00:12:06,200 --> 00:12:10,760 Next, we have S&P Global and Moody's around 12% in each of 248 00:12:10,760 --> 00:12:13,760 these companies. The credit rating agency in and 249 00:12:13,760 --> 00:12:16,360 of itself is a huge Moat business. 250 00:12:16,480 --> 00:12:19,400 It's very difficult to compete with credit rating agencies. 251 00:12:19,680 --> 00:12:23,040 And then these businesses also have very high margin analytics 252 00:12:23,040 --> 00:12:26,840 businesses attached to them. S&P Global's heavy into data and 253 00:12:26,840 --> 00:12:29,520 indices, Moody's into company analytics. 254 00:12:29,520 --> 00:12:31,680 So again, I think part of these companies are both tech 255 00:12:31,680 --> 00:12:33,760 companies. Next up, we have Google around 256 00:12:33,800 --> 00:12:35,600 8%. That makes sense. 257 00:12:35,600 --> 00:12:38,400 Another wide Moat company, very significant cash flows. 258 00:12:38,480 --> 00:12:41,720 Then we have Thermo Fisher Scientific at 5.8%, another very 259 00:12:41,720 --> 00:12:44,000 strong cash flow company, very wide Moat. 260 00:12:44,280 --> 00:12:47,320 And then we have Ferguson at .29%. 261 00:12:47,400 --> 00:12:48,960 This seems like a watcher position. 262 00:12:48,960 --> 00:12:51,560 It's not meaningful. When I look at this portfolio, I 263 00:12:51,560 --> 00:12:53,720 once again come to the assessment that it's an 264 00:12:53,720 --> 00:12:56,400 incredibly high quality concentrated portfolio. 265 00:12:56,600 --> 00:12:59,840 It's highly likely to outperform the S&P 500 over the next 10 266 00:12:59,840 --> 00:13:01,320 years. Now you may say it's greater 267 00:13:01,320 --> 00:13:04,200 risk because of the level of concentration, but keep in mind 268 00:13:04,200 --> 00:13:07,680 what he's concentrating into and the types of businesses these 269 00:13:07,680 --> 00:13:09,560 are. These are world class 270 00:13:09,560 --> 00:13:12,680 monopolistic businesses. So overall, I once again think 271 00:13:12,680 --> 00:13:15,440 Chris Hone has one of the best investing styles in the market 272 00:13:15,480 --> 00:13:17,160 and I see no red flags right now. 273 00:13:17,160 --> 00:13:20,280 Now Next up we have Josh Karasoff, who manages a $300 274 00:13:20,280 --> 00:13:23,800 million portfolio and he also holds a lot of concentrated 275 00:13:23,800 --> 00:13:26,800 positions. So he only has 9 total holdings. 276 00:13:27,240 --> 00:13:29,920 Now let's go ahead and take a look at what he's done over this 277 00:13:29,920 --> 00:13:32,080 past quarter. We'll look at it here. 278 00:13:32,080 --> 00:13:34,480 We have Spotify as the number one thing. 279 00:13:34,760 --> 00:13:37,760 He sold out of his entire position in Spotify. 280 00:13:38,560 --> 00:13:41,000 Now that's a bit surprising. Let's go ahead and take a look 281 00:13:41,000 --> 00:13:44,120 at Spotify here. Let me bring it up on Qualtrum. 282 00:13:44,400 --> 00:13:46,480 Let's go ahead and take a look at the price action. 283 00:13:47,200 --> 00:13:51,120 I guess what I see here is he's held this company for a while, 284 00:13:51,440 --> 00:13:54,440 so he's been invested in it. And I think he bought quite a 285 00:13:54,440 --> 00:13:57,160 bit and accumulated more shares around this time period. 286 00:13:57,400 --> 00:13:59,280 He was holding it while it was selling off. 287 00:13:59,720 --> 00:14:02,000 I I I think he, he thought it was probably worth more than 288 00:14:02,000 --> 00:14:04,080 that. And then we had this big rally 289 00:14:04,080 --> 00:14:08,160 this year, it's up 112%. So I think that's the reason why 290 00:14:08,160 --> 00:14:10,400 I really think he probably just sold it because it went up this 291 00:14:10,400 --> 00:14:13,160 year and he looked for an exit with the company. 