Monday, May 8, 2023

Initial Portfolio


Portfolio Setup

Number of stocks - 10 is the target number of main holdings I want to have. I hope to be more disciplined on purchases by limiting the number of bets I make. With the mindset of never sell the stock after the buy.

Sub basket - I also plan to build a small basket of venture-type investments, allocating around 10%. With the plan to hold for 10+ years.

Cash balance - I try to fully invest with zero/minimal cash balance. 

Current Portfolio:

As of 2023-5-1

CompanyTickerAllocation (MV)
Alphabet IncGOOGL10.4%
Berkshire Hathaway Inc.BRK.B30.4%
Bank of AmericaBAC2.5%
Pershing SquareAMS:PSH5.0%
HP Inc.HPQ3.6%
Total Stock72.2%
Total Cash 27.8%
Portfolio total100.0%

Above listed are the stocks I currently own. Below is a quick rationale for each of the holdings. I plan to do a detailed write-up for each in the future.

Alphabet - I've been owning this since the 2014 or so and I like the product and services it offers. The search engine, Google map, Youtube and Android system etc. make people's life much easier. 

Berkshire Hathaway - This has been my default go-to for parking cash. It's basically a diversified fund but excluding the garbage you can find out there, and managed by a legend investor which shareholders do not need to pay any fees for his service. 

Alibaba - I think this is a mistake. Mostly because of the business environment in China, where the government has the absolute right to decide a company's faith. 

Bank of America - copycat investing.  A stock that showed up on a few 13-Fs: Munger in the Daily Journal Corp. Buffett's Berkshire, Li Liu's Himalaya Capital, and Seth Slarman's Baupost Capital. I have yet to understand the banking business, but Buffett is good at it.

Davita - Dialysis treatment provider. It's a recession-proof business. Buffett's ownership increased from 20% to 40% as the company bought back more than half of its shares since 2017.

RH - copy BRK. In my opinion it has great potential and a long runway. Also aggressively bought back shares like Davita. 

PSH - Bill Ackman's performance seems decent even after fees. The fund is trading at around 30-40% discount to NAV when I bought it. 

HP - copy BRK and the price/CF wasn't too bad when I bought it. I personally feel it doesn't have a lot of moat, so just a small position. 

1 comment:

  1. Ackman's PSH has CAGR of 15.2% since inception(2004) and 10.8% since 2012