��<!DOCTYPE html> <html lang="en"> <head> <meta charset="UTF-8"> <meta name="viewport" content="width=device-width, initial-scale=1.0"> <title>Lone Hemp</title> <style> @media screen and (max-width: 479px) { /* Phone style */ main { font-size: 10px; } footer p { font-size: 1; } } /* General style */ body { font-family: Times New Roman, serif; font-size: 16px; line-height: 1.6; margin: 0; padding: 0; color: #000; /*max-width: 800px; margin: 0 auto;*/ } header { background-color: transparent; color: #000; /* Black text for header */ padding: 20px; text-align: center; border-bottom: 1px solid #ddd; /* Simple border for separation */ line-height: normal; } header h1 { font-size: 36px; font-weight: bold; } main { padding: 20px; border-bottom: 1px solid #ddd; } section { margin-bottom: 40px; } section h2 { font-size: 24px; margin-bottom: 10px; } .list-header { font-weight: bold; margin-bottom: 5px; } ul { list-style-type: none; /* Remove default bullet points */ padding: 0; margin: 0; } li { margin-bottom: 5px; } footer { text-align: ; padding: 20px; } q { font-style: italic; } a { text-decoration: none; } </style> </head> <body> <header> <b> <font size="6">L</font><font size="4">ONE </font><font size="6">H</font><font size="4">EMP</font><br> <font size="2">34/1 Aygedzor Street<br> Yerevan, 4202 </font><br> Official Home Page </b> </header> <main> <section> <h2>About</h2> <p>Lone Hemp is a small private fund set up in 2022 and managed by one person.<br><br> <u>Oct 31, 2024</u><br> <font color="#005EC5">Top holdings</font> GOOGL 15%, BABA 13%, GOOG 12%, BRK.B 12%, LAD 12%, RYGYO 10%, ABG 5%, AN 5%, JD 4%, PDD 4%<br> <font color="#005EC5">Performance</font> 33.30% - 1 year, 23.89% - 3 years<br> <!-- YCharts S&P 500 3 year return monthly insights --> <font color="#005EC5">Portfolio p/e</font> 12</p> </section> <!-- <section> <h2>Values</h2> <p>Stock picking has never been easy. I never found it easy to outperform the market likewise. Outstanding results are promised to everyone who gets Peter Lynch classics, but achieved by insiders, private equity, famed investors, and contrarians. I believe small investor can only be a contrarian. I prefer buying a profitable, out of favor stocks and stay put. Eventually a catalyst, or a mood swing makes stock price move. </p> </section> --> <section> <h2>Ideas</h2> <p><b>Berkshire</b><br> Pages 2, 3, and 48 of Q3 2024 report say that trailing operating earnings are <!-- 8,481 + 32,910 = $41,391 mln -->$41.4 bln, cash is <!-- 288,031 + 32,287 - 14,868 = $305,450 mln --> $305.5 bln, long term debt is <!-- $124,507 mln -->$124.5 bln, fixed maturity and equity investments are <!-- 271,650 + 16,042 + 30,133 = $317,825 mln -->$317.8 bln, market capitalization is <!-- $950,000 mln -->$950 bln. EV / operating earnings is 10.9. Third largest auto insurer, largest US railroad network, utility and a collection of sturdy controlled businesses sold at 10.9 is cheap. BNSF has lowest operating margins among railroads. When industry turns, laggards tend to perform better. Lastly, Buffett thinks BNSF replacement value is at least $500 bln.<br><br> <!-- <q>BNSF is the largest of six major rail systems that blanket North America. Our railroad carries its 23,759 miles of main track, 99 tunnels, 13,495 bridges, 7,521 locomotives and assorted other fixed assets at $70 billion on its balance sheet. But my guess is that it would cost at least $500 billion to replicate those assets and decades to complete the job.</q><br><br> --> <!-- <q>Though BNSF carries more freight and spends more on capital expenditures than any of the five other major North American railroads, its profit margins have slipped relative to all five since our purchase. I believe that our vast service territory is second to none and that therefore our margin comparisons can and should improve.</q><br><br> --> Geico is widely hated in investor community, especially on Reddit and VIC (ironic). It is argued that Progressive is a much better business overall, but is Progressive 50% better? Hard to find out. One thing that stands out is that Geico multiple is 1.5 times lower, and its float is managed by an outstanding investor.<br><br> Berkshire is better than average business trading 2 times cheaper than market. It looks undervalued.<br><br> <b>Google</b><br> Google recent DOJ antitrust case is something that would hurt any business. However, Trump election pushed stock price up overnight, as market believes Trump will stop Google breakup. And just like that the cheapest hyperscaler stops being spat on. On a P/E basis Google is twice cheaper than Amazon, and its multiple is lower than S&P 500 average, which is absurd. SOTP analysis suggests that if we assign hyperscaler multiple to Google cloud business, deduct cash from market capitalization, then YouTube and Google search trades at 12 P/E. It is undervalued.<br><br> <b>China</b><br> Whether it's Alibaba, JD, or Pinduoduo Chinese equities are cheapest they have ever been. Stimulus news in September 2024 launched KWEB 50% up over 2 weeks. Actual stimulus did not impress Wall Street and KWEB slid 20%. Nobody knows when markets are satisfied with further stimulus, but when it happens it will be late to chase. </p> </section> <section> <h2>Pending</h2> <p>UPRO STLA WOSG BBWI CROX MGM AMR VZIO GPI</p> </section> </main> <footer style="background-image: url('jackofdiamonds.jpg'); background-size: 400px 400px;"> <!-- <footer style="background-image: url('forest.jpg'); background-repeat: no-repeat; background-size: cover;"> --> <p><font size="2"; color="#005EC5">Copyright &copy; 2024 <b>Lone Hemp</b></font></p> <!-- <p>Copyright &copy; 2022-2024 <b>Lone Hemp</b></p> --> </footer> </body> </html>