Following an annual custom, by the top of the yr, I assessment my portfolio by writing/updating very brief summaries for every particular person place. 16 of the 23 positions from final yr are nonetheless within the portfolio and I’ve added 7 new positions. That turnover has been partially pushed by exits/take-overs (Schaffner, Logistec) and by discovering new concepts. A extra complete Efficiency assessment will observe in early January 2024.
A brief person information:
My most popular fashion of investing is a backside up method, specializing in 20-30 small/midcap shares that for my part have return/danger profile over the following 3-5 (or extra) years. Many of those shares usually are not family names and are unlikely to make spectacular beneficial properties in any single yr. A lot of them look attention-grabbing solely after the second or third look and are relatively boring, which is precisely what I’m searching for. So in case you are searching for a “Scorching inventory for 2024”, this put up gained’t aid you a lot.
And all the time keep in mind: THIS IS NOT INVESTMENT ADVICE. PLEASE DO YOUR OWN RESEARCH.
As a particular service and to supply one thing “contemporary”, I’ve created a brand new portfolio overview chart based mostly on holding durations which I proudly current right here:
The summaries of the earlier years might be discovered right here:
My 23 Investments for 2023
My 28 Investments for 2022
My 21 (+6) Investments for 2021
My 20 investments for 2020
My 22(+1) Investments for 2019
My 21 investments for 2018
My 27 investments for 2017
My 27 investments for 2016
My 28 investments for 2015
My 24 investments for 2014
My 22 investments for 2013
Let’s go:
1. TFF Group (Portfolio weight 7,4%, Holding interval 13,0 years)
TFF is the “Final inventory standing” from the preliminary portfolio 13 years in the past. It’s the world main, household owned & run oak barrel producer. Their official motto is “Time is in your aspect”. Has grown properly over a few years resulting from Asian demand for aged French wines and opportunistic acquisitions. Whisky barrels have added to development. After a few years of organically constructing US operations (Bourbon) from scratch, which required important capital outlay and no gross sales, gross sales have elevated considerably within the earlier enterprise yr and in addition Q1 2023/2024 appears to be like promising. No cause to vary a lot other than some rebalancing, “Long run Maintain”
2. G. Perrier (5,1%, 10,8 years)
French, household owned & run small cap, specialist for electrical installations with a powerful place in Nuclear upkeep. Good development regardless of financial headwinds. They added a brand new section in 2021 (aerospace and defence). Even in a tough 2023, they managed to develop revenues with the Defence section main. Again in 2013 I purchased it as an inexpensive inventory, it turned out to be a properly run, decently rising firm that compounds properly. “Long run Maintain”.
3. Thermador (4,6%, 10,5 years)
Thermador is a French based mostly, specialist building provide distribution firm with a deal with pumps and something linked with water circulation. Distinct “outsider fashion” company tradition with an emphasis on decentralized choice making and common M&A exercise. 2023 began properly however the development slowed down fairly dramatically with the development sector. I added slightly to the place through the yr. “Long run maintain”.
4. Admiral (6,5%, 9,4 years)
A direct retail insurance coverage firm. UK based mostly, value benefits, founders nonetheless personal share positions, nonetheless have now left the corporate for age causes. The EU subsidiaries are nonetheless making good progress with a protracted development runway in entrance of them. After a nasty 2022, the inventory has rebounded and it might be that 2023 was the underside of the occasion claims cycle. I’ve been “re-underwriting” Admiral a while in the past, however there are additionally some facet that I like lower than up to now, particularly the growing UK value ratios and incapability to unravel the US downside with the loss making subsidiary there. “maintain, however watch”.
5. Bouvet (3,8%, 9,4 years)
IT consulting firm from Norway. Once I purchased the inventory eight years in the past, the inventory value beforehand had been hit exhausting by the oil value decline, Statoil was the biggest consumer. The enterprise and the inventory confirmed a powerful restoration since 2016. I used to be not sure in regards to the inventory in some years however the firm stored rising. In early 2020, I offered half of the place (a lot too early in fact). The corporate surprises me yearly, once more with double digit (organc) development in 2023. In comparison with the standard of the enterprise, the inventory will not be too costly. “Maintain”.
6. Companions Fund -MSA Capital (4,0%, 8,3 years)
An funding right into a fund run by an excellent pal. Mathias is a “Munger fashion” investor with a concentrated portfolio of “moaty” corporations, a lot of them from the US. I feel it’s a good complimentary publicity for my funding fashion and he has been ouperforming my portfolio by some proportion factors per yr till 2022. After a nasty 2022, the fund value has recovered just lately. Apart from many “Cathy Woods fashion” development traders, I’m 100% positive that the Companions Fund will proceed to do properly over the following 10-20 Years “Long run maintain”.
7. Sixt AG Choice shares (4,1%, 3,9 years)
Sixt is an organization I’ve been admiring for a very long time however by no means managed to “pull the set off” to purchase. Lastly, through the darkish days of Covid-19, I managed to construct up a place within the cheaper pref shares.
