Shameless Cloner Portfolio & Returns Update (August 2023)

last week here on the channel I uploaded a video covering the latest buys and sells from some of my favorite super investors given the latest batch of quarterly 13f filings and long time followers of the channel will know that for almost two years at this point I have been attempting to take the latest buy and sell activity from some of my favorite investors and turn that into what I call the Shameless cloner portfolio it's a hypothetical hundred thousand dollar portfolio I've been documenting it here on the channel for like I say almost two years for really two main reasons firstly I want to see if it's actually possible to generate Market beating returns simply by just copying the moves of the best investors in the world and secondly I want to document some of the challenges that come along with Shameless cloning as much as I can try and put rules around building the portfolio over time uh there are quite often just judgment calls I have to make because of weird stuff that come thumbs up in different investors portfolios so since we now have a fresh batch of 13f violins from a week or so ago it's time to do our usual quarterly update of the Shameless cloner portfolio we'll cover what the portfolio looked like last quarter how it's been tracking in terms of Returns versus the S P 500 and I'll also take you through some recent changes that I've made given uh the most recent batch of 13fs so if you enjoy these types of videos and haven't subscribed to the investing or Tom Channel already please be sure to do so and just before we get into the portfolio itself I just want to be very clear about a couple of things the stocks that are going into this portfolio and coming out of the portfolio they're not intended to be buy and sell recommendations this really is just a pure experiment of Shameless cloning and I should say this portfolio doesn't represent my own personal portfolio or anything like that truly is just an experiment that I'm trying to document here on the channel uh because I think it's an interesting thing to dig into and just in case you're wondering uh the tool that I am using to track this portfolio over time is sheer site as a tool that I do use with my own personal portfolio have done for several years there is a free version of Shear site you can use forever particularly if you have less than 10 stocks that will work quite well so if you're interested in checking out Chia site head to the link sharesight. com Festival Tom if you do choose to sign up for a premium subscription if you have more than 10 stocks or I came to get some of the more premium features that link will also get you four months free off an annual subscription okay so in

terms of the Shameless cloner portfolio I just want to do a very quick refresher on some of the rules that I have set up around how I want to build the portfolio over time now I'll leave timestamps as usual along the bottom of the video here on YouTube and you want to just jump forward and see the portfolio itself but for those that are kind of wondering how I'm structuring the portfolio this will be a quick refresher on the rules around the portfolio itself so the first thing is that I do have sort of a mountain Rushmore of my favorite super investors that drive the vast majority of the you know stocks that go into the portfolio and the stocks that are sold out of the portfolio the Mount Rushmore for me has six Super investors those are Warren Buffett Charlie Munger guys beer minus propriet lilu and Norbert Lou and although I'm not fully closed off to looking at Investments outside of those six Super investors particularly if we're struggling to find stocks to fill the portfolio right up over time those other sex investors who I really want to drive the vast majority if not all of the stocks that end up in the portfolio over time I want to end up at roughly a 10 by 10 portfolio so 10 stocks with about a 10 out of location as of this latest quarter we're at an eight stock portfolio it's actually been quite surprising uh how difficult it's been to get to a full 10 by 10 portfolio over time and of the eight stocks in the portfolio seven of them are kind of 10 allocations that cost approximately one of them still is 20 at cost and we also have about 10 percent of the portfolio in cash but over time the goal is to be fully invested have no cash in the portfolio and have roughly 10 stocks at about a 10 allocation but uh we're not quite there just yet and all of the investors on that Mount Rushmore are long-term value investors they care very much about the price that they pay to get into Investments and to get out of Investments so I do have some sort of price sensitivity rules built in basically I'm just going to take an approximate midpoint in which the stock traded and which a you know super investor bought a particular stock let's say that a stock traded roughly between eighty dollars a share and 120 this year when Warren Buffett for example bought it that would make the midpoint price approximately a hundred dollars per share for that stock and the rule I have set up is that I want to pay no more than 30 percent above that midpoint price on that example 130 dollars per share and this court has been quite an interesting one for that price sensitivity rule because uh our one new stock was actually very close to being above that 30 threshold uh and we had a second stock we could have potentially added that actually failed the price test it had gone up more than 30 percent above the midpoint price by the time uh was a potential buy for the Shameless cloner portfolio Okay so with all that

