Share your Portfolio 2023!

[Red Lion]

6 hours ago, james22 said:

 

Is that a single investment property at 2.4X the value of your home?

 

That's pretty unusual, I'd think?

 

How'd that come about? Commercial, maybe?

They’re actually close to the same value, or at least the same cost, but I have separate finances from my wife and we bought the home together so I only own 50% of the primary residence. Also the investment property has a second parcel. So that’s why I have so much more tied up in the investment, hoping to do a cash out refi and get a good chunk of my capital back after finishing renovations. 

Edited August 7, 2023 by RedLion

[Gregmal]

7 hours ago, james22 said:

 

Is that a single investment property at 2.4X the value of your home?

 

That's pretty unusual, I'd think?

 

How'd that come about? Commercial, maybe?

I have similar situation wrt to funny looking costs simply because I skipped the whole starter home thing so my first home I bought in 2013. “At cost” it’s an average, mediocre home in respect to 2023 prices. Have bought multiple vacation homes and investment properties for amounts in excess of my “cost” on my first home.

[james22]

Unlike equity investments, I assume investment properties are somewhat anchored to home value?

 

Maybe not.

[DooDiligence]

ABBV 4.3%

ABT 2.4%

ADSK 3.8%

BRK 16.2%

C 2%

CMCSA 1.5%

DIS 7.8% (I've been adding)

DPZ 9%

EW 10.8%

GOOGL 6.5% (wish I would've bought more)

HTL 1.3% (coffee can)

INTC 3.2% (like weak beer)

MO 1.1% (worse than weak beer)

NTDOY 11.2%  (might add more)

NVO 14.4%

 

cash 4.4% mostly committed to short dated ITM C puts.

 

Bold means I plan on owning 4 a while.

Italics means I might have to baghold 4 a while to see a return (if ever).

[samwise]

On 4/22/2023 at 9:46 PM, Spooky said:

Thanks for the feedback! I made a conscious decision to try and keep close to 50% in CSU starting a couple years ago to try and concentrate in my best ideas and it has been working well. My goal is to move to a portfolio described by Hagstrom in the Warren Buffett portfolio (focus investing) or similar to Nick Sleep (just a three stock portfolio, Amazon, Costco, BRK) and Charlie Munger (BRK, Costco, Li Lu). 
 

I know CSU very well since I work there and generally 50% of my bonus needs to be in shares of the company. Also, given the nature of the company (basically no debt, extremely well diversified, excellent balance sheet) I’m comfortable that this can’t go to zero. Given the growth of the company my allocation was actually getting over 50% but I was able to take my bonus in cash this year to allocate to some other ideas (which is why I have more cash than normal). This portfolio is 100% of my net worth but I’m 37 and have no debt.

@Spooky I have a big position in CSU as well (nowhere close to 50% though). And am considering increasing it with some new money. But I feel like TOI , LMN could have more runway and upside with the same culture and practices. Wondering if you agree? With such a large CSU position you must have considered the baby CSUs.

[Spooky]

3 hours ago, samwise said:

@Spooky I have a big position in CSU as well (nowhere close to 50% though). And am considering increasing it with some new money. But I feel like TOI , LMN could have more runway and upside with the same culture and practices. Wondering if you agree? With such a large CSU position you must have considered the baby CSUs.

 

Awesome. Feels to me like this environment will be pretty good for CSU in general going forward. So I also have a number of TOI and LMN shares that I received in both spin-offs. My plan is to just keep these as well as the shares of any other possible spin-offs and not sell them for a really long time, maybe I'll get lucky and one of them will generate returns similar to the early days of CSU (Mark L mentioned he hopes his kids are still holding LMN shares in 50 years).

 

Personally, since I am holding such a large position in CSU, I like the mothership - you get an extremely well diversified stream of cash flows across many many software verticals / industries as well as geographies with minimal debt. Also, CSU still maintains a pretty hefty economic interest in both of the spin-offs, so if they do well CSU also does well. My goal with this position is to achieve above average results with a high probability of success / minimal risk of being wiped out. Also, I'm hoping / expecting more spin-offs in the future which could unlock more economic value.

 

That being said, I could see the two smaller entities generate higher returns than CSU going forward just given their smaller size. One, Topicus, is more of a regional / European focused CSU and the other, LMN, is focused on a specific vertical. It's funny I was actually re-reading Mark L's letters again this weekend and one of the early letters talks about two potential strategies a) the "many verticals" strategy and b) concentrating on a fewer number of verticals - with b) Mark hypothesized this would likely lead to paying higher multiples for larger acquisitions and paying strategic premiums to accelerate the number of tuck-in acquisitions. 

 

I'm not sure I really answered your question but hope this is helpful.

 

 

[ICUMD]

BNS 45% of my portfolio.

[E. Nashton]

20 minutes ago, ICUMD said:

BNS 45% of my portfolio.

Ive been adding to this position but wow 45%...that takes some guts. Would love to hear your general contra thoughts on it as most everyone hates BNS. happy to take this to a BNS thread 

[ICUMD]

56 minutes ago, Dean said:

Ive been adding to this position but wow 45%...that takes some guts. Would love to hear your general contra thoughts on it as most everyone hates BNS. happy to take this to a BNS thread 

Good to hear everyone hates it. Perhaps I have a high risk tolerance. Also, I like cash flow. My avg price is $58 Cdn. First purchased in the COVID lows of 2020.  It is now retesting those lows. I recently added heavily at $56

 

In brief, Canadian banks form a core in my levered portfolio. BNS presents a very attractive investment with PE less than 8, dividend yield of 7.5%.  200 yr history, and the third largest of the Canadian banks.  It remains highly profitable.  Currently, valued the lowest in over a decade on multiple valuation metrics.

 

New management in place should make this a more efficient bank. So I think future is bright. Fair value is ~ $85. Maybe it takes 5 years, but I think it will be less.

[samwise]

Thanks @Spooky. 
agreed that mothership is much more diversified . Interesting idea that concentrating in a single vertical would require higher multiples. Could you please point me to the letter are you referring to?

[thowed]

@Spooky

Do you have any shares in the Polish subsidiary?  I looked at it & it seems interesting, though fairly illiquid, & I didn't get a fill when I put a (cheap) bid in on a down day.

 

Thanks for the discussion on this - if I'd been more on it, probably should have added to Lumine recently, but maybe there'll be another chance in the next year.

[Spooky]

9 hours ago, samwise said:

Thanks @Spooky. 
agreed that mothership is much more diversified . Interesting idea that concentrating in a single vertical would require higher multiples. Could you please point me to the letter are you referring to?

 

Mark's letter from March 25, 2010.

 

16 minutes ago, thowed said:

@Spooky

Do you have any shares in the Polish subsidiary?  I looked at it & it seems interesting, though fairly illiquid, & I didn't get a fill when I put a (cheap) bid in on a down day.

 

Thanks for the discussion on this - if I'd been more on it, probably should have added to Lumine recently, but maybe there'll be another chance in the next year.

 

I haven't looked at that company in much depth, I'm not very familiar with the Polish exchanges / governance.