💰 5 Fact Friday: Buffett, Ackman & Burry's Latest Moves

MARKETS
1. Wall Street’s Q3 Moves 🔍

Exciting news! The latest 13F filings are out, giving us a glimpse of what Wall Street was up to last quarter.

For those just tuning in, the U.S. Securities and Exchange Commission requires all institutions that manage over $100 million to file these quarterly reports. Think of them as hedge fund highlight reels.

Let’s dig in and see what the data has to tell us.

Berkshire Hathaway (Warren Buffett) – $266B Market Value

• Top Buys: Domino's Pizza (DPZ), Pool Corporation (POOL)

• Top Sells: Apple (AAPL), Bank of America (BAC), Liberty SiriusXM (LSXMK and LSXMA)

• Top Holdings: Apple (AAPL), American Express (AXP), Bank of America (BAC)

The Oracle of Omaha continues to be a buzzkill amid an otherwise euphoric stock market. Buffett executed over $30 billion in sell orders versus less than $1 billion in buys, stacking cash and piling into T-Bills. Investors are wondering whether he’s gearing up for a sizable acquisition or just feeling bearish about what lies ahead.

Pershing Square (Bill Ackman) – $12.9B Market Value

• Top Buys: Brookfield Corporation (BN), Nike (NKE)

• Top Sells: Hilton Worldwide (HLT)

• Top Holdings: Brookfield Corporation (BN), Hilton Worldwide (HLT), Chipotle (CMG), Restaurant Brands (QSR)

Bill Ackman doubled down on the two positions he initiated in Q2: Nike and Brookfield. His stake in Nike—the world's largest shoe company—grew by more than 400%. A similar move with Brookfield, the Canadian asset management company, shows his confidence in these giants.

Ackman’s strategy of aggressive, concentrated bets has delivered a stellar 31% annualized return over the past five years. We'll see if these new plays follow that winning trend.

Duquesne Family Office (Stan Druckenmiller) – $3.0B Market Value

• Top Buys: Natera (NTRA), SPDR S&P Regional Banking ETF (KRE), Broadcom (AVGO)

• Top Sells: Vistra (VST), Microsoft (MSFT), Kinder Morgan (KMI)

• Top Holdings: Natera (NTRA), Coupang (CPNG), Coherent (COHR)

Druckenmiller is dialing up his exposure to biotech and betting on a regional bank revival. His shift into Broadcom and away from Microsoft suggests he believes that AI’s real value is accruing at the manufacturing level. Interestingly, Jim Simons (below) took the exact opposite side of this trade.

Renaissance Technologies (Jim Simons) – $66.5B Market Value

• Top Buys: Super Micro Computer (SMCI), Microsoft (MSFT), Apple (AAPL)

• Top Sells: Broadcom (AVGO), Deckers Outdoor (DECK), Tesla (TSLA)

• Top Holdings: Palantir Technologies (PLTR), Novo Nordisk (NVO), United Therapeutics (UTHR)

Jim Simons, the quant king, may need to tweak his algorithm. He bought Super Micro Computer shares right before an accounting scandal wiped out 60% of its value. He also sold Tesla just before its 50% post-election pop. But when Palantir is your top holding, you’re probably not losing much sleep.

Separately, with three of his top five holdings in healthcare—Novo Nordisk, United Therapeutics, and Vertex Pharmaceuticals—Simons appears to be placing a strong bet on the medical sector.

ARK Investment Management (Cathie Wood) – $10.9B Market Value

• Top Buys: Tempus AI (TEM), Advanced Micro Devices (AMD), Amazon.com (AMZN), Natera (NTRA), 10X Genomics (TGX)

• Top Sells: Tesla (TSLA), Zoom Video (ZM), UiPath (PATH)

• Top Holdings: Tesla (TSLA), Roku (ROKU), Coinbase (COIN)

Cathie Wood continues to double down on disruptive innovation. She's adding to positions in AI and genomics with buys like Natera and 10X Genomics. Despite some volatility and being barely breakeven over the past two years, her conviction hasn't wavered. For investors, ARK's strategy is a reminder of the potential rewards—and risks—of investing in cutting-edge sectors.

Scion Asset Management (Michael Burry) – $130M Market Value

• Top Buys: JD.com (JD), Baidu (BIDU)

• Top Sells: Hudson Pacific Properties (HPP), BioAtla (BCAB), American Coastal Insurance (ACIC), The RealReal (REAL)

• Top Holdings: Alibaba (BABA), JD.com (JD), Shift4 Payments (FOUR)

Michael Burry, famed for his "Big Short," is betting big on Chinese tech, with stakes in Alibaba, JD.com, and Baidu. However, in the third quarter, he added put options to hedge these positions—potentially as a precaution in case of a Trump election. Notably, these holdings have already dropped 10–20% in just the last week.

OUR PARTNER: RYSE

RYSE and Shine: Don’t Sleep On This Smart Home Company

Ring 一 Acquired by Amazon for $1.2B.
Nest 一 Acquired by Google for $3.2B.

Smart home companies have seen some spectacular exits, yielding massive returns for early investors, yet one category in this burgeoning industry has eluded adoption - Smart Shades. High prices and complex installation procedures have prevented the mass adoption of smart shades despite their benefits, and one company is set to change that.

RYSE is the tech firm poised to dominate this category (growing at an astonishing 55% annually), and their public offering of shares priced at just $1.75 has opened. Existing shareholders have seen their shares grow by over 20X, and their products have just launched in over 100 Best Buy stores.

Retail distribution was the main driver behind the acquisitions of both Ring and

Nest, and RYSE’s exclusive deal with Best Buy resembles that which led Ring and Nest to their billion-dollar buyouts.

