Don't miss the next rally (study: what world's best investors are buying)

Added: 2026-05-17

[00:00:06]Hi guys. So on this video I'm going to do three things. Number one, I'm going to talk about a 25-year-old OpenAI researcher or exopi researcher.

[00:00:15]He has started his own fund that is now outperforming every single hedge fund out there. His name is Leopold Ashenbrer. I hope I'm pronouncing his name correctly. He has been buying AI stocks and it's outperforming everything in the market. Okay. So I'm going to talk about his fund, what his investment style is, what is the risk strategy there. Number two, I will talk about different investing style. For example, I'll compare his investing style to Mr. Warren Buffett, it's Ray Alio, etc. And we'll give you the pros and cons of each investing style so that you build fundamental knowledge. Third, most importantly is that many of you might have missed the AI rally that has been happening in the market for the last two years. I have spoken openly about it.

[00:00:55]There is a portfolio that I'm building.

[00:00:56]It's also doing very very well. not as good as Leopold and Brenas but but most of the other major investors out there it's up roughly 50% in INR terms since last year so it has done exceptionally well so I am betting on the AI trade as well in case you want I'm putting the links in description comment box you can follow along but watching this video will give you clarity how to catch the next AI rally by tracking the right set of investors okay so this is the theme of the video please watch it till the very end very very interesting video let's jump right in first and foremost let me take you to an Excel spread spreadsheet that compares the performance of different fund managers.

[00:01:32]Okay. So here is here are like five or six people of five or six funds that we'll compare. So for example here is Leopold Ashen Briner. His fund has given approximately 84% returns right in 2026 it has generated 61% returns. This is very very good. His style of investing is that he is picking AI infrastructure pick and shovels strategy. Okay. So what he what it means is that he is picking companies like Micron. He's picking companies like Intel. He's picking companies that will go into building the AI physical layer infrastructure. Okay.

[00:02:04]So these are the type of companies that he's picking up and it has generated exceptional returns. Okay. Now you will get very excited that okay I'm going to follow the next trade that Mr. Ashen Brunner is going to make and I'm going to benefit immensely. Are there risk?

[00:02:17]Yes. Okay. This is a high beta portfolio. Extremely high beta. High beta means that when the market is running up, it will run up like crazy.

[00:02:25]But when the market falls, it's going to fall like crazy. So you need to understand the risk profile on this fund. And the biggest risk that we run here is the draw down risk. Okay. What is the meaning of draw down risk? I'll explain it in a minute. But let us start comparing this fund to Mr. Warren Buffett's fund. Okay. So Mr. Warren Buffett runs Burkshshire Hathway. And here is the performance of the fund.

[00:02:46]Okay. So here is it where we are. So this is what Mr. Warren Buffett's fund has done especially in the last one and a half two years. So you will see that S&P 500 which is the yellow line is the baseline return and if we compare Mr. Buffett's portfolio it has been underperforming the market. Okay. So by a lot right? So Mr. Buffett has given roughly 3% in the last one and a half odd years and S&P 500 is up in that same time frame by approximately 8%. So he has been badly beaten by the fund. So let us start comparing both these funds.

[00:03:18]Very important. This is not an attack on Mr. Buffett style of investing or like you know praising like someone someone else no I'm just trying to give you that hey different styles of investing exist you need to pick what style of investing works for you okay so let us understand these two investing style so at a fundamental level what Mr. Leopold is doing is that he is doing growth investing. Growth investing means that pick a growth industry. For example, this is S&P 500. Let's assume he will go and pick a very specific subsegment out of it which is AI. And within AI, he'll pick or he is trying to pick the most volatile or most growth oriented segments. Okay. For example, he picked a company called as Bloom Energy. Right now, this is going into this is a small cap midcap type of a company. it is going into building the AI infrastructure. He also picked core.