2023 noticed a rebound after a big loss in 2022. The present P/E of 8 doesn’t give any credit score to the standard of the corporate. What I’ll by no means perceive is the actual fact, that the Pref shares commerce at such a reduction to the frequent shares. “Long run maintain, doubtlessly add”.
8. Chapters Group (1,0%, 3,8 years)
Chapters is the brand new identify of Mediqon and one of many remainders of my “German Basket” try. The corporate tries to place itself as one thing like a “Mini Constellation” or “Mini Danaher” and has established just a few platforms by means of which they purchase small enterprise. The corporate once more managed to promote shares to new traders at excessive share costs. Jan, the CEO did an excellent podcast this yr that introduced some publicity. With a market cap of 280 mn EUR, the corporate now additionally may appeal to extra traders. “Long run maintain”.
9. AOC Fund (4,1%, 2,4 years)
The second fund funding. This time into an “activist fund”, most well-known due to its profitable marketing campaign on Stada some years in the past. They take a fairly concentrated long run method and actively work with/in firm boards. Apart from te actually nice ong time period efficiency, a aim can also be to observe and making an attempt to be taught from them. After a really robust 2022, 2023 up to now appears to be like like a weak yr yr in absolute and relative phrases as a few the psotions (AGFA, PNE Wind) had been struggling. The long run observe document remains to be excellent. “Long run Maintain”.
10. Alimentation Couche-Tard (4,9%, 2,9 years)
ACT entered the portfolio in 2021 as one in every of my only a few massive cap investments. It was the uncommon probability to get into a top quality compounder at an inexpensive valuation (13-14x trailing PE) nearly 3 years in the past. The corporate is known for its decentralized, entrepreneurial tradition and glorious capital allocation. After a failed bid for Carrefour, ACT had fallen out of favor with some traders which opened this chance. After all there are some points corresponding to the problem how EV charging will develop and sure ESG subjects (Tobacco gross sales), however total that is one for the long term though it wants cautious watching (EV charging). “Long run maintain”.
11. BioNTech AG (1,1%, 2,8 years)
BioNTech was an “inspiration” from the start of 2021. It was meant to be a “guess” each on the founders and the know-how in addition to a hedge in opposition to a chronic Covid-19 pandemic. 2023 was very unhealthy, with the inventory down -40%, however fortunately I offered round 1/3 of the place near peak costs. I nonetheless suppose that there’s a respectable probability that BioNTech can develop the mRNA platform additionally right into a pipeline in opposition to different illnesses, particularly most cancers which was the unique goal of the corporate. The billions in money they made on the Covid vaccine may pace up the method. To be sincere, it’s extra a “Collector’s nook inventory” than a core place. “Maintain”.
12. Photo voltaic Group A/S (3,3%, 1,6 years)
Photo voltaic Goup was the primary results of my “all Danish Shares” collection. It’s a small Danish wholesale firm that gives provides for heating, cooling and different electrical targeted elements to craftsmen in Scandinavia and the Netherlands. After “hibernating” for a few years, the corporate has began rising in 2021 and has continued to take action in 2022. In 2023, the corporate skilled a decelerate with the remainder of the development business, however for my part managed fairly properly. The inventory value nonetheless is down -22%, valuing within the firm at 5x 2023 earnings. A few friends have already recovered up to now few weeks, so possibly 2024 might be a greater yr. “Maintain”.
13. DCC Plc (5,9%, 1,1 years)
At its core, DCC is a really unglamorous, mid-cap distribution firm headquartered in Eire and working by way of 3 totally different platforms (Power, “Expertise” and healthcare) across the globe and might be characterised as “serial acquirer”. Regardless of a particularly robust 20 yr+ observe document, the inventory fell out of favour and traded at very enticing valuation ranges. The principle enterprise, (fossile) Power clearly has challenges, however DCC is adressing this actively of their technique. YTD 2023 has been superb for the Power section, whereas the opposite segments struggled a bit. Over the previous few months, the inventory recovered properly. “Maintain”.
14. Royal Unibrew (3,6%, 1,2 years)
Royal Unibrew is the second Danish addition ensuing from my “all Danish shares” collection. What I preferred in regards to the firm is the actual fact, that on prime of a really robust observe document, they appear to have a really attention-grabbing decentralized tradition and actually good capital allocation expertise plus prime notch reporting. The enterprise as such appears to be a vey steady on and really enticing in comparison with different beverage classes.
As the remainder of the alcoholic beverage business, they’d issues in passing value inflation to prospects in 2022/2023. Inititally, traders ignored that earlier than than the inventory value suffered within the second half of the yr. Moreover, they must digest a bigger acquisition. For me, the long run case remains to be intact,“Maintain”.
