#001: Portfolio Update February

Curious to get a genuine glimpse into the world of investing and the actual outcomes one can attain? I'm offering full transparency by sharing my entire investment portfolio. Transparency!

In the table above you can see my current holding and portfolio worth.

As of today, I’m very pleased with the results and most of the positions I own. There are some exeptions to this, though.

1. Pfizer

Pfizer remains a stock I deeply regret investing in. I acknowledge that the medical sector isn't within my expertise. While the concept of Pfizer seems straightforward, I lack sufficient knowledge about their income sources to justify my investment.

So, why did I buy it? Frankly, it was the hype. The frenzy surrounding COVID was overwhelming, and foolishly, I believed it would sustain. However, it hasn't. I deviated from my own principles, and now I'm paying the price dearly. This mistake serves as a reminder to adhere to my own investment strategy. I'm contemplating exiting my position as soon as possible and replacing it with a stock I've recently developed a strong affinity for.

2. Charles Schwab Corporation (The)

I'm also dissatisfied with my position in Charles Schwab. I made this investment based on improving macroeconomic conditions, but I realize I have limited understanding of their company and business practices. I saw it as a cyclical play, but now I'm eager to offload the remaining shares swiftly. Lately, I've been gradually closing my positions, aiming to exit entirely soon.

Perhaps if I delve deeper into the company and its underlying assets, I might reconsider adding it to my portfolio. But for now, I lack confidence in holding this position as an asset.

3. Blackstone

Blackstone used to be a favorite of mine. I immersed myself in researching the company daily for weeks, attempting to gain an information edge, albeit somewhat foolishly. Today, I've achieved the profits I aimed for, and I plan to gradually reduce this position. Currently, Blackstone constitutes 7.39% of my portfolio.

In my investment strategy, I've set a limit: financial companies should not exceed 3.50% of my portfolio. This decision stems from my lack of expertise in the financial sector. I feel much more confident in the industrial and consumer sectors, not to mention my affinity and understanding of the tech sector.

Recent Transactions

my February transactions.

As you can observe, I'm gradually reducing my position in Charles Schwab, as I mentioned earlier. I'm continuing to close out more of those holdings while adding valuable assets to diversify my portfolio.

Now, let's talk about Starbucks – a recent addition! Starbucks is a remarkable company with a straightforward business model executed flawlessly. Their approach to coffee, coupled with their strategic marketing and positioning, is truly impressive. With their expansion into China, a vast and largely untapped market, I see even greater potential for Starbucks.

Their performance metrics further reinforce my confidence. Here are some key indicators:

ROIC (Return on Invested Capital) has seen a substantial increase, possibly attributed to their perceived "monopoly" and customers' willingness to pay a premium for the Starbucks experience. I've noticed a significant improvement in driving their metrics up while maintaining solid margins, which is a positive sign.

Speaking anecdotally, I've encountered numerous friends who frequent Starbucks not just for the coffee but for the overall experience. It's remarkable how people are willing to pay more for a welcoming atmosphere and personalized service. This aligns with my belief that Starbucks is more than just coffee; it's an immersive experience.

Technoglass follows a similar narrative to Starbucks, minus the coffee, of course, haha. Technoglass specializes in manufacturing various types of glass for both commercial and residential use, catering to a broad market. What sets them apart is their production facility located in Colombia, which significantly reduces costs—an aspect that particularly appeals to me. Their efficient capital utilization and management prowess are truly impressive, making this new addition to my portfolio a source of excitement.

(Note: I sold out of DSM Koninklijke due to a merger.)

Dividends!

I don't exclusively focus on dividend investing. My investment approach encompasses growth, value, and a touch of dividend growth. Consequently, the dividends I receive are minimal and not a primary focus for me. I prioritize growth and value the most within my portfolio.

However, here's what I received in dividends in February.

As you can see, the dividends came from companies I'm considering removing, haha. Graco, on the other hand, is a growth company that I adore and intend to hold onto for the long term.

Compared to The MSCI World Index(!)

As depicted in the graph above, my performance closely tracks the MSCI All World Index, albeit with a slight underperformance. Last year, I consistently outperformed, and I hope to replicate that success this year—it would be fantastic. However, I'm not currently concerned about trailing the All World Index. I maintain confidence that in the long run, my portfolio will surpass the performance of the All World Index.

That was it for now!

Thank you for taking the time to read through this overview of my personal performance and perspective on my portfolio. It's my hope that you've found some valuable insights from it. Remember, investing is a personal journey, and what works for me may not necessarily work for you, and vice versa. Feel free to reach out if we happen to share any stocks in our portfolios!

For now, I appreciate your attention, and I look forward to connecting with you in the next one.