[00:04:08]Okay. And now these are the type of companies for example iron is there, NBS is there. These type of companies, Core is there. Now in these type of companies, companies like Nvidia are making investments. For example, you might have heard that Microsoft is making investments in anthropic and OpenAI both. Okay. Now, OpenAI, Anthropic are extremely volatile companies. Is Microsoft a volatile company? One could say yes because Microsoft is also building like physical layer of AI. Okay. But it is the core baseline type of a company. It is a hyperscaler very similar to Meta, very similar to Google, very similar to TSMC, ASML these type of companies. Now these core AI companies they are going and investing in other companies which are even more volatile. Okay, it's like OpenAI, Anthropic, Bloom Energy, Core Ve all these companies. Okay. So what Leopold is doing is that he's going and picking probably the most volatile segment in the market and this is a very high growth style of investing. Now if your goal is that hey you know what I want to pick these type of companies in the next leg of runup then brilliant right follow these type of investors invest money with them uh copy the trades that they are making probably right but do it with the understanding that there is a risk that you run. Okay now what is a risk? The risk is that okay till the time these stocks are going up it looks beautiful okay but once a draw down happens you might panic so please understand that let me give you the case study of Palunteer okay now Palanteer is a stock where I have also almost 10x my money okay but I'm exited that stock now I'm looking to re-enter that stock now here is the story of Palunteer right and let me show you the chart now if you take a look right at this horizontal segment right so this is starting August of 2024 okay so this is almost like seven eight quarters 1 2 3 4 5 6 7 8 so eight quarters the company has beaten earnings expectation therefore you see this E as green now whenever this E becomes red it means that the earnings expectation were let's say 100 units but earnings only came like 80 units okay so that's negative earnings surprise but here the company is outperforming when it comes to growing its business but the stock is down roughly 35% from its peak okay now If you are someone who had constantly chased like Palunteer, you would be scratching your head boss you know what I chased a growth stock it's posting great results but the stock is down 35%.

[00:06:30]So what is the key lesson here that when you are building a growth portfolio you need to understand the risk that you run something called as draw down risk. Okay draw down means that for no whatsoever apparent reason the stock will fall 40%, what are you going to do about it? Okay.

[00:06:47]And if the answer is that hey I cannot afford this 40% draw down on my portfolio probably being a pure growth investor does not make any sense whatsoever. Okay. So from time to time you should book profits. For example if you have taken some trades for example in my case here is EMD right? So I'll show you my portfolio also. Now AMD is up 150 200% on my portfolio. I have booked some profits. Why have I booked some profits? Because in case there is a 40 50% drop on EMD, I will always have the ability to re-enter the stock. Okay.

[00:07:17]So this is growth investing. I am also a growth investor not at the risk profile of this 25year-old exceptional fund manager but I am a growth investor nevertheless who is doing little bit more lesser risk investing. So this is first style of investing. The second style of investing is called as value investing. And Mr. Warren Buffett is a classic case when it comes to value investing and his strategy is very simple. What he does is that he would buy companies when they trade at a very fair PE value. Okay? Or in simpler terms, he buys companies when the valuation is deeply discounted. Okay?

[00:07:54]He's called as a value investor. Now, there is another investor called as Mr. Moines Fabra. He's a deep value investor. He would typically buy companies when the P ratio falls below 10. Okay. Now, does this always happen?

[00:08:07]Okay, that's a very interesting question to ask because if you are a general investor, new investor, you will typically like you know sort of reading quotes. Okay, all the time you'll just read quotes Mr. Warren Buffet has said this or Fana has said this. Why? See, learn from everywhere. Okay, but at the end of the day apply your own brain because it is your money on the line. Okay. So see uh you need to understand the pros and cons of this type of a of value investing, deep value investing. Okay. Pro let me write and con also let me write. The biggest advantage is that you will always end up buying company which look like a fair value company. Okay, if the PE is fairly cheap. Okay, but you need to understand the fact that the valuation of a particular company goes cheap for some reason. Okay, a classic reason could be that the earnings slowdown is happening. For example, in IT in India, PE is compressing. It used to be 30 35p. Now it has come down to maybe like 21 20 odd PE. Okay, it might keep on going down by this P correction is happening because of a reason. Okay, so you are buying a falling knife in a way, right? Now this is a partly pro and con, right? Pro in the sense that okay, you are getting company for cheap but the con is that hey that company is falling for some reason. Okay, so this is the first riskreward that you run.

[00:09:20]The second riskreward that you run is that you will keep on sitting on a lot of cash right for example I've been reading so many posts that Mr. Mr. Warren Buffett has been sitting on record amount of cash. Market will fall at any point in time. Let us not invest anywhere. This that stuff. What is the end result? The end result is that in the last 2 three years Mr. Warren Buffet has deeply underperformed the market.

