Share your Portfolio 2024

[Spekulatius]

In addition , much of the wealth is in tax deferred accounts for many people. My liquid funds are more than 2/3 in tax deferred accounts so taxes are not an issue in those.

Transaction costs used to matter, but are not an issue any more either.

Edited July 7 by Spekulatius

[UK]

2 hours ago, 73 Reds said:

What about taxes?  A good value investor understands the value of money lost.  Just as some folks would not sell a valuable piece of rental property just because its value has risen, why sell a stock when the business continues to do well?  As Buffett has often said, selling requires two decisions.  It also requires more time and effort to learn and evaluate a new business.  When you look at some of the great wealth that has been created, it often is the result of sticking with one or a few winners.    

 

Thanks for sharing your story and portfolio. Incredible! Nothing to add:)

 

I would also appreciate if you could share what are your expectations for a future long term returns of BRK? It is bigger than ever and its valuation also has improved recently. Sometimes I wonder what would be reasonable to expect for it for the next 10 years.

 

 

[LC]

6 hours ago, Spekulatius said:

@Viking Haven't seen that quote before, but it’s great:

 

I like this one:

 

[ValueMaven]

45% in T-Bills

16% in BRK

12% in Constellation (Software)

8% in a GS 7% $1,000 Preferred

6% in Fairfax

6% in Company Stock 

3% in TPL

2% in FNMAN $50 Preferred

1.2% in WST

1.1% in FICO

1% in TDG

1% in AER

1% in COST 

 

It's an odd portfolio but dont I dont trade a lot and have held on to some things for many years.  Sub positions (sub 3%) force me to follow them and I'll buy more if the share price falls by -30%.  No MAG-7 

 

[Munger_Disciple]

On 6/15/2024 at 2:55 AM, frommi said:

32% Tobacco (10% BTI, 8% PM, 6% IMB, 5% MO, 3% STG)

25% REITs (5% EPRT, 5% BNL, 3-4% O,AMT,CCI,NXRT,AVB, MAA)

10% MDLZ

5% Evolution AB

8% NCAV Portfolio (KRON,SEER,RPID,AVIR,DSGN,HRBR,HURC,UUU)

9% Puts (7.5% DAX, 0.7% TSLA, 0.7% BA)

10% Cash

Is somebody more defensive than me?

 

Why higher weighting for IMB than MO?

[Xerxes]

4 hours ago, ValueMaven said:

45% in T-Bills

16% in BRK

12% in Constellation (Software)

8% in a GS 7% $1,000 Preferred

6% in Fairfax

6% in Company Stock 

3% in TPL

2% in FNMAN $50 Preferred

1.2% in WST

1.1% in FICO

1% in TDG

1% in AER

1% in COST 

 

It's an odd portfolio but dont I dont trade a lot and have held on to some things for many years.  Sub positions (sub 3%) force me to follow them and I'll buy more if the share price falls by -30%.  No MAG-7 

 

cool. 
I am guessing you dumped HEICO

[frommi]

7 hours ago, Munger_Disciple said:

 

Why higher weighting for IMB than MO?

Mainly IMB has performed better and i didn't change these holdings a lot, but the difference is small. IMB also does everything right at the moment, while MO has a lot of problems with volume and blasting away money on buying products that make no money, while IMB just buys their own stock. IMB is also still cheaper.

[73 Reds]

18 hours ago, frommi said:

With hindsight bias that is easy, but out of 1000 stocks can you tell me which ones will do best over the next 20 years? There is so little data for this matter, that it is very hard to do by numbers. But for holdings periods of 1-5 years you can do a lot of backtests and see what has the most impact. With these periods your return will come from multiple expansion, growths and dividends. The longer you make the holding period the more this shifts to only growth+dividends. But a lot of my returns have just come from multiple expansions. Most extreme are NCAV stocks, where growth is typically negative. But even for FFH more than 60% of my return has been multiple expansion.

 

Tax deferrals matter to a degree but if you plan to sell at some point in the next 5 years the impact of selling early and switching onto something else is much smaller than most people think. For very long term holding periods it is a different story.

 

No one would want to own a lousy business in perpetuity.  Just like no one would care to own a rental property that is a money pit in a declining neighborhood with problem tenants.  Imagine if every successful entrepreneur sold their business the first time someone came along with a heightened offer.  IMO, value investing involves much more than an attempt to squeeze every penny out of an investment dollar.  Is it possible to find a higher returning investment than those that you own?  The answer, of course is always.  But that is not the same question as whether it is wise to try to do so.   Management plays such an important role in stock selection.  How many public companies are out there where you trust management implicitly?  My guess (and it is only a guess) is that most folks who owned stock in such companies in the past and sold those stocks for the purpose of reinvesting in something else ultimately regret their decision.   

