Charle Co Ltd (TYO:9885)

Charle Co is a Japanese company that sell women clothing and cosmetics. The share is trading close to net cash and negative enterprise value. Strong balance sheet.  The company is profitable and has a decent history of dividends.

I took a small position at P/NCAV 0.68 earlier today. The share will make a nice addition to the portfolio.



First trades

Below are the first trades for the portfolio. All stocks were priced low compared to their net current assets at the time of purchase.

Company Ticker Date Price P/NCAV
Boom Logistics Ltd ASX:BOL 2014, Jun 0.13 0.57*
QC Holdings, Inc. NASDAQ:QCCO 2014, Dec 1.67 0.67
Hengxin Technology HKG:1085 2015, Mar 1.38 0.45
Tiemco Ltd TYO:7501 2015, Mar 577 0.50
I-O DATA DEVICE TYO:6916 2015, Mar 630 0.53

Includes Plant & Equipment

… And so it begins

On this blog I will document thoughts and trading for my new portfolio. I have a general idea of the strategy I want to explore, nothing is set in stone and things will likely change over time.

In recent years I have spent a great deal of time analyzing and reading up on securities and companies. I have gained a fair deal of experience from this and also had some good performance. However, I feel my stock-picking has been too random I have frequently doubted choices and made unnecessary or poor trades.

In an attempt to give myself more peace of mind as well as a structured approach to investing I have decided to start this portfolio.

My strategy

  • Purchase price is important for long-term performance. Focus on objectively cheap companies, e.g. net-nets and low p/b.
  • Evaluate investments on a annual basis. Day to day price changes is usually noise, the intrinsic value of company don’t change much from one day to another.
  • Don’t over-analyze. Stuff will happen and I will not be able to foresee half of it. Mitigate the risk by diversification and looking for high margin of safety.

The goal is to gradually build a portfolio of at least 20 holdings. The basis for the stock-picking will be quantitative screening followed by qualitative analyzes of short-listed companies. Will look for bargains on as many stock markets as possible.