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.
As you might have noticed at the top of the page is now a translation page where you can translate the entire blog into many different languages. I found something similar to this a few days ago but could not get it to work on the blog so I enlisted the help of my brother and he got the translation page working, thanks a lot Kev. This also means that the short-lived Mandarin Value Investing Journey is also not now needed and will be going away. I am sure the 20 of you who visited the mostly untranslated site will miss it dearly :).
A quick update on where I am at with the process of my article series. I have now finished up the first two articles of the series and as you know I had planned to write articles on one or two more companies and then do a conclusion article. Two of the companies I was planning on writing articles on I have been asked not to by the person who recommended them to me because he is planning on writing articles about them. I am still going to read those companies annual reports and other filings but will not be writing articles about them so this has turned into a three-part series covering the two companies I have already written articles about and the conclusion article where I decide which of them to buy. I will hopefully have the whole series posted as soon as possible.
“Things do not happen–they are brought about by careful planning, diligence, application, and direction.”George Mecherle, Founder of State Farm Insurance.
Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.