Share your Portfolio 2024

[73 Reds]

9 minutes ago, learner said:

Congrats on picking these and holding onto them. 

 

If I may ask, what % of your net worth and/or investable capital at the time of investing did you put into these?

When I began investing in stocks they made up all my net worth, even more since I used margin back then.  It probably wasn't until some of my business ventures became successful that stocks were not nearly all of my net worth.  Today the RE businesses have surpassed stocks in terms of net worth but only because for the last 20 years and until very recently when I decided to slow down, most of my time, efforts and capital went into these businesses, which have become very reliable in terms of growth and yield.  

Edited March 28, 2025 by 73 Reds
spelling

[brk64311]

1 minute ago, 73 Reds said:

When I began investing in stocks they made up all my net worth, even more since I used margin back then.  It probably wasn't until some of my business ventures became successful that stocks were not nearly all of my net worth.  Today the RE businesses have surpassed stocks in terms of net worth but only because for the last 20 years and until very recently when I decided to slow down, most of my time, efforts and capital went into these businesses, which have become very reliable in terms of growth and yield.  

May I ask if you have any advice for someone looking to  "diversify" from 100% securities portfolio(direct public equity holdings, private RE funds and hedge funds) to REs/more tangible cash flow generating businesses?  

[sleepydragon]

12 minutes ago, 73 Reds said:

When I began investing in stocks they made up all my net worth, even more since I used margin back then.  It probably wasn't until some of my business ventures became successful that stocks were not nearly all of my net worth.  Today the RE businesses have surpassed stocks in terms of net worth but only because for the last 20 years and until very recently when I decided to slow down, most of my time, efforts and capital went into these businesses, which have become very reliable in terms of growth and yield.  

people who say brk/market is overvalued only need to look at how much housing prices have gone up since 2020. 

[Red Lion]

4 minutes ago, sleepydragon said:

people who say brk/market is overvalued only need to look at how much housing prices have gone up since 2020. 

 

I'm not saying that brk is overvalued, but the cost of constructing houses has structurally gone up since 2020 and seems likely to continue to go up with the current trade/immigration policies. They definitely appear far more overvalued on an affordability basis. 

[73 Reds]

7 minutes ago, brk64311 said:

May I ask if you have any advice for someone looking to  "diversify" from 100% securities portfolio(direct public equity holdings, private RE funds and hedge funds) to REs/more tangible cash flow generating businesses?  

Well, my advice would be to focus on your strengths and interests.  Mine was never stock selection - I don't have the time, patience or accounting background necessary to do what Buffett and other successful stock pickers do every day poring over 10Qs and 10Ks with a fine tooth comb; in fact I'd be immediately bored.  As a very long term investor, I care more about the need by the public for the products/services being sold, monopolistic tendencies of the company, management integrity, capital allocation skills, a solid balance sheet with no unneeded debt, and a history of profitability.   If/when the price is sensible and as capital becomes available, I'll buy shares of such companies.  The goal is to retain these stocks as long as the company continues to perform well and the reason for buying shares in the first place still exists.   Valuation almost never matters once I own a stock because besides taxes as Buffett has said, selling requires not one but two decisions and for my skills, I'd be hard pressed to find a better stock than the one being sold. 

 

[thepupil]

25 minutes ago, sleepydragon said:

people who say brk/market is overvalued only need to look at how much housing prices have gone up since 2020. 

 

I think Berkshire's at its worst absolute valuation in a very long time. relative can be debated but have found other places to invest the proceeds.

 

I just sold 1/3 of my parents  BRK and stuck them w/ a big ass tax bill. I was already personally 100% out as of last year. 

 

1.75x book. Large portion of assets/equity in cash/stocks that are marked to market and only worth book. of course the insurance franchise is worth more, BHE/BNSF/MSR worth >book, but these are all finite upward adjustments. the old man is closer to death each year. UNP>BNSF, PGR>GEICO, SHW>Benj Moore, lots of examples of companies' w/i berkshire umbrella doing worse than direct comparables. my biggest nagging question over the years is "is it at all advantageous to be owned by berkshire? do good companies want to be owned by berkshire anymore, particularly when Buffett dies?" 

