Your largest equity buy in the last three months is...(long term buys mostly)

[dealraker]

I thought that instead of a thread of what you bought today that this "largest" wording may reveal more of what's meaningful to you.

 

My largest is something pretty mundane but to me the valuation and timing suggested to me that I would not lose money.  Of course I'm tainted by my crazy lucky success in the insurance brokerage business...knowing full well the below won't even begin to be in that range.  I'm not at all certain about the management and the balance sheet but the business seems likely to sustain.  Regardless the buy does illustrate me, my method, over the last multiple decades.  My second largest has been Medtronic.  

 

Cushman and Wakefield  or CWK.

 

Edited August 24 by dealraker
clarification

[UK]

ERF.PA, the only one large for me in the last 3 month (and YTD) at 46-48 EUR in July.

 

Actually the second largest YTD was also MW related: small add to FFH in February.

 

Anything else bought YTD were sub 2 percent non meaningful stuff.

 

Edited August 24 by UK

[Whensthepaintdry?]

I’m not sure if it will be long term, but my largest new buys were Ulta and Lulu. 

[coffeecaninvestor]

2 hours ago, dealraker said:

 

business seems likely to sustain. 

 

Founded in 1784… I’d say your probably right on the longevity of the business. 
 

No major purchases from me just small adds, but I have some cash looking for an opportunity. 

Edited August 24 by coffeecaninvestor

[73 Reds]

1 hour ago, dealraker said:

I thought that instead of a thread of what you bought today that this "largest" wording may reveal more of what's meaningful to you.

 

My largest is something pretty mundane but to me the valuation and timing suggested to me that I would not lose money.  Of course I'm tainted by my crazy lucky success in the insurance brokerage business...knowing full well the below won't even begin to be in that range.  I'm not at all certain about the management and the balance sheet but the business seems likely to sustain.  Regardless the buy does illustrate me, my method, over the last multiple decades.  My second largest has been Medtronic.  

 

Cushman and Wakefield  or CWK.

 

None.  In fact the only equity investment in the past year has been Fairfax, the last buys being right after the MW report.  That doesn't, however mean that cash has been the only alternative.  Personally it has always been necessary to have one or more alternative sources for reliable investment beyond traditional paper assets (i.e., stock and bonds).  Cash is, and always has been the last place to park meaningful sums of money, though having been raised by depression-era parents, I probably retain more than most would consider prudent for no other reason than a safety blanket.

[bizaro86]

E-L Financial.

 

It'll be around as long as the Jackman family decide to keep it public (it's essentially their family office, and owns a life insurance company as well). 

[TwoCitiesCapital]

I added to my starter position in Alibaba and a new position in Prosus. I view them collectively as a growth/repurchase/chinese exposure play. 

Collectively they are at 4-5% of my portfolio with the vast bulk of that having been established this year. 

[Thrifty3000]

Starter position in Sky Harbour common below $10, and warrants below $1.40.

 

Bought a little more FFH in Feb and again a couple weeks ago during the yen turmoil. 

 

Also, during the VIX spike I sold McKesson calls for around $25 and bought them back a week later for about $.60. (Sell high, buy low)

[Dinar]

COKE (Coca Cola Consolidated) - a 5% position at cost, bought in mid-May at $950 per share, Arcosa (ACA) - bought on August 12th at $80 per share (a 7% position at cost), New England Realty (already an 11-12% position, and I added two more percent in August post the 10-Q, at around $74-75)

[nsx5200]

11 minutes ago, Dinar said:

COKE (Coca Cola Consolidated) - a 5% position at cost, bought in mid-May at $950 per share, Arcosa (ACA) - bought on August 12th at $80 per share (a 7% position at cost), New England Realty (already an 11-12% position, and I added two more percent in August post the 10-Q, at around $74-75)

@Dinar, great timing on the COKE position.  I was looking the recent run-up, but couldn't figure out what the catalyst was for it?  Do you have any insights?  TIA

[dealraker]

20 minutes ago, Dinar said:

COKE (Coca Cola Consolidated) - a 5% position at cost, bought in mid-May at $950 per share, Arcosa (ACA) - bought on August 12th at $80 per share (a 7% position at cost), New England Realty (already an 11-12% position, and I added two more percent in August post the 10-Q, at around $74-75)

That's the type of outlay that's stimulating to see.  Interestingly I made an initial investment in CCEP last year and then again this year some was added.  It has done well but my commitment was lame.

[Dinar]

36 minutes ago, nsx5200 said:

@Dinar, great timing on the COKE position.  I was looking the recent run-up, but couldn't figure out what the catalyst was for it?  Do you have any insights?  TIA

Thank you.  Basically the company had a sharp increase in profitability over the last several years, and I and probably others were not sure whether the profits would stay at this high level.   The company was hinting in the 10Ks and 10Qs that the profits improvement was sustainable however.  Then, in its Q1 2024 press release, the company announced that it was going to do a tender offer at $925 for 30% of its s/o, while the CEO who owned 10% would NOT tender.   This was a signal to me, and perhaps others, that not only profits were sustainable, but would grow.   So I immediately bought shares.   Then in the Q2 results, the company not only did well, but in the 10Q the company further raised estimates of future profitability. It also promised to return capital to shareholders.  This week, it raised dividend from $0.50 per share per quarter $2.50, and announced a $1bn share repurchase (enough to buy back more than 10% of s/o).

[Dinar]

32 minutes ago, dealraker said:

That's the type of outlay that's stimulating to see.  Interestingly I made an initial investment in CCEP last year and then again this year some was added.  It has done well but my commitment was lame.

Thank you for the compliment.  I would suggest that you take a look at Arcosa, I think that it is still cheap, albeit with lower quality assets than CRH or MLM/VMC.  Management is better than at MLM/VMC.   What is the rationale for CWK?  Thank you.

[Castanza]

How has everyone structured their position sizing relative to overall capital throughout your investment “career”? 
 

Example: when I was younger and crossed the 100k brokerage account I was much more likely to do a minimum of 10% for a position if not 20% all the way up to 40%. Now that my portfolio has grown these percentages come down some but not in all cases. 
 

Just seems like at those low levels of capital a 2% position in a 100k portfolio is almost meaningless when it comes to moving the needle. 
 

Curious how everyone else got started and progressed. @dealraker if I remember correctly you had the majority of your wealth in BRK and AJG? 

[LC]

Largest buys YTD have been Aecon in the 14s, and Fairfax thanks to Carson Block. 

[SoonParted]

TSM AT 4%, ‘cause if not now, when?

 

And I’m still underweight tech.

[UK]

49 minutes ago, Castanza said:

How has everyone structured their position sizing relative to overall capital throughout your investment “career”? 
 

Example: when I was younger and crossed the 100k brokerage account I was much more likely to do a minimum of 10% for a position if not 20% all the way up to 40%. Now that my portfolio has grown these percentages come down some but not in all cases. 
 

Just seems like at those low levels of capital a 2% position in a 100k portfolio is almost meaningless when it comes to moving the needle. 
 

Curious how everyone else got started and progressed. @dealraker if I remember correctly you had the majority of your wealth in BRK and AJG? 

 

Counterintuitively so far my portfolio concentration grew together with overall capital and time. Some 10 years ago I used to own 10-15 positions (before 2009 I even owned some funds/etfs), while recently (~5 years) it was only 4-7 bigger 10-20 percent positions (with a few exceptions of even bigger ones) and a baset of 5-20 percent size of smaller, 1-2 percent, positions. This basket part really is not working very well for me and so it is not settled and more of on/off, but maybe by still using it, I avoid doing something stupid in a big way (by buying just a small position of something I have not enough conviction to make big). My plan is to diversify somewhat more in the future, perhaps by capping max position size more strictly and also by allowing some smaller 5-10 percent positions by not selling any winners totaly only because of their valuation (will see if this works:)). It seems that being somewhat more concentrated really makes sense and works for me well, because I do not feel I know what I am doing another way:)

 

Edited August 24 by UK

[BG2008]

7 hours ago, UK said:

ERF.PA, the only one large for me in the last 3 month (and YTD) at 46-48 EUR in July.

 

Actually the second largest YTD was also MW related: small add to FFH in February.

 

Anything else bought YTD were sub 2 percent non meaningful stuff.

 

 

Love to see it 

[BG2008]

FWIW

 

21% position in a new REIT (name withheld for now) 

10-11% position in AIV that grew to 13-14% or so (scale back a little bc we're in the middle of hurricane season) 

5% in Vitalhub (small healthcare SaaS rollup with a long runway already with 29% EBITDA margin) Retention dollar over 100%  

4-5% in AppLovin (70% EBITDA margin adtech biz expected to grow 20-30%/yr per their earnings call) 

5% position in another REIT at over 10% cap rate (name withheld for now) 

Huge new positions in MF REITs since mid 2023 (15% between MAA CPT and NXRT) 

Other smaller REIT positions that aggregate to another 5% 

 

This is the most fully invested I have been. Historically ran about 80% gross exposure for the past decade, but now over 120% gross which is very unsual for me. 

 

Had to sell some Fairfax, interest rates going lower going forward (I know it's not popular on this board) 

Limbach was sized way too small, but would've love to get in on that one in the $20 range. But I was stuck thumb sucking. 

