Portfolio Review: Thoughts on Airbnb, Reddit, Adobe, and co.
TL;DR
The hosts conduct a quarterly review of their concentrated 17-stock portfolio, announcing plans to sell two positions and add to one, while deep-diving into Exor's 60% discount to NAV as a Ferrari proxy and debating the future of their small TransDigm stake.
📊 Portfolio Construction & Updates 2 insights
Concentrated 15-20 name strategy
The portfolio targets 15-20 positions with theoretical 5-6% weights, though conviction drives actual sizing with Alphabet at 14%, Airbnb at 11.5%, and Uber at 10.5% as top holdings.
Active quarterly rebalancing
The team reviews the portfolio quarterly and plans to sell two current positions while adding to one where the opportunity has improved, also monitoring watchlist names like TradeDesk and FICO after historic drawdowns.
🏎️ Exor: The Italian Berkshire Thesis 4 insights
60% discount to NAV creates margin of safety
Exor trades at a €13B market cap versus €33B net asset value, offering investors Ferrari exposure at a steep discount with stakes in Stellantis, CNH, Christian Louboutin, and The Economist essentially for free.
Ferrari proxy with governance control
As Ferrari's largest shareholder with 20% economic ownership and 30% voting control, Exor provides concentrated exposure to the luxury automaker, though the company recently trimmed its position at all-time highs to reduce concentration.
Disciplined capital allocation track record
Under John Elkann, Exor compounded NAV at 16% annually from 2009-2025, outperforming the MSCI World by 5 percentage points, while aggressively repurchasing shares through a €1B reverse Dutch auction to narrow the discount.
Clear exit criteria established
The hosts will exit the position if Exor dramatically reduces its Ferrari stake without reinvesting in equally high-quality opportunities, as the thesis relies on avoiding value destruction in legacy automakers like Stellantis.
⚖️ Position Management Decisions 2 insights
TransDigm faces binary hold/sell decision
The 2% TransDigm position requires a choice to either increase to a full 5% conviction weight or exit entirely, given its premium valuation and extreme business model that demands high confidence.
New co-host Kyle Grieve joins team
Kyle Grieve joins as a regular co-host to increase stock pitch output, bringing fresh perspective to portfolio decisions regarding companies like Reddit, Airbnb, and Copart.
Bottom Line
Exploit Exor's 60% discount to NAV
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