15. ABO Wind (1,9%, 1,8 years)
ABO WInd is one in every of my two German renewable shares. Operationally, issues look exceptionally good. ABO Wind may be very energetic and earnings from the rushing up of permiting in Europe in addition to from initiatives corresponding to Inexperienced hydrogen in Canada. Sadly, the founders determined that they need to remodel right into a “KGaA” which curtails minority investor rights. Personally, I feel they’re acted extra silly than evil, however investor punished the inventory with a lack of -40% in 2023. Nonetheless, that makes the inventory extraordinarily low cost in comparison with the worth that’s inside this firm. Nonetheless one wants to observe if and the way Administration will be capable of deal with enterprise and the way capital allocation will develop. “Maintain & Watch”
16. Sto SE (3,3%, 1,3 years)
Sto SE, the German insulation firm, is the remaining member of the “freedom Insulation” basket”.Sto is financially actually strong and the valuation is reasonable. Nonetheless, as different building associated shares, Sto suffered from the decline and in addition regulatory uncertainty esp. in Germany. I had added to the place by means of the yr. I do suppose that over a interval of 2-3 years, a restoration particularly in renovation may be very seemingly. Regardless of guiding down their gross sales for 2023, they upheld their EBIT goal which provides me confidence into their mid time period targets. “Maintain”.
17. SFS Group (3,9%, 0,9 years)
SFS Group was one of many first new addition in 2023. Swiss based mostly SFS produces steel precision elements and in addition distributes instruments for the equipment business. They managed to amass Hoffmann, a well-known German device distributor. As a world energetic Group with some publicity to building (fasteners), SFS noticed a decelerate in 2023, however particularly distribution did properly. I additionally just like the tradition with a giant deal with the apprenticeship system. The CEO has began his carreer as an apprentice and labored his strategy to the highest. I hope for a really boring, however long run constructive growth regardless of a doubtlessly dificult 2024. “Maintain”.
18. Logistec (4,3%, 0,7 years)
Logistec is a Canadian Bulk terminal operator that I “found” in March. Run by the daughter of the founder, this regarded like an awesome long run compounder. Fortunately or unluckily, the household determined to promote to a International Infrastructure fund. The deal might be settled in January 2024 with an honest +50% acquire, that’s why it’s the (+1) share that can robotically disappear early subsequent yr. I’m not positive that the timing for the sale was optimum, however I can’t complain an excessive amount of both. “Maintain”.
19. Energiekontor (3,6%, 0,5 years)
Energiekontor is my second renewable power firm. The principle distinction to ABO Wind is that in addition they personal and run renewable energy crops and do have an excellent capital allocation. They don’t function as internationally as ABO Wind. Energiekontor will not be as low cost as ABO Wind however nonetheless superb worth and will be capable of enhance earnings significatly, regardless of haveing an excellent yr already in 2023 with a “final minute” improve in steering. “Maintain, doubtlessly add”.
20. Italmobiliare (4,5%, 0,3 years)
One other 2023 newcomer. Italmobiliare doesn’t deal in actual property or furnishings, as a nasty translation may point out, however is a Non-public Fairness fashion investor into Italian “High quality” corporations, run by the present head of the founding household. On the time of buy, the inventory traded at round 50% of intrinsic worth and most of the portfolio corporations, particularly the bigger ones like Espresso model Borbone and excessive finish fragrance maker Santa Marie Novella have superb development prospects. “Maintain, doubtlessly add”.
21. Laurent Perrier (1%, 0,4 years)
Laurent Perrier can also be an 2023 addition, a small place that I see relatively as a part of a “inventory assortment”. Laurent Perrier is a pure play Champagne firm with a protracted historical past, an excellent model and based mostly on “put up Covid” numbers regarded fairly low cost. It must be seen how Champagne does by means of a possible 2024 recession, however Champagne is one thing that has been round for a very long time and may keep related for an equally very long time. “Maintain”.
22. DEME Group (3,4%, 0,1 years)
DEME, a Belgian dredging and offshore wind building firm got here onto my radar in 2023 when resulting from some (for my part distinctive and non permanent) points at Oersted, Offshore wind all of a sudden bought a really unhealthy repute and DEME’s share value git hammered. DEME is among the important international gamers in Offshore Wind building and can very seemingly develop for a few years with the business. As well as they’ve a really strong dredging enterprise and a few attention-grabbing “actual choices”. In 2023, profitability was not nearly as good, however I anticipate this to enhance going ahead. the corporate is majority owned by Ackermans van Haaren, a Belgian Holding firm. “Maintain”.
23. SAMSE Group (3,1%, 0 years)
SAMSE was my remaining 2023 addition. A french distributor of constructing supplies that has been rising properly for a protracted timeand is majority owned by the founding households and the workers. A really good company tradition mixed with a fairly low cost valuation that may mirror the uncertainties within the building sector and a doubtlessly tough yr in 2024. Nonetheless, as capital allocator, SMASE may come out of this as a a lot stronger firm, particularly if they will purchase competitor Herige at an honest value. “Maintain”.
