A Review of the Greatest Positions in the World
I like to do a review of my holdings every once in a while when there is no major news in the market. And I would talk about Elon discontinuing the supercharger unit, and how unbelievably stupid that is, but it would make me too mad. Before I begin my review, I would like everyone to watch for Disney’s earnings on the morrow. And with that, I can begin my review of the most exquisitely constructed portfolio in the world from the highest weight to the least. Side note, I will only be covering the first four positions. I was going to cover them all, but I was already at 900 words by the end of the third stock. CURSE MY VERBOSITY.
The first is Costco. I feel like I don’t talk about Costco much anymore, and that is because the company is just freakishly good at growing the bottom line quietly. Costco is such a wholesome, well-run company whose business model alone sets it apart from its competitors. Costco’s membership and super-low, bulk prices give it extremely loyal customers who feel like they are winning anytime they shop at the store. My price point for Costco is $435, so I am up 75% on the position, so very close to that one hundred mark. Costco is 28% of my portfolio.
I am optimistic about Costco’s future. I see no real competitors on the horizon and a leadership team that is professional and hardworking. Also, they do weird stuff like selling gold bars at their stores, and their customers LOVE IT. Costco is such a simple company, and that, along with a great leadership team, makes it one of the easiest home runs available, always.
The second is Disney (the GOAT). Disney has been quite the ride. I have already told this story a couple of times, but Disney was the first stock I “researched” and bought. The rest were just me parroting information from my grandfather. I bought at about $115, rode the streaming ride up to $190, or whatever it was, and then learned many valuable lessons as the stock fell. Then, the stock fell below where I had bought, and I started scooping up share after share. Now, my price paid is $100. I had to stop buying, even though I wanted to buy so much more because the stock became 20% of my portfolio, where it is now. The risk/reward became too great in my mind. And even though I would have made more money, I stand by my decision to start closing off my risk. I am up 17% on my Disney position.
And now that I am done with my personal story about why I L-U-V Disney, I can explain why you should L-U-V Disney. Mostly, it starts and stops at Bob Iger. Disney was in a not great place when Bob took over the first time and he repositioned the company quite well. Now, Bobby is back for a second act with Disney, and already, he has repositioned this company brilliantly. And I know it sounds like I want to marry him, but genuinely, this guy is such an excellent general. The way he has removed the burden of overspending from Disney while simultaneously re-energizing nearly every facet of the company is masterful, but that was just the first stage. In the coming year or so, we, as investors, will begin to reap the rewards. Disney+ will be profitable this quarter, mark that, the sports bundle will come together well, Star Wars and Marvel have completed their content hibernation and will begin bringing in billions soon, parks are still harvesting cash, and Bob has removed Disney from a culture war that was possibly morally just, but ultimately, unprofitable.
Now, Bobby does have one major flaw, and that is his inability to pick a successor. As soon as Bob Iger leaves Disney, I will leave most of my position if not all. He failed at that task too many times for me to trust him in this matter only.
Bob Iger is an Agrippa. One who never gets enough credit for deeds done despite being praised throughout history. Somehow still underrated.
Third is Microsoft. Microsoft, I do talk about quite a bit, so I won’t spend too much time explaining my love for the stock, but I will say a few things. First, Satya Nadella is one of the best leaders of the 21st century. Microsoft was in a bad spot when he took over, and he has turned the company into a titan of the world. Second, if you believe in AI, Microsoft is the right company for you. Microsoft basically controls OpenAI, the leader of all things AI, and beyond that, Microsoft is the only major company integrating AI this effectively. Finally, Microsoft has a family of products that work together seamlessly. I see only good things for Microsoft. I bought Microsoft at $177, and I have experienced a 133% gain (woohoo!) Microsoft is 15% of my portfolio.
I will tell you; I absolutely have an emotional connection to Microsoft. Microsoft is objectively my best investment, and I think, it was my second-ever stock purchased, so I am quite the fan. I may look at Microsoft with rose-colored glasses, but I try my hardest to fight the emotional attachment.
Finally, TQQQ is my fourth position. Anytime I tell someone who knows what TQQQ is that it makes up 10% of my portfolio, they automatically assume I am a risk-addicted, adrenaline monster who snorted Adderall before pressing the buy button. I promise that is not what I am. I simply believe in tech, and I believe in tech companies. I believe that over a long enough timeline, tech will go up in value, so why would I not want all the growth I can humanly get from tech?
Not to say that there are no risks. I initially bought TQQQ at $38 and immediately watched the position sink by 40% at its worst. I held on, however, and watched the position rise and rise up to a 6% gain, at which point I declared victory and panic sold. Then, I realized I had made a mistake. I had become too emotional with my money and bought back in. In the time that I had been ruminating, however, the stock had slid up to $50. I dumped 10% of my portfolio into the position and have collected a 17% gain.
Again, the thesis for TQQQ is, do you believe in the 100 biggest tech companies in the world continuing to innovate and appreciate? If the answer is yes, then why in the world would you not want as much of that growth as you can get your hands on? TQQQ is a risky play, but fortune favors those who throw their kids’ college funds into TQQQ.