 

Had starter positions in BABA, Viatris, Dollar General, etc but after a while just feel like I didn't really have any edge. Sold out and largely broke even. 

 

As the unofficial FRPH drum beater, I think FRPH is really good value here. The large REITs have moved higher. MF RET cap rates have come down from 7% to high 5%. FRP Holdings have largely stayed flat. 

 

I'm an old dog that learned a few new tricks this past year. I learned to get comfortable buying when a stock reaches new highs as long as the valuation is still very cheap. Price action should be ignored. I also learned to find and analyze and DCF growth companies. No idea why I never bothered. But I think paying 10x EBITDA for something like AppLoving with 70% EBITDA margin and growing 20-30%/year is cheaper than paying 5x EBITDA for a mid teens EBITDA specialty chemical business. Hmm, I need to ask hard questions. 

 

[dealraker]

50 minutes ago, Castanza said:

How has everyone structured their position sizing relative to overall capital throughout your investment “career”? 
 

Example: when I was younger and crossed the 100k brokerage account I was much more likely to do a minimum of 10% for a position if not 20% all the way up to 40%. Now that my portfolio has grown these percentages come down some but not in all cases. 
 

Just seems like at those low levels of capital a 2% position in a 100k portfolio is almost meaningless when it comes to moving the needle. 
 

Curious how everyone else got started and progressed. @dealraker if I remember correctly you had the majority of your wealth in BRK and AJG? 

Castanza, deceased parents thus inherited Berk in my teens.  Dad's broker had several in my dad's family in the stock and basically all his clients had Berk by the late 1970's.  First 17 yrs. or so for me in a trust fund, it began as a low 4 digit figure that at the time I figured if I could sell it would buy me a Jeep CJ5 which I greatly desired.

 

39% in Berk, almost 42% AJG.  Several 1.5 to 2%: same ole boring story - Erie, Lowe's, Norfolk, Fairfax, Coke, Pepsi, Mondelez, Brown and Brown, Markel.  Mondelez comes from Cadbury buy in 2000 and Erie shortly thereafter, the newest two.  Brown 1994, Fairfax began mid 1990's, Markel 1987 or 88...can't remember.

 

1% position would be very large for me to buy.  But these buys are important, they are meaningful when less than 1%, meaningful to me in every way.  A taxable story, that's my issue.  None of the above are where I'd be willing to sell and pay tax.  Coke, Pepsi, Berk...all 1975 basis while Norfolk (inherited 1/27th of grandmother's) is 1976 basis.

 

For nearly 3 decades I know for certain (my brokerage records) that this portfolio has advanced about 15% a year.  That's basically an AJG assisted thing of course.

 

I do have, not included in the above, a small IRA where I put in $30k, all before 1994.  I have shared that here a few times.  It continues to do well with almost no trading...ever.  Below since 2011 and never a tech stock or any stock for that matter much followed or discussed on COBF: 

 

Year	Return	Beginning Market Value	Deposits Minus Withdrawals	Investment Results	Ending Market Value
Since Performance Inception	+15.21%	$126,513.16	+$118,684.57	+$1,334,075.73	$1,579,273.46
YTD	+12.61%	$1,402,465.52	$0.00	+$176,807.94	$1,579,273.46
2023	+16.90%	$1,199,701.17	$0.00	+$202,764.35	$1,402,465.52
2022	+0.81%	$1,190,031.46	$0.00	+$9,669.71	$1,199,701.17
2021	+20.59%	$986,824.87	$0.00	+$203,206.59	$1,190,031.46
2020	+12.82%	$874,655.60	$0.00	+$112,169.27	$986,824.87
2019	+24.56%	$702,183.47	$0.00	+$172,472.13	$874,655.60
2018	-1.26%	$711,136.40	$0.00	-$8,952.93	$702,183.47
2017	+12.33%	$633,078.14	$0.00	+$78,058.26	$711,136.40
2016	+15.75%	$546,940.28	$0.00	+$86,137.86	$633,078.14
2015	+0.15%	$546,101.43	$0.00	+$838.85	$546,940.28
2014	+19.64%	$456,465.26	$0.00	+$89,636.17	$546,101.43
2013	+41.70%	$322,142.95	$0.00	+$134,322.31	$456,465.26
2012	+19.51%	$269,559.28	$0.00	+$52,583.67	$322,142.95
2011	+16.33%	$126,513.16	+$118,684.57	+$24,361.55	$269,559.28

[sleepydragon]

3 hours ago, Dinar said:

COKE (Coca Cola Consolidated) - a 5% position at cost, bought in mid-May at $950 per share, Arcosa (ACA) - bought on August 12th at $80 per share (a 7% position at cost), New England Realty (already an 11-12% position, and I added two more percent in August post the 10-Q, at around $74-75)

Good pick on coke!