background out of the way let's jump over to share sides and have a quick look at how the portfolio was sitting in our last quarterly update okay so we are over in share site now looking at the diversity report which will show us sort of a simple pie chart of the Shameless cloner portfolio and I've picked out the 15th of May which is uh the date on which we got the last quarters batch of 13A filings and this is basically what the portfolio looked like a quarter ago um so our biggest position was Occidental Petroleum at about 13. 5 of the portfolio next up was East-West Bancorp so I should say Occidental a clone of Warren Buffett East West Bancorp a clone of Lee Lou Berkshire a clone of actually Warren Buffett's BuyBacks of Berkshire Hathaway stock that was uh one of the very early positions in the portfolio Alibaba a clone of guy Spear and Charlie Munger Activision Blizzard a clone of Warren Buffett Google a clone of lilu and I believe also guy Speer process a clone of guy Spirit management Daily Journal Corporation a clone of guy spear also and Brookfield minus propri so all up the portfolio at the time was worth about 89 000 US dollars so we were down about 10 or 11 from our hundred thousand dollar start point and if we jump through to the

overview here in share site let's have a look at some of the returns that the portfolio has generated in the last three months so since our last quarterly update so you'll see that the portfolio value has improved nicely so we're up to about ninety seven thousand dollars we've recovered quite a few of our losses but we're still down uh overall since starting the portfolio almost two years ago uh in the last three months the portfolio is up about six percent versus the uh index uh up a little less than six percent I'm just looking in the last three months here so that uh won't exactly match that 15th of May date I'm recording a little more than three months after that now but uh as a recording in the kind of Trail in three months we are up about six percent if we look uh in this calendar year of 2023 we are actually a little behind the index so we've got uh 12 uh in capital gains we've had about point four percent gain from dividends and there is a tiny little bit of international stocks in the portfolio I believe that's processed so we're up point zero five percent uh just on some currency gain there and all in all we're up about 12 and a half percent uh versus the S P 500 up about 15 so you'll see at the start of the year we will track in well above the index we've kind of pulled back a bit and lagging the index by a couple percentage points for the calendar year and if we look at the all-time performance for the Shameless cloner portfolio again unfortunately our lagging the S P 500 so all in all we're down about 1. 5 percent the index has been very flat over that period of time as well uh only up about a quarter percent per annum so uh we definitely fell behind the index a lot straight out of the gate a lot of that was due to our big 20 allocation to Alibaba which has not been a good performer in the portfolio we've recovered there have been periods of time where we've been above the index earlier this year in February we were above the index but we've since fallen behind the index uh just a touch yet again it has been almost two years of the Shameless clone portfolio now we're starting to get a little bit more kind of long-term data but I really do want to run this experiment genuinely for a several year periods after I kind of wait and see how this thing Stacks up over time next up

