- (1:00) – Learning Value Investing From A Fund Manager: Portfolio Philosophy
- (6:30) – A Life Changing Lunch With Warren Buffett
- (10:00) – Breaking Down Aquamarine Fund’s Current Positions
- (22:30) – Big Takeaways From Guy Spier: BAC, WFC, AXP, MA, MU, TWTR, GOOGL, MCO, RACE, SRG
-
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Welcome to Episode #241 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks
Value Investor portfolio
, shares some of her top value investing tips and stock picks.
This week, Tracey takes a look at value investor manager Guy Spier’s portfolio at Aquamarine Capital.
Spier famously won the annual Warren Buffett charity lunch in 2007, paying $660,000, which at that time was the highest ever paid. He attended the lunch for 3 ½ hours and has called it “life changing” in interviews.
He is value investor and holds a concentrated portfolio of just 12 stocks.
Following in Buffett’s Shadow
The largest holding in Spier’s Aquamarine Capital is
Berkshire Hathaway
BRK.B
. He owns both the B shares and the A shares. It makes up 21% of the entire portfolio.
Bank of America
BAC
and
American Express
AXP
are the two next largest positions, at 15.5% each.
Both of those companies can also be found in Berkshire Hathaway’s portfolio.
Technology Stocks on Sale
However, in the second quarter of 2020, when the global stock markets sold off on the coronavirus pandemic, Spier took the opportunity to jump in on some of the big cap technology names.
He bought small positions in both
Twitter
TWTR
and
Alphabet
GOOGL
.
Neither one would have been considered “classic” value stocks ala Buffett or Ben Graham, even on the sell-off.
But they were “cheap” compared to their peers and historic valuations in their industries.
Twitter is up 85.5% and Alphabet has gained 68.6% over the last year versus the S&P 500’s gains of 34.5%.
What lessons can you take from Spier’s concentrated value portfolio?
Find out the answers on this week’s podcast.
[In full disclosure, Tracey owns shares of GOOGL in her personal portfolio.]
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