Put in $2000, then purchased:
$200 for PAX
$300 for OWL
$495.49 for AHH
$200 for AMZN
$300 for HASI
$300 for MCD
$300 for NVDA
This portfolio update added a little bit on everything, e.g. alternative asset managers, tech, REIT, spread businesses.
What's new is McDonald's (MCD), which has its own category that I call Defensible Consumer Discretionary. Technically it's a consumer discretionary because people can choose not to eat out, and not to choose McDonald's; however, McDonald's affordability and its association with happiness and kids make people come again and again, no matter how the economy goes. I wrote a brief analysis of it. While MCD is trading at quite a premium price at $303, more than the $264 price tag that I would like to buy, I entered a starting position anyway just to make it more visible for me to add into the position if it dips further. I like the restaurant itself, and I like its easy-to-maintain moat that allows the company to distribute dividends with consistent high-single-digit to low-double-digit growth.
My last investment in Nvidia was back in April 2025 when it was trading at around $97. Buying at $190 today is definitely a scary move. My main motivation was the Groq acquisition in December 2025. It reduces the uncertainty of Nvidia's monopolistic position in AI chips dramatically, which allows me to bump the buy below price to $222. Nvidia's economic moats are definitely not as easy to maintain as McDonald's, but Nvidia provides higher growth and much higher expected return. I was glad that I could add more into it at a reasonable price today.
Transactions
Recent and upcoming dividend distributions
Portfolio performance snapshot
Total return:
One-year return:
Portfolio IRR (calculation): 24.44%
Approximated IRR for an SPY-only portfolio: 18.27%
Individual holdings:
Breakdown by categories (real-time):
Total returns for individual holdings:
Last prices:
Portfolio holdings conviction
The convictions in the table below reflects my current opinions and will guide the future contribution of additional investment to existing holdings. Stocks not inside the table are stocks with subpar return on equity that will be very unlikely to receive more contributions from new money (there can be exceptions for very cheap stocks).
Conviction in long-term prospects means how much I believe a company would match or outperform the market (e.g. S&P 500) in the long run. Valuation matters so the conviction generally corresponds to the neutral rating of Valuation. It has the following ratings: weak, moderate, strong
Valuation: greatly overvalued, overvalued, slightly overvalued, neutral, slightly undervalued, undervalued, greatly undervalued
Brief comments on individual holdings
Most Brief analysis and latest updates are here:
AHH, AMZN, BABA, BIDU, BN, BTC, HASI, HHH, HOOD, MAIN, MCD, META, NNN, NVDA, OWL, PAX, PYPL, TSLA, TSM, UNH, XYZ, ETFs like SPY, VWO
Below are incomplete writeups:
BRK.B
Berkshire Hathaway in the current form was found by my idols, Warren Buffett and Charlie Munger. I will try to buy more if it's not very expensive.
APO
Apollo specialized in distress situations, which reduced the number of competitors. Its famous slogan is purchase price matters, which shows how price conscious they are in picking investment. It has another slogan "we want 25% of everything and 100% of nothing on the asset", which is a goal post of the company about engaging in a lot of asset managing transactions even for other asset managers. It's a good way to position the company to have a large adjustable market. Their use of reinsurance company, Athene, helps them to grow assets under management effortlessly as well.
[2025/04/04] Expected 2025 EPS is $8.3, so P/E around 13.25, pretty cheap with an expected growth of 10-15%. 1.68% dividend yield helps a bit as well.
BAM
The pure asset management company part of the Brookfield Corporation. With BN, BAM can grow its asset under management (AUM) easily. Oaktree Capital, founded by the famous Howard Marks, is part of it, so it's very reputable.
The management has already indicated they are locked in to grow its cash flow 15% annually for the next field years. Its management fees do not rely on performance that much, so they are stable. With an expected 2023 EPS of $1.39, P/E 25 is not cheap, but with the help of 3.8% dividend yield (close to 100% payout, thanks to the asset light business model), there is a fair chance the stock can return 15% annually.
BX
A very reputable company in real estate. Its management fees rely on performance much more than Brookfield, but Blackstone has a track record, so I am not too worried about it.
Expected 2023 EPS is $4.36, P/E ~ 21. A 3.5% dividend yield with expected annual growth of 10-15%, this stock can potentially get a 15+% return in the long run.
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