 

overall my view of berkshire's operating businesses relative performance and prospects is probably closer to the bottom than the top over last 15 years, the valuation is the highest its been, the % cash is highest and theres been a very strong NT run w/ rotation out of Mag7 / index down Berkshire up a fair bit. 

 

with all that said, it's still my parents' biggest position, namely because buffett's the GOAT and i don't want to sell it all at once for tax reasons. sell decisions are to be taken seriously when taxes are 13-15% of proceeds...were it held in a tax free account, I'd be all out. I may get options approved for their account to buy protective puts on it. 

curious as to opposing views. anyone buying berkshire of late?

 

Edited March 28, 2025 by thepupil

[Munger_Disciple]

25 minutes ago, thepupil said:

 

I think Berkshire's at its worst absolute valuation in a very long time. relative can be debated but have found other places to invest the proceeds.

 

I just sold 1/3 of my parents  BRK and stuck them w/ a big ass tax bill. I was already personally 100% out as of last year. 

 

1.75x book. Large portion of assets/equity in cash/stocks that are marked to market and only worth book. of course the insurance franchise is worth more, BHE/BNSF/MSR worth >book, but these are all finite upward adjustments. the old man is closer to death each year. UNP>BNSF, PGR>GEICO, SHW>Benj Moore, lots of examples of companies' w/i berkshire umbrella doing worse than direct comparables. my biggest nagging question over the years is "is it at all advantageous to be owned by berkshire? do good companies want to be owned by berkshire anymore, particularly when Buffett dies?" 

 

overall my view of berkshire's operating businesses relative performance and prospects is probably closer to the bottom than the top over last 15 years, the valuation is the highest its been, the % cash is highest and theres been a very strong NT run w/ rotation out of Mag7 / index down Berkshire up a fair bit. 

 

with all that said, it's still my parents' biggest position, namely because buffett's the GOAT and i don't want to sell it all at once for tax reasons. sell decisions are to be taken seriously when taxes are 13-15% of proceeds...were it held in a tax free account, I'd be all out. I may get options approved for their account to buy protective puts on it. 

curious as to opposing views. anyone buying berkshire of late?

 

 

I don't think any LT BRK holder disagrees with you about its current valuation. It is trading roughly 15-20% above my estimate of IV. Having said that, as a LT owner, I am largely staying put in my taxable accounts but sold it in my tax deferred accounts. I suspect almost no one on this board will buy BRK at current prices but many LT holders will hold it in taxable accounts (tax drag is much worse than a potential correction). 

Edited March 28, 2025 by Munger_Disciple

[Milu]

38 minutes ago, thepupil said:

 

I think Berkshire's at its worst absolute valuation in a very long time. relative can be debated but have found other places to invest the proceeds.

 

I just sold 1/3 of my parents  BRK and stuck them w/ a big ass tax bill. I was already personally 100% out as of last year. 

 

1.75x book. Large portion of assets/equity in cash/stocks that are marked to market and only worth book. of course the insurance franchise is worth more, BHE/BNSF/MSR worth >book, but these are all finite upward adjustments. the old man is closer to death each year. UNP>BNSF, PGR>GEICO, SHW>Benj Moore, lots of examples of companies' w/i berkshire umbrella doing worse than direct comparables. my biggest nagging question over the years is "is it at all advantageous to be owned by berkshire? do good companies want to be owned by berkshire anymore, particularly when Buffett dies?" 

 

overall my view of berkshire's operating businesses relative performance and prospects is probably closer to the bottom than the top over last 15 years, the valuation is the highest its been, the % cash is highest and theres been a very strong NT run w/ rotation out of Mag7 / index down Berkshire up a fair bit. 

