Burry’s Big Bet on China Tech, Pro-tip on ATKR, and 7 Takeaways from Berkshire Hathaway
Welcome back to the BBAE Blog, your trusted source for the latest investment insights and analyses from the BBAE team. Our featured articles for the week are “Michael Burry – Portfolio Update – Q1 2024,” “Riverwater Partners: Atkore Inc. ($ATKR) – A Compelling Opportunity in Electrical Infrastructure,” and “7 Takeaways from Berkshire Hathaway’s 2024 Annual Meeting.”
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Michael Burry – Portfolio Update – Q1 2024
In his Q1 2024 portfolio update, Michael Burry, the renowned hedge fund manager of Scion Capital, has made clear his bullish stance on Chinese technology companies. Known for his prescient bets, Burry has significantly increased his stakes in Alibaba ($BABA) and JD.com ($JD), boosting his holdings by 67% and 80%, respectively, making them his top two holdings. Additionally, he initiated a new position in Baidu ($BIDU), underscoring his confidence in China’s tech sector. This strategic move highlights Burry’s focus on high-conviction bets. Find the entire Burry portfolio, and the portfolios of many other well-known investors, in BBAE Discover. Click here for the full article.
Riverwater Partners: Atkore Inc. ($ATKR) – A Compelling Opportunity in Electrical Infrastructure
In a post this week in Pro Investor Letters, we highlighted Riverwater Partners’ investment in Atkore Inc. ($ATKR), a manufacturer of electrical, safety, and infrastructure products. The firm’s portfolio manager, Adam Peck, emphasized Atkore’s strong market position and exposure to high-growth sectors such as solar, data centers, and EV batteries, which are bolstered by favorable policy initiatives and increasing energy demands driven by AI advancements. With a 5-year revenue growth rate of 13.9%, expanded gross margins, and a new quarterly dividend, Atkore demonstrates robust financial performance. Despite significant earnings growth post-COVID, Atkore’s valuation remains attractive, trading at a discount compared to peers. Riverwater Partners is optimistic about Atkore’s potential for further growth and multiple expansion, positioning it as a standout investment in the electrical infrastructure sector. See the full Pro Investor Letter post here, and find a bunch of other compelling Pro Investor Letters in BBAE Discover.
7 Takeaways from Berkshire Hathaway’s 2024 Annual Meeting
After an exhausting week covering the Berkshire Hathaway 2024 Annual Meeting in Omaha, James reflects on the week with his seven key takeaways. The irreplaceable presence of Warren Buffett and Charlie Munger highlights concerns about the future of Berkshire’s leadership without them. Despite Greg Abel’s increased prominence, his performance left some investors yearning for more charisma. Notably absent were Todd Combs and Ted Weschler, leading to speculation about their roles. Buffett’s discussion on selling part of Berkshire’s Apple holdings, with Tim Cook present, was notably tense. The anticipated reveal of a mysterious financial stock did not materialize (more on that below), adding to the intrigue. Despite these uncertainties, the meeting retained its charm, drawing a large crowd and generating huge excitement. Click here for the full article.
Weekly Roundup: Lower Inflation, Higher Interest Rates, China Tariffs, Mystery Stock Reveal
Berkshire Hathaway unveiled its mystery stock as Chubb (NYSE: $CB), causing a surge in its stock price. Inflation remains a hot topic, with the latest CPI report indicating a 3.4% increase over the past year, countering President Biden’s optimistic claims and pushing the Dow Jones Industrial Average to new highs. Interest rate predictions continue to be volatile and largely inaccurate, adding to market uncertainty. Meanwhile, President Biden’s significant tariff hikes on Chinese imports, particularly on electric vehicles, have sparked debates and reflect ongoing strategic economic maneuvers between the US and China. Click here for the full roundup.
Happy Investing,
Barry Freeman
CEO @ BBAE
