Portfolio Update – Sold Vivendi. Now Portfolios Are 69% Cash.
I made a transaction for the first time in more than a year in the portfolios that I manage and wanted to update where those stand as of today. I sold out of Vivendi today up 50% in the nearly 2 years that I held the company. My reasons for selling were simple: 1) Vivendi was one of the first companies I bought into after I started doing actual company analysis and the thesis played out exactly as I had hoped it would. They sold assets, paid down debt, and are in a much healthier position now going forward. 2) Going forward there is now too much uncertainty for me on what their plans are with their massive amount of cash they will soon be getting and I do not want to see a repeat of the early 2000’s acquisition spree that went horribly wrong. 3) MOST IMPORTANT POINT. I am now much more confident in my abilities to analyze companies for potential investment then I was two plus years ago when I bought Vivendi and think that I can do much better buying microcaps and/or special situations companies and want to be ready for any kind of market crash with a lot of cash in the portfolios.
The percentages below are the percentages (rounded) that make up the current portfolios. Also, until the market drops significantly the make up of the portfolio below will likely remain intact until more companies become undervalued again and I can start buying again.
Cash – 69%
BOBS – 13%
PARF – 12%
CMT – 6%
Weekend Reading Links
The New York Times – Cocaine Incorporated.
A Wealth of Common Sense – Buffett’s Fourth Law of Motion; Your Behavior.
The Daily Galaxy – An absolutely amazing site if you love science, astronomy, exoplanets, and anything else having to do with space.
Financial Times – Rafael Nadal’s Key To Winning.
The Sova Group – Xoom Company Analysis.
East Asia Student – 10 Best Mandarin Learning Resources.
Walrus Value – Investment Booklist and Borrowing Hard To Find Books for Free.
Valuewalk – The Classic Shelby Davis Double Play.
MIT Technology Review – Scientific Thinking In Business.