mardi 3 juillet 2018

Sequoia fund slide presentation

I don't know if I'm late, but today, I've realized that the 2018 investor's day slide presentation of Sequoia Fund was released.

Before, it was a PDF. I believe that the slide presentation is an upgrade because it's much more visual and it's straight to the point. Well, the PDF transcript was mostly questions from investors and the slide presentation is controled by what executives wanted to say. So, perhaps we'll see a transcript in the coming weeks.

But, anyway, here's my comments.

First, we can see that, for the last 2 years, the fund has achieved a performance similar to the S&P500. However, for the 5 first months of 2018, the fund had a performance about twice better than the market.

Then, we can see the fund's cash position over the last 3 years:
2016: 13,1%
2017: 8,6%
2018: 7,7%

A little later, the top 10 holdings by mid-may 2018 with holding period. Wow, that's cool.  They have been holding Berkshire for 29 years, TJX for 18 years and Mastercard for 12 years. 

Portfolio characteristics: We can see how many stocks they held in 2016, 2017 and 2018, the percentage of the biggest position, the percentage for the top 5 and the top 10 for these 3 years. Then, the percentage for Softwares and Internet stocks for the last 3 years. It went from 8,2% to 30,5% since 2016. What a radical change. That's where the growth is, it seems.

Then, the PE for Sequoia and the market. We can see that, for 2018 the fund is about 19% more expensive than the market and, for 2019, it's about 9% more expensive than the market. But the growth of sales for the fund is between 100 and 150% better than the market.

There's some other stuff too.

Each year, people wank over Berkshire's annual report. I don't get a boner for that. But I get it for Sequoia's fund. I even begin to believe that ,in a few years, I may forget the fact that they were dumbfuck enough to have 30% of the fund in Valeant. 

I don't know if people who come here are that excited about Sequoia's fund. Perhaps they say: "Here he goes again with these fuckers who almost did a hara-kiri with Valeant!".

The fact is that you're right in a way. Perhaps I shouldn't forgive them. I should put them on my black-list. And write about Jason Donville. The question remains: Who should I love and worship? Everybody has a skeleton in the cupboard.

3 commentaires:

  1. They only hold one Canadian stock.....must be more worth holding you'd think.

    1. They hold the best Canadian stock though, Constellation software

  2. guess there aren't that many awesome stocks in Canada. Right now I hold TD, CNR, BYD, WCN, CSU, GIB.A, DOL, SJ, TOY, LAS.A, some XUS for American exposure. guess its fairly small portfolio.