All The Pros All Buying These Companies
Summary
Joseph analyzes the recent 13F filings of several prominent hedge fund managers to extract actionable insights for individual investors. Joseph begins by discussing Dev Kantesaria of Valley Forge Capital, noting that Joseph admires Kantesaria's discipline despite a recent period of underperformance. Joseph highlights Kantesaria's heavy concentration in interest-rate-sensitive financial data companies like FICO, Moody's, and S&P Global, while noting that Kantesaria has maintained a large position in ASML as an asymmetric risk factor. Joseph critiques the lack of risk factor diversification in Kantesaria's portfolio but respects the commitment to high-quality compounders.
Joseph then contrasts the strategies of Chris Hohn and Bill Ackman regarding Microsoft and Google. Joseph explains that Chris Hohn exited Microsoft due to concerns about AI disintermediation risk from tools like Claude, whereas Bill Ackman took the opposite trade, buying Microsoft at a relative low. Joseph expresses a personal preference for holding both tech giants, asserting that their moats remain incredibly strong despite the evolving AI landscape. Joseph also reviews the portfolio of Pat Dorsey, focusing on Dorsey's success with ASML and AppLovin, and Dorsey's increasing conviction in digital network platforms like Uber and Meta.
Finally, Joseph addresses the current legal challenges facing Meta in California, which some have labeled a 'big tobacco moment.' Joseph argues that these fears are likely exaggerated because the demographic under 18 represents a tiny fraction of Meta's user base and revenue. Joseph reminds viewers that similar panic during the Cambridge Analytica scandal provided a historic buying opportunity. Joseph concludes by emphasizing that disciplined investors should use such periods of 'noise' to add to high-quality positions at discounted valuations.
Mentioned Stocks
Reasoning: Joseph argues that the negative headlines regarding child safety lawsuits are a distraction. Joseph emphasizes that users under 18 only account for 2-4% of total users and an even smaller fraction of revenue. Joseph compares this period to the Cambridge Analytica scandal, suggesting that buying high-quality companies during peak negative sentiment often leads to outsized returns. Joseph explicitly states that Joseph continues to hold and buy Meta.
Reasoning: While Joseph thinks ASML is an incredible business with an impenetrable moat, Joseph has recently trimmed the position because the valuation is stretched. Joseph bought the majority of the stake at lower prices and decided to take some profits after significant momentum carried the price higher. Joseph believes in being slow to take gains but decided to trim slightly at current levels.
Reasoning: Joseph disagrees with Chris Hohn's decision to exit Microsoft over AI disruption fears. Joseph believes Microsoft's moat is wide enough to handle competition from AI tools like Claude. Joseph states that Joseph has become more bullish on Microsoft over time and considers it a high-quality core position.
Reasoning: Joseph describes Netflix as 50% off its highs with market fears that Joseph believes are inaccurate. Joseph has added $5,000 to the position this year, signaling high conviction. Joseph views it as a capital-efficient business that remains a leader in its category.
Reasoning: Joseph views Uber as one of the best digital networks in the market. Joseph notes that Bill Ackman has made it a massive position, and Joseph has been buying both Uber and Meta recently. Joseph believes Uber is in an earlier, more high-growth phase of its aggregation business compared to companies like Booking Holdings.