 

with all that said, it's still my parents' biggest position, namely because buffett's the GOAT and i don't want to sell it all at once for tax reasons. sell decisions are to be taken seriously when taxes are 13-15% of proceeds...were it held in a tax free account, I'd be all out. I may get options approved for their account to buy protective puts on it. 

curious as to opposing views. anyone buying berkshire of late?

 

Agree with most of this. I sold all my Berkshire recently in a non-taxable account. Not sure how long warren has left and when he eventually passes I didn’t want to be left with a conglomerate run by managers who I don’t know that well. Buffett is a genius when it comes to investing but I can’t predict how well he will do with succession planning. 

[brk64311]

53 minutes ago, 73 Reds said:

Well, my advice would be to focus on your strengths and interests.  Mine was never stock selection - I don't have the time, patience or accounting background necessary to do what Buffett and other successful stock pickers do every day poring over 10Qs and 10Ks with a fine tooth comb; in fact I'd be immediately bored.  As a very long term investor, I care more about the need by the public for the products/services being sold, monopolistic tendencies of the company, management integrity, capital allocation skills, a solid balance sheet with no unneeded debt, and a history of profitability.   If/when the price is sensible and as capital becomes available, I'll buy shares of such companies.  The goal is to retain these stocks as long as the company continues to perform well and the reason for buying shares in the first place still exists.   Valuation almost never matters once I own a stock because besides taxes as Buffett has said, selling requires not one but two decisions and for my skills, I'd be hard pressed to find a better stock than the one being sold. 

 

Thank you. Do you mind sharing a bit more about your experience going from public market investing to building RE and other businesses? As someone who have had reasonable success in the market, I am intrigued by the idea of diversifying some assets to RE and other more "tangible assets/businesses. I have the interests, but not sure if I have the strength/what it takes to invest beyond  stock selection. 

[thowed]

1 hour ago, thepupil said:

my biggest nagging question over the years is "is it at all advantageous to be owned by berkshire? do good companies want to be owned by berkshire anymore, particularly when Buffett dies?" 

 

This is a great point that I hadn't considered, thank you.

 

And even more so, given the cash level, which is obviously looking better and better, but less so if the above is true.

 

And from experience with people in the UK (and elsewhere) we should never underestimate how difficult succession is, even when it's been prepared for.  It can work, and part of me think it's actually obvious in advance when the right person is in place.

 

 

 

[73 Reds]

23 minutes ago, brk64311 said:

Thank you. Do you mind sharing a bit more about your experience going from public market investing to building RE and other businesses? As someone who have had reasonable success in the market, I am intrigued by the idea of diversifying some assets to RE and other more "tangible assets/businesses. I have the interests, but not sure if I have the strength/what it takes to invest beyond  stock selection. 

OK, without boring anyone here with a long story, I was never a good academic (student) but usually good at reading people.  My goal when starting was to meet successful people who I could get to know and hopefully convince to do business with me.  It took some time but ultimately I met the retired CFO of a Fortune 500 company doing private equity and he entrusted me to find and manage deals that we could partner on (he initially put up most of the money).  He introduced me to some of his business partners and professionals who they used - people who were highly competent in their roles as CPAs, realtors, mortgage brokers, business brokers, etc... These people led me to other connections in the community where I have done business for many years.  The game-changer came during the GFC when we were highly liquid and few others were. 

[thepupil]

1 hour ago, thowed said:

 

This is a great point that I hadn't considered, thank you.

 

And even more so, given the cash level, which is obviously looking better and better, but less so if the above is true.

 

And from experience with people in the UK (and elsewhere) we should never underestimate how difficult succession is, even when it's been prepared for.  It can work, and part of me think it's actually obvious in advance when the right person is in place.

 

 

 

 

we don't really have evidence of successful large scale m&a at Berkshire since BNSF, which was a great purchase, but that was in 2010. 2016's PCP was decent size ($30B) but financially bad. Pilot was small and involved litigation with the seller. Of course there are bolt-ons here and there, but no evidence of ability to do anything needle moving for a $1.1T company. the investment runway in utilities feels less exciting than in the past after california.