[73 Reds]

17 hours ago, UK said:

 

Thanks for sharing your story and portfolio. Incredible! Nothing to add:)

 

I would also appreciate if you could share what are your expectations for a future long term returns of BRK? It is bigger than ever and its valuation also has improved recently. Sometimes I wonder what would be reasonable to expect for it for the next 10 years.

 

 

Like many of you, it is hard to discern anything more about Berkshire's future than what Buffett has told us.   But future management will (should) have to earn the deference now paid to Buffett by shareholders.  It will be interesting to see how long the honeymoon period lasts.  

[Gregmal]

49 minutes ago, 73 Reds said:

No one would want to own a lousy business in perpetuity.  Just like no one would care to own a rental property that is a money pit in a declining neighborhood with problem tenants.  Imagine if every successful entrepreneur sold their business the first time someone came along with a heightened offer.  IMO, value investing involves much more than an attempt to squeeze every penny out of an investment dollar.  Is it possible to find a higher returning investment than those that you own?  The answer, of course is always.  But that is not the same question as whether it is wise to try to do so.   Management plays such an important role in stock selection.  How many public companies are out there where you trust management implicitly?  My guess (and it is only a guess) is that most folks who owned stock in such companies in the past and sold those stocks for the purpose of reinvesting in something else ultimately regret their decision.   

Yea this is so true and really the hardest thing I see for most market participants is truly internalizing business ownership through equity. With small potatoes people just see daily quotes and play the up or down game. You ultimately just wanna find a suitable home for your money. Identifying characteristics of good places is a crucial aspect of the pattern recognition necessary for successful investment. You look at all the greats, from Buffett to Ackman, and everyone else, theres common threads between all their home runs. 

[Munger_Disciple]

12 hours ago, frommi said:

Mainly IMB has performed better and i didn't change these holdings a lot, but the difference is small. IMB also does everything right at the moment, while MO has a lot of problems with volume and blasting away money on buying products that make no money, while IMB just buys their own stock. IMB is also still cheaper.

 

Ok. It is just surprising because MO seems like a higher quality company than IMB with better brands and US exposure. Now they seem to have multiple FDA approved NJOY vapes as well. 

[ValueMaven]

17 hours ago, Xerxes said:

cool. 
I am guessing you dumped HEICO

 

Yes.  Valuation driven.  

[Spooky]

On 7/4/2024 at 6:58 PM, Viking said:

Buffett greatly admired Walter Schloss. Schloss estimated his average holding period was about 4 years. 

• 'Why we invest the way we do.'

https://thetaoofwealth.wordpress.com/wp-content/uploads/2016/01/why-we-invest-the-way-we-do-by-walter-schloss.pdf

• A Superinvestor of Graham-and-Doddsville

http://www.fordhamgabellicenter.org/wp-content/uploads/2021/12/Walter-Schloss.pdf

 

Thanks for sharing this. I wasn't familiar with Walter Schloss but he is my kind of guy. I found and enjoyed his 16 criteria for making money in the stock market:

 

https://www.grahamvalue.com/blog/sixteen-factors-make-money-stocks-walter-schloss

[coc]

On 7/8/2024 at 8:51 AM, 73 Reds said:

Like many of you, it is hard to discern anything more about Berkshire's future than what Buffett has told us.   But future management will (should) have to earn the deference now paid to Buffett by shareholders.  It will be interesting to see how long the honeymoon period lasts.  

 

Thanks for sharing your experience. Have you made any significant errors along the way? (Of commission) How often do your purchases come along and what sort of stake (as a % of your net worth) do you generally take when you do go in? 

 

Thanks again. 

[Xerxes]

From the article on Walter Schloss

 

" .... On December 12, 1941, immediately after Pearl Harbor, Schloss enlisted in the US Army and served as a code clerk in the 833rd Signal Company. He was then transferred to the Persian Gulf Command in Iran, which constructed Studebaker trucks in an Iranian truck factory. These trucks were loaded up with supplies and driven north to the border, where they were turned over to the Russian army for use in the siege of Stalingrad. ...."

 

I hope he liked the kebab when he was in Iran

[73 Reds]

1 hour ago, coc said:

 

Thanks for sharing your experience. Have you made any significant errors along the way? (Of commission) How often do your purchases come along and what sort of stake (as a % of your net worth) do you generally take when you do go in? 

 

Thanks again. 

Mistakes?  In my younger days far too many mistakes to even recall, LOL.  Tried all sorts of techniques, market timing, options & derivatives, newsletters, etc...   Then I met someone who had lived in Omaha and who had actually met Buffett, sometime in the late 1970s.  Opened up a whole new way of thinking, which wasn't hard because I lost money as fast as making it every other way.   The irony is, buying the first share of Berkshire was not easy - in those days brokers charged a 5% commission on odd lot trades and I couldn't afford to buy more than a share or two at a time so in the back of my mind was always the notion that the share price would have to go up by 5% just to get even.   It took a while for such thoughts to fade.

 

Today I mostly invest in real estate and add to existing stock positions when they look inexpensive.  Fairfax is by far my most recent addition, bought initial shares for me, the wife and kids in early 2021 - thanks to Viking on this board, who I believe also posts his thoughts on SA where I first read his thoughts on the company.  As an older person with a crusty mindset, a stock literally has to jump out as something begging to be owned before I will buy.  If that same company is unsuccessfully targeted by the government for anti-trust violations, all the better.

[coc]

9 minutes ago, 73 Reds said:

Mistakes?  In my younger days far too many mistakes to even recall, LOL.  Tried all sorts of techniques, market timing, options & derivatives, newsletters, etc...   Then I met someone who had lived in Omaha and who had actually met Buffett, sometime in the late 1970s.  Opened up a whole new way of thinking, which wasn't hard because I lost money as fast as making it every other way.   The irony is, buying the first share of Berkshire was not easy - in those days brokers charged a 5% commission on odd lot trades and I couldn't afford to buy more than a share or two at a time so in the back of my mind was always the notion that the share price would have to go up by 5% just to get even.   It took a while for such thoughts to fade.

 

Today I mostly invest in real estate and add to existing stock positions when they look inexpensive.  Fairfax is by far my most recent addition, bought initial shares for me, the wife and kids in early 2021 - thanks to Viking on this board, who I believe also posts his thoughts on SA where I first read his thoughts on the company.  As an older person with a crusty mindset, a stock literally has to jump out as something begging to be owned before I will buy.  If that same company is unsuccessfully targeted by the government for anti-trust violations, all the better.

 

Thank you. When did MSFT & AAPL first become investable under your framework? (eg quasi monopolistic etc) 

[73 Reds]

17 minutes ago, coc said:

 

Thank you. When did MSFT & AAPL first become investable under your framework? (eg quasi monopolistic etc) 

MSFT was pretty early on, late 80s.  I'm a techno-idiot but fortunate enough to know some smart people in the industry, including my old college roommate who went on to do some amazing things like installing wall street trading floors for major brokerage houses even though we both nearly flunked Cobalt and Fortran (ugh!!) which was just starting to be taught in the universities.  Those were so difficult that it didn't take much convincing that any company that would make using a computer easier for folks like me would be a hit.  AAPL came along much later, post Steve Jobs.  It was not until the ecosystem of AAPL became readily apparent that I started buying, but when Buffett also started buying it really clicked. 

[coc]

5 hours ago, 73 Reds said:

MSFT was pretty early on, late 80s.  I'm a techno-idiot but fortunate enough to know some smart people in the industry, including my old college roommate who went on to do some amazing things like installing wall street trading floors for major brokerage houses even though we both nearly flunked Cobalt and Fortran (ugh!!) which was just starting to be taught in the universities.  Those were so difficult that it didn't take much convincing that any company that would make using a computer easier for folks like me would be a hit.  AAPL came along much later, post Steve Jobs.  It was not until the ecosystem of AAPL became readily apparent that I started buying, but when Buffett also started buying it really clicked. 

Fascinating! I imagine you had some false starts along the way but both impressive (as well as BRK and MO) especially if you held on to them all these years. I’m attracted to the idea of buying things to hold for life, difficult to put into practice though. Appreciate you sharing. 

[73 Reds]

The easiest stock to own for (thus far) eternity has been Berkshire.  The issue is no longer whether I can personally outperform; rather the issue is how well I sleep at night.  When you add in the benefit of deferred taxes, there really is no issue at all.

 

 

 

 

 

 

 

[throw123]

14 minutes ago, 73 Reds said:

The easiest stock to own for (thus far) eternity has been Berkshire.  The issue is no longer whether I can personally outperform; rather the issue is how well I sleep at night.  When you add in the benefit of deferred taxes, there really is no issue at all.

 

 

 

 

 

 

 

agree

[Paarslaars]

Well if you have 100k you might not mind losing some sleep for outperformance compared to the 10k Berkshire will get you.

 

But if you have 10M it's a different story.

[james22]

50% MSTR

35% BRK

7.5% Money Market Fund

2.5% Info Tech ETF

2.5% Small Value ETF

2.5% Energy ETF

 

[Paarslaars]

You play BTC solely through MSTR? No BTC holdings?

[james22]

Yes, I want the leverage.