What's Your 5 Stock 10-year Portfolio? (Issue #33)

This week I wanted to talk about investing styles and look at the big picture. Don’t worry I didn’t suddenly become a Macro Investor, instead, I want to talk about my general investing ideas.

Recently I have seen more and more tweets that say, “If you had to buy 5 stocks and hold them for 10 years what would they be?” I love this idea. For those who are new to the newsletter that is one of the Pillars, I base my investing around.

Here’s my list:

Boston Omaha (NYSE: BOC — $816.11m) is a small capital allocator that has delved into a few different industries including billboards, broadband, banking, real estate, and even SPAC sponsoring. The billboard business is cash-flowing well and that cash is used to invest in broadband (and more). Broadband once scaled is a high-returning and large moat business. For example, no one is going to put a second cable/fiber in the ground where there already is one. The combination of billboards, broadband, and more make this an interesting stock to follow and an exciting one for the future.

Hingham Institution For Savings (NASDAQ: HIFS — $532.57m), founded in 1834 and taken over by new management just 30 years ago, is a very unique bank. They only accept deposits from high-net-worth individuals and only do extremely low-risk high returning loans. An example of this is a multi-family apartment building in a wealthy area where the owner puts 50% down on the loan. This has powered them to have a 20% efficiency ratio and charge-offs that round to 0% (I have more in my Venmo than they had in charge-offs in 2021).

Markel (NYSE: MKL — $16.32b) is powered by 3 main engines: Insurance, Investments, and Ventures. The company does specialty insurance which includes things like overpowered bassboats, extreme offroad vehicles, and more. The Investments side takes a different approach and focuses on the most boring stocks that the company would be happy to hold to “forever”. Ventures invests similarly to Investments but does it by buying whole companies and/or private investments.

Alphabet (NASDAQ: GOOG — $1.12t) we all know Google Search and probably use it every day, it is also the main engine powering Alphabet’s business, but now they are adding a fast-growing cloud company that has the potential to compete with Microsoft Azure and Amazon AWS. This is no sleeping giant, but one that is active and growing quickly and intelligently.

Liberty Media Formula One (NASDAQ: FWONK — $27.64b) bought the entire sport of Formula One and has used the show Drive To Survive on Netflix and a new content marketing strategy to quickly grow the sport’s popularity internationally. The company is run by former Cable Mogul/Cowboy John Malone who is the brains behind their extraordinary streaming and content distribution strategy.

Now I wanted to give you the opportunity to share. I will gift anyone who comments their “5 stock 10-year portfolio” a free one-month subscription to the newsletter. This means full access to all the bi-weekly deep dives and (Coming Soon) the member discussion forums.

Portfolio Update:

Look at the full spreadsheet with linked deep dives here.

Insight Of The Week:

Aadit Sheth @aaditsh

"Everything around you that you call 'life' was made up by people who were no smarter than you." — Steve Jobs

Meme Of The Week:

Jamie Catherwood @InvestorAmnesia

“5-10 minutes away” always means 10 minutes

Thread Of The Week:

The Rational Walk @rationalwalk

Costco is a remarkable business. I spent most of October researching the company and the industry in which it operates. In this thread, I'll attempt to summarize just a few of the things I learned during this process. $COST 1/

Until Thursday,

Soren

Disclaimer: Soren Peterson and Pillars And Profits Newsletter are not responsible for any investment results. This is not financial advice. Always do your own research.