Installux Post Mortem
Intro:
As part of an improved investment process, I will try to write better “post mortem” analysis after exiting an investment. I did this in the past especially for bad investments but I plan to do this now for every investment that I fully exit. Interestingly, very few fund mangers talk or write in detail why they have been selling.
Installux post mortem:
As mentioned in the comments of the original post, I sold my Installux shares yesterday at around 390 EUR, netting a total gain of 206% or ~13,7% p.a. over ~ 8.5 years.
Installux was my second longest standing position in the portfolio. I was able to buy the shares cheaply mostly on a “mechanical basis” in 2012. This was my summary back then:
We have a consistently growing and profitable business with very low volatility, attractive ROE and ROIC and a valuation of 2x EV/EBITDA and 5x P/E adjusted for cash (7.8 unadjusted) which produces a large amount of free cashflow despite growing nicely over the years.
So what happened since then ? This is how the stock price looks like for the last 10 years:
