Portfolio Update – November 2022: What do you do when positions double?

Here is the latest from Canadian Value Investors:

-Portfolio Updates – Our Concentrated Portfolio and our lower-risk Diversified Portfolio

-What do you do when positions double? (i.e. thoughts on Portfolio Rebalancing)

-Berkshire Hathaway - Concentration and Energy

-Suncor Energy TSX:SU – The Power of Buybacks

-Ideas Around the Web including META, India, and gambling with Interactive Brokers

Portfolio Updates

Our energy holdings have done quite well given the current climate; a few puns intended. We note that two of four positions pre-date the Russian invasion of Ukraine (Suncor, MEG), while two are after (Vermillion, Whitehaven Coal), although we have also added to Suncor again a few months ago (see the Power of Buybacks below).

Before we get into where we are going, let’s talk about where we are at today. We keep two portfolios, a higher-risk Concentrated-with-a-capital-C portfolio, and a less concentrated version that has a lower expected return, but much lower risk given its focus on larger companies and more positions in general. As we constantly remind ourselves, the more positions you have the harder it becomes to outperform the index. We encourage you to check our Value Investing 101 – Concentrated Investing section for the math - https://www.canadianvalueinvestors.com/value-investing-101 

November 2 Update – Another Chinese Go-Private, How to Ask for a Billion Dollars, and More

Here’s the latest from Canadian Value Investors Club! In today’s update:

-Another Chinese Go-Private Situation (~30% return)

-North European Royalty Trust (NYSE:NRT) – The impact of high natural gas prices

-Musk Messages – How do you get $2 billion from Larry Ellison, co-founder of Oracle?

-Inflation Up and Away

-J.P. Morgan’s Guide to the Markets

-Nikola Shenanigans

-Historical Reading – Lehman Brothers 2007 Financial Plan… Didn’t Work Out

Supremex Inc. TSX:SXP – An envelope full of cash

Would you be interested in a company growing revenue at 10% a year, has returns on equity in the 20% range, is buying back shares, and trading at 5x free cash flow? What if I told you this was business that primarily sold envelopes… and that this company is making almost every envelope in Canada. Are you interested, but a little confused now? That is how we felt, and so went through a decade of conference call transcripts and twenty years of financials to try and figure it out.

October 2nd Weekend Update

It has been a bit of a painful year for investing, at least for S&P Index investors. We note that things are not so bad when compared to the 1930s (so far). Of course, in this kind of environment we get extremely excited. Unloved securities all over the world are hitting new 52-week lows, which is music to our ears. We have never been busier. Here is the latest from Canadian Value Investors!

Companies and topics covered

-Recent purchases

-LSE:DOM Domino’s Pizza Group plc

-NYSE:VNT Vontier Corp

-NYSE:ATCO Atlas Corp.

-NASDAQ:ATVI Activision Blizzard Merger Update

-What exactly is the U.S. Strategic Petroleum Reserve?