292 00:14:13,600 --> 00:14:15,600 But I still think that's a bit surprising. 293 00:14:16,120 --> 00:14:20,280 Josh Tarasoff doesn't just sell companies to get some gains in 294 00:14:20,280 --> 00:14:22,000 them. He typically tries to hold them 295 00:14:22,000 --> 00:14:25,240 for 5/10/15 years like he's held Amazon. 296 00:14:25,640 --> 00:14:28,680 So seeing him sell out of this company is a little bit 297 00:14:28,680 --> 00:14:31,160 concerning to me. I think it's something where if 298 00:14:31,160 --> 00:14:34,160 you look at Spotify, he may have came up with a problem with the 299 00:14:34,160 --> 00:14:36,920 thesis. When I look at Spotify, I'm 300 00:14:36,920 --> 00:14:39,480 mixed on the company. I think there's substantial 301 00:14:39,480 --> 00:14:43,040 potential upside, but there's also too many challenges for the 302 00:14:43,040 --> 00:14:45,000 company. They're not only facing against 303 00:14:45,000 --> 00:14:47,720 big tech, but they also have a lot of their margins taken by 304 00:14:47,720 --> 00:14:50,840 the music labels, and there's just a lot of competition with 305 00:14:50,840 --> 00:14:53,320 podcasts. So with Spotify, I see a lot 306 00:14:53,320 --> 00:14:56,920 more competition and a lot more margin problem than I do with 307 00:14:56,920 --> 00:14:58,960 Netflix. My bet between the streaming 308 00:14:58,960 --> 00:15:02,440 players is with Netflix. Now the next big change was an 309 00:15:02,440 --> 00:15:05,760 addition to Markel Group. This is a specialty insurance 310 00:15:05,760 --> 00:15:07,920 company. He also added to Brookfield 311 00:15:07,920 --> 00:15:09,960 Corp. This is a popular investment. 312 00:15:09,960 --> 00:15:12,080 I see it passed around retail investors all the time. 313 00:15:12,240 --> 00:15:14,560 Brookfield's talked about like the Canadian Berkshire. 314 00:15:14,560 --> 00:15:16,800 They invest in a lot of infrastructure projects, just 315 00:15:16,800 --> 00:15:19,960 like Berkshire owns a lot of utilities and energy. 316 00:15:19,960 --> 00:15:22,480 Brookfield is a high quality company that's compounded for a 317 00:15:22,480 --> 00:15:24,800 number of years. So this is what his portfolio 318 00:15:24,800 --> 00:15:27,160 looks like. He still has the significant bet 319 00:15:27,160 --> 00:15:29,680 in Amazon. He's held this company for over 320 00:15:29,680 --> 00:15:32,000 10 years. It's his claim to fame. 321 00:15:32,440 --> 00:15:35,560 What he changed was he added more to Brookfield, Markel and 322 00:15:35,560 --> 00:15:37,560 Alphabet. So those are the three he added 323 00:15:37,560 --> 00:15:40,360 to as well as a little bit more to Burford Capital. 324 00:15:40,880 --> 00:15:43,880 But overall his portfolio looks mostly the same. 325 00:15:43,920 --> 00:15:47,160 The only real change here is selling out of Spotify, which 326 00:15:47,160 --> 00:15:50,080 after this rally, I don't think is entirely unexpected. 327 00:15:50,160 --> 00:15:53,000 I think Josh Tarasaw's portfolio looks good, but ultimately it's 328 00:15:53,000 --> 00:15:55,320 not my favorite one. There's some companies that he 329 00:15:55,320 --> 00:15:57,560 holds from time to time that I think are questionable. 330 00:15:57,680 --> 00:16:00,480 Next up we have Michael Bury, who at this point needs no 331 00:16:00,480 --> 00:16:01,880 introduction. So let's go ahead and take a 332 00:16:01,880 --> 00:16:03,440 look at his trades this last quarter. 