Important: Before considering any investments, please ensure you understand what to expect.
After three years of studying value investing, I made my first investments in 2022. For most of the year, I sat on cash, watching the market decline. Eventually, I made two cautious moves, following investors I deeply trust. One turned out to be a mistake, which I had to correct a few months later—a rocky start.
Here’s what my portfolio looked like at year-end:
I’ll be sharing detailed analyses of all my investments over the next few months, but here’s a quick take on the new additions to my portfolio in 2022:
DaVita: While researching Ted Weschler—one of Berkshire’s investment managers with an outstanding track record—I came across a video where he discussed DaVita. It was a long-time holding of his own fund, which he brought to Berkshire after joining. Buffett seemed to like it as well, making it one of Berkshire’s top 10 positions. At the time, Berkshire owned more than 40% of the company. The stock had recently declined significantly, and DaVita was buying back shares. Those factors gave me enough confidence to make my first investment. I intend to keep it for a very long time (I have even added to the position in 2024).
Alibaba: Charlie Munger was so confident in this investment that he even used leverage to buy it for the Daily Journal portfolio he managed. If Charlie went all in, I wasn’t going to second-guess him. So I bought. A few months later, he admitted his mistake and sold the stock. So I sold. Not the best start, but I still believe that following Charlie every time he went all in would have delivered great results over time.
Luckily, the Alibaba mistake still turned out well: