Video Summary
bill ackman added six new positions (including netflix, visa, mastercard, alcon, intercontinental exchange, and s&p global) and rotated out of google into meta, microsoft, uber, and amazon.
mohnish pabrai is buying unpopular cash-flow names (coal, offshore drilling) and added a kaspi fintech position while trimming winners like warrior met coal.
michael burry established puts/shorts targeting nvidia, palantir, the semiconductor ETF (soxx) and qqq — signaling skepticism of the ai hype.
masayoshi son concentrated heavily in intel and kept big ai-related bets at softbank while trimming overall exposure to reduce risk.
berkshire spent ~$23.5B this quarter (including a ~$17B add to alphabet), acquired taylor morrison, bought delta stock, and repurchased $4.5B of its own shares, lowering its cash pile.
Ackman added six new positions (netflix, visa, mastercard, alcon, intercontinental exchange, s&p global), sold the remainder of his $2B google stake, and increased positions in meta, microsoft, uber, and kept a sizable amazon holding.
Burry bought put options on nvidia and palantir and opened shorts against the semiconductor ETF (soxx) and the nasdaq (qqq), expressing skepticism about current ai valuations.
Berkshire deployed about $23.5B in the market, including a ~$17B add to alphabet, acquired homebuilder taylor morrison (~$6.8B), invested in delta (~$1.6B), and repurchased $4.5B of its own shares while its cash pile fell.
Pabrai is buying into neglected, cash-flowing sectors like coal (warrior met coal, alpha metallurgical) and offshore drilling (transocean), and added a kaspi fintech position — consistent with seeking value outside crowded growth trades.
Key lessons: conviction isn't permission to overpay; seek cash flow in unpopular places; question the crowd; big concentrated bets carry risk; and prioritize long-term compounding over short-term gains.
"These filings show every trade the smartest investors in the stock market are making."
The SEC releases Form 13F filings 45 days after the end of each quarter, revealing the trades of top investors.
This video will analyze the reports of five prominent investors who have consistently outperformed the market over the years.
Unlike day traders, these long-term investors have successfully navigated various market cycles and have made significant adjustments in their portfolios over the last 90 days.
Their trades can provide insights into their future strategies and offer guidance for regular investors.
"Ackman added six brand new positions this quarter, reflecting his core investment philosophy."
Bill Ackman, founder of Pershing Square, is known for maintaining a concentrated portfolio and acts decisively when he identifies price-value discrepancies in stocks.
In this quarter, Ackman invested in six new companies, which include well-known consumer brands like Netflix, Visa, and MasterCard, along with Alcon Labs, an eye care company.
These companies were chosen due to their established business models and reliable earnings, especially during uncertain economic times.
Notably, Ackman also invested in Intercontinental Exchange and S&P Global, likening them to "AI era toll roads," as they control valuable financial data that AI agents will increasingly seek.
Ackman sold the remainder of his $2 billion position in Google but significantly increased his stakes in Meta, Microsoft, and Uber, identifying better value in these AI-related companies.
His adjustment to Restaurant Brands also reflects his value-seeking approach, as he bought shares trading at a discount compared to peers.
"Pabrai has studied Warren Buffett's strategy for decades, focusing on overlooked businesses at the right price."
Monish Pabrai follows a different approach compared to Ackman, concentrating on neglected sectors such as coal and offshore drilling.
Despite coal's declining demand in developed countries, the overall capacity continues to rise, especially in emerging markets like Asia.
Pabrai recently took some profits from Warrior Met Coal, which has appreciated significantly over the past year, and maintains a substantial position in Transocean, benefiting from higher oil prices.
His investment in a small Kazakhstan fintech stock, Kaspi, represents a divergence from his usual strategy, indicating his adaptability to new markets and technology while maintaining a focus on cash flow and acquisition prices.
"There are deals out there if you're willing to look beyond the crowd."
Mohnish Pabrai recently shared that a company, which he is interested in, had paused its significant dividend to save for a major acquisition, resulting in a stock price collapse that attracted smart money investors.
This investment reflects Pabrai's strategy of seeking cash flow in less popular areas, emphasizing the importance of looking beyond mainstream investment trends.
He operates with the understanding that cash is still king and prefers stocks that produce substantial cash flow at reasonable prices, regardless of their excitement level in the market.
"If this looks like preparation for a larger fall in the market, that is because it is."
Michael Burry, known for predicting the housing bubble, is once again making waves with bold bets, primarily against AI stocks, including large positions against Nvidia and Palantir.
His controversial investment tactics, which include betting against the semiconductor ETF, reflect a belief that the current AI boom may be misleading.
Burry is also focusing on value investments, with a portfolio that features various stocks like PayPal and Lululemon, despite significant declines in their prices.
"When he believes one company is going to change the world, he is willing to bet big."
Masayoshi Son has heavily invested in Intel, making it 66% of his entire US portfolio, while also maintaining stakes in several AI-related companies.
His investing style is characterized by large bets on transformative companies, with notable successes and failures, such as his significant investment in Alibaba and his disastrous involvement with WeWork.
Recently, Son has been taking steps to reduce risk by selling more stocks than he purchased, indicating caution amidst his heavy focus on AI sectors and his massive investment in OpenAI.
"Berkshire Hathaway has just had its most active quarter in years."
Berkshire Hathaway experienced significant activity in its stock trades, marking a shift as it sold more stocks than it bought for the previous 14 quarters, accumulating over $380 billion in cash reserves.
In a notable change, they invested more than $23.5 billion in the market, signaling possible confidence in current stock prices or Greg Abel's increasing role in investment decisions.
The largest investment this quarter was an additional $17 billion in Alphabet, the parent company of Google, initiated by Warren Buffett himself following a CNBC interview.
"They spent $6.8 billion acquiring Taylor Morrison, a major U.S. home builder."
Berkshire Hathaway's acquisition of Taylor Morrison, coupled with ownership stakes in NVR and Lennar Corp, reflects a strategic response to the significant housing deficit, with approximately 4.7 million homes required.
Additionally, they invested $1.6 billion into Delta Airlines, showcasing a belief in the airline's strong operational performance amidst challenges in the sector.
"Berkshire also bought back $4.5 billion in their own stock."
In this active quarter, Berkshire Hathaway notably reduced its holdings only slightly in Capital One and Nucor, while the overall trend indicated a spending of cash rather than a selling off of stocks.
The $4.5 billion in stock buybacks suggests strong confidence in the value of Berkshire Hathaway's stock or a strategic intent to bolster the firm’s position as Greg Abel steps into more leadership.
"Think long-term in decades, not quarters."
The video emphasizes the importance of a long-term investment perspective, especially in light of the 14 quarters of inactivity in the market, highlighting that enduring success in investing comes from compounding returns over decades rather than focusing on short-term market movements.
The full portfolios of various investors will be shared at the end, encouraging viewers to analyze and reflect on different investment strategies.
