Francois Rochon's Q2 2024 Portfolio Revealed: A Closer Look at Giverny Capital Inc.'s Holdings

Renowned investor Francois Rochon, founder of Giverny Capital Inc., has recently released his Q2 2024 portfolio, providing insights into his investment strategy and the current state of his holdings. With a reported value of $2.23 billion distributed across 50 stocks, Rochon's portfolio continues to attract attention from investors and analysts alike.

One notable aspect of Rochon's Q2 2024 portfolio is the decrease in the current position value. According to the 13F form, there has been a decline of $89.2 million from the previous quarter, where the portfolio's value stood at $2.32 billion. This decrease raises questions about the reasoning behind Rochon's decision to reduce certain positions and the potential implications for his overall investment strategy.

Analyzing the portfolio, it becomes evident that Rochon maintains a diversified approach, investing in a wide range of sectors and industries. The holdings span across various sectors, including technology, consumer goods, healthcare, finance, and more. This diversification strategy allows Rochon to mitigate risk and capitalize on opportunities in different market segments.

One of the prominent sectors in Rochon's portfolio is technology. Companies such as Apple Inc. (AAPL), Microsoft Corporation (MSFT), and Alphabet Inc. (GOOGL) feature prominently in his holdings. These tech giants have consistently demonstrated strong performance and continue to be leaders in their respective industries. Rochon's confidence in these companies reflects his belief in their long-term growth potential.

Consumer goods is another sector that Rochon has a significant stake in. Companies like The Coca-Cola Company (KO), Procter & Gamble Co. (PG), and Colgate-Palmolive Company (CL) are among his top holdings. These consumer staples companies have a history of stable earnings and strong brand recognition, making them attractive investments for long-term value investors like Rochon.

In the healthcare sector, Rochon has invested in companies such as Johnson & Johnson (JNJ), Pfizer Inc. (PFE), and Merck & Co., Inc. (MRK). With the ongoing advancements in medical research and an aging population, healthcare companies are expected to experience sustained growth in the coming years. Rochon's allocation to this sector reflects his confidence in the long-term prospects of these companies.

Financial services also play a significant role in Rochon's portfolio. Holdings in this sector include JPMorgan Chase & Co. (JPM), Bank of America Corporation (BAC), and Visa Inc. (V). As the backbone of the economy, financial institutions are essential for economic growth and stability. Rochon's investments in this sector indicate his belief in the resilience and profitability of these companies.

Top Holdings of the Portfolio: Leading Companies Driving Strong Returns

• Berkshire Hathaway (BRK-B): This diversified conglomerate, led by Warren Buffett, holds a variety of investments across multiple sectors, including insurance, railways, and utilities. As the top holding, it represents 8.85% of the portfolio.
• AMETEK, Inc. (AME): AMETEK is a global manufacturer of electronic instruments and electromechanical devices. Its strong performance and technological advancements make up 7.01% of the portfolio.
• Meta Platforms, Inc. (META): Formerly known as Facebook, Meta is a leader in social media and virtual reality technologies. With 6.74% of the portfolio, it continues to influence digital advertising and the metaverse.
• Alphabet Inc. (GOOG): As the parent company of Google, Alphabet dominates the online search and digital advertising industries. Its strong presence in AI and cloud computing contributes to 5.33% of the portfolio.
• CarMax, Inc. (KMX): CarMax is the largest used car retailer in the U.S., known for its innovative business model. Representing 5.25% of the portfolio, its strong sales performance continues to drive growth.

Top Buys: New Additions and Increased Positions in High-Potential Stocks

• Booking Holdings Inc. (BKNG): A global leader in online travel services, Booking Holdings saw a significant addition of 77.11%, reflecting confidence in the travel recovery post-pandemic.
• Starbucks Corporation (SBUX): This coffee giant, known for its global footprint and brand loyalty, had an increase of 92.61%. Starbucks is a staple in the hospitality and retail industry.
• Alphabet Inc. (GOOG): The investment in Alphabet's class C shares increased by 0.25%, showcasing continued faith in Google's leadership in search, cloud computing, and advertising.
• Alphabet Inc. (GOOGL): Alphabet's class A shares were also added to by 5.95%, further strengthening the portfolio's position in this tech giant's diverse business model.
• Analog Devices, Inc. (ADI): This semiconductor company, specializing in signal processing and power management technology, saw a 3.63% addition, capitalizing on its growth in the electronics and communications sectors.

Top Sells: Companies Where Holdings Were Reduced for Portfolio Realignment

• Markel Corporation (MKL): A diversified financial holding company, Markel focuses on specialty insurance. Its position was reduced by 48.51%, likely for reallocation purposes.
• Fortune Brands Home & Security, Inc. (FBHS): Known for home and security products, Fortune Brands had a slight reduction of 1.6%, possibly reflecting shifting priorities in the portfolio's sector exposure.
• Taiwan Semiconductor Manufacturing Company (TSM): A global leader in semiconductor production, TSM's position was trimmed by 0.37%, although it remains a significant player in the tech industry.
• M&T Bank Corporation (MTB): A regional bank in the U.S., M&T Bank saw a 2.1% reduction. This adjustment might signal a shift in focus away from regional financial institutions.
• Bank of America Corporation (BAC): One of the largest banks in the U.S., Bank of America's position was reduced slightly by 0.08%, maintaining its presence but lowering the overall investment.

While the decrease in the current position value may raise concerns for some investors, it is important to note that portfolio adjustments are a common practice among experienced investors like Rochon. These adjustments could be driven by various factors, including changes in market conditions, company-specific developments, or a reassessment of risk-reward dynamics.

It is worth mentioning that the 13F form only provides a snapshot of Rochon's portfolio at a specific point in time. It does not capture any subsequent changes or new investments made by Giverny Capital Inc. Therefore, it is crucial for investors to conduct their own due diligence and stay updated on Rochon's latest moves.

Francois Rochon's Q2 2024 portfolio offers valuable insights into his investment strategy and the sectors he believes hold the most promise. While the decrease in the current position value may raise eyebrows, it is essential to consider the broader context and Rochon's long-term investment approach. As always, investors should exercise caution and conduct thorough research before making any investment decisions.