Sabre Arc Capital - September 2023

$772,919

The Fund ended September at $772,917 with $38,321 in cash and $4,000 in cash equivalents.

Activity

We added another $10k of Disney to our existing position as we believe the Company trades below its intrinsic value. Disney is a wonderful business with an excellent moat. We are willing to be patient as Disney sorts out its complications and setbacks over the last few years.

We received $572 in dividends, which we reinvested, from 3M, Pfizer, and Wells Fargo. And $169 in Interest throughout the money market fund. September was our best month in passive income, as we received a record $742.48!

Holdings

Dark green on the portfolio map indicates returns over 50%, while Red indicates losses of more than 50%. Ideally, we prefer to have this entire map be bright green. Amazon and Berkshire Hathaway continue to make up 40% of the total fund.

Returns

Sabre Arc Capital lost $39,400 in September as the market wrapped up its worst performance of the year. The S&P 500 fell 4.9% as soaring bond yields, rising oil prices, and slowing growth triggered a widespread sell-off, even in once-loved mega-cap tech companies. Long-term government bonds surged as investors bet the Federal Reserve would leave interest rates high in the face of a surprisingly robust U.S. economy.

To add insult to injury, Nike beat expectations and popped 8% when we were hoping the stock would fall further so that we could add to our position. Damn you, Uncle Phil!

Better-than-expected expense management helped Nike’s bottom line, with net income declining just 1%. Wall Street analysts had been expecting a 20% drop. 

Nike Clears a Low Bar With Investors

The game plan is to continue allocating capital to the war chest and Disney for the remainder of the year. Companies that we are watching closely are Berkshire, PayPal, and Nike.