Super Investors Keep Buying These Stocks
Summary
Joseph provides an analysis of Q4 2025 13F filings, comparing the moves of 'super investors' like Bill Ackman and Warren Buffett to current market prices. He observes that many stocks bought by these investors just months ago are now trading at significant discounts, particularly in the big tech and financial data sectors. Joseph emphasizes a strategy of long-term compounding, focusing on companies with wide moats and predictable growth that are currently being punished for necessary capital expenditures (capex) related to AI.
Joseph addresses the broader 'SAS apocalypse' and the fear that AI will replace established service providers. He argues that for companies like Moody's and S&P Global, the moat is built on decades of proprietary data and legal IP that AI cannot easily replicate. He also highlights a valuation gap in the retail sector, specifically comparing the high valuation of Walmart to the relatively lower valuation of Amazon, suggesting that investors are mispricing growth. Joseph remains focused on aggressive growth companies trading at reasonable forward PE ratios.
Mentioned Stocks
Reasoning: Joseph labels Amazon as one of the best buys in big tech today. He argues it is undervalued at a 26.5x forward PE compared to Walmart's 43x, despite Amazon's superior growth and cloud dominance. He disagrees with Buffett's selling and agrees with Ackman's buying.
Reasoning: Joseph describes Meta as a cheap stock growing fast with a wide moat. He highlights its 22x forward PE ratio (18x for the core business) as very inexpensive and states he bought heavily into Meta over the past couple of months, making it his third largest holding at $150,000.
Reasoning: Joseph identifies Microsoft as one of the three big tech companies (along with Amazon and Meta) that are the best buys today. He notes it is currently trading 17% cheaper than when 16 super investors added to it in Q4 2025.
Reasoning: Joseph notes that the valuation has expanded to nearly 30x forward PE. While he understands why Bill Ackman sold, Joseph continues to hold his positions worth approximately $180,000 total, though he thinks Ackman might have sold a bit early.
Reasoning: Joseph mentions that Intuit is caught in a 'SAS apocalypse' and is down 40% year-to-date. He states the most recent thing he has done with the company is bought a little bit more.
Reasoning: Joseph views Walmart as overvalued, trading at a 43x forward PE which is nearly double that of Amazon. He argues that investors are hiding in Walmart due to AI fears, but he prefers faster-growing companies at lower valuations.
Reasoning: Joseph remains bullish on Booking Holdings despite a 7% drop following earnings guidance. He describes it as a great company with fast revenue growth and expanding margins.
Reasoning: Joseph states that Moody's 'crushed it' in earnings and provided a strong defense against AI replacement fears. He explicitly states he will be buying additional shares of Moody's throughout this week.
Reasoning: Joseph notes that S&P Global is down 19% from recent super investor buy points. Similar to Moody's, he believes the AI concerns are overblown and explicitly states he will be buying additional shares this week.
Reasoning: Joseph describes DoorDash as an incredible stock, fueled by the human desire for convenience. He highlights the massive 32% year-over-year jump in order volume as evidence of the company's strength.