let's uh look at how the portfolio is kind of built up today and we'll go through some of the changes that have happened in terms of the stocks in the current portfolio so if we scroll down let's first go through some of the stocks that have been sold in the last quarter so these are all the current positions of the portfolio we'll talk through them in a bit more detail shortly we also have quite a growing list of kind of historic positions in the portfolio here with no current market value so from Winnebago down here these are all older positions that we have been in at one point in time but have since exited and the two stocks that have most recently left the portfolio Activision Blizzard and also Brookfield Corporation so we saw Warren Buffett get out of Activision lizard in a big way in the last quarter that's been an interesting one so the Activision position itself has performed pretty well in the portfolio we ended up generating about 16 annualized Returns versus the indexed at about eight percent over that same period of time I believe we actually did better than Warren Buffett with this position I believe Warren Buffett had a pretty flat investment result overall I've done a video about that here on the channel but just with the time lag of the SEC filings we got a little lucky and we caught sort of a late run up in an Activision stock so all in all we did about 16 annualized and this has been slightly unusual one because we did get an early SEC filing we've got a 13g out of Activision Blizzard which came a few weeks before the usual uh 13f violins so this one was actually sold in uh mid-july as opposed to Mid August when we got the 13f data so the Activision position was sold at certain cash for a period of time and it yeah was a little kind of out of kilter with our usual 13f dates the second stock we recently exited was Brookfield corporation uh this is a clone of moment he has just sold out of Brookfield Corporation and this one was not the greatest performer in the portfolio we ended take we ended up taking about a two percent loss on the position versus the index gaining almost 11 percent in that same period of time um Brookfield again was a pretty interesting one in the portfolio because they did a spin-off of the asset manager I've covered that in previous Samus climber updates if you want to go back and check out those episodes but all in all we ended up losing about two percent on that position and it's no longer in the portfolio now in terms of stocks that we could potentially have added to the portfolio this quarter uh there were really two obvious ones and both of those came from monus program their was AMR stock Alpha metallurgical resources and another Coal stock from owners probably ticker symbol ceix now the investment in AMR was much bigger than the investment in ceix but those were sort of the two obvious ones we could have added there were some smaller purchases also out of birch hathway but Berkshire is an interesting one as Warren Buffett running a lot of money and it also has Todd Combs and Ted Whistler running a smaller amount of money and there was not too much um you know big buying up the top end of the portfolio which are likely the Warren Buffett picture was the one kind of on our Mount Rushmore so that really only left the two coal stocks from merge propri I've chosen to add AMR to the portfolio that was the biggest bit and it just snuck in on our 30 price test so the midpoint price for AMR was about 152 dollars per share in the quarter that 3 30 limit would allow us to pay up to 197 per share and we were able to buy it at about 190 so we kind of just snuck in there our ceix we could have added but we do already have one Coal stock in the portfolio from AMR which we've just added and it was hard up on the limit of that 30 percent uh price sort of threshold as well so 30 above the midpoint price in the quarter would be about eighty dollars per share for ceix and at the time that the 13fs came out it was pretty much exactly at eighty dollars per share so we could have potentially added it but we've already got one Coal stock it was very close to the 30 price limit if not slightly over the limit so we only have the one new stock as a result which is Alpha metallurgical resources clone of minus proper which unfortunately given that we sold two stocks and have added only one this quarter uh we yet again have about 10 of the portfolio and cash actual short-term treasuries so that is this nine and a half thousand dollar position here in Vanguard short-term treasury ETF and if we go back up to the

diversity report and take a look at how the portfolio more generally is starting to stack up uh this is what it looks like so if I go back to diversity here and if we look now at the report for uh the 24th of August which is the latest data I can get as of recording this video uh this is what the portfolio looks like so our largest holding is East-West Bancorp that has appreciated nicely a little bit since the last updates uh obviously a clone of lilu in that case we then have Occidental Petroleum Birch Hathaway Alibaba which is actually our 20 at Cost position so if we want to add more stocks to the portfolio we've got the cash available but we can also potentially liquidate about half of the Alibaba position if we need to as well uh we then have AMR Google our short-term treasuries or sort of a cash alternative Daily Journal and process for a total portfolio value of about ninety seven thousand dollars okay

so that is pretty much it for this quarter's update of the Shameless cloner portfolio unfortunately we're still struggling to get that 10 by 10 portfolio uh we've gone from nine stocks back down to eight but hopefully over the next couple of quarters or so we can finally get to that fully invested 10 by 10 portfolio and hopefully the performance uh gets a little better as well we had a very rough start uh you know two years ago when we first started out the portfolio uh we've been kind of back and forth a little bit with the index over time but we are lagging it very slightly uh so hopefully we can get some good performance and start to nudge ahead of the S P 500 as well but uh that's really all I've got for this video if you've got thoughts on how the Shameless cloner portfolio is stacking up uh let me know down in the comments section below if you're interested in checking out Shia right again that will be linked in the description below if you want to get four months free off of a premium subscription to share side but there is also a free version you can use forever if you want to um that's it for me for this one and I'll see you in the next video cheers