Portfolio moves!

Reinforcing some existing holdings, initiating two new holdings and selling one

Being fully invested means that when I find a great company (trading at a fair price with a CEO who historically has very good capital allocation skills) well I have to do something!

Selling is difficult but one of the holdings is more cyclical than I expected and I have a moat (well I hope) among french small and mid caps so it is time for me to keep hitting hard where I am good.

What is even more harder I find is to buy a company at a higher price thant when you had sold it in the past. It is good to be humbled and as such to be humble. One can’t be right all the time. The good side with such an investment is that you know what to look for and where to look for the information in the annual reports and elssewhere.

As always I look for companies which have solid balance sheets, CEO’s who have good capital allocation skills and where the company has a moat and some recurring revenues. And if you add to that a CEO or a company culture of being stingy on the opex side of things well I think some interesting things could happen!

I also took a starter position in a company where I was a shareholder in the past. Price is interesting and joins the category of companies which have a solid balance sheet, recurring revenues and a good management team. As time goes buy things should be going in the right direction.

I also reinforced some existing holdings as their current valuations still offer a nice margin of safety. The best investment is often one which you already own and for which you have acquired some accumulated specific expertise which takes time to duplicate (or to just get!).