Hi

This is Pete.

Just want to provide some update on the Truffle Portfolio performance in 2023.

As the market recovers, the portfolio is off to a good start.

The Truffle Portfolio gained 7.83% and the SP500 gained 5.96%

While it feels good to see "green", such short term results should not be a concern for long term investors. We remain focused on buying good business at good value.

One of the key drivers for this quarter is the performance of the home building, semicon and infrastructure businesses that we invest in.

The post-COVID recovery in these sectors are strong because many industries have put off construction and maintenance during the last 2 years. And now everyone is back in business, there is lots of catch up to be done.

Collectively, the home building, semicon and infrastructure businesses account for ~35% of the portfolio, and diversified across different companies.

Also there was an event driven move - Warren Buffett's sale of TSMC shares.

It is important to understand that Warren Buffett's reason (or at least how i interpret it) for his sale of TSMC shares. These shares were only bought 2 years ago.

It is very similar to what he did with airlines shares during COVID. (which I believe he may have regretted as airlines shares soared after that) Where he bought them at a high price and sold them in the subsequent quarters.

For example, DAL was around $22 when he sold in Apr 2020 and now it is trading at $38. A cool 72% gain!

With that said, does it mean the Buffett is wrong this time? Only time will tell.

Buffett's sale of TSMC was purportedly triggered by the TSMC's loss of leadership in the semicon. Reports (or rumours) said that TSMC will lose its dominance in the semicon industry due to sanctions and high level of competitions.

If this is true, the potential earnings from TSMC fallout could be redistributed to other chipmakers. Hence, Buffett's sale of TSMC is actually a tailwind for other semicon businesses! Such is the complexity of investing.

But don't worry, I will be here to guide you all the way!

For those who wants to understand the investing philosophy of the Truffle Portfolio that I managed personally, you can visit the link below.

Click Here!

And thank you to all for your trust and faith in me. Especially those who referred your friends and family! That is a great affirmation to our strategy - Value-based, Good Businesses and Diversified. Thank you!

If you would like to share Truffle Portfolio with your friends, just send them https://investwithpete.co/

I will update again soon!

Regards,

Pete