Les Billets de Monocle

So long Mr. Munger

15 May 2024

Omaha 5.00 am. It's raining and cold. Clearly not a weather to wait outside and yet... This is the 3rd year that I've come to the depths of the United States to attend the mass of Berkshire Hathaway which has always been run by its two high priests, almost a hundred years old. And this year, there's only one left. Munger left last November.

6h00. The queue gets longer, including a guy in a t-shirt who will remember the Nebraska weather.

9h00. Buffett takes the microphone, with emotion, of course. After forty years of sharing the stage with Munger, the emptiness is felt, almost cruelly. But after that, he continues: 7 hours of presentations and questions that he can easily swallow - the same goes for his Coke and caramels. At the age of 94.

Part of the secret of making an investment is to do it for a long time. Between 1965 (when Buffett took control of Berkshire) and 2023, the share price rose by an average of 20% a year, compared with 10% for the S&P 500 (dividends reinvested).

In practical terms, this means that ten thousand dollars invested in the S&P 500 in 1965 became three million dollars and the same amount invested in Berkshire became... four hundred and forty million !

That's probably what the Berkshire AGM is for, still in 2024: to remind ourselves that investment is a long-term process. At a time when quarterly guidance is almost unavoidable and the casino mood remains on the markets (see graph below), going against the general mood is one of the advantages we, fundamental investors, still have.

Cours de l'action GameStop

GameStop action (x5 in the last 48 hours) - Source : Investing.com

In 41 years' time, Munger's lessons will still be valid. This one in particular:

"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent."


Market and portfolio focus


This week the fund gained +0.66%, while the CAC40 gained +3.29% and the S&P500 +1.85%. Our main contributors to this performance were Ouster (+0.36%), Teleperformance (+0.22%) and Pernod Ricard (+0.20%).


As for the lines in our portfolio, there are a few changes this week.

We decided to take Vipshop out of the portfolio in view of the risk of devaluation of the renmimbi, which was too high for a 100% Chinese business.

Duolingo's results were moderately well received.
New developments at GenAI added another layer. As a result, the share price fell by more than 20%. We took advantage of this to strengthen our position. It now represents 0.9% of the fund.

Finally, we took a 0.5% stake in Affirm Holdings, a buy now, pay later payment company. Its CEO Max Levchin (co-founder of Paypal) has what it takes to disrupt this industry, one of those with the highest gross margins.


Have a great week,



This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.

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