samedi 25 juin 2016


Two days from now, I'll have a little baby. After all the waiting and some deceptions, I'm pretty happy to finally get there. So, my mind is a little bit elsewhere...

Nonetheless, I noticed that Brexit has happened! Holy shit, it was such a shock when I woke up yesterday. I'd never thought it would happen.

The titles were apocalyptic in some websites ("the worst drop of the market since forever"). When I read some columns, I thought that my portfolio would be down something like 20%. But, watching the market, I saw that it wasn't that terrible, in America at least.

It was a relief and a deception. I like it when stocks are down (but not when it's my stocks).

I saw that two great companies were particularly affected by the Brexit:

Priceline and Accenture.

Both are expensive companies (between 20-25 times actual earnings but about 15-18 times next year earnings). Both have great great great balance sheet and exceptional ROE (about 30 for Priceline and about 58 for Accenture).

Yesterday, Accenture was down about 6% and Priceline was down 11-12%.

I don't know that well these companies. So, I'm not pretty sure why these two were down that much. Well, Accenture is based in Dublin, Ireland (near the UK? Maybe they have plenty of contracts there?). Priceline is based in Connecticut but maybe a large part of their earnings come from UK. Or maybe the market believes that the economy of the UK will fall apart and nobody from this country will have enough money to travel anymore. I don't know. I only know that Priceline is a great company and th PE has rarely been this low in the last 5 years.

Whatever. Invest in them or not, they're still better than 95% of companies on the market. You'll sleep well with any of these companies in the long term.

4 commentaires:

  1. Best Wishes for your coming family addition!

  2. Huge congrats on adding another family member. :) Wish you all the best.

    By the way, I love Priceline group. Impressed with their competitive edge in the field. Maintaining 30% of ROE with less than 2 of leverage for last 10 years show the domination.

  3. Thank you! I have a beautiful baby girl...