What are the super investors buying?

We have our heroes in our lives. For some, they could be our parents, siblings or someone in the public domain. As an investor, I have read several materials from & about some of the top investors. For ease of reference, let us call them "super investors". Heroes come in different shapes, sizes and strategies. As (an "aspiring") value investor, it would not be surprising that I started by reading up materials on Benjamin Graham, Warren Buffett, Charlie Munger, Peter Lynch, Li Lu, Mohnish Pabrai, Nick Sleep, Guy Spier and the likes.

With heroes, it is not surprising that we will study them, watch their interviews and read their books. For some of us, we would even consider "cloning" their portfolios. Mohnish Pabrai admits that he is a "shameless" cloner. For me, let us not forget to do our own due diligence before we investWe should not invest with the conviction of anotherWithout understanding the stock, do we know when we are to sell, hold or buy even more?

Peter Lynch said it best:

"what would we do when the price of the stock we bought dropped by 50%? What would we do when it dropped by another 20%?"

If we would buy the stock at $26 per share, would we not buy the share when it reaches $8 per share? Our research and understanding of the business will empower us to make such decisions. This would allow us to better manage our emotions, be it hysteria or panic.

31 March 2022 spells the end of Q1 of 2022. This also means that investing companies will need to update their 13F filing for Q1/2022.

Investopedia explains 13F with the following:

The Securities and Exchange Commission's (SEC) Form 13F is a quarterly report that is required to be filed by all institutional investment managers with at least $100 million in assets under management. It discloses their equity holdings and can provide insights into what the smart money is doing in the market.

13F is an update of the purchases and sales from the various investment managers from the last quarter. It is not the most updated but it does help me with the following pertaining to the previous quarters:

  • Know what the investors are buying
  • Know what the investors are selling
  • Establish an estimated buying or selling price by the quarter (3 months)
  • Know the "capital allocation" used
  • Know any portfolio diversification or concentration

Here are some of the portfolio stats from Q4/2021 for super investors:

Some of the super investors and their portfolio size

Top 10 most owned stocks, most owned stocks by % and size of the stocks in various portfolios. This also shows the number of super investors who own these stocks (out of 78 super investors)

Top 10 buys from last 2 quarters and by %

Some stocks that are near 52 weeks low - does this imply good buying opportunities?

Conclusion

Personally, these buys or sales serve as "investing ideas" and I will view the list as a "filter". I need to do my own analysis of these stocks. However, if I am unfamiliar with industries like banking, I would not have sufficient knowledge and understanding to make "sound" investing decisions. Thus, I may stay away from some of these stocks as I do not have a strong understanding to qualify them. Blindly copying would not allow me to make future decisions when these stocks become volatile.

When Charlie Munger first bought $BABA shares, I managed to work out that he probably purchased this within a price range (around $226) during that quarter. This would be that Charlie Munger deemed his purchased price of $BABA to be at "fair value" (with a margin of safety applied). After qualifying the stock with my own research, I continue to buy the stock over the last few quarters. I did not stop reviewing their quarterly and annual earnings. This is important as we are biased ever since we became investors in the stocks we bought. This is part of my own due diligence to ensure that $BABA continue to have sound financial fundamentals. As $BABA continues to grow, innovate and build its moat over time, this gives me the confidence to continue my purchases since the price dropped from $226.

Time will prove me a fool or brave. For now, I will continue to channel part of my savings into $BABA. This is how I use the 13F filing of my favourite super investors to filter, research and invest.

@TigerStars 

List of 78 Super Investors and their Top 10 portfolios

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • DragonKC
    ·2022-04-05
    Different investors have different level of investment capabilities.  The ultimate goal is to make profits in whatever stocks we buy be it high value, mid cap,  penny or meme stocks.
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    • Tabby Chai
      Agreed
      2022-04-05
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    • KYHBKO
      well said.
      2022-04-05
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  • AdrianTan
    ·2022-04-02
    Everyone has different goals, risk tolerance and time horizon. Also the quantum these guys invest is huge. That makes a difference on their target allocation and prices. Dont ever fly blind :)
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    • KYHBKO

      well said as always.  it serves as a starting reference.  we still need to do our part to research.

      2022-04-02
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  • breAkdaWn
    ·2022-04-05
    good knowledge. keep it up.
    please note these investors play with other people's money. they can move markets.
    while we play with our own money. not even a drop in the ocean
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    • KYHBKO

      you are right. Main Street can also do well if we put in the efforts.

      2022-04-05
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    • Huat Huat Ah
      Huat huat all
      2022-04-05
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  • Ra007
    ·2022-04-02
    Excellent analysis [Miser]
    Wondering if the list of participants in “Super investors” can be made even better or is this list pre-decided
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    • KYHBKO
      added the list of 78 super investors with their top 10 holdings.  Hope that this is helpful.  this is determined by the website itself.
      2022-04-02
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    • Ra007
      Thank you
      2022-04-03
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  • jasmine_tan
    ·2022-04-02
    thanks for the reminder, very sound investing advice!
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  • 蒋小鱼
    ·2022-04-05
    thanks for sharing
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    • KYHBKO

      all the best

      2022-04-05
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  • setia100
    ·2022-04-05
    marathon man👍💪
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    • KYHBKO

      yes.  investing is a marathon, not a sprint

      2022-04-05
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  • RM156
    ·2022-04-05
    Excellent info.. thanks for sharing
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    • KYHBKO

      you're welcome

      2022-04-05
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  • Wealthliner
    ·2022-04-02
    thanks for sharing 👍👍
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    • KYHBKO

      you're welcome.  all the best

      2022-04-02
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  • PaperPlay
    ·2022-04-06
    A wonderful piece of writing. Appreciate your time & effort to share with the community 💪
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    • KYHBKO

      thanks for your kind words.  It was part of my screening of stocks.  just glad that this article has helped more than the author.  all the best!

      2022-04-08
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  • Shawrac
    ·2022-04-05

    Interesting finding

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    • KYHBKO

      we are expecting Q1/2022 updates soon from the various 13F

      2022-04-05
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  • WAVYBBY
    ·2022-04-03
    good information
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    • KYHBKO

      thanks

      2022-04-04
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  • EvanHolt
    ·2022-04-01
    Your understanding of investing is deep.
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    • KYHBKO
      thanks. I hope that this is helpful for your investing. all the best
      2022-04-01
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  • AhBart
    ·2022-04-05
    Very sound , prudent and full of wisdom write out 🤟🏽. Thk u so much for sharing your thoughts and teachings 👍🏽
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    • D6655
      👍🏼
      2022-04-05
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  • Remotecam
    ·2022-04-05
    I find it interesting that the Top 10 most popular stocks don't include herd favorite $Tesla Motors(TSLA)$ .  [Sly]
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  • 虎洁
    ·2022-04-05
    Good faith in BABA
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  • Jojokibe
    ·2022-04-05
    Very good information, thank you very much for sharing this 👍
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  • loti
    ·2022-04-05
    thanks for sharing
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  • MickeyLiew
    ·2022-04-05
    Detailed sharing.
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  • Nishit
    ·2022-04-05

    Great read

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