dimanche 17 février 2019

Sequoia Fund - In love with Google

What happened with Sequoia Fund during the last quarter? Here's their top 10: 

Alphabet/Google (Class A + Class C): 18,7% (sold about 2% of their shares)
Berkshire Hathaway (Class A + Class B): 11,8%
Carmax: 8%
Amazon: 5,5% (sold 4% of their shares)
Credit Acceptance Corp: 4,6% 
Fiat Chrysler: 4,5% (increased their share count by 14%)
Liberty Media: 4,4%
Mastercard: 4,2% (sold 8% of their shares) 
Jacobs Engineering: 4%
Facebook: 4%

While that top 10 doesn't look bad (I'm not sure about Fiat Chrysler and Liberty Media though), It disappoints me to see that they gamble at investing in foreign economies. 
They've invested in South Africa (Naspers), China (Alibaba) and Russia (Yandex). Why have they sold almost their entire stake in TJX and their entire position of Apple, Waters and American Express, while buying some suspect stuff from suspect economies? OK, there's less growth in American Express than in Alibaba, but you can't trust anything that goes out of China. 

I'd rather gamble with The Trade Desk or Shopify than with any megacap from China, Russia or any other fucking communist or ex-communist country. A communist country is like Biovail . An ex-communist country is like Valeant. Both are exactly the same corrupted shit. Come on, if we've had some crappy shit like that in Canada, how shitty can it become in Russia or China?

First rule according to Buffett: Don't lose money. First rule according to me: Be mistrustful to most businesses. Be mistrustful to anything outside western civilization in finance.  

4 commentaires:

  1. I stay away from China. I've seen way too much monkey business coming from China, their trusty accounting standards and their unique ethics and creative ways of stealing your money. For that matter, I do not want the political risks or the currency / foreign exchange risk of investing in these other nations.
    The Sequoia Fund thinking is that China and Russia have been really beaten down and they are willing to invest in the biggest and fastest growing and most dominant companies. Even their position in South Africa's Naspers is a China play (I believe Naspers owns a very big piece of tencent and you can own tencent for cheaper by buying Naspers).

  2. I hope you were gambling with TTD, today it changed your life.

  3. No, I haven't gamble with TTD. But maybe if another big drop occurs in the market.