What in the 13F?
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, all the eyes of the finance world turned to the bustling metropolitan city of Jackson Hole, Wyoming, as Fed Chair Powell gave his last economic symposium send-off before President Trump beheads him in the town square next fall.
Investors looked to his speech for hints about a potential rate cut next month. Who remembers their market flashcards?
A rate cut, in finance bro speak, is dovish or good for stocks.
I’ll let you figure out whether Powell’s tone was hawkish or dovish at his 10:00 a.m. Friday address by looking at this chart of the market.
One company that hasn’t needed the Jerry RateCut boost to go on a tear the past three weeks is UnitedHealth Group, UNH.
Three weeks ago…
Gee gosh golly.
What were we talking about on here?
Oh, that’s right. It was To UNH or Not To UNH.
The stock closed this week up nearly 30% since its opening price the Monday morning after yours truly detailed it for you with your morning cup of joe...
Is Wall Street reading the Schmoozeletter and putting massive money behind what I am writing?
Undoubtedly.
Or was it just the second-quarter 13Fs came out and Wall Street is following a guy named Warren Buffett and putting massive money behind what he is doing?
Also possible.
But let’s back up. What are we even talking about? What random form was that? This is…
What in the 13F?
In a few words, it’s the big dawgs:
Basically, a form that details what the massive managers with mountains of cash have done with their dough this past quarter.
We can look at this public information for free on the SEC website or organized on the free site dataroma.
What has the GOAT been doing?
Trimming his AAPL like he has been for some time. Trimming some BAC. And adding 5M shares of UNH to the tune of $1.6B.
Five million shares and one point six billion dollars sounds like a lot. It is for most people. Still barely over half of one percent of Warren’s portfolio though. It is good to be the king…
Who else we got?
What about Christian Bale in The Big Short, ol’ ragamuffin Dr. Mike Burry?
This one is a bit easier to read. The good doctor scooped up UNH to the tune of 11% of his $56M portfolio.
How about NFL loser and noted hater of fans, David Tepper?
He was making UNH his second-biggest position. Although I don’t know if Tepper is the person to emulate when it comes to ownership success…
Which is the main point when it comes to 13Fs.
It is fun to look at what the big guys are doing. It is fine to be generally aware of the moves they are making. It always feels good when a stock you outlined with a much lower entry price is the number one most added stock for a quarter.
But ultimately, what these guys do might not make the most sense for you.
And if my guy Warren heard you bought a stock only for the reason that some other jamoke was in it, he’d say…
What in the 13F?!
Final Thought
“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is.” – Warren Buffett
