Portfolio walkthrough – short comments

It’s high time to review my holdings and if anything changed in their investment thesis. This will be a monster post, for me it’s a great way to review all my holdings and make sure I stay up to date. For you, if you hold or are interested in one of these stocks you will get a quick “what’s the latest” with some sprinkles of why this is a great company (or not anymore). As a bonus there is a short elevator pitch of my two new holdings.

I stopped posting updates for every portfolio change (instead found under Trade History tab), so I have some changes to comment on: MIX Telematics left the portfolio and Lvji entered and exited without comment from my side. MIX Telematics was a case of having too high exposure to the oil industry in the US, I don’t see that coming back at all in the same way as in the past. This was something I did not understand when I invested, properly hidden oil exposure and a mistake on my side. Lvji was a tech play on travel guides for Chinese, but soon after taking a position some twitter friends alerted me of doubtful accounting. I looked at it myself and couldn’t really feel comfortable, better safe than sorry I then sold at almost the same price I bought.

Now on to comments on all my current holdings from top to bottom in the table below.

Press “read more” and enjoy!

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New holding Mix Telematics, reducing AK Medical

A very quick post, just to register my portfolio changes:

Adding Mix Telematics – 4% position

After a lot of searching I found a new investment interesting enough to take a small position here the day before the quarterly report is out. The company is Mix Telematics, which is dual listed in South Africa and the U.S., ticker MIXT in the U.S. I have been following this company for quite a while, but waited to invest given the fairly high valuation in the past. This has come down now and I find the valuation a bit to attractive to stand outside when they are going to release their quarterly figures. There are risks, as always, a large part of revenue is derived from South Africa, the currency being the big issue here. Also some exposure to Brazil, where a larger competitor has had some troubles lately. But the company seems to hit off on a lot of my investment criteria: Customers seems happy with their products and customer retention is good, owner led, expanding in USA after the owner moved there to grow the business. Long track record of growth. Fantastic capital allocation, doing large buybacks when the shares were undervalued a few years back. Seems to overall be a high quality company. At a later point I will try to do a full write up, in the meantime, if you want to do your own DD, feel free to comment and we can discuss!

Reducing AK Medical with 30%

The stock has had a fantastic run, the latest leg up on the back of a article in the telegraph: Questor: buy into China’s stability and growth via this maker of artificial hips and knees

The valuation has really run ahead of the company now, I’m not selling my full holding, because I want to be long term in this holding. But I need to stay somewhat true to my principles of not being too exposed to companies that has taken a lot of future potential growth upfront in the share price. I’m sure there will be future buying opportunities to add back to this position if the company continues to deliver.

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