 

What we do have is Berkshire executed one of the best and most impactful stock trades of all time with the purchase and sale of AAPL, which salvaged an otherwise poor stock picking track record over my ownership (2010--->present). That's wonderful and I'm happy to have benefitted from it as a Berkshire holder. But I don't want to pay 1.75x for that (or whatever one is paying after making various adjustemnts for the premium to book the other biz's are worth). the ability to add value on a $300B stock portfolio with a very defined universe of companies at 94 years old is not really something I want to pay a premium for.

 

again WEB is WEB but the stock's recent positive re-rating is undeserved IMO (though insurance is doing very well)

Edited March 28, 2025 by thepupil

[Spekulatius]

2 hours ago, sleepydragon said:

people who say brk/market is overvalued only need to look at how much housing prices have gone up since 2020. 

What has the one to do with the other?

[Castanza]

23 minutes ago, thepupil said:

 

we don't really have evidence of successful large scale m&a at Berkshire since BNSF, which was a great purchase, but that was in 2010. 2016's PCP was decent size ($30B) but financially bad. Pilot was small and involved litigation with the seller. Of course there are bolt-ons here and there, but no evidence of ability to do anything needle moving for a $1.1T company. the investment runway in utilities feels less exciting than in the past after california.

 

What we do have is Berkshire executed one of the best and most impactful stock trades of all time with the purchase and sale of AAPL, which salvaged an otherwise poor stock picking track record over my ownership (2010--->present). That's wonderful and I'm happy to have benefitted from it as a Berkshire holder. But I don't want to pay 1.75x for that (or whatever one is paying after making various adjustemnts for the premium to book the other biz's are worth). the ability to add value on a $300B stock portfolio with a very defined universe of companies at 94 years old is not really something I want to pay a premium for.

 

again WEB is WEB but the stock's recent positive re-rating is undeserved IMO (though insurance is doing very well)

 

Have you outperformed BRK.b over your investment career? 

[thepupil]

15 minutes ago, Castanza said:

 

Have you outperformed BRK.b over your investment career? 

 

yes, by about 2%/yr over 12 years and 5%/yr over last 10, 8%/yr last 5 (thought that's bottom ticking my RE heavy portfolio in march 2020) but I took far greater risk and did so with worse tax efficiency. I don't have great data for 2011-2013, but from memory, yes...caveated that memories of one's own deeds can be..selective.

 

on a risk adjusted/tax adjusted basis, I'd say Berkshire did better...though taxes not relevant for significant portion of my money

 

since I owned Berkshire throughout this time, much of which as my largest position, it technically dragged down my returns (since my portfolio's done > berkshire, the portfolio ex berkshire did better than the berkshire), but that is only w/ benefit of hindsight. I thought Berkshire was a great r/r for much of the past decade and a half. I think it's as worse as it has been but still a potentially reasonable way to grow/preserve one's capital. 

 

i can promise you WEB would outperform me even at his age if he were working with my balance sheet rather than the $500-$1T of regulated assets over this time frame.

Edited March 28, 2025 by thepupil

[Castanza]

2 minutes ago, thepupil said:

 

yes, by about 2%/yr over 12 years and 5%/yr over last 10, 8%/yr last 5 (thought that's bottom ticking my RE heavy portfolio in march 2020) but I took far greater risk and did so with worse tax efficiency. 

 

on a risk adjusted/tax adjusted basis, I'd say Berkshire did better...though taxes not relevant for significant portion of my money

 

since I owned Berkshire throughout this time, much of which as my largest position, it technically dragged down my returns, but that is only w/ benefit of hindsight. I thought Berkshire was a great r/r for much of the past decade and a half. I think it's as worse as it has been but still a potentially reasonable way to grow/preserve one's capital. 

