Sabre Arc Capital March 2024 Portfolio Review
March 2024 - $1,024,361
It is said that if you don't know who you are, the stock market is an expensive place to find out. I have been on my investing journey for almost a decade, and only in the last couple of years have I begun to understand myself better. Experience is the best teacher in this money game, and I am becoming aware of my limitations, given the lack of it. This is why I started Becoming Berkshire; as a student of this game, I want to experience financial history through the eyes of Buffett and Munger as they built Berkshire Hathaway. Ideally, I would love to be a full-time fund manager and devote my days to reading annual reports, listening to earnings calls, and reflecting on financial data. Still, unfortunately, as a husband and father of two young children, I require a full-time job. The moment will come, but I must manage in the meantime.
I want to use these monthly updates to reflect on my decisions as a fund manager. I am learning to balance protecting and compounding our capital at rates above the market. This fund has grown from $1K to $1 Million, but I have had several missteps along the way. What does a millennial know about Mr. Market's manic-depressive moods, anyhow? Our generation will be ill-equipped to deal with long stretches of bear markets. However, I am doing my best to relive these moments as I write about Berkshire Hathaway and apply what I have learned to Sabre Arc.
Dividends & Interest
Sabre Arc Capital received $839.02 in dividends & interest in March and $2,138.16 this year.
Securities Purchased
We purchased another $7,500 in DIS 0.00%↑ as we continue to build the position; we are nearly at $150K and hope to make it much longer. It pleases me to see the security fall as we are net buyers.
The portfolio has made significant progress since March of last year, as several of our positions have turned positive.
March 2023
March 2024
I could admire this beautiful green work of art all day, but the job is not done yet. A handful of companies need to get their act together. I’m looking at you PAPL 0.00%↑ & BABA 0.00%↑
YTD Returns
We ended the month with $1,024,361, breaking 1 million for the first time! I can’t help but think that if we can hit 1 Million, why not 10 million? I’m genuinely fired up to see this number, and I could not be prouder of my partners, who have not once doubted the process and collectively pursued the same goal. We are now a million-dollar fund with zero debt, $10k in monthly deposits, and ready to take any challenge that is thrown at us.
Now it is time for some earnings:
Target
Target reported higher holiday-quarter earnings on a smaller-than-expected sales decline and predicted that annual comparable sales would come in largely above Wall Street expectations, sending its shares up 12%.
“We expect consumers will remain highly value conscious, hunting for great promotions and seeking comprehensive value in their purchases.”
Robust Black Friday and Cyber Monday spending helped drive holiday-quarter sales.
Lennar
Co-CEO Stuart Miller said the macroeconomic environment was relatively consistent in the quarter, pointing to mortgage rates that fluctuated in a “manageable range” and strong employment. However, the housing supply was still chronically short, and demand outweighed supply.
Looking ahead to the second quarter of 2024, Lennar expects to deliver between 19,000 and 19,500 homes with a gross margin of approximately 22.5%. The company remains focused on delivering 80,000 homes for the full year, with a margin consistent with the previous year'’.
Darden
“The lower-income consumer does appear to be pulling back, and the mix of guests based on income is now in line with pre-COVID,” Cardenas said during a call discussing earnings.
Chief Financial Officer Raj Vennam said consumers over 65 are being more careful with their spending, ordering “a little bit fewer add-ons” and shifting more to lunch.
Nike
“The consumer is still clearly shopping in multi-brand retail, and we need to elevate our brand and our positioning to be able to serve the consumer and to have the maximum impact from the new innovations that we’re bringing to market,”
“While Nike Direct will continue to play a critical role, we must lean in with our wholesale partners to elevate our brand and grow the total marketplace,” Donahoe added.