Housekeeping Magyar Telecom, Tonnelerie and Vetropack
As posted on Friday, I fully exited the Magyar position already on Friday at the VWAP of 589.6 HUF,or 2.03 EUR per share.
Part of the liquidity (currently 13 %) will be used to increase Tonnelerie and Vetropack to full positions of 5% from currently 3.2% and 2.8%. This is also a “self controlling” effort in order not to “waste” the free liquidity on any half baked ideas. In my opinion, you are much more focused if you have to sell an old position first before you buy the new position.
value and opportunity 
Couldnt agree more.
Munger once said to try to hang the hurdle higher with each new investment. Question is how to quantify the hurdle. Do you have a quantitative system how to make tradeoff decisions between investments on a risk adjusted basis? Thanks for sharing.
I happen to compare my expected IRRs with two sorts of risks. Know unknowns and unknown unknows. My aim is to buy cashflow streams with expected IRR- E(known unknown) > my target return (which is 12% currently). The “>” in the equation is my margin of safety against unknown unknows like random fraud, unforseen technological change etc. My goal is to maximize the “>”, which is somewhat of a quantitative benchmark like Munger used it.
Jan,
personally, I don’t have a scientific system for this.
For a short term special situation with small market exposure 50% upside for a period of 2 -3 years would be Ok
For contrarian stock I would look for a potential double in 3 years.
This is definitely something I have to work on (among others….)