Tracking Charlie Munger's Daily Journal Portfolio - Q2 2016 Update

• Charlie Munger’s Daily Journal Portfolio continues to have just four positions.
• The portfolio has been largely untouched since their first 13F filing for Q4 2013.
• The overall portfolio value decreased ~2% in the quarter.

Charlie Munger’s Daily Journal portfolio value decreased ~2% this quarter from $114M to $112M. Since their first 13F filing for Q4 2013, there has only been one change to the holdings: POSCO was reduced significantly in Q4 2014. After accounting for this sale, the portfolio value has remained remarkably steady over the last three years. Below is a look at the holdings:

Wells Fargo (WFC): WFC stake forms almost two-thirds of the entire portfolio. The stock was at $45.40 EOY 2013 during their first 13F filing and is now at $48.93.

Bank of America (BAC): BAC is another large stake at 26.72% of the portfolio. The stock was at $15.57 during their first 13F filing for EOY 2013 and is now at $15.19.

US Bancorp (USB): USB is a 4.94% of the portfolio position. The stock is at ~$40, the same price as it was EOY 2013.

POSCO (PKX): The minutely small 0.38% portfolio stake was sold down by ~85% in Q4 2014 at prices between $64 and $73. The stock is now at $49.16.

The spreadsheet below show Charlie Munger's Daily Journal US stock holdings as of Q2 2016. Please visit our previous updates to get an idea on how the portfolio has progressed:

 To know more about Charlie Munger, check out the book Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger.

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy .  

Tracking Guy Spier's Aquamarine Capital Portfolio - Q2 2016 Update

• Aquamarine Capital’s 13F portfolio decreased from $118M to $111M during the quarter.
• Guy Spier reported just one change for the quarter: The Seritage Growth Properties position was increased by around one-third.
• Berkshire Hathaway at ~24% of the portfolio is the largest position.

Guy Spier’s Aquamarine Capital Portfolio decreased 5.91% from $118M to $111M during the quarter. The portfolio is very concentrated with just 13 positions. The largest five positions are Berkshire Hathaway (BRK.A), American Express (AXP), Fiat Chrysler Auto (FCAU), General Motors Warrants (GM-WTB), and Bank of America (BAC) & WTS (BAC-WTA). They together add up to ~68% of the portfolio. Most of the top positions have remained steady in recent quarters. Below is a summary of recent activity:

1. Seritage Growth Properties (SRG): The 4.50% portfolio position in SRG saw a one-third increase this quarter at prices between $43 and $57.  The stock is now at $49.37. The position was established last quarter at prices between $38 and $51.

2. Moody’s Corp (MCO): MCO is a small 2.11% of the portfolio stake established last quarter at prices between $79 and $100 and the stock is now at $105.

3. General Motors Warrants (GM-WTB): GM Warrants is a top-five position at 9.45% of the portfolio. The last significant activity was in Q1 2015 when the original stake saw a one-third increase. For investors attempting to follow Spier, GM-WTB is a good option to consider for further research.

Ferrari NV (RACE), a spinoff from Fiat Chrysler is another large presence at 7.34% of the portfolio.

Below is a spreadsheet that highlights the changes to the portfolio as of Q2 2016. Please check out our previous update to have an idea on how the portfolio is progressing:

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy.   

Tracking Francis Chou’s Chou Associates Portfolio - Q2 2016 Update

• Chou’s 13F portfolio decreased from $308M to $262M during the quarter.
• Valeant Pharmaceuticals and Sears Holdings were increased while establishing a minutely small new stake in General Motors warrants.
• Berkshire Hathaway at 12.42% of the portfolio is the largest position.

Francis Chou’s Chou Associates Portfolio decreased ~15% from $308M to $262M during the quarter. The portfolio continues to be very concentrated with just 27 positions. Among the larger (more than 0.5% of the portfolio each) positions, there were only a couple of changes. Below is a look at his largest stakes:

1. Valeant Pharmaceuticals (VRX): VRX is a 11.12% portfolio position established last quarter at prices between $26 and $102 and increased by ~48% this quarter at prices between $19 and $36. The stock currently trades at $24.49.

2. Sears Holdings (SHLD): Sears (SHLD) and its spinoff entities Sears Canada (SRSC) and Sears Hometown & Outlet (SHOS) are together another large presence at a combined 11.72% of the portfolio. Sears is a long-term position that has been in the portfolio for well over a decade and their cost-basis is high. This quarter saw a ~39% increase at prices between $10.70 and $18.65. The stock is now at $17.08.

3. Berkshire Hathaway (BRK.A): The 12.42% portfolio position is the largest 13F equity stake. The last major activity was a 50% reduction last quarter at prices between $187,000 and $214,000. The stock is now at $221,890.  

4. Resolute Forest Products (RFP): The 9.90% RFP position has been in the portfolio since 2010 (Abitibibowater at the time) and the cost-basis is much higher compared to the current price. Q2 2013 saw a one-third increase at prices between $13 and $16. Last five quarters also saw a ~20% combined increase at progressively lower prices between $4 and $19. The stock is now at $5.89.

5. JPMorgan Chase Warrants (JPM-WT): The 8.70% stake in JPMorgan TARP Warrants was acquired in 2011 and the price has almost doubled. The position has remained relatively steady since. Chou is sitting on large long-term gains.

6. Nokia Corp (NOK): NOK is a 8.14% stake that has been in the portfolio since 2009. The bulk of the current stake was purchased in Q2 2012 at ~$3 per share. The stock is now at $5.70.

Below is a spreadsheet that highlights the changes to the portfolio as of Q2 2016. Please check out our previous update to have an idea on how the portfolio is progressing:

To learn more about how to profit from a strategy of cloning hedge fund picks, check out our book Profiting from Hedge Funds: Winning Strategies for the Little Guy .