For several personal reasons (don’t worry, all of them VERY positive !!), I already have less time and will have even less time for detailed company analysis in the future. So the question for me is: What do I need to do with my portfolio (and the blog)?
A few questions I have been asking myself were:
- have more positions to diversify or should I have less positions to concentrate on the remaining ones ?
- allocate more money to other money managers or even start investing into ETFs ?
- try to focus on less risky stocks ?
- just do shorter company analysis and focus on the essentials ?
- or even go back to a more mechanic approach (BOSS Score) ?
- focus more on my Circle of competence and skip trying to extend it ?
- Or even focus only on a small universe of the highest quality stocks ?
- increase my minimum holding period to slow down turnover ?
- Avoid “Higher maintenance” positions like M&A arbitrage etc ?
- Do more “shadowing” of investment managers I admire ?
- What should I do with the blog ?
Paul Hartmann AG is a 200 year old German company active in the healthcare sector, This is how they describe themselves:
It’s no secret that I like French family run companies. TFF Group, G. Perrier, Installux, Dom Security are just the main examples of these kind of companies.
Boiron SA is a French company which Bloomberg lists as “Specialty Pharmaceutical” company. Although “Specialty Pharma” is not exactly what they do. in fact, Boiron SA ist the only listed company that I know that exclusively produces and sells Homeopathic “pharmaceutical” products. The call themselves “World leader” of this field.
A few words on Homeopathy
Topdanmark – The Danish Cannibal
Topdanmark, a local Danish Insurance company has been on my extended “to do” list for a long time for 2 reasons: It is the second most profitable European insurance company after Admiral (based on ROE) and as Charlie Munger would call it a “true Cannibal”.
Those are some selected numbers from Topdanmark over the last 18 years:
Already a couple of weeks ago, Handelsbanken issued their 2016 annual report. On the surface, the numbers look like a small disappointment with flat profit and a slight decrease in EPS.
Behind the surface however, some things happened. The CEO was fired in 2016 for “too much centralization”.
Some highlights of the annual report from my side:
- the number of branches in Sweden went down from 474 to 435
- the 4th quarter was very weak, but most likely driven by cost for branch closures in Sweden which happened in Q4. I liked this comment:
It has become already a small tradition that I do a short review of my portfolio at the end of the year. As mentioned before I found it quite helpful to list my current investments at the end of each year and try to explain (to myself) the investment case in a few sentences.
Former posts can to be found here:
My 27 investments for 2016
My 28 investments for 2015
My 24 investments for 2014
My 22 investments for 2013
Compared to last year, Hornbach, Koc, the Depfy TRY bond, the HT1 Bond, NN Group, Citizen’s and Greenlight have been sold. New positions bought in 2016 are Dom Security, Majestic Wine, Handelsbanken, Coface, Silver Chef, Italgas and SAPEC and Kuka. Some positions (Gaztransport and Kinder Morgan) went in and out in 2016.So 19 out of last years 27 are still in, a turn-around of 30% is acceptable and consistent with my strategy.
With 27 stocks, the portfolio is still maybe a little bit too diversified, my preference would be to have not more than 25 positions. However 2 positions (Kuka, Sapec) are special situations which will most likely be sold/terminated early in 2017. The cash level at the moment is quite low at around 4%.
Camellia Plc is a pretty odd company for UK standards. It is a conglomerate with interest in plantations around the world, as well as some engineering businesses, a UK cold storage business, a fish trader in the Netherlands and a private bank plus an art collection, a stock portfolio and other stuff.
Some UK blogs have covered Camellia like Richard Beddard and Expecting Value.
Camellia seems to be a favourite among deep value or “assets at a discount” investors and as I do like strange companies (and conglomerates) , I decided to take a deeper look at it. Also as it is in the same sector as ACOMO makes it easier to get “into it”.