Portfolio Update - New Buys and Sales
Just a quick update on my portfolio today:
When I started to share my portfolio, I still had some positions from past investments that I wanted to close sooner or later. I did that now.
Not because they aren’t great companies but because I think there are better opportunities out there and the prices of those companies were too high to achieve the returns that I aim for in the future (my hurdle rate is 15% per year).
The companies I’m talking about are S&P Global, Alphabet and Amazon. Initially, I thought that I would still hold so-called compounders, which all of these clearly are, but I came to the conclusion that I would rather look for better opportunities in the small and microcap universe.
I will keep them on my watchlist (I hope to release the list sometime soon for all of you), but I will only buy large caps when I see substantial mispricings, as I currently do in Alibaba.
Now was the right moment to sell them since I’ve found two new opportunities that I have a lot of confidence in and that offer far greater returns in the future (in my opinion).
With these transactions, the process of building the new portfolio and removing the “legacy investments” from past portfolios is completed.
The two new investments are…