 

Very respectable, you definitely have one of the most unique approaches on this board. I pretty much view BRK as quasi SPY substitute for non 401k accounts. Not a massive position for me, but I sleep better holding it vs holding SPY (currently)

[Masterofnone]

3 hours ago, thepupil said:

 

I think Berkshire's at its worst absolute valuation in a very long time. relative can be debated but have found other places to invest the proceeds.

 

I just sold 1/3 of my parents  BRK and stuck them w/ a big ass tax bill. I was already personally 100% out as of last year. 

 

1.75x book. Large portion of assets/equity in cash/stocks that are marked to market and only worth book. of course the insurance franchise is worth more, BHE/BNSF/MSR worth >book, but these are all finite upward adjustments. the old man is closer to death each year. UNP>BNSF, PGR>GEICO, SHW>Benj Moore, lots of examples of companies' w/i berkshire umbrella doing worse than direct comparables. my biggest nagging question over the years is "is it at all advantageous to be owned by berkshire? do good companies want to be owned by berkshire anymore, particularly when Buffett dies?" 

 

overall my view of berkshire's operating businesses relative performance and prospects is probably closer to the bottom than the top over last 15 years, the valuation is the highest its been, the % cash is highest and theres been a very strong NT run w/ rotation out of Mag7 / index down Berkshire up a fair bit. 

 

with all that said, it's still my parents' biggest position, namely because buffett's the GOAT and i don't want to sell it all at once for tax reasons. sell decisions are to be taken seriously when taxes are 13-15% of proceeds...were it held in a tax free account, I'd be all out. I may get options approved for their account to buy protective puts on it. 

curious as to opposing views. anyone buying berkshire of late?

 

 

50% of my total portfolio is in Berkshire, purchased in taxable accounts between 1999 and 2011 at an average price of $60/share. In non-taxable accounts I've sold over the past few years to buy Fairfax (thanks to this board and Muddy Waters) and am down to 3% of total brokerage assets of BRK in IRAs. I will sell this remaining non-taxable BRK if there is another small leg up. I have learned to at least keep my hands behind my back for a while with buying and selling. Markets can be dumb and dumber.

 

The tax hit precludes any other activity. It will eventually go to charity and our kids.

[brk64311]

4 hours ago, 73 Reds said:

OK, without boring anyone here with a long story, I was never a good academic (student) but usually good at reading people.  My goal when starting was to meet successful people who I could get to know and hopefully convince to do business with me.  It took some time but ultimately I met the retired CFO of a Fortune 500 company doing private equity and he entrusted me to find and manage deals that we could partner on (he initially put up most of the money).  He introduced me to some of his business partners and professionals who they used - people who were highly competent in their roles as CPAs, realtors, mortgage brokers, business brokers, etc... These people led me to other connections in the community where I have done business for many years.  The game-changer came during the GFC when we were highly liquid and few others were. 

Thank you. 

[treasurehunt]

On 3/28/2025 at 10:54 AM, Munger_Disciple said:

I don't think any LT BRK holder disagrees with you about its current valuation. It is trading roughly 15-20% above my estimate of IV. Having said that, as a LT owner, I am largely staying put in my taxable accounts but sold it in my tax deferred accounts. I suspect almost no one on this board will buy BRK at current prices but many LT holders will hold it in taxable accounts (tax drag is much worse than a potential correction). 

 

Exactly how I'm dealing with my Berkshire position (I have owned it for 25 years now, albeit with some trading around a core position). I am all out of Berkshire in my tax deferred account as of late last year, and this year I have even pruned some from my taxable accounts. I'd sell more if it weren't for the tax hit; Berkshire is at least 20% overvalued in my estimation.

[no_free_lunch]

Similar situation here.  Sold all my tax free BRK a few years ago.  Now it has grown back even bigger in the taxable account.  It is now half of my taxable account more or less.  I will probably just leave it but admit this is the time to sell.  This is a good problem to have if you think about it.