[00:09:38]Okay, this again is not an attack right on Mr. Warren Buffett personally or something of that. I'm nowhere in front of him. But what I'm simply trying to tell you is that sometimes value investing does not work. Okay, so you need to understand right which investor you're following and can you truly afford to follow them. Okay, because at this stage in his life, Mr. of Warren Buffett might be more about legacy prevention. Okay. So he does not want to take like weird bets. Okay. So that's what his point of view might be. Who knows? Okay. So okay. So what so let's jump into Mr. Buffett's portfolio. Let us look at what he has exactly done.

[00:10:08]What type of latest moves he has made.

[00:10:10]So in case you are a value investor, you can possibly make similar moves. Right?

[00:10:14]So what he has done recently is that he has reduced his Apple holding. Right?

[00:10:17]Now I have been talking negatively about Apple stock even on my community etc. I have not picked any Apple stock. He seems to be reducing it. At one point in time, Apple used to be roughly 40 50% of Birkshshire Hathaway's portfolio. Now it has come down to 22.6%.

[00:10:32]So significant cut. Okay. So this is he's he seems to be bearish on Apple stock now. Okay. Uh what has he added?

[00:10:39]He has added a energy company called as Chevron. Now would I be adding it? No.

[00:10:44]This is not my forte. I don't typically buy like low PE type of value stocks unless they can somehow compound their growth. For example, low P stocks that I'm buying right now, it would be something like Meta Microsoft. Why?

[00:10:57]Because there is still a possibility that these businesses can compound faster. They are still participating in that AI built out. Okay. So, in case you are someone who is following Mr. Warren Buffett strategy of investing, the most important thing that you need to keep in mind is that how much cash you should be keeping on your portfolio versus investing. For example, here is Mr. Warren Buffett, right? He has not done that well over the last couple of years compared to S&P 500. he has underperformed. One of the key reasons or the risk that he ran was that he missed out on investing, right? For example, if he would have simply picked S&P 500, right? Rather than sitting on so much cash, he would have generated much higher returns. Is that right for him, wrong for him? Who am I so to say, right? I mean, it's his wish. But what I'm simply trying to tell you is that the risk on his style of investing is that sitting on too much cash. So according to me right modern day investing theory what I typically advise people is that you should keep not more than 20 25% cash unless the market goes super bloated okay now what is the meaning of super bloated now here are the types of charts that you would be seeing that you know auto 2000 type.com crash will happen same graphical pattern is there this that stuff in you have to check forward earnings right forward earning means that is the earnings expanding of these top companies for example during crash The earnings were very bloated. The P ratios were very bloated. But right now our P ratios or valuations very bloated for American companies. No. Okay. So we are nowhere near that 2000 type of crash. This is the same crap that you have been hearing right for a while. And if you keep on believing it, there is a good chance that you might not participate in this AI takeoff that is already happening.

[00:12:33]Okay. So keep like 20% cash so that you can always come back into the market and stay like maybe 70 to 80% invested.

[00:12:39]Right? So this is a simple tip that I'll give you. your wish how you want to modify the strategy of Mr. Warren Buffett and accordingly apply. Now comes Jim Simmons right. So now Jim Simmons is a celebrated investor. He runs a company called as Medallion Fund right and it has done exceptionally exceptionally well. Okay. So for a period of roughly what 40 odd years he has generated an average gagger of 66%. This is unreal.

[00:13:02]Okay. Yeah. And he has outperformed the index by almost 6.5 times. Right. This is unreal. Unreal performance. Now many of you might be following Mr. Jim Simmons. What was his style of investing or what is his style of investing? His style of investing is quantitative arbitrage. Now what is the meaning of quantitative arbitrage? For example, you might have heard of NSE collocation scam. Okay, where some high frequency trading firms uh sit on NSE terminal or whatever and they trade stocks very very fast exploring price arbitragees right for example NCP if the stock is trading at 79.987 and on BSE that stock is trading at whatever 79 something something something they will take advantage of this mismatch in price and trade huge amount of volume to take advantage of this price now this price mismatch happens at multiple levels okay so this happens at a geography level. For example, gold might be trading at a different rate in UA compared to XYZ country. Now there is an arbitrage that exist. Sometimes currency arbitragees are there. Okay. Similarly, stock arbitragees are there. So, uh Jim Simmons typically used to explore these type of arbitragees. Now, can retail investors really do this? No. Okay. You can't. You can just wonder at how these firms are making so much crazy money.

