Sabre Arc Capital - October 2023 Report
$774,404 as of October 31, 2023
Sabre Arc ended the month of October with $774,404, an all-time end-of-the-month high! The fund received $241.59 in dividends, and three positions continued to make up nearly 50% of the portfolio. We had $40,000 in cash and $10,000 in fixed coupon certificates of deposits (“CDs”). A 12-year-old me would have given a different answer if you asked me what CDs were, but I digress.
What We Purchased
Our firm purchased two three-month CDs at 5.4500% & 5.4000% respectively. We did not make any additional investments.
Dividends & Interest
We received $175.34 in interest & $66.25 in dividends from Nike. Sabre Arc has now received $3,590.50 in dividends & interest for the year. One fascinating aspect of this number is that a term of the partnership agreement states that each partner must deposit a minimum of $300 each month, totaling $3,600 annually. For each partner we add, we should expect a minimum of $3,600 in deposits; however, we have received nearly $3,600 this year without adding another partner. This can be seen as our first employee, or better yet, our first resident of Sabre Arc-ville. This fictional resident gladly partakes in a life of toil, 24/7, 365 days a year, for the benefit of Sabre Arc. We are working hard at finding this resident a partner ($7,200 in dividends & interest) so they may happily compound and produce children. We shall keep you posted.
What We Own
We see Sabre Arc as a work of art, and the heat map below is our canvas that we strive to cover in bright green. Bright green states the security is up, while red states that we have lost money in the security. Berkshire, Amazon, and Disney currently make up nearly 50% of the portfolio, which we feel more than comfortable with. We would purchase more Berkshire & Amazon if the stocks fell 30% tomorrow!
Notable Earning Results
Netflix:
Netflix said its ad plan membership grew nearly 70% quarter over quarter.
Added 8.76 million global subscribers during the third quarter, higher than the 5.49 million Wall Street had expected
Tesla:
Tesla faces “enormous challenges” scaling up factory production of its long-delayed Cybertruck, signaling profits could remain under pressure in the coming quarters.
Operating margin fell to 7.6% in the third quarter, from 17.2% in the year prior, putting it on par with many traditional automakers.
Amazon:
Profit tripled to nearly $10 billion from strong sales in its cloud computing, advertising, and retail units, helping the company continue its rebound from post-pandemic lows.
Amazon’s cloud business sales rose 12% to about $23 billion in the third quarter.
Microsoft:
The company’s net income rose 27% to $22.3 billion
Microsoft’s Intelligent Cloud segment produced $24.26 billion in revenue.
Onward,
TWI