Sequoia fund, waiting for a correction too - EDIT

I’ve said it numerous times : I like Sequoia Fund.

...Even after the unforgettable fiasco they made when they put about 35% of their total portfolio on Valeant, they still fascinate me. 

However, they don't seem to fascinate people as before. Check below for the total value of their portfolio over the last 10 years. The decrease in value may be explained by two things: 

1- Bad investments;
2- Investors taking their money off the fund because they believe other managers or themselves can do better.  

Value of Sequoia fund over the last 10 years (4th quarter of each year) :

2006 : 3.39 billion dollars

2007 : 3.41 billion dollars

2008 : 2.04 billion dollars (CRISIS)

2009 : 2.4 billion dollars (CRISIS)

2010 : 2.69 billion dollars

2011 : 3.65 billion dollars

2012 : 4.7 billion dollars

2013 : 6.57 billion dollars

2014 : 7 billion dollars

2015 : 6.24 billion dollars (beginning of the valeant fiasco)

2016 : 3.6 billion dollars

So, if you had invested 1000$ with Sequoia Fund during the 4th quarter of 2006, you'd have 1062$ ten years later. 

What a FUCKING SHITTY PERFORMANCE. Ten years for 62 bucks. Anybody could have done better than those super managers with 1000$ over that period. A fucking hobo can get 62$ in a day or two if he looks dirty enough.

That part above in red is absolutely wrong. I hope that this blog will never be a credible source of information for you. The value of the fund is not an indicator of the performance of the fund. Like Etienne Pouliot wrote in comment section, the performance of Sequoia has been about 85% over the last 10 years. It's not that good, but it's way better than the 6,2% that I suggested.

These guys destroyed value with a single stupid idea. And they destroyed many years of hard work with that too. Because it will take years for them to regain their credibility.

But, all the fault was on Goldfarb's shoulders! The others did nothing wrong! Since he's gone, everything should be OK. 

Let's take a look at their new brilliant investments.

During the last quarter, Sequoia reduced almost all their positions. But they raised their stake on Carmax (KMX) and Dentsply International (XRAY). They also initiated a position in Amazon (they had a position in the past if I remember well).

Their biggest cut :

Mohawk (-54%) to about 3% of the portfolio

Fastenal (-38%) to about 3.9% of the portfolio

TJX (-22%) to about 7.3% of the portfolio

Berkshire (class A and class B)  (-17.5%) to about 19.2% of the portfolio

Mastercard (-10%) to about 7.7% of the porfolio

I don't get at all where these guys are going. Am I fucking dreaming or they really reduced their stake with their most solid stocks like TJX, Berkshire and Mastercard to buy more of that cyclical and expensive Carmax? What the cunt? 

Why cutting Mohawk? Their recent earnings have been pretty good (the stock is up about 15% over the last 3 months and remains at an historical low PE). Maybe they still can't digest how bad it went for them 8 years ago with Mohawk. Maybe they believe it should only be a 3% position? I don't know. But I know that I prefer Mohawk, TJX, Berkshire and Mastercard to Carmax. 

Maybe they simply took some profits to get ready for the next correction. 

Good idea. But, if there's a correction, I bet Carmax will be hurt much more than Berkshire and TJX.  So, I repeat, I don't know where these guys are going.

I don't believe in Zimmerman,

I don't believe in Elvis,

I don't believe in Beatles,

I don't believe in Ackman,

I don't believe in Sequoia,

I just believe in me.

Yoko and me.