Looking for investment inspiration?
Here’s what the best investors in the world have in their portfolio today:
1️⃣ Warren Buffett
Does this man still need an introduction?
Since Warren Buffett took over Berkshire Hathaway in 1965, Berkshire compounded at roughly 20% per year.
This means an investment of $10.000 would be worth more than $800 million (!) today.
Top 5 positions of Berkshire Hathaway:
▪️Apple (38.9%)
▪️Bank of America (11.2%)
▪️Chevron (9.8%)
▪️Coca-Cola (8.5%)
▪️American Express (7.5%)
(Source image: @genuine_impact)
2️⃣ Terry Smith
Terry Smith is probably the best quality investor in the world.
Since Fundsmith launched in 2010, the fund compounded at a phenomenal CAGR of 15.6%.
Terry’s investment mantra is very simple:
1. Buy good companies
2. Don’t overpay
3. Do nothing
Top 5 positions of Terry Smith:
▪️Microsoft (8.9%)
▪️Novo Nordisk (6.3%)
▪️L’Oréal (5.8%)
▪️Philip Morris (5.7%)
▪️LVMH (5.1%)
3️⃣ Li Lu
Li Lu is often mentioned as the Chinese Warren Buffett.
His investment strategy is very straightforward: find undervalued securities and back up the truck.
Since 1998, Li Lu achieved a return of 30% (!) per year.
Top 5 positions of Li Lu in the United States:
▪️Micron (29.8%)
▪️Alphabet (25.6%)
▪️Bank of America (25.1%)
▪️Berkshire Hathaway (14.4%)
▪️Apple (5.1%)
4️⃣ Bill Gates
Did you know that Bill Gates has his own investment foundation?
The Bill & Melinda Gates Foundation Trust is the second largest charitable foundation in the world.
Over the past 10 years, Bill Gates’ foundation created 160% in shareholder value (CAGR of 10%).
Top 5 positions of Bill Gates:
▪️Microsoft (26.4%)
▪️Berkshire Hathaway (21.4%)
▪️Canadian National Railway (18.3%)
▪️Waste Management (15.5%)
▪️Caterpillar (4.9%)
5️⃣ Howard Marks
Howard Marks is the founder of Oaktree, the largest investor in distressed securities in the world.
The Memo by Howards Marks is a must read for every investor.
Warren Buffett stated that he drops everything he's doing when Howard Marks publishes a new Memo.
Top 5 positions of Howard Marks
▪️Torm PLC (20.3%)
▪️Chesapeake Energy (10.8%)
▪️Vistra (7.8%)
▪️Star Bulk Carriers (6.6%)
▪️Sitio Royalties (4.9%)
6️⃣ Bill Ackman
Bill Ackman is an activist investor. His personal wealth is equal to roughly $3.3 billion.
Over the past 18 years, Ackman has generated a 17.1% annualized return compared to 10.2% for the S&P 500.
Top 5 positions of Bill Ackman:
▪️Lowe’s (23.5%)
▪️Restaurant Brands International (17.8%)
▪️Chipotle (17.5%)
▪️Hilton Worldwide (14.4%)
▪️Howard Hughes Corp (13.8%)
7️⃣ AKO Capital
AKO Capital is run by Patrick Hargreaves and Torkell Eide, the authors of the excellent book Quality Investing (I can highly recommend this book).
With its funds, AKO Capital focuses on quality companies only.
Top 5 positions of AKO Capital
▪️Booking Holdings (12.1%)
▪️Accenture (8.3%)
▪️Visa (7.5%)
▪️Intercontinental Exchange (7.2%)
▪️Alcon (6.2%)
8️⃣ Chuck Akre
Via its 3-legged stool, Chuck Akre wants to invest in compounding machines.
You can do this in 3 easy steps:
1. Buy quality businesses
2. With an integer management
3. And plenty of reinvestment opportunities
Top 5 positions of Chuck Akre:
▪️Mastercard (14.4%)
▪️Moody’s (12.0%)
▪️American Tower (10.8%)
▪️Visa (8.4%)
▪️Constellation Software (8.1%)
9️⃣ Quality matters
Most investors mentioned in this list were quality investors.
But does it help to focus on quality companies?
The answer is YES.
Since 2011, our investable universe (Compounding Quality) increased with 1100% (!) compared to 184% for the MSCI World.
That's it for today.
If you liked this, you'll love our website.
You can read the full article here:
qualitycompounding.substack.com/p/40-stocks-yo…
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