Reply To: Henrik_L’s Portfolio
The holding period depends. My stance is normally long-term but when the case changes dramatically or if better ideas appear, I reallocate. I’m usually fully invested.
I have had AFG from 2012, adding every year to 2018 when I sold a bit to diversify. Kitron is my second-longest in terms of holding period, 2-3 years now. The rest I have bought during the last 12 months.
Evolution is probably the only company I can say that I’m planning on holding forever.. although I know that will change some day as well J But it’s hard to find a business with the characteristics like EVO combined with such a strong underlying market. Although they are the largest company in my portfolio in terms of MCAP I see a loooong runway of growth ahead. US just started to open up and Asia is having huge growth although they have not really started here (no studios). Btw, I recommend this with the Chief Product Officer, Todd Haushalter; https://www.youtube.com/watch?v=L7B7ibU41i0
In terms of market timing, I try to buy only when Mr. Market is depressed and there are bargains out there. I sold a lot to go cash when Covid first appeared in China. Though I was clever, but I bought into the market way to late again. Didn’t expect the fast rebound and the conclusion is that I should have remained invested.
Talking about Mr. Market.. Fjordkraft is another example which got on my radar again (have owned this earlier) during the fall, and I started adding shares. The Company announced two large deals (Innenlandskraft and SNG in Sweden) adding more than 400’ electricity deliveries (+61%) from Q2 to Q4. In the same period the shareprice is more or less unchanged. M&A are always risky but the company has been doing some great accretive deals earlier so I trust the management on the recent ones as well.
My take on the flattish shareprice was due to the complaint from Consumer Council’s proposing that some of their contracts were illegal. The Consumer authorities concluded that slight adjustments had to be made. Potentially bad for reputation short-term (slightly weak organic growth in Q4 but also impacted by less sales activity due to Covid) but the shareprice took to much beating in my view. It is still in the same range but Mr. Market can be depressed for a long time – or I could be wrong.. Let’s see who it is J
I think KIT will have another solid quarter, the management are executing very well and they have benefited greatly from Covid. They stocked up on components earlier so let’s hope the component shortage recently haven’t affected them.
You owned Vistin when they had the energy trading as well? I wasn’t comfortable and didn’t understand that division well enough. Once they shut it down, and the new majority owner came in, the case was much more appealing. Do you think it is too expensive to buy into at these levels?
Please comment if you / anyone disagree or have another view of these companies. Conflicting views and opposite arguments are important to develop as an investor.
