Portfolio

Portfolio Setup

10 is the target number of main holdings in the portfolio. By limiting the number of positions I can put more effort into knowing each of them better.  

I also plan to have a basket of venture-type investments as a satellite portfolio, allocating around 10%.

Current Portfolio

Below is a virtual portfolio based on an initial investment of $100,000 set up to track my investment activities.  

As of 2023-6-30

Company	Ticker	Allocation (MV)	Cost per share
Alphabet Inc	GOOGL	11.2%	$105.3
Berkshire Hathaway Inc.	BRK.B	30.5%	$325.9
Alibaba	BABA	4.1%	$81.5
Bank of America	BAC	5.8%	$28.2
DaVita	DVA	9.4%	$88.3
Amex	AXP	6.9%	$154.1
Occidental	OXY	7.4%	$58.2
Pershing Square	AMS:PSH	5.0%	$33.9
HP Inc.	HPQ	3.6%	$30.1
Total Stock		83.8%
Total Cash (USD)		16.2%
Portfolio total		100.0%

Below is a quick rationale for the holdings. I plan to do a detailed write-up for some 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.

Amex - one of BRK's largest and longest holdings. I also enjoy being a customer of Amex. From my personal experience, Amex's customer service is unmatched compared to Visa/Mastercard. They are traded at a lower multiple compared to Visa/MC. One can argue 20% of Amex's business is from banking which it should deserve a lower multiple. But the gap is ~20x vs ~40x.

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.