U.S. and global stock markets closed a positive week, though upward momentum waned somewhat.
All of the major market indexes rose by less than 1%. The S&P 500 rose 0.33%, the Dow Jones jumped 0.70%, the Nasdaq recovered 0.98% and the MSCI Emerging Markets Index eked out a 0.74% gain.
Your Smart Money Masters portfolio had a good week.
Prem Watsa’s bet on BlackBerry (BB) jumped another 4.52%. Dan Loeb’s Baxter International (BAX) gained 3.58%. Restaurant Brands International (QSR) rose 3.16%. Wilbur Ross’ Navigator Holdings (NVGS) gained 1.80%.
Seven of your positions sport double-digit-percentage gains. PayPal Holdings (PYPL) is now up over 63%.
Restaurant Brands International (QSR) and BlackBerry (BB) are both up by about 30% since they were recommended.
Kraft Heinz (KHC), Liberty Broadband (LBRDK), The St. Joe Company (JOE) and Costco (COST) are all trading below their 50-day moving averages and are currently HOLDs.
Warren Buffett is a recurring theme in your Smart Money Masters.
I have always listed Restaurant Brands International (QSR) as an investment by Bill Ackman.
That’s because Ackman has an incredible 40.1% of his fund Pershing Square Capital Management invested in the company’s stock.
Here’s what I have not yet highlighted. While private equity firm 3G Capital is the largest shareholder, owning 42.5% of the shares, the second-largest shareholder, owning 11.6% of QSR, is National Indemnity.
National Indemnity itself is a subsidiary of Warren Buffett’s Berkshire Hathaway (BRK-B).
Once you look through the ownership structure, together, 3G and Berkshire own about 54% of QSR. That means that 3G and Berkshire effectively control the entire company.
Indeed, Warren Buffett’s hand is everywhere.
Nicholas A. Vardy