# Investment Portfolio — Deep Reference

*Sourced from memories.json project memory (019bfb35). See MEMORY.md for summary.*

## Investment Philosophy
- Buffett/Munger/Graham value investing: concentrated positions, wide moats, patient capital
- **Four-pillar framework** of super investors
- Prefer businesses with switching costs and customer lock-in (drawn from firsthand Epicor experience)
- Founder-led companies with long-term thinking
- Entry points: 25% below intrinsic value (margin of safety)
- Roth conversions during market downturns amplify long-term compounding
- "JFL&KL FUND"

## Super Investors Tracked (13F Filings)
- Warren Buffett
- Li Lu
- Mohnish Pabrai
- Chuck Akre
- Guy Spier

## Current State (Pre-April 30)
- **Total:** ~$1.9M (IRA + taxable)
- **Positions:** 14 stocks ($174,908) + $1.7M cash
- **Taxable account:** ~$400K
- **Traditional IRA:** ~$1.1M (Roth conversion in progress)
- **Target:** $10–20M over decades

## April 30, 2026 — Execution Plan
- **Selling:** 7 positions
- **Buying:** 19 new positions
- **Result:** 29-stock concentrated portfolio

### Three Buckets
1. **Core Forever Holdings** — 40-year compounding machines
2. **Opportunistic Value** — 5–7 year asymmetric bets
3. **20-Year Innovation Holdings** — 0.6% technology positions each

### Recent Modifications
- Replaced BAC with equal allocations across: **V, FICO, BABA, PGR**
- Based on super investor 13F analysis

## Roth IRA Conversion Strategy
- Converting ~$1.1M traditional IRA over 2–5 years
- Constraint: stay within 24% tax bracket
- **Structural issue:** Needs to move from LLC distributions to W-2 salary
  - Unlocks $62,000 annual Roth 401(k) contributions for BOTH Joe and Keli
  - Requires CPA coordination (Robert MacArthur)
- FireLots profit ($600–800K) provides conversion funding
- Opportunity cost analysis: conversion tax payments vs. immediate market deployment of taxable account

## Specific Opportunities
- **MercadoLibre (MELI)** — near 52-week lows ~$1,977; Marcos Galperin = Buffett-like founder; Feb 19 earnings was a deployment catalyst
- **Constellation Software (CSU)** — crashed 55% post-Mark Leonard resignation
- **Progressive Corporation (PGR)** — deep-value DCF analysis completed
- **Fairfax Financial, Brookfield Corp, Constellation Software** — researched as long-term outperformers (serial acquirers, family holding companies)

## Liquidity Planning
- College funding: $270K total for Juliana and Isabella (approaching)
- FireLots profit: $600–800K expected in 18–24 months
- Cash reserves maintained as "dry powder" for market crash deployment

## The Goodwill Fund
- Family investment partnership for nephew Matty (21, Rutgers Business School)
- Designed to teach value investing principles
- Side benefit: potentially influence Joe's daughters to develop investing interest through peer influence

## Tools & Deliverables
- **Strike list dashboard** — 40+ stocks from 15 master investors, "Buy Radar Dashboard" monitoring entry prices
- **DCF calculator** with range charts
- **Monte Carlo retirement simulator** (bootstrap simulations)
- **Investment performance analyzer** (HTML/JS) — iteratively added dividend aristocrats (PG, JNJ, KO), Treasury ETFs, individual stocks
- **Investment compendium** — visual elements, DCF range charts, sparklines
- Joe values: Excel models, professional PDF reports, PowerPoint presentations, sparklines, color-coded dashboards

## Research Resources
- Seeking Alpha Premium subscription
- SEC filings, earnings releases, analyst projections
- Super investor 13F filings (quarterly)
- Value investing literature
- Previously Truist-managed portfolio → transitioning to self-directed