Updated: Feb 7
Many of You have been praising the resilience of our portfolio in both good and bad times. Last month, when we recused risk, had quite a bit of cash, and went extremely diversified, having added smaller cap stocks, we generated 20.34% with Risk Score 3. When the cyclical started growing in November, we generated 26.25% - given our well-diversified portfolio of mainly undervalued stocks. Perhaps most importantly, our portfolio is growing virtually every day, regardless of market performance, which to me is one of the most important factors. Now, let us look at some of our diversification in more detail.
𝙀𝙦𝙪𝙞𝙩𝙮 𝙚𝙭𝙥𝙤𝙨𝙪𝙧𝙚 𝙞𝙣 𝙩𝙝𝙚 𝙐𝙆 🇬🇧
We have built quite a bit of exposure to the UK at prices that were/are extremely attractive. Aston Martin (current value 2.79%), Investec (3.10%), Micro Focus (2.55%) National Express (1.02%), Go Ahead (2.05%) have been a big part of the portfolio and all of them contributed c.100% except Investec. We have sold Capita with great profit and are now back at very interesting prices with 2.29% of portfolio. We also hold Shell at 1.18%. Our favourite undervalued stock now is KIER with 5.69%. Total of UK exposure adds up to 20.67%. Again, we see it as the most undervalued market in the world, because of or perhaps thanks to - the pandemic and Brexit problems.
𝙀𝙦𝙪𝙞𝙩𝙮 𝙚𝙭𝙥𝙤𝙨𝙪𝙧𝙚 𝙞𝙣 𝙀𝙪𝙧𝙤𝙥𝙚 🇪🇺
Being quite skeptical about prices in the US, we have historically preferred Europe. AMS.ZU is our 3d biggest position with 3.1%, Porsche has been the biggest position for most of the time, currently at 2.3%. We also have Tecnicas Reunidas in Madrid at 1.82% as well as Melia at 0.84%. We used to have Vonovia, Credit Suisse, SES, and few others but closed them in profit, often having held them for more than 6 months. We have Takeaway (1.09%) and OCI in the Netherlands as well at 0.48%. Total exposure in Europe (outside UK) - 9.63%
𝙀𝙦𝙪𝙞𝙩𝙮 𝙚𝙭𝙥𝙤𝙨𝙪𝙧𝙚 𝙞𝙣 𝙃𝙤𝙣𝙜 𝙆𝙤𝙣𝙜 🇭🇰
To be sure, we have also built (and took profit since) an exposure on the HK stock exchange, as we believe in the potential of this market. We even did quite a lot of profit on $HKG50 and the remaining exposure is standing at 2.38%.
𝙀𝙦𝙪𝙞𝙩𝙮 𝙚𝙭𝙥𝙤𝙨𝙪𝙧𝙚 𝙞𝙣 𝙍𝙊𝙒 🌎
India is our 4th biggest position at 3.17%. We have Brazil ETF at 1.19% and its big food processing company BRF at 0.85%, bringing the total to 2.04%.