Christian_Borke’s Portfolio
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I have split my investments 60/40 between index funds and stocks. Thus, I try to keep my stock portfolio concentrated. To me, this means anywhere between 6 to 12 companies. The rationale behind this is being able to go beyond typical requirements and mandates in mutual funds in terms of portfolio allocation.
I usually start the investing process by screening for companies that adhere to certain requirements over time. I typically look at:
– Price (P/E, EV/EBITDA)
– Growth (Revenue Growth, Earnings Growth, ROE/ROIC)
– Debt (Net Debt/EBITDA)
The next part of the process is about putting the numbers in context, and this part is more qualitative. Here, I look for “mega trends” or catalysts for change in a specific industry. I also pay attention to the ownership structure, e.g. high institutional ownership. I try to flip the script and look at the company from a negative perspective, often mapping “Red Flags” or really playing the devil’s advocate. This part of the process is often the one I enjoy the most, and spend most of my time on.
After investing in a stock, I try not to impose too strict requirements on when to sell, or tinker too much with the position if the respective case is still intact. I also add to my position(s) through monthly savings if the price still feels right at the time.
Portfolio as of February 8th 2021:
Nice – I like your strategy and portfolio! Maybe because your two largest positions are the same as mine 😉
Especially interesting the part about playing the devils advocate and mapping red flags. What red flags do you see in the KIT and EVO ?
Which index fund(s) do you have in your portfolio?
A lot of familiar companies in your portfolio!
Own/owned all besides Brdr. A&O and Brdr. Hartmann.
Sold Eolus Vind (unfortunately) in January 2020 and Nekkar (unfortunately) in November 2019. Attached reasoning behind sell decision in Eolus and my short write-up on Nekkar. Currently reviewing Eolus again, but been under the impression that the valuation is a bit stretched at the moment. Just saw that Introduce uploaded an updated analysis of the company: link
Medistim is an old darling of mine. I was part of the audit team on Medistim back in the days and bought my first shares in the company seconds after my lock-up period ended. Not in the portfolio anymore due to the valuation (I’ll probably regret selling), but still keeping an eye on the company
First of all, being two of my by far largest positions, the red flags were of course outweighed heavily by the positive factors in both Evolution and Kitron!
ESG is a chapter in itself but two of my largest holdings deliver live casino – and weapon systems. That is showing up as a red flag to some extent, even if you agree with how ESG will influence stock prices or not. Specifically for Evolution, as we all know a lot of growth is priced in (and its easy to justify that!), and a certain agree of regulatory risk is present in the gaming/gambling sector. Look to Germany for their bans as an example. Those two red flags were the main concerns when I bought my first shares in Evo, and still is to some degree. Until I see the massive growth (and most of it ending on the bottom line/extremely high margins) slowing down I can live well with those two. For Kitron, I have been a long time shareholder (Since 2015), and seen some changes in what segments they deliver products to. I guess my red flags when initially buying were their Offshore/Marine segment (seeing as I bought my first shares around the Oil Price plunge around 2014-15). Going forward, I expect this segment to be to some extent replaced by deliveries to the Renewables industry, e.g. battery systems, fuel cell products (see two most recent contracts), or even renewable offshore installations.
As for Index Funds, Henrik: 60% KLP AksjeGlobal Indeks V, 25% KLP AksjeFremvoksende Markeder Indeks II and 15% KLP AksjeGlobal Small Cap Indeks II in a monthly savings plan.
Since I posted here initially, Brdr Hartmann has gone out of the portfolio at a 40% return. 2020 were probably an exceptionally good year for their business, and I struggle to see them replicating this in 2021. Their closests peer Huhtamäki delivered dissapointing Q4 Numbers, and I opted to relocate the cash from Hartman into what I still consider the best risk/reward case in my portfolio: Brdr A&O Johansen (see my write up/application).
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