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 controlled or owned by insiders or a family. These owners have a real passion for their business and are not afraid of working outside normal office hours – they are not working for the paycheck. I prefer to call such companies owner-managed or owner-operated: they both own and manage the business at the same time. To avoid the agent-principal conflict, I believe it makes sense for outside investors to invest alongside owner-managers/operators. A lot of empirical evidence points toward outperformance for this group among public companies. I have previously written an article why these stocks make sense to invest in.
The goal of the portfolio is fourfold:
- To construct a portfolio where the interests of the management are aligned with outside investors.
- Companies are financed relatively conservatively and thus less fragile.
- To get a return equal to or better than the main indices.
- To have a very low portfolio turnover, probably just a few deletions/additions per year, if any at all.
Portfolio updates are done at month’s end and included in the monthly newsletter which is sent out at the beginning of every month. To get both analysis and portfolio changes please register your e-mail in the upper right corner of the website. You can later unsubscribe if you wish.
This is a very long-term portfolio: decades. At 31st of December the portfolio is rebalanced back to equal weighting. Any dividends are reinvested in the same stock. Currency movements are ignored as it depends on your place of residence, wherever that may be.
Here is a list of the companies included in the portfolio (start of the portfolio was 1st of September 2020):
|Date||Buy||Price per||(not including|
|Ticker||Exchange||included||price||31st of August||dividends)|
|Brookfield Asset Management||BAM||NYSE||31.8.2023||33.74||33.74||0.0|
Below you find my reasoning for including the stock in the portfolio:
- Bouvet ASA: The Scandinavian Mini-Accenture
- Why Lukoil is the best oil-major to own (?)
- WR Berkley – the rare combination of both able operators and allocators
- Comcast: A recession “proof” compounder
- Admiral plc – the “different” insurer
- Alleghany Corporation: A boring, but compounding, “mini/baby”- Berkshire
- 11 reasons to own Philip Morris International
- Investor AB: The Swedish industrial “Mini/Baby” Berkshire
- Kone – profit from urbanization and the oligopoly market
I will most likely cover the other stocks in later articles.
Disclosure: I’m long Alleghany, Berkshire, Comcast, Facebook, Investor AB, Kone, Lukoil, Philip Morris, Samsung and WR Berkley.
I am not a financial advisor. Please do your own due diligence and investment research or consult a financial professional. All articles are my opinion – they are not suggestions to buy or sell any securities.