Form 13f Report: Copying Buffett's homework, but do you have the correct posture?

Recently, the Q3 13F reports have been successively released, disclosing the latest holdings of well-known institutions such as Warren Buffett's Berkshire Hathaway, Cathie Wood's ARK Invest, Bridgewater Associates, Soros Fund, and others!

There has always been a saying in the market that 13F is the "barometer of US stocks", and every time a 13F is released, there are always voices shouting "let's copy the homework". So what exactly is 13F? How can it empower investments? Let's take a detailed look below.

Quickly understand the 13F report

What is a 13F report? The U.S. Securities and Exchange Commission (SEC) requires institutional investors with assets exceeding $0.1 billion to provide a holdings report for the end of each calendar quarter within 45 days of the quarter end.

Here, hold positions refer to long positions, excluding short interest, meaning only buying situations without selling or shorting; only focusing on the US stock market; disclosed positions involve stocks, ETFs, options, ADRs, convertible bonds, etc.

Why is this report important? Because it accounts for a big proportion in the US stock market.institutionsIt means that they have a lot of "voting rights". This report allows investors to see how they view the market, what investment logic and trends they have.Moreover, these institutions include figures like Buffett.How they view the market, what investment logic and trends.Investment guru, this report also gives investors an opportunity to learn about their investment styles and strategiesLearn their investment styles and strategies。

However, this 'assignment' should not be copied blindly!It is important to find the right 'approach to copying homework.' Below are some ideas and key points for everyone!

Besides Buffett, who else is worth paying attention to?

Based on popularity and different strategies, Sir Bull has made some summaries:

Are there any institutions, masters, or strategies that interest you? These institutions can all be found on the Futubull App through the following path:Market > US Stocks > Institutional TrackingYou can see their holding market value, holding industry distribution, holding changes, stock lists, etc., to understand their judgment on the market (including which sectors are more worthy of attention, which stocks have upward potential, which stocks are gradually losing upward momentum, etc.).

What are the key trends worth paying attention to in the latest Q3 report?

Overall,：In Q3, the popular trading symbols are still technology stocks, with the top ten heavy-weighted stocks mainly being technology stocks.Microsoft, Apple, Nvidia, Amazon, Google, Eli Lilly, SPY, Berkshire, and Broadcom.

(The above screenshot is from Sina Finance)

However, the holdings of the seven tech giants have already been diversified, and the institutions' diverse investments have become more apparent. Sir Niu also took a look.The distribution of industries in the Q3 holdings of the 13 institutions mentioned earlier, the top ten heavily weighted stocks, and the changes in holdings.Summarizing some key points for everyone:

From the perspective of industry distribution in holdings,，Computers, internet and media, pharmaceuticals and biotechnology, and non-bank financialsare generally receiving attention.

Among these institutions' top ten highly-weighted stocks,The stocks with higher frequency of appearance include $Meta Platforms (META.US)$ (5 times), $Apple (AAPL.US)$ (4 times), $Amazon (AMZN.US)$ (4 times), $Alphabet-A (GOOGL.US)$ (4 times), $Microsoft (MSFT.US)$ (3 times), $NVIDIA (NVDA.US)$ (3 times) and others. Among the seven giants of the U.S. stock market, only $Tesla (TSLA.US)$ appeared once (ranking first among the top ten holdings of ARK Invest).

The difference isCompared to Duanyongping's H&H International and Buffett's Berkshire Hathaway, the shareholdings are more concentrated. Soros Fund, ARK Invest holdings appear to be more diversified. H&H International is very concentrated, although it has reduced positions in Q3 $Apple (AAPL.US)$ Apple's shareholding ratio is still as high as 73.39%, despite the reduction in holdings.

These institutions have their own preferences in other industries, markets, and individual stocks. Temasek Holdings considers national strategies, Hillhouse Capital, Hillhouse Assets have more investments in Chinese technology and new economy sectors. Among them, Hillhouse Assets holds a significant position in PDD Holdings and Netease, which are also among the top ten holdings of Hillhouse Capital.

Berkshire Hathaway has higher holdings in the food & beverage and banking sectors, while Soros Fund focuses on commercial trade and leisure services, and prefers utilities in asset management.

ARK Invest and Tiger Global Fund have higher holdings in emerging markets and industries, for example $Coinbase (COIN.US)$ And $Sea (SE.US)$ , with ARK also heavily holding $Tesla (TSLA.US)$ 。

In the Q3 position changes of these institutions, there are also some individual stocks worth mentioning.

$Apple (AAPL.US)$ 、 $Bank of America (BAC.US)$ Both experienced reduction or clearance by Buffett and Duan Yongping.

The reduction of holdings in Apple may be due to concerns about overvaluation and worries about future growth prospects. At the shareholder meeting in May of this year, Buffett explained the partial sale of Apple, stating that it was because he expected higher future tax rates and also hoped to leave enough cash for his successor to have more flexibility.

The reduction in holdings of Bank of America may be due to concerns about the decline in the banking industry's net interest income and a reassessment of the investment price-to-earnings ratio.

$PDD Holdings (PDD.US)$ Received Duan Yongping's increased holdings, but were reduced by Hillhouse Capital. Hillhouse Capital's reduction of PDD holdings may be due to profit-locking considerations and concerns about the slowing growth and market competitiveness of Pinduoduo. Duan Yongping may have a positive outlook on Pinduoduo's market potential and value, choosing to increase positions against the trend.

$Alphabet-A (GOOGL.US)$ Received Temasek's increased holdings and Jingshi Asset's initiation of positions. The reason may be confidence in Google's business model and market position.

In addition, the most prominent trend in Q3 holdings of Hillhouse Capital isadding Chinese concept stocks, the market value of Chinese concept stocks has increased from 85% in Q2 to 93%, with nine of the top ten heavy-weighted stocks being Chinese concept stocks, indicating that Hillhouse Capital attaches great importance to the opportunities faced by current Chinese assets.

Finally, let's talk about the key points of this report

Firstly, institutions can tailor their strategies according to their own characteristics,focus on institutions that align more with their own investment style, and learn from their strategic thinking.

For instance, if you are a value investor, you can pay attention to Berkshire Hathaway, H&H Global, Oaktree Capital, Pangxing Plaza Capital; if you are a growth investor, you can focus on Tiger Global Fund, Hillhouse Capital, etc.; for investors inclined towards algo, risk investments, or macro approaches, you can respectively follow Renaissance Technologies, ARK Invest, Soros Fund, and Bridgewater Associates.

Secondly, you can look at it from an overall perspectiveWhich sectors do these institutions mainly hold positions in, which stocks do they heavily invest in, in order to determine the overall capital trend and market trend.。

Third, from a relatively micro perspective, look at which sectors and individual stocks are more actively traded, what are the similarities and differences in everyone's trades, and what logic supports them.Gain a better understanding of some popular sectors and individual stocks.。

Lastly, it is also necessary tobe aware of the limitations of this report,including lags, lack of short interest, etc. Some insights from the report and institutional strategies need to be combined with market changes, as well as your own investment objectives and risk tolerance to consider~ For more content, you can click on the link.Exploring Investment Opportunities from Form 13FLearn!

Copy the master's homework with the right posture, and find the right direction to enter the volatile market.Click hereInvite your friends to join in!

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