Global Value Investments Portfolio
Further information can be found on the Wikifolio Website
Back in August, I bought an initial position in Hibbett Sports, an athletic specialty stores operator. Last Friday the company reported third quarter results for the fiscal year 2017 which disappointed and made the stock price decline more than 10%. I use this opportunity to provide you with my original investment thesis and check if anything has changed since then.Read More…
It is about time to provide you a short update on the latest developments at wikifolio.com. Because in the last couple of months they made several important announcements:
The most important announcement was the introduction of several base currencies. For every new wikifolio, it is now possible to select one of the following currencies as its base currency: Euro (EUR), Swiss Franc (CHF), Pound Sterling (GBP), US-Dollar (USD), Norwegian Krone (NOK), Swedish Krona (SEK) and Polish Zloty (PLN). Currently, the new wikifolios with a base currency other than the Euro can only be published but it is planned to make them investable during 2017.Read More…
I begin this quarterly update with a note written by Michael Steinhardt to his investors:
Of course, the market can go higher, materially higher. But, to the traditional investor (for better or worse, I probably qualify), there are a number of warning signs in today’s market. Relative to historical norms, price/earnings ratios are extended and dividend yields are low. Few values jump out at you. Perhaps more important, it is hard to imagine a continuation of the low growth, low inflation, low interest rate environment indefinitely. Either the economy will weaken or, if it picks up, interest rates will likely rise. In this circumstance, while continued monetary accommodation and, for that matter, continuation of the trend for buyouts and buybacks provide support for the market, downside risk seems substantial.
The note was actually written in April 1987, six months before the crash but could just as well be written today.Read More…
After the share price of Swatch has declined over 50% since its peak in 2013, it is time to have a look at one of the best-known companies from Switzerland. The world largest watch producer is famous for its cheap plastic watches but Swatch is much more than that. Today, the portfolio includes luxury brands such as Breguet, Harry Winston, Blancpain, Glashütte Original, Longines, and many more. It is estimated, that more than 50% of sales are made with products from the High, Prestige, and Luxury range.
At the end of June, I bought a first position in Bed Bath & Beyond, a company which was on my Buy list for quite some time. Bed Bath & Beyond was founded in 1971 by Warren Eisenberg and Leonard Feinstein. They opened their first store in New Jersey and initially only sold items for the bedroom and bathroom. Today the company sells a wide assortment of domestics merchandise and home furnishings.
It has been a while since my last blog post but I am back with more regular posts and a longer quarterly update instead of the monthly one.
For the first half of 2016, the portfolio gained 5.7% compared to -5.4% for the benchmark which is an outperformance of 11.1%. Also compared to other relevant indices, the portfolio performance is satisfying, especially when considering that it was achieved with less than 20% of capital invested. Further details about the portfolio can be found on the Portfolio Overview page.