Edited March 30, 2025 by no_free_lunch

[Munger_Disciple]

3 hours ago, treasurehunt said:

 

Exactly how I'm dealing with my Berkshire position (I have owned it for 25 years now, albeit with some trading around a core position). I am all out of Berkshire in my tax deferred account as of late last year, and this year I have even pruned some from my taxable accounts. I'd sell more if it weren't for the tax hit; Berkshire is at least 20% overvalued in my estimation.

 

It's a high class problem to have. I have sold a tiny bit in my taxable account as well this year. One possibility I have been contemplating is to donate some shares, avoid capital gains & take the 30% of donated amount as deduction against taxes on additional sales of BRK which will lower the tax bill. It's a decent strategy if you are charitably minded.  

Edited March 30, 2025 by Munger_Disciple

[Junior R]

On 3/27/2025 at 3:34 PM, moatrep said:

Eft.to.     40%

Fairfax.    30%

 

Oxy.         7%

 

 

Bank of utica. 3%

Farmers & merchants bank 3%

PBF energy 3%

 

Gravity co 1%

Smith and wesson 1%

Cash

 

Whats eft.to

[moatrep]

Elf.to, I meant, sorry. Empire life financial.

It is a solid life insurance company with a small business of asset management. They grow equity slowly but steady, and it's 60% book value now. They are buying back shares and paying good dividends and special dividends. They started this some years ago, looks like they want to narrow the value gap. But anyways i think you can expect 7% return and at some point sell with a good profit near book value. They also may sell subs and narrow the gap. Cash flow average 400m, income I think same, 16b float. 9b in the asset management business. Last 4 years they gave back 500m per year to the shareholders. Mkap is at 4.5b. Equity around 8b

[dealraker]

On 3/28/2025 at 1:29 PM, thepupil said:

 

I think Berkshire's at its worst absolute valuation in a very long time. relative can be debated but have found other places to invest the proceeds.

 

I just sold 1/3 of my parents  BRK and stuck them w/ a big ass tax bill. I was already personally 100% out as of last year. 

 

1.75x book. Large portion of assets/equity in cash/stocks that are marked to market and only worth book. of course the insurance franchise is worth more, BHE/BNSF/MSR worth >book, but these are all finite upward adjustments. the old man is closer to death each year. UNP>BNSF, PGR>GEICO, SHW>Benj Moore, lots of examples of companies' w/i berkshire umbrella doing worse than direct comparables. my biggest nagging question over the years is "is it at all advantageous to be owned by berkshire? do good companies want to be owned by berkshire anymore, particularly when Buffett dies?" 

 

overall my view of berkshire's operating businesses relative performance and prospects is probably closer to the bottom than the top over last 15 years, the valuation is the highest its been, the % cash is highest and theres been a very strong NT run w/ rotation out of Mag7 / index down Berkshire up a fair bit. 

 

with all that said, it's still my parents' biggest position, namely because buffett's the GOAT and i don't want to sell it all at once for tax reasons. sell decisions are to be taken seriously when taxes are 13-15% of proceeds...were it held in a tax free account, I'd be all out. I may get options approved for their account to buy protective puts on it. 

curious as to opposing views. anyone buying berkshire of late?

 

Agree.  Over on the Shrewd'm forum Jim did his usual layout of what to expect as to return for Berk stock over the next five years is historical valuation(s) maintain and growth in business also continues as in the past.  Time to drastically cut stock return expectations.

Edited March 31, 2025 by dealraker

[benchmark]

1 hour ago, dealraker said:

Agree.  Over on the Shrewd'm forum Jim did his usual layout of what to expect as to return for Berk stock over the next five years is historical valuation(s) maintain and growth in business also continues as in the past.  Time to drastically cut stock return expectations.

Given the choice of paying 37% tax vs holding and getting 6%ish percent a year, I'm not sure that selling wins, especially if the market is over-valued, and there is no compelling idea.