A Portfolio Update And Two Powerful Insights Every Serious Investor Should Read

Portfolio Update

Yesterday I made some adjustments to my portfolio and the portfolios I manage and I just wanted to update those positions.

Personal Portfolio and Portfolios I Manage:

  • Bought Strattec Security Corporation $STRT

Personal Portfolio:

  • Sold Altria $MO up 18%.
  • Sold Philip Morris $PM up 24%.
  • Sold Intel $INTC up < 1%, could have sold a while ago up 30%, doh!

All sold positions are after fees but before taxes.  I never bought any of the above three positions for the portfolios I manage and I bought Altria, Philip Morris, and Intel before doing any kind of valuations or any kind of in depth research so I am a bit fortunate to end up anything in those positions.

I said a couple months ago that I planned to hold the above positions for the foreseeable future because I felt that I could have my results compound well over time in all of the three companies.  I still think that is true for all of the above companies but have still decided to sell them all.  Lately I have been gaining confidence in my abilities to analyze companies, and I now think that I am at the point where I am getting pretty good at analyzing companies and think I can find better opportunities in the smaller mid to nano caps that I am concentrating on now.

Also as Red reminded me of the other day, why would I try to compete with the millions of people who are invested in and analyze those massive companies when I can find less competition, potentially less efficiency, and more upside, in the much smaller companies.

After selling those companies to free up cash for future opportunities, my current portfolio stands as follows, ranked by position size.  Portfolio does not add up to 100% because of rounding:

  1. $VIVHY.PK-28% of portfolio.
  2. Cash-26% of portfolio.
  3. $STRT-16% of portfolio.
  4. $MAIN-11% of portfolio.
  5. $CMT-8% of portfolio.
  6. $DOLE-8% of portfolio.

Two Powerful Insights Every Serious Investor Should Learn From and Reread.

Fundoo Professor-Presentation On Moats And Floats.

The Red Corner Blog-Kfaftwerk; A look at economies of scale and how Wal-Mart changed its industry and made a ton of money.

I hope you enjoy the above links as much as I have.

I have already started researching another company and tomorrow I will post some links and ask your advice on something I have been thinking about quite a bit lately.


5 thoughts on “A Portfolio Update And Two Powerful Insights Every Serious Investor Should Read

  1. Yup, being able to analyze/invest in small cap/obscure co’s is our advantage over the people who don’t think outside the box, as well as big time money managers.

    • Thanks for the link Fabian.

      He lays out a compelling case about SuperValu not being a great company to own in his analysis; however I have not looked into the company at all so I cannot say that what he says is correct, or would make sense to me after evaluating the company myself.

      One thing I can say for sure though is that saying to stay away from small caps because Supervalu, or a few other small caps like it appears to not be a good buy and is a bad business, and insinuating that other small caps are also not good buys right now because of how SuperValue appears, is like saying we should stay away from all large caps because any one large cap looks like a bad business and is overvalued so all large caps are bad businesses and overvalued.

      Those kinds of logic and generalizations have never made sense to me in any forum whether it is race, investing, schools, or whatever.

      If you don’t like small caps that’s fine, and a completely reasonable position in my eyes although I think it is wrong, but say why and move on instead of making gross generalizations about smaller companies based off of one or a few small caps.

      What are your thoughts on his write up?

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