Portfolio Update

Since three weeks ago when I published my portfolio I made quite a few changes, for a self-identified long-term investor.

With price increasing and coming closer to my intrinsic valuation, I have sold:

• Almost 40% of my Berkshire holdings
• More than 90% of Wells Fargo
• All of Valero
• A little bit of Lucadia

It was motivated by profit-taking, and:

• For Wells Fargo, I became a little more worried about the long-term impact of the account-opening scandal, given the dropping account openings. I try not to sell during a panic, but in this situation I was comfortable taking the profits and reinvesting elsewhere.
• While Berkshire and it's stock portfolio clearly outperformed recently, I wouldn't be surprised if it goes down 10-20% from current highs and I would like to have ammunition to add to the position at lower prices.

I wouldn't be myself, if the proceeds would not go back into stocks. I bought:

• (Lots of) Valeant as it dropped to $15. It stills seems to me severely undervalued and latest Management's steps (i.e. not selling Salix cheaply and building sales force) are rather encouraging to me, actually.
• A little bit of Pershing Square Holdings, but less than I wanted, as price kept creeping up after my initial buy.
• A little bit of Fairfax, here again the market run away from me quickly.
• A little more of VEREIT, as it briefly touched $8.01

I think the new positions are much more likely to outperform than the old ones, even though Valeant is indeed quite risky proposition. But with BRKB, APPL and VER still being large holdings, I feel rather safe.

All positions:

All except top 5: