Superinvestor Portfolios Q3 2022: Munger, Pabrai, Spier

Superinvestor Portfolios Q3 2022: Munger, Pabrai, Spier, & More

I discuss the latest investing activities of superinvestors I tend to follow.

Video Contents:

-Superinvestors Intro
-Charlie Munger DJCO BABA Update
-Guy Spier
-Li Lu
-Mohnish Pabrai Bought BAM
-Bill Miller Reduced BABA
-Viking Global Bought BABA

I previously covered Warren Buffett and the Berkshire Hathaway Q3 2022 Portfolio: Huge Bet On Taiwan Semiconductor (TSM) in this video.

By studying what superinvestors are investing in or not, their trends might give us new insights, investing ideas, and help us to become better investors.

Most of the superinvestors’ 13F equity holdings didn’t come out until mid-November 2022 for Q3 2022. However, Charlie Munger’s Daily Journal (DJCO) 13F for Q4 2022 came out early as usual in January 2023.

For those who like to keep tabs on Alibaba (BABA), they might be relieved to see that DJCO still owned BABA as of Q4 2022. Though Charlie Munger stepped down as DJCO’s Chairman in 2022, he is still involved in the equity portfolio.

Daily Journal is still holding onto the three bank stocks (BAC, WFC, USB), but they sold their remaining holding of POSCO, the South Korean steel-making company in Q4 2022. The POSCO sale was likely around $500K worth, so not much in the grand scheme of the overall portfolio.

While DJCO is still holding onto 300K shares of BABA, they had previously sold about 302K shares for what I’m guessing is an estimated tax loss harvest of $61M. This may have offset if they had capital gains of $50M from selling BYD in December 2021, according to one source.

With Guy Spier of Aquamarine Capital, his American equity portfolio isn’t getting much action lately where he sold off his Twitter stock in Q2 2022. The last of Guy’s buying activity was in Q2 2021 in having bought some BABA and DJCO while entirely selling WFC a year and a half ago.

While I know at some point both Guy Spier and Mohnish Pabrai bought Prosus, a Dutch company, I don’t know if they still own this holding as it’s not shown on the 13F.

With Li Lu of Himalaya Capital, his last American stock activity was in Q2 2022 in buying some Alphabet (GOOG & GOOGL) while selling entirely out of META (aka Facebook).

So it kind of seems like these superinvestors are biding their time in terms of investing more in the American market, or they are investing more so in foreign businesses not on an American stock exchange.

Maybe they are waiting for another economic shoe to drop for a more legit recession to happen in 2023 before they might buy American stocks again, or maybe we’ll see if they bought anything in Q4 2022.

Mohnish Pabrai of Dalal Street/Pabrai Funds had some knowable activities in Q3 2022. He seemed to add to his Rain Industries position and his existing Reysas Logistics position became a multibagger.

Mohnish’s 13F shows that he bought about $7.4M of Brookfield Asset Management (original ticker BAM before it spun off into both BAM and BN). While this may only be 1% of his overall portfolio of assets under management, I know that Mohnish likes spinoffs.

It’ll be curious to see whether Mohnish holds onto the presumed spinoff, Brookfield Corporation (BN), and if he also keeps BAM. It seems that BN is the bigger company that was targeted to have a value of $80B while BAM is the smaller one valued at $20B. The stock market caps of these tickers are currently lower. Going forward, BAM will be the one to issue the dividends. While I don’t know much about Brookfield, I’ve generally heard good things so it’ll be interesting to see what happens here.

In Q3 2022, Bill Miller of Miller Value Partners was among most superinvestors who reduced their Alibaba holding, and yet it’s still among his top 10 out of 86 positions. Interestingly, only Viking Global Investors bucked the trend by buying $100M of BABA in Q3 2022 (after having entirely sold out in Q3 2020).

It’s fascinating studying what some of the best investors are doing so I hope you found this review helpful!

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