I bought some too

[John Hjorth]

Weeding out all kinds of transactions between taxable and tax deferred accounts - done for taxation purposes - so far, the last 3 months :

 

Added to Swedish Investor AB [the A share - INVE.A-STO], Investor AB topic here on CoBF,

Added to Swedish real estate company Wallenstam AB [WALL_B.STO],

 

both discretionary dividend reinvestments of total portfolio dividends received [pretty much what I do regularly, immaterial by value in the whole picture of things].

 

- - - o 0 o - - -

 

Thank you for asking.

[sleepydragon]

My largest buy last year was Spirit. Then it was Para. Both not ended up too well. Fortunately I made some money back speculating on YELLQ and LQDA. 
 

now I have given up on these special situation/event type of things. for the past 3 months, my largest buy is DIS, though it’s only 2x the size of my next largest buy which is usually my starter size. My other buys that have worked are MSCI, Fairfax, and COKE. Those I am losing money are Sirus , OXY, CNH, FNMA/FNMAS

 

[BG2008]

25 minutes ago, dealraker said:

Castanza, deceased parents thus inherited Berk in my teens.  Dad's broker had several in my dad's family in the stock and basically all his clients had Berk by the late 1970's.  First 17 yrs. or so for me in a trust fund, it began as a low 4 digit figure that at the time I figured if I could sell it would buy me a Jeep CJ5 which I greatly desired.

 

39% in Berk, almost 42% AJG.  Several 1.5 to 2%: same ole boring story - Erie, Lowe's, Norfolk, Fairfax, Coke, Pepsi, Mondelez, Brown and Brown, Markel.  Mondelez comes from Cadbury buy in 2000 and Erie shortly thereafter, the newest two.  Brown 1994, Fairfax began mid 1990's, Markel 1987 or 88...can't remember.

 

1% position would be very large for me to buy.  But these buys are important, they are meaningful when less than 1%, meaningful to me in every way.  A taxable story, that's my issue.  None of the above are where I'd be willing to sell and pay tax.  Coke, Pepsi, Berk...all 1975 basis while Norfolk (inherited 1/27th of grandmother's) is 1976 basis.

 

For nearly 3 decades I know for certain (my brokerage records) that this portfolio has advanced about 15% a year.  That's basically an AJG assisted thing of course.

 

I do have, not included in the above, a small IRA where I put in $30k, all before 1994.  I have shared that here a few times.  It continues to do well with almost no trading...ever.  Below since 2011 and never a tech stock or any stock for that matter much followed or discussed on COBF: 

 

Year	Return	Beginning Market Value	Deposits Minus Withdrawals	Investment Results	Ending Market Value
Since Performance Inception	+15.21%	$126,513.16	+$118,684.57	+$1,334,075.73	$1,579,273.46
YTD	+12.61%	$1,402,465.52	$0.00	+$176,807.94	$1,579,273.46
2023	+16.90%	$1,199,701.17	$0.00	+$202,764.35	$1,402,465.52
2022	+0.81%	$1,190,031.46	$0.00	+$9,669.71	$1,199,701.17
2021	+20.59%	$986,824.87	$0.00	+$203,206.59	$1,190,031.46
2020	+12.82%	$874,655.60	$0.00	+$112,169.27	$986,824.87
2019	+24.56%	$702,183.47	$0.00	+$172,472.13	$874,655.60
2018	-1.26%	$711,136.40	$0.00	-$8,952.93	$702,183.47
2017	+12.33%	$633,078.14	$0.00	+$78,058.26	$711,136.40
2016	+15.75%	$546,940.28	$0.00	+$86,137.86	$633,078.14
2015	+0.15%	$546,101.43	$0.00	+$838.85	$546,940.28
2014	+19.64%	$456,465.26	$0.00	+$89,636.17	$546,101.43
2013	+41.70%	$322,142.95	$0.00	+$134,322.31	$456,465.26
2012	+19.51%	$269,559.28	$0.00	+$52,583.67	$322,142.95
2011	+16.33%	$126,513.16	+$118,684.57	+$24,361.55	$269,559.28

 

This is very impressive. Very happy to see this. 

[sleepydragon]

3 hours ago, nsx5200 said:

@Dinar, great timing on the COKE position.  I was looking the recent run-up, but couldn't figure out what the catalyst was for it?  Do you have any insights?  TIA

There was a tender offer which management didn’t participate, which is bullish. In the end the only shareholders who tendered is the KO parent.