Author: Oddmund Groette

Is Your Broker Safe?

In Street Name Your capital is at risk when you are investing in equity markets, but I assume very few consider the broker as a potential risk. But the fact is that your capital might be at risk if the broker goes bankrupt. Not only your cash deposit, but also your shareholdings. How is this possible? I believe most investors

Continue reading

Some Thoughts On The Crowdfunding Platform Estateguru

Introduction and summary: I have invested in Estateguru since 2016 and this article shares my thoughts and experiences as a lender/investor. In a previous post I expressed my concerns over crowdfunding and the inherent risks associated with the platforms. Before you continue reading I would recommend reading the article to get a better understanding of why I believe crowdfunding might

Continue reading

The “Skin In The Game” Portfolio

Before you continue reading I  want to emphasize that the portfolio below is no recommendation to buy or sell the mentioned securities. I’m no investment advisor. Please do your own due diligence. (Two other portfolios are in the pipeline: The international dividend portfolio and the “compounding” portfolio.) Below you find my picks for a “skin in the game” portfolio, companies

Continue reading

How Can You Best Hedge Against Tail-Risk?

Tail risk is a form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution. Tail risks include events that have a small probability of occurring, and occur at both ends of a normal distribution curve. –Investopedia Tail-risk: Nassim

Continue reading

Kone – Profit From Urbanization And The Oligopoly Market

Introduction and summary: This is what makes Kone, a Finnish elevator company,  a potentially good investment: The industry is close to an oligopoly – just four major global players: Otis, Schindler, Kone and ThyssenKrupp (in this rank based on sales). (About 15 years ago all companies were fined for price cooperation.) I believe the four players are unlikely to underbid

Continue reading

Why Tobacco Companies Have Been A Good Investment

Some months ago I wrote an article about the historical performance of so-called “sin-stocks”. Tobacco companies have performed the best in the US, and alcohol stocks in the UK. In this article I briefly argue for the reasons why and why they most likely continue to outperform. High margins and cashflows: Margins are very high. For example, 27% of the

Continue reading

Why I’m Long Gjensidige – The Norwegian Insurer

Gjensidige, for non-native speakers an unpronounceable name, is a quality Norwegian insurer. I’ve been long since the IPO in 2010, and below I briefly bring forward some arguments why I still own the stock (and why intend keeping it). Historical performance – boring  is good: Gjensidige has delivered significant alpha since the IPO in late 2010: CAGR of 18%. What

Continue reading

Why Investing Solely For “Income” Is A Mistake

I don’t think you should ever invest for income. It is a mistake…….. You shouldn’t just invest for dividends, you should invest in businesses that reinvest their profits to achieve a future growth rate…..However, I realise that for many investors, the idea of realising part of their capital to provide income is anathema. – Terry Smith, CIO of Fundsmith. I’m

Continue reading

The Scandinavian/Nordic Dividend Portfolio

Before you continue reading I  want to emphasize that the portfolio below is no recommendation to buy or sell the mentioned securities. I’m no investment advisor. Please do your own due diligence. (Several other portfolios are in the pipeline: The international dividend portfolio, the “skin in the game” portfolio and the “compounding” portfolio.) Below you find my picks for a

Continue reading

WR Berkley – The Rare Combination Of Both Able Operators And Allocators

We buy back stock when we think it’s attractively priced relative to our assessment of the intrinsic value of the enterprise. – Robert Berkley on the 1Q2020 conference call. The business: WR Berkley (NYSE: WRB) is an insurance and reinsurance company. They do mostly business like excess and surplus lines and specialty insurance. These lines of insurance are less standardized

Continue reading