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.
Below are the first trades for the portfolio. All stocks were priced low compared to their net current assets at the time of purchase.
|Boom Logistics Ltd
|QC Holdings, Inc.
|I-O DATA DEVICE
* Includes Plant & Equipment
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.
- 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.