Love the investor letters for your parents 🙂 I do similar for a few friends and family through Etoro. Have you ever considered re-creating this portfolio on Etoro where other investors can "copy" you (invest with you) and you can grow AUM and earn income?
I started mainly as a way to manage money for both friends and family together (with the side benefit of if it doe well, I could earn some extra money on top of living off my portfolio full-time)
Liking the concentrated approach, best of luck with your future results.
Nice write up - thanks for sharing. Not sure I understand the Brockhaus investment rationale, seems like you are hoping the team “wakes up” from its slumber and starts acquiring again. Seems strange that it is not executing on it’s core value driver. Position sizing is a very interesting topic. Given Zalaris’ characteristics, were you tempted to have a higher allocation? Thanks again for sharing this.
Hi William. Yes, Brockhaus is certainly the odd one out in the portfolio. I get the skepticism, and it's more than warranted. I consider this investment almost a special situation and deep value investment (luckily, that's reflected in the price I paid - or so I believe).
My gut feeling is also telling me that this one won't end well and my experience is that "the stock is just too cheap" is rarely a good reason to hold onto a position, but that's what I'm doing. I'm carefully tracking the developments. I've written a lot about Brockhaus more recently, so I'll not repeat the various angles I've shed light on. But one tweet I saw today comes to mind. Here's the key passage from it that one may connect to Brockhaus if one is bullish long-term:
"So what’s the solution? Backing great CEOs early in their careers.
The companies are less polished, the numbers are messy, and the potential earnings power isn’t obvious….yet. While this approach demands more confidence in your qualitative judgment and a willingness to invest without relying on numbers as a crutch, investing when the moat is being built can be immensely lucrative."
Love the investor letters for your parents 🙂 I do similar for a few friends and family through Etoro. Have you ever considered re-creating this portfolio on Etoro where other investors can "copy" you (invest with you) and you can grow AUM and earn income?
I haven’t but I‘m not interested in it to be honest. Thanks for the kind words.
I started mainly as a way to manage money for both friends and family together (with the side benefit of if it doe well, I could earn some extra money on top of living off my portfolio full-time)
Liking the concentrated approach, best of luck with your future results.
Nice write up - thanks for sharing. Not sure I understand the Brockhaus investment rationale, seems like you are hoping the team “wakes up” from its slumber and starts acquiring again. Seems strange that it is not executing on it’s core value driver. Position sizing is a very interesting topic. Given Zalaris’ characteristics, were you tempted to have a higher allocation? Thanks again for sharing this.
Hi William. Yes, Brockhaus is certainly the odd one out in the portfolio. I get the skepticism, and it's more than warranted. I consider this investment almost a special situation and deep value investment (luckily, that's reflected in the price I paid - or so I believe).
My gut feeling is also telling me that this one won't end well and my experience is that "the stock is just too cheap" is rarely a good reason to hold onto a position, but that's what I'm doing. I'm carefully tracking the developments. I've written a lot about Brockhaus more recently, so I'll not repeat the various angles I've shed light on. But one tweet I saw today comes to mind. Here's the key passage from it that one may connect to Brockhaus if one is bullish long-term:
"So what’s the solution? Backing great CEOs early in their careers.
The companies are less polished, the numbers are messy, and the potential earnings power isn’t obvious….yet. While this approach demands more confidence in your qualitative judgment and a willingness to invest without relying on numbers as a crutch, investing when the moat is being built can be immensely lucrative."
https://x.com/sidecarcap/status/1950716927602761766