[00:14:20]But typically speaking, you will not be able to do it. And over time what Mr. Jim Simmons has started to do is that as markets have become more and more efficient this quantitative arbitragees does not really work out anymore. He has started moving more towards sensible stock picking. Okay. So some of the bets that he has made recently I will just show it to you. Right. So what he has done is that he has picked Palunteer. He has added more. I also plan on adding Palanteer more. Right. When will I do it? Again I will make an announcement and I plan on doing it. Uh he has picked. So this is like one stock. This something I picked right micron I picked on the new portfolio that I launched one and a half months back. It is already up significantly 80 90% it has been up.

[00:14:57]Okay. Uh this I had already picked right? Rest two I have not picked. Look like he's bullish on gold. This also has legs right according to my analysis that maybe picking some gold from time to time makes sense. Okay no problem there.

[00:15:09]He has also picked Costco right Tesla.

[00:15:12]Tesla is some is a stock that I'm also looking at closely now. Right. I have not picked it up. I might pick it up subsequently because here the thesis of investment is physical buildout of AI which means that robotics rightaxis whatn not so Tesla might be moving there okay and it might actually benefit from it it's a high-risisk stock no doubt about that but maybe it kind of makes sense now to to reanalyze the stock okay Netflix I have already picked I plan on adding more okay so two stocks from here that I also plan on adding more one is Palunteer right I have very less positions here and Netflix I have some position I want to amplify and bring it up. There is another company called a service now right which I plan on adding right and uh here again right I mean if you look at all these stocks except for maybe Costco right all the other things right are high alpha high growth play these are high beta play high beta means that they have a lot of volatility not to the point that of that 25-year-old fund manager but still these companies have had a lot of volatility right um looks like that everyone is still chasing growth including Mr. Warren of it because he still continues to hold like 22 23% of Apple. Okay. So it's chasing growth is the game is the name of the game. You have to pick companies which are growing their earnings fast.

[00:16:26]Okay. So I hope that you got an understanding about these three funds.

[00:16:30]Let's next talk about one of the most celebrated fund manager of recent time which is Kathy Wood. Unfortunately her performance has been exceptionally bad.

[00:16:37]Okay, exceptionally bad. Not just bad, exceptionally bad. I will let you guys Google how much she has performed or underperformed the market. Here is her 2025. It's -12 and 4%. Now this is not the problem okay because for example if you compare Mr. Warren Buffett okay versus Kathy Wood okay just for fun we are comparing uh Mr. Warren Buffett is a value investor, right? He's deliberately looking for companies which are at a reasonable price point. He can afford to wait. He the people who align with him kind of adopt that similar strategy.

[00:17:07]It's fine. Okay. Kathy Wood wants to chase innovative firm which means that her performance or her benchmark is someone like this. Okay. Not Mr. Warren Buffett. These are two very different styles of investing. It's like comparing like Jasper Bumra's style of bowling with Sachin Tendulkar's batting. Okay.

[00:17:24]So it's very very different. Okay. You can't really compare. So, long story short, Kathy Wood has done exceptionally poorly, right, for a while now. And her point is that pick disruptive companies.

[00:17:34]And it looks to me that she's picking a lot of biotech, robotics, um Tesla, she had huge bet on which has underperformed because she bought companies at crazy prices. Okay. So the takeaway from Kathy Wood's kind of style for me personally is that number one please buy growth companies for example Palenteer at somewhat reasonable valuations. For example at one point in time Tesla was trading at 600 V. Okay.

[00:17:59]Then its P has corrected to like 120 odd now. Okay. So it has corrected quite a lot right. So do not buy companies at this level of P. Okay. Always wait for substantial correction. For example the reason why I haven't added Palenteer is because of this reason. Okay. So I do plan on adding more but not as of now.

[00:18:16]Maybe I'll start adding little by little now. Uh so this is one key thing that I could learn from uh Kathy Wood. Okay.

[00:18:22]Second key thing that I could learn from Kathy Wood is that see she's directionally right that okay Tesla will win at some stage but from a timing point of view she's grossly wrong. Okay.

[00:18:32]She picked like Tesla very very early made some money and then lost a bunch of money. It's just bad. Okay. So adoption takes time. So you have to be slow in terms of aggregation right that's what I mean for example I might put little bit of money on palenta let it ride for a while then I will do second round third round of mine fourth round of mine so I will downward upward average this is something that I'm doing on mele as well okay marcado libre right so yeah so this is what I would say okay the about kathywood style of investing now some of you have been messaging me asking me that hey how about S&P 500 guys see S&P 500 is an index right let me pull it up and here is the index it has made its all-time high and it has jacked up, right? It has gone up dramatically.

