Here's Whitney Tilson's Massive Presentation On The Economy, Markets, And Why He Is Not Buying Apple

whitney tilson

Hedge fund manager Whitney Tilson, the co-founder of T2 Partners, said during a conference call presentation earlier this week that not investing in Apple was likely the biggest miss of his investment career and he still doesn’t plan on buying the stock now. [via ValueWalk]

“I didn’t short Cisco and I didn’t go long Apple, which I’ve wanted to kill myself for that ever since,” he said referencing an article he wrote about the stocks more than a decade ago. 

Tilson thinks it’s almost mathematically impossible for Apple to be able to generate good returns going forward.

“I’m going to admire the company from afar…but it’s hard to see how it’s a great investment from here.” 

Speaking of tech companies, Tilson revealed that Microsoft is no longer in his fund’s top 10 holdings and here’s his thought behind that. 

“Look I’ll tell you I just finished the Steve Jobs’ book.  It’s a fabulous book…Seeing how that guy… he’s a maniac, he’s a bastard, he’s an arsehole, but he’s a genius and people loved him!  And he only had A players at his company and just pushed so hard to create brilliant products…. Seeing how he produced great products and pushed innovation and had no tolerance for D players and so forth and then comparing that to everything I have observed and seen about Microsoft and Jobs near the end of the book commented to Isaacson that ‘great products companies tend to decline when they cease being run by products guys and instead sales guys take over’ right? and that’s what Steve Ballmer is.  He’s a sales guy.  I think he’s created a sort of culture of arrogance and insularity.” 

He doesn’t think that with Ballmer’s leadership the company will be able to have much upside. 

During the presentation, the value investor also gave his insight on U.S. markets, the economy and presented some stock ideas. Tilson sees opportunities in Berkshire Hathaway, JCPenney and Netflix.  He also sees potential from some large-cap blue-chip stocks.

We listened to an audio transcript and included some of Tilson’s quotes to go along with the slides. 

Tilson's hedge fund is 60% net long.

Tilson does not think Buffett's age is a near term risk factor.

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