lundi 30 mai 2016

Great names, now and then

About 2 years ago, it was the beginning of this blog.

Donville is the shit, my portfolio says so was the first official post of this blog (well, the first one in english).  Looking back at that post, I'm amazed to see how my portfolio has changed.

I thought I was a good investor back then. But, looking at this portfolio, I'm a little bit ashamed:

Canadian Shit
Rifco: 12,7%
Constellation Software: 9,8%
Cipher Pharma: 8,9%
Valeant: 7,5%
CGI: 7,2%
Carfinco: 5,8%
Alimentation Couche-Tard: 5%
Loyalist Group: 3,1%
Macro Enterprises: 2%
NTG Clarity Network: 1,9%

American shit
Questcor Pharma: 7,1%
Portfolio Recovery and Associates: 6%
Dollar Tree: 3,3%
Ross Stores: 2,1%

CASH: 17,6%

Two years later, let's see the performance of some stocks:

Cipher (1%), Portfolio Recovery and Associates (-50%) Macro Enterprises (-68%), NTG clarity network (-67%), Rifco (-75%), Loyalist (-99%) have been pretty bad performers.

At the time, they all looked very promising to me.

I wrote about that be fore. But, once again, they all had a good ROE, but not a great track record over a long period of time (except for Portfolio Recovery and Associates).

Dollar Tree, Ross Stores, CGI Group, Constellation Software and Alimentation Couche-Tard are still there and represent a bigger part of my portfolio now (except for Constellation Software which is slightly less important now).

They were all great names back then and still are.

Warren Buffet once said: "you better buy an outstanding company at a fair price than a fair company at an outstanding price."

I'd precise: "you better buy an outstanding company that faces temporary difficulties than a new company with an outstanding beginning."

2 commentaires:

  1. Interesting exercise. I would to the same for me and likely will be quite different from today although I finally believe that I have found what works for me and hope to keep turnover to minimum. I only sold 2 stocks in 2016: VRX and HLF.

    During crisis I was chicken and brought Corp bonds instead of stocks. At least better than nothing! Then I moved to being a high yield investor: KEG and Leisureworld to be more tax efficient with similar income. Then I tried to be a value investor but bought a few dogs like TCL.a which is now doing well though... Then I discovered Donville and gradually became a GARP investor where I still am today. Quite the transformation!

  2. Consistent track record is really the key here. Some companies may seem really attractive temporarily due to its cheap stock prices but if temporary problems persist then turnarounds would be difficult. Buffett always says turnaround rarely happen.