[00:19:13]Okay, an index will always fall to its 50-day moving average. Okay, that is the time to buy an index. Right now, you should be underweight index because indexes go sideways. Now, what is the meaning of going sideways? For example, if you take a look at this part, okay, now this was almost 6, seven month correction. Okay, for six, seven month index did nothing. Okay, so these type of correction, these type of periods will always happen. Here is another one, right? Here is another one two three year period right so these type of periods you will see so do not get or do not chase the index and if you have already bought the index at reasonable level right cut some index now that kind of makes sense and buy it back whenever it falls to 50 or 150 or 200 day moving average that's the way to go okay so that's a very simple way of kind of playing around with the index okay so the next profile is of Mr. Rali right so Mr. Mr. Al has been speaking quite a lot. He's a macro investor. What he does is that he makes bets on gold, bonds versus equities. So what is he doing?

[00:20:08]Because I get so many messages that you know what Mr. Aalia said that you know ddollarization will happen, end of the empire, fall of the empire, etc., etc. Yeah. So should I sell go out? Okay. So best answer is given by Mr. Ralio himself. Okay. So here is Bridgewater Associates. This is the fund that Mr. Vidalio runs. He has outperformed the index. Okay. So here is the performance, right? So he has uh made returns of 9.9%.

[00:20:32]And S&P has given 8% in that same time frame. Uh so he has beaten the index. No doubt about that. That's very good. What is the what are the moves that he's making? He's adding more index. Okay. Uh both, right? For example, here it's it's good to look at his portfolio. Here is SPY and IBV. These are both indexes.

[00:20:49]Majority of his bets are index bets.

[00:20:52]Okay. So here is index bets. You can see he has lost a lot of money on software.

[00:20:58]Okay, so software he has been a little bit early and he has lost a lot of money especially on Salesforce and Adobe. Now I had also invested some money on Adobe but I cut it fast. Okay, so I learned my lesson. I booked like maybe 20% loss and I was out and then I rotated that capital to a bunch of high growth stocks and my portfolio has been doing exceptionally well. Okay, so again take a look here. Okay. But if you step back and check that and ask a very simple question that will software come back, it looks like yes. Okay. And I at this stage would be very keen to build software stack. Okay. So um this is something that Mr. Ralio has also done right and he has been bullish on Google.

[00:21:33]I have also been bullish on Google. Uh he has picked meta. I have also done that right. So netn net he's doing very good right. His software bets are not working out but I think that's okay.

[00:21:44]Right. I mean it will come back up. this is worth considering. This might be a great buying opportunity for software.

[00:21:49]That's what I pick from his portfolio.

[00:21:51]So, at this stage, let me give you like five key insights, right? What I could pick from these four five portfolios that I spoke about. Number one is that software rotation is likely, right? At this stage, it might make sense to add more software. I will be adding more software this week on my portfolios as well. Number two, shorting the market is really, really bad. Right? If you're just sitting on too much cash like Mr. of Warren Buffett, you can underperform the market for a fairly long period of time. Number three, don't overhold cash.

[00:22:19]Okay, it's good to prepare cash like maybe 20% of your portfolio, 25% of your portfolio. Don't do more than that.

[00:22:26]Number fourth is that everyone is still putting money on tech. This is the point that I was trying to make. You can pick volatile tech for example like Mr. Leopold or you can buy relatively less dangerous tech like Microsoft Meta. But you have to buy tech. There is no other option. Point number five is that right now we are in a bullish phase of the market. The most growth oriented segment of the market is growing at a hyper speed. It might continue to grow. I don't know. But taking some profits out from there is critical and rotating it to simpler bets kind of makes sense.

[00:22:57]This is what I will also be doing. Will this strategy work out 100%? I don't know. Right? I have my style of running my portfolio. Other people have their their style of running their portfolio.

[00:23:06]My goal on this video was to help you understand different styles of investing. Now depending on how you align with someone, you can accordingly pick your bets. And thank you so much for watching this video till the very end. I hope you learned something useful. If you did, do press a like button, subscribe to the channel, and I'll see you soon.