You're likely wondering how Airbnb (ABNB, Financial) could have been a small contributor when it was up 115%. The short answer is position size. We have long admired Airbnb and because the IPO was priced at a significant discount to our estimate of intrinsic value, we participated. Given the limited size of the offering, we only received a trivial position. The stock almost immediately reflected something closer to intrinsic value, so we sold our position. At Oakmark, we do our best to look at everything that meets our three investment criteria of valuation, business quality and management. While we may not participate in many "unicorn" IPOs, this was a unique case where all three criteria were met. Unfortunately, it was momentary and of minimal size.
From Bill Nygren (Trades, Portfolio)'s Oakmark Select Fund fourth-quarter 2020 shareholder commentary.
