Buffett and Dario

Discussion:

Find out who are the largest hedge funds. Then answer the following questions.

a.      What are their missions? Try to give some evidence that they actually follow their stated mission.

b.      What are their portfolios? What companies do they own? Do they own the entire company?

c.      Do you see any patters, e.g., particular industries, was the company in trouble, etc.?

Bridgewater Associates has many kinds of stocks and lately they sold their largest stocks such as Microsoft, Computer Science Corp, L3 communications Holdings. This company spread their money on many industries. We can see their portfolio in below table.

 

Sectors	Sector Weightings (%) (Not including ETF, options, preferred)	Sell Impact (%)	Buy Impact (%)
Consumer Defensive	2.1%	-0.5%	0.9%
Healthcare	1.6%	-1%	0.7%
Consumer Cyclical	1.4%	-1%	0.4%
Financial Services	0.8%	-0.6%	0.5%
Technology	0.8%	-1.1%	0.5%
Energy	0.7%	-0.1%	0.2%
Basic Materials	0.6%	-0.3%	0.5%
Industrials	0.5%	-0.2%
Communication Services	0.3%	-0.8%	0.1%
Utilities	0.2%		0.1%
Real Estate	0.1%	-0.1%

(This information from gurufocus)

 

This is Berkshire Hathaway, Warren Buffet’s portfolio. Let’s compare Dalio’s portfolio. 

 

Sectors	Sector Weightings (%) (Not including ETF, options, preferred)	Sell Impact (%)	Buy Impact (%)
Financial Services	38.3%		0.8%
Consumer Defensive	30.1%	-1.6%	0.3%
Healthcare	2.4%		0.5%
Industrials	2.4%		0.1%
Communication Services	2.3%		0.3%
Consumer Cyclical	1.9%		0.6%
Energy	1.9%
Technology	1.5%		0.2%
Basic Materials	0.6%

 

Buffet used to invest just two companies such as American Express and Berkshire Hathaway which specialized textile. One was Graham’s method and one was just to read common sense. That era was just like “go getter” and many young investors preferred various kinds of stocks. However, he didn’t do that. Even now we can see that he focusing just two major portfolios. This is funny thing for me.

In my opinion, Dalio doesn’t see managerial situation of their portfolio one by one and their mission should be statistical analysis because I don’t think Dalio specialized in every category of businesses. Buffet portfolio is actually risk. All companies are concerning financial institution means it so vulnerable to financial crisis.  

              Another big difference, Dalio prefer gold and he thinks money is just alternative and gold is money. Buffet doesn’t think as well.