vendredi 11 novembre 2016

Giverny Capital update by the clown of Bay Street

2016 taught me to don’t care too much about superinvestors and averageinvestors sales and buys. Most of them are not that intelligent. In fact, many of them are not more intelligent than the average reader of this blog. Not more intelligent than me too, which means a lot because I'm a clown. I'm the clown of Bay Street. That's my duty to make you laugh with my thoughts about how absurd life is and how everybody will eventually let you down and how you spend your life working without any pleasure to get money that you save for later, waiting to be 65, old, tired and alone to use that money to pay for your cancer.

This year, I’ve started to take consideration of François Rochon’s picks via his fund, Giverny Capital. A few days ago, we could see the update of this fund via Whale Wisdom, one of the discoveries of 2016 (thanks to Etienne Pouliot, an obscure reader of this blog). I don't think that all the stocks are that interesting, but it's fun to look at them to see some stocks not that popular among investors.
There was not so much buying and selling for Giverny during the last quarter. Some little buying here and there and a large selling for Knight Transportation. 
And there’s a new buy which is Heico (HEI-A), an aerospace and electronic stock with a pretty high PE ratio bought by Merkel recently. It looks like Rochon likes to copy his favorite managers picks (Berkshire, Merkel and Sequoia Fund). The PE is high, the ROE is OK (16-17) and the beta is low. The sector is interesting too. So, why not keeping an eye on that stock?

Actual positions for Giverny Capital
Berkshire Hathaway class B (BRK-B) : 18,2%
LKQ corp (LKQ) : 7,8%
Carmax (KMX) : 8,4%
Bank of the Ozarks (OZRK) : 8,1%
Disney (DIS) : 7,2%
Ametek (AME) : 7,1%
Visa (V) : 4,8%
Merkel (MKL) : 4,6%
Union Pacific (UNP) : 4,6%
Wells Fargo (WFC) : 4,2%
O’Reilly (ORLY): 4,2%
Total 10 first positions : 79,2%

That website doesn’t show canadian holdings. I’m pretty sure that Giverny has a position in MTY Food Group... and they had a position in Dollarama in the past too. Is there anybody knowing what are their canadian holdings?

5 commentaires:

  1. LOL I'm obscure !

    He got Constellation Software too and Stantec ( wich is reported in the 13F since it also trade in the US). At least that what he listed in his last annual report.

  2. Novo Nordisk. is it in trouble? Why is it not recovering with the rest of the healthcare stocks? NVO is flirting with its 52 week low. Already down ~ 40% in last year.
    Meanwhile, little Tucows is up almost TEN-FOLD in the last 5 years.

    Rochon is very concentrated in transportation/cars and in financials.

  3. If you take a look at the PE ratio of NVO, you'll see that it's never been so low... At least for the last 5 years.

    Yeah, Rochon is pretty concentrated. His position in Carmax is too big in my opinion. A cyclical company shouldn't be one of your biggest holding.