This month marks a significant milestone for Warren Buffett, who celebrated his 94th birthday. Even more noteworthy, his investment company, Berkshire Hathaway, achieved a monumental valuation of over US$1 trillion, becoming the first non-tech business to reach this milestone.

My journey with Buffett began in May 2010, at the annual Berkshire Hathaway shareholders meeting—fondly known as the "Woodstock for Capitalists"—held in Omaha, Nebraska. Though Omaha might not be a top destination for most, it’s a pilgrimage for around 40,000 investors each year, all eager to hear Buffett’s insights on markets, stocks, and life.

As a fresh-faced 30-year-old, I remember my first meeting vividly. I sat next to a few New York hedge fund managers who, after the usual pleasantries, asked about the size of the assets I managed. Feeling a bit out of place, I exaggerated Pie's then NZ$7 million portfolio to NZ$10 million. The conversation quickly drifted back to the main event, leaving me feeling a mix of embarrassment and determination.

Out of curiosity, I recently calculated how a US$10,000 investment in Berkshire shares back in May 2010 would have fared. True to form, the old master hasn’t lost his touch—today, that investment would be worth nearly US$60,000, representing a 500% return over 14 years (13.4% p.a.). I’m proud to say that Pie’s products, launched around the same time, have outperformed even this impressive benchmark and we have three funds that have returned over 500% in the last 14 years.

Much has changed in those 14 years. My business has grown from a one-man operation to a team of 44, with 4 offices, 20,000 clients including our KiwiSaver members, over $800 million in wealth generated for those clients, and more than $2 billion under management—a far cry from the inflated NZ$7 million I managed back in 2010.

Reflecting on August, here at Pie, the sudden collapse of the Japanese Yen, the crash and subsequent recovery of the Nikkei, and the ensuing global volatility were indeed concerning. However, I’m pleased to report that our team remained calm and focused, as you would expect. We assessed the risks, seized opportunities where they arose, and continued to navigate the markets with the steady hand our clients have come to rely on.

Our interest rate sensitive funds, Pie Fixed Income and Pie Property & Infrastructure had a strong month as rates fell, and it was pleasing to see our KiwiSaver Funds all positive for the month. At 30 June our Pie KiwiSaver Balanced and Growth Funds were the #1 performers in the market over the last year. A title we are keen to defend for the next quarter. 

Finally, I can’t help but wonder what Warren Buffett would make of the month’s market movements. Probably not much—he likely didn’t lose any sleep over the early month wobble. I’m sure he’s seen it all before, thounsands of times.

Warm regards,
Mike Taylor
Founder & Chief Investment Officer

Information is current as at 31 August 2024. Pie Funds Management Limited is the manager and issuer of the funds in the Pie Funds Management Scheme and Pie KiwiSaver Scheme (the Schemes). Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Schemes’ investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a guarantee of future returns. Returns can be negative as well as positive and returns over different periods may vary.