333 00:16:03,840 --> 00:16:07,040 And I'll say the same thing I say every time that we look at 334 00:16:07,040 --> 00:16:10,080 Michael Bury's trades. I think there's little value. 335 00:16:10,120 --> 00:16:13,480 In fact, I think there's very little in looking over his 336 00:16:13,480 --> 00:16:17,360 trades in terms of wanting to mimic them, because I think that 337 00:16:17,360 --> 00:16:21,240 Michael Bury overall is one of the most difficult people to 338 00:16:21,240 --> 00:16:23,960 actually follow what he's doing, what he's doing with his 339 00:16:23,960 --> 00:16:25,840 portfolio. You can't follow him. 340 00:16:25,840 --> 00:16:27,760 It's just impossible. I mean, look at the trades he 341 00:16:27,760 --> 00:16:29,480 did just in the past three months. 342 00:16:29,920 --> 00:16:33,080 He sold entirely out of dozens of companies. 343 00:16:33,360 --> 00:16:36,320 There's like 25 companies that he sold 100% of. 344 00:16:36,920 --> 00:16:39,000 So you can't track this. You're not, you're not going to 345 00:16:39,000 --> 00:16:41,120 be able to make the same trades at the same time he does. 346 00:16:41,400 --> 00:16:44,400 And then he added to another dozen positions. 347 00:16:44,920 --> 00:16:48,760 Right now he seems to be making a bet on booking holdings. 348 00:16:48,760 --> 00:16:51,120 We bought into that with a 10% position. 349 00:16:51,440 --> 00:16:53,280 He bought into Nexstar Media Group. 350 00:16:53,680 --> 00:16:57,240 He also seems to be buying into Chinese e-commerce websites, 351 00:16:57,240 --> 00:17:00,680 Alibaba and JD. If there's any common theme with 352 00:17:00,680 --> 00:17:03,640 Michael Bury, the one thing I do notice with most of his 353 00:17:03,640 --> 00:17:07,000 holdings, especially the bigger ones, is they typically trade at 354 00:17:07,000 --> 00:17:10,359 incredibly low valuations. He's a value investor where he 355 00:17:10,359 --> 00:17:13,480 tries to buy the companies nobody else wants to touch. 356 00:17:13,920 --> 00:17:17,160 So he's buying into Chinese e-commerce companies as they're 357 00:17:17,160 --> 00:17:19,599 doing terrible. Nobody else wants to invest in 358 00:17:19,599 --> 00:17:22,200 them and he does the same thing with a lot of companies. 359 00:17:22,520 --> 00:17:25,640 So that's really the only commonality is ultra low 360 00:17:25,640 --> 00:17:28,720 valuations with this holdings. Next up we have a value investor 361 00:17:28,720 --> 00:17:31,880 called Thomas Russo. He manages around $9 billion in 362 00:17:31,880 --> 00:17:33,800 assets. But I do like his investing 363 00:17:33,800 --> 00:17:35,640 strategy. He invests in companies that 364 00:17:35,640 --> 00:17:38,480 have significant cash flows. They typically have very stable 365 00:17:38,480 --> 00:17:42,040 business models and he aims for a 12% annualized return. 366 00:17:42,480 --> 00:17:44,680 He's a bottom up investor that likes investing in companies 367 00:17:44,680 --> 00:17:47,760 because of their fundamentals and he's also long term. 368 00:17:47,880 --> 00:17:51,120 In fact, if we look at his trades this last quarter, this 369 00:17:51,120 --> 00:17:54,880 is what it looks like. His single biggest trade is a 370 00:17:54,920 --> 00:17:58,960 1.36% move. That's it. 371 00:17:59,280 --> 00:18:01,560 He literally changed almost nothing. 