Buffett and Ackman’s Q3 Moves, $SEG’s Upside Potential, S&P 500 2025 Predictions, and More
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. This week, we’re excited to share some highlights that will keep you informed and ahead of the market. Don’t forget, some of our most valuable insights are available exclusively in the BBAE Pro app—download it now to unlock full access!
- Warren Buffett / Berkshire Hathaway – Portfolio Update – Q3 2024
- Bill Ackman – Portfolio Update – Q3 2024
- Plural Partners Fund: Seaport Entertainment ($SEG) Investment Case
- Brett Gardner Explains Warren Buffett’s Early Investments
- News Roundup: S&P 500 2025 Predictions, Lousy Retail Investor Performance, Europe Wanes, Simple ETFs
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Warren Buffett / Berkshire Hathaway – Portfolio Update – Q3 2024
Warren Buffett’s Berkshire Hathaway reported a relatively quiet Q3 2024, marked by a significant move toward cash, which rose 87% to $305 billion—now exceeding the value of its public equity holdings. The company reduced major positions, including selling 25% of its Apple stake (still its largest position at 26% of the portfolio) and cutting its Bank of America holdings by nearly 23%, potentially to avoid regulatory reporting thresholds. New positions were initiated in Domino’s Pizza and Pool Corp, while Ulta Beauty was nearly liquidated. With high valuations limiting opportunities, Berkshire’s growing cash stockpile underscores Buffett’s strategy of acting decisively only when market conditions demand it. Click here to explore the full portfolio update.
Bill Ackman – Portfolio Update – Q3 2024
Bill Ackman’s Pershing Square Capital Management revealed its Q3 2024 portfolio update, featuring one new addition and notable adjustments. Ackman added Seaport Entertainment Group ($SEG), a spin-off from long-held Howard Hughes Corporation ($HHH), and significantly increased his Brookfield Corp ($BN) stake by 377%, making it the portfolio’s second-largest holding after Alphabet ($GOOG). He also raised his Nike ($NKE) position, betting on a brand turnaround. Meanwhile, modest reductions were made to Hilton ($HLT), Howard Hughes, and Canadian Pacific ($CP). Click here to dive into the full portfolio breakdown.
Brett Gardner Explains Warren Buffett’s Early Investments
Brett Gardner sheds new light on Warren Buffett’s legendary early investing years, challenging conventional narratives about the 1950s and 1960s. Often described as an era of easy bargains, Gardner reveals that Buffett’s 30% annualized returns were anything but effortless, rooted instead in meticulous research and strategic activism. Drawing from extensive study, including insights from Buffett’s partner Charlie Munger, Gardner debunks the myth of “net nets” being simple to uncover and highlights Buffett’s disciplined approach to stock selection. This discussion not only revisits Buffett’s youthful brilliance but also examines how his early strategies can inspire today’s investors. Watch the full conversation here.
Plural Partners Fund: Seaport Entertainment ($SEG) Investment Case
Plural Partners sees Seaport Entertainment ($SEG) as an undervalued opportunity with significant upside potential following its spinoff from Howard Hughes Corporation. Trading at a deep discount to its asset value, $SEG benefits from strong insider commitment by Pershing Square and a portfolio ripe for operational improvements under new leadership. Key assets such as Pier 17 and 250 Water Street offer pathways to value realization, while challenges like underutilized office space and underperforming properties remain. Plural Partners views $SEG as a well-positioned turnaround story with the potential for substantial returns over the next three years. Read the full article here.
News Roundup: S&P 500 2025 Predictions, Lousy Retail Investor Performance, Europe Wanes, Simple ETFs
This week’s financial news highlights several key developments:
- 2025 S&P 500 Predictions Prove Unreliable: Market experts were notably off in their 2023 predictions – they forecast a recession and S&P 500 decline, yet the market rose 23% with no recession. The S&P 500 reached 5,917, exceeding even the most bullish forecasts, highlighting the unreliability of market predictions.
- Retail Investors Significantly Underperform: According to JP Morgan, retail investors gained just 3.7% year-to-date compared to the S&P 500’s 25% gain. Dalbar Research shows this pattern persists long-term, with mutual fund investors averaging 4% annual returns versus the S&P 500’s 10% over 20-year periods.
- European Market Weakness: European stocks continue to underperform, facing significant productivity challenges with no clear catalyst for improvement on the horizon.
- ETF Performance Trends: 96% of ETFs delivered positive returns over the past year, averaging 14%. However, complex, high-fee ETFs underperformed simpler alternatives, with some leveraged products showing counterintuitive results despite underlying asset gains.
Read the full roundup post here.
Wishing you a great week ahead~
Barry Freeman
CEO @ BBAE
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. Neither the author nor BBAE has a position in any investment mentioned.