Invest Now before the round closes.

STOCKS
2. The Shrinking Stock Pool 📈

Rick Rieder, Chief Investment Officer of BlackRock, believes valuations could keep rising—and not just due to optimism.

At the peak in 1996, the U.S. was home to 7,300 publicly traded companies. Today, that number has shrunk to around 4,300—a 40% reduction in public companies.

Meanwhile, more Americans are jumping into the stock market, with 62% of the population now invested.

Last year, we saw $137 billion flow into S&P 500 funds alone, but IPOs raised only $19 billion. In other words, capital is entering the market faster than new public companies can claim it.

Why? Many companies are waiting longer to go public, choosing to grow in private markets where they can secure funding without quarterly scrutiny.

This trend keeps potential growth stories off the public table, forcing public markets to concentrate on a smaller roster of mature firms.

As Rick Rieder recently put it, “I don’t love the multiple of equities.” However, he noted that the technicals are “crazy good” due to the lack of sellers.

This technical effect—more money chasing fewer stocks—may continue until private unicorns ($1B+ valuation) finally go public. For now, the pressure on public valuations remains high.

What can investors do if they’re worried about concentration or valuation risks?

• Diversify Globally: Look beyond U.S. borders, as international markets offer less crowding.

• Add Debt: Corporate, treasury, and municipal bonds can provide income and stability, especially when equity valuations are stretched.

• Explore Alternatives: Private equity, venture capital, and assets like gold or Bitcoin could provide other avenues of growth.

Bottom line: The market’s climb may continue, but it's balancing on a narrow base. Choose your bets wisely, and make sure the price you pay is grounded in reason.

ECONOMY
3. Bond Vigilantes Ride Again 💥

October’s inflation data arrived as expected, with the Consumer Price Index (CPI) ticking up 0.2% for the month and 2.6% year-over-year.

Housing, once again, led the charge. Shelter costs have risen 4.9% annually, contributing over half of the total inflation figure.

But let’s not overlook the BLS’s highly sophisticated data collection method here: phone surveys that ask homeowners, “What would you rent your house for?”

Not exactly an airtight strategy.

On the upside, wage growth stayed resilient, with inflation-adjusted weekly earnings growing 0.9% year-over-year. Still, consumers and investors are feeling the pinch, especially with mortgage rates hovering around 7.0%.

The Federal Reserve’s 0.75% rate cuts over the last two months have not only hurt savers but also failed to lower long-term rates. Blame economic conditions, fiscal policy, and maybe even the reappearance of bond vigilantes.

Who are these vigilantes?

The term, coined by economist Ed Yardeni in the 1980s, refers to traders who drive up long-term interest rates when they believe inflation is on the rise or fiscal policy is out of control.

Essentially, these traders are saying, “Hey, Fed, cut rates all you want—but we demand higher yields on Treasuries.” As a result, the 10-year Treasury yield has climbed 0.8% since September’s low.

What’s next?

The Fed’s now assessing not just how many cuts to make, but how fast to roll them out. Market expectations have shifted quickly, with the odds of a December rate cut dropping from 80% to 60% in a matter of days.

But remember: the Fed only has influence over short-term rates.

So savers relying on high-yield accounts may see lower returns, potentially driving investors toward riskier assets.

Meanwhile, long-term rates—and mortgages—could remain elevated until the Department of Government Efficiency reins in spending or debt projections start to decline.

CRYPTO
4. Bitcoin’s Record-Breaking Rally 🚀

Bitcoin is back with a vengeance, reaching an all-time high of $93k on Wednesday before settling at $88k. This price spike has propelled Bitcoin to the 8th-largest asset globally, surpassing silver.

What’s fueling the rally?

A wave of record-breaking ETF inflows following the recent election cycle. Bloomberg’s Eric Balchunas even called the institutional interest “unprecedented.”

But can Bitcoin break $100k by year-end? Last week’s poll showed 76% of Money Maniacs believe it will, while prediction markets like Kalshi put the odds at around 63%.

Analysts see the six-figure mark as a psychological barrier, but Bitcoin’s history of defying skeptics is hard to ignore.

In fact, Bitcoin’s credibility has grown as a surprising lineup of former critics have done a complete 180 on the asset.

BlackRock CEO Larry Fink, who once slammed Bitcoin as a tool for “money laundering,” now promotes it as “digital gold.” Kevin O’Leary, who called it “garbage,” now backs it as a serious asset. Even Trump, who previously dubbed Bitcoin “a scam against the dollar,” may have indirectly fueled this latest run.

With retail energized, institutions finally on board, and the most pro-crypto Senate yet in place, Bitcoin looks poised for growth—if conditions stay favorable.

After all, gold’s market cap remains 10 times larger than Bitcoin’s, highlighting the long-term opportunity ahead.

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STOCKS
5. Guess Today’s Mystery Stock 🕵️‍♂️

Can you guess this fast-rising restaurant chain? Here are five clues about a company that’s quickly cultivating a cult following:

1. This company went public last June. Since then, its stock has soared more than 200%, catching the attention of investors and foodies alike.

2. With foot traffic up nearly 13% and same-store sales climbing 18%, this brand is seeing record growth and brand awareness.

3. The company recently spiced up its menu with new offerings like grilled steak, along with a revamped loyalty program that’s drawing in more fans by the day.

4. By the end of 2024, they plan to open 57 new locations—with a goal of nearly 400 stores by 2025.

5. This chain’s enterprise value per store is around $40 million, roughly double that of Chipotle—a staggering figure for a restaurant chain still early in its growth story.

Got a guess? Tap here to reveal the answer → 

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