Alderique
Singapore
about a month ago
Dear partners, Perhaps the news that affected the portfolio this past week was Buffett's announcement that he would be stepping down at the end of the year. In response, shares of Berkshire Hathaway drop by 5%. While the conglomerate remains the our biggest holding at approximately 7%, we weren't affected too much as other holdings buoyed the portfolio's performance, such as our holdings in precious metals ETFs in particular. Over the same week, I added more to our positions within Berkshire Hathaway alongside slowly increasing our holdings in aforementioned ETFs. The rationale for doing so was because: "When I came out to California, there was this playboy and he spent all his time drinking heavily and chasing movie stars. His banker called him in and said that he was very nervous about his behavior. He told his banker, 'Let me tell you something: my municipal bonds don't drink.' Charlie is using this story to remind us that Berkshire Hathaway owns a collection of exceptional businesses, hand selected by Charlie and Warren because of their superior underlying economics and run by brilliant managers. They will keep on earning Berkshire good money long after he and Warren get off the wagon and sail on to that great bull market in the sky." - The Tao of Charlie Munger. Alderique. PS: As of this writing, Wallstreet Journal reports that both the US and China agree to substantial tariff cuts. I'll be keeping an extremely close eye on what happens next.
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