Ce que les soi-disant meilleurs achètent

I don’t know why I’m doing this, because I don’t trust most of these superinvestors anymore. Isn’t it strange to realize that people managing 4 or 5 billion dollars for their clients don’t have more skills than you and I… who manage only a few hundred thousand dollars.  

Those guys invest in some shitty stocks, but they make public declarations to convince the lemmings to buy the same thing as them, thus creating a demand for what they bought. You control the media, you control the people. They have at least understood that and it compensates for their very average skills.

Ok, let’s see what those averageinvestorsmanaging5billionsdollarsormore have done during the last quarter. Let’s begin with my pal, Bill Ackman, the guy who knew « very well » what he was doing with Valeant and who knew « very well » what to do when the crisis with that stock happened.

Bill Ackman likes complicated things. That’s why he increased his stake in Shitpole Mexican Grill by 420% during the last quarter. That fucking stock now represents about 18,4% of Ackman’s portfolio (more than 1 fucking billion dollars). Have you seen the sales of Shitpotle over the last years? They’re free falling.

There wasn’t an easier investment to think about or what? After the incredible Valeant fiasco, why didn’t he looked for something quiet safe? In other words, after the roulette, chosing one specific number over 36 numbers, why did he still picked only one number instead of a colour?  

Speaking about Valeant, the stock represents now about 4,5% of Pershit Square. The stake of Valeant has been reduced by 16% (16% of all VRX shares have been sold during the last quarter).

Please, dear reader, don’t ever go back read the archives of this blog to see that I once praised Ackman as a good investor.  I can’t live with the fact that I wrote that. If I could turn back time, if I could find a way, I’d take back those words that I wrote, and I’d look more credible…

Now, let’s take a look at Buffett. 

Buffett seems to like Apple because the stock now represents 4,5% of Berkshire (number of shares held increased by 277% over the last quarter!).

Buffett also bought much more airlines stocks. The stake of airlines in BRK is now more significant (but not major). The stake in Delta Airlines (now 2% of BRK) has been increased by 848%. The stake in Southwest Airlines (LUV) is a new buy and represents 1,5% of BRK (which is  not that much in percentage but nonetheless represents a lot of money in absolute numbers).

Finally, representing both about 1,4% of BRK, there’s American Airlines (increased by 109%) and United Continental (increased by 538%).

Carl Icahn, one of the investors liking the more the limelight increased his stake in Herbalife by 15%. The stock now represents about 4,8% of his holdings. Hertz has been increased by 126%. The stock represents 2,8% of the holdings. Is Herbalife a pyramidal scheme? I don’t know, but I’ve learned to stay away from potential scandals. Icahn, seems to think that he can put a couple of hundreds of million dollars in a possible scandal. I don’t think that’s clever. 

As last transactions by Sequoia Fund haven’t been released yet (my favorite fund to follow), let’s complete with David Einhorn.  That guy is a very active investor, from quarter to quarter. I’m suspicious about that. The guy buys lots of shares of a specific stock one quarter, sells lots of the same stock the next quarter, buys back later, etc. It’s not what I’m expecting from a professional investor. But his picks aren’t that bad in my opinion.

During the last quarter, Einhorn increased his stake in Apple by 12%. That stock now represents 14% of his holdings.  Mylan is now 7% of his holdings (increased by 35%), Voya Financial is now 4,9% (increased by 15%) and, finally, Rite Aid is now 3,5% (increased by 52%). 

Did these informations help you? I hope not.

I hope you can make your own judgment on what is interesting on the stock market.