jeudi 15 août 2019

A view on some less-known investors

Do you know about Pat Dorsey?

That investor is wild. It may excite some readers here looking for sensations because, what I can see after 5 years writing this blog is that very few people care for traditional stocks like Mohawk or Ross Stores. Most are looking for the next big thing, which is something I'm very suspicious about.

But I live to give. So here's what you're looking for, you fucking bunch of gamblers.

Here's the portfolio of Dorsey Asset Management:

Facebook: 21%
Avalara: 18% 13% 10%
Alphabet: 9%
Paypal: 8%
eBay: 8%
Cimpress: 6%
The Trade Desk: 4%

There are probably a few names there that you don't know. But before getting to these names, I have to tell that the average PE ratio of that portfolio is very high. We're far from growth at a reasonable price. We're more in the territory of "very high growth at a crazy price". But the guy owns 10 stocks, so he probably benefits from some statistic rule saying that among 10 very high growth stocks, the majority will probably continue to grow a lot for some time. I don't know if there's a rule about that, but it helps me to keep some respect for the guy, thinking that.

The problem with that portfolio in my opinion is that it contains some stocks that don't even make profits (I'm talking here about Avalara and Despegar which represent about 28% of the portfolio). That's something everybody should avoid in my view: stocks that don't make money. Whatever how beautiful the future may look, if they don't earn profit now, I'm not tempted at all to anticipate that their management will be able to reverse the situation. That's the definition of speculation. But, again, most of you fucking assholes are excited about that kind of situation, so fuck my writings and let's buy these stocks with all our savings, and why not putting a mortgage on the house to get more money to invest in these?


David Rolfe of Wedgewood Partners has the portfolio that looks the more like mine. Actually, we look like cosmic twins. I own many stocks that he owns and I've been interested in owning most of the other stocks he owns. I'll follow him closely in the future.

Here's his top 10 positions:

Apple: 9%
Visa: 9%
Facebook: 8%
Edwards Lifesciences: 8%
Tractor Supply: 7%
Berkshire Hathaway: 6%
Booking Holdings: 6%
Fastenal: 6%
Paypal: 5%
Ulta Beauty: 5%


Let's complete with the funny Bill Ackman. Because now, Bill Ackman goes Buffett.

Yes, after saying that Valeant wasn't worse than Berkshire that invested money in a sugar-water company (Coke), Ackman puts 11% of his portfolio in Berkshire. It's his way of admitting  that Buffett is better than him. Frankly, Ackman is the funniest investor alive. So cocky, so proud-looking but so inconsitent and incoherent. But still so cocky. He's the Bono of big investors.

6 commentaires:

  1. Pat Dorsey used to Manage Morningstar Stock Investor Portfolios (Tortoise & Hare), a monthly Newsletter. He also published seveval books with Morningstar...

  2. Pat Dorsey is somebody who emphasizes the importance of economic moats.
    He is picking stocks that pretty much dominate their niche and would be very hard to compete against. Where's across the street from google? Who is serious competition for Facebook? They just enjoy impenetrable economic moats and it's super hard to compete against them.

  3. Pat Dorsey s hands down the best investor i have ever observed. period.

  4. So I am assuming pat would endorse cargojet ? As a shareholder , I hope he does.

  5. @penetrator. Have you done your trip in Newfoundland? How was it?

    1. I’m there currently. Trying to sleep at 4 AM in a motel full of drunk people.