372 00:18:01,880 --> 00:18:04,520 Most of these trades are entirely insignificant, less 373 00:18:04,520 --> 00:18:09,320 than .10%. So I like that he's just holding 374 00:18:09,320 --> 00:18:12,800 on to his company's changing nothing and doing the thing 375 00:18:12,800 --> 00:18:15,160 you're supposed to do, buy into good companies and let them have 376 00:18:15,160 --> 00:18:16,760 time to compound. Now let's go ahead and take a 377 00:18:16,760 --> 00:18:18,840 look at his portfolio. The type of companies that he 378 00:18:18,840 --> 00:18:21,600 buys into. Again are very consistent, high 379 00:18:21,600 --> 00:18:25,400 cash flow companies we have at the very top, Berkshire, so that 380 00:18:25,400 --> 00:18:28,040 gives them some exposure to Apple by virtue of Berkshire's 381 00:18:28,040 --> 00:18:31,200 holdings. That is a 14% position. 382 00:18:31,520 --> 00:18:34,120 So he does have a level of concentration there into his top 383 00:18:34,120 --> 00:18:36,360 conviction. Then we also have more Berkshire 384 00:18:36,360 --> 00:18:41,080 down here, so another 6% totaling this out to a 20% 385 00:18:41,080 --> 00:18:44,400 position. It's a top heavy Ortfolio Next U 386 00:18:44,400 --> 00:18:47,680 we have Google, Makes sense, we have MasterCard there. 387 00:18:48,160 --> 00:18:52,400 That makes U around fifty of his Ortfolio between these three 388 00:18:52,440 --> 00:18:55,840 ositions and then we have Nestle, another very wide Moat 389 00:18:55,840 --> 00:18:57,760 company. After that it starts breaking 390 00:18:57,760 --> 00:19:01,160 down into 7% positions and you can see further down the list he 391 00:19:01,160 --> 00:19:04,320 has companies like Visa, Comcast, JP Morgan. 392 00:19:04,520 --> 00:19:07,680 He has quite a bit of Netflix and after position around 20 he 393 00:19:07,680 --> 00:19:09,560 has very insignificant positions. 394 00:19:09,680 --> 00:19:12,440 I think he does this by keeping a couple shares of companies 395 00:19:12,440 --> 00:19:15,920 that he previously bought into. So this is overall kind of his 396 00:19:15,920 --> 00:19:18,000 trading history. But when I look at Thomas 397 00:19:18,000 --> 00:19:21,880 Russo's portfolio, I see a very conservative defensive 398 00:19:21,880 --> 00:19:24,400 portfolio. It's mostly concentrated into 399 00:19:24,400 --> 00:19:27,800 companies that are incredibly resilient, very wide Moat. 400 00:19:28,040 --> 00:19:30,520 So I don't think he's taking a lot of risks with this $9 401 00:19:30,520 --> 00:19:32,760 billion. I don't see anything substantial 402 00:19:32,760 --> 00:19:36,760 happening to Berkshire or Google or MasterCard or Nestle. 403 00:19:37,200 --> 00:19:40,320 Those are pretty safe bets. I like Thomas Russo's portfolio 404 00:19:40,320 --> 00:19:42,280 and I think his performance speaks for itself. 405 00:19:42,280 --> 00:19:45,000 He's earned roughly a 13% annualized return. 406 00:19:45,240 --> 00:19:47,240 That's difficult to do for a long period of time. 407 00:19:47,240 --> 00:19:50,000 So he has a strong portfolio and a market beating performance so 408 00:19:50,000 --> 00:19:52,120 far. His investors should be happy 409 00:19:52,360 --> 00:19:53,680 now. That's the update so far, but 410 00:19:53,680 --> 00:19:56,120 this is just part one. Make sure you're subscribed to 411 00:19:56,120 --> 00:19:59,200 the channel with the Bell notification on so that you get 412 00:19:59,200 --> 00:20:00,520 future updates throughout the week. 413 00:20:00,520 --> 00:20:03,080 I'm going to be reviewing more and more super investors 414 00:20:03,080 --> 00:20:06,800 portfolios and I'm picking out all the top super investors 415 00:20:06,800 --> 00:20:08,920 you'll want to know about, so make sure to subscribe. 416 00:20:09,040 --> 00:20:09,840 There's more to come.