BeSmartRich’s Portfolio update- September 2017 7  


What’s next?

 

I have been thinking about this a bit lately and openly talked about this with some of my friends and co-workers…

You know… I have always had next exciting adventures ever since I was very young. Curiosity got me do so many things including stupid things which I won’t share here as I am a bit more mature than when I was 17 but you probably have similar experiences.

 

I was curious about smoking cigarette which I quit after 7 years of smoking

I was curious about life after I become an adult, start drinking with friends and have some wild nights

I was curious about life after military service (2 years of my golden time)

I was curious about life in a foreign country (more than 75% of my adult life was spent in Canada)

I was curious about living in different part of Canada (moved west coast to east coast then Toronto)

I was curious about dating ladies from different countries (shh………JK?)

I was curious about life after getting a job and start supporting myself (love and hate on life as an accountant)

I was curious about life after marriage

I am curious about life after having kids

I am curious about life after early retirement

 

Lately I am getting quite bored. My life seems to be same old same old… Work… hangout… drinking… travelling… saving&investing… 

The work is challenging but never challenging enough… I am passionate about the work but never be the same as some who owns and operates their own business… Is there anyway work would not feel like work? I heard Buffett literally tap dances to work because he loves to work… Honesty, I never felt tap dancing to work. Good fun co-workers helped but co-workers are still co-workers…

Maybe having kids would distract me and give some purpose to live more fulfilling and exciting life.

Maybe early retirement and travel around the world would be fun because the world is really full of surprises.

I am not even 35 yet and is this supposed to be semi-midlife crisis? I should go get out, buy a 2009 used porsche and drive around city with a bunch of rich Chinese university students with 2018 Lamborghini…

 

 

Enough of my semi-midlife crisis…I just had to get it off my chest. Supposedly healthy.. Try it for yourself.

 

Our Portfolio 

Here is our top 10 holdings in alphabetical order

 

Cash       

CGI group                       

Constellation Software

Couchetard                    

Enghouse                        

Google                            

Lassonde Industries     

Linamar                           

MTY Foodgroup            

Stella Jones                     

 

Top 10 holding including cash represents substantial amount of our total portfolio. It increased even more. Does it mean I am even more confident with my top 10 holdings? Probably yes… I just wish I had all the cash in the world so that I can buy beautiful companies of the world. I am discovering more and more hidden gems once in a while and I just want to buy them all!!! 

 

My portfolio is getting really concentrated. Am I worried?

Not really… Every single holding of mine literally print out cash year after year and are operated by relatively competent, frugal, visionary, ethical and debt hating leaders who have skin in the game. I am quite comfortable.

 

 

You probably noticed some changes.

I sold off about 25% of my position on Linamar and used the proceeds to add Enghouse a bit. Jees… Linamar is up by close to 70% now since I bought it 2016 summer.

I doubled down on MTY foodgroup which is run by my one of favorite CEOs in Canada. Probably top 3 capital allocators in Canada in my opinion. Top is of course Mark Leonard from Constellation software.

I added some more on CGI and Google as well. I just cannot pass on recent drops without significant events…

 

My top spot is as you know by now, Lassonde Industries… Lassonde has been my favorite and I shouldn’t but am in love with the guy who is running it. As far as I know no analyst is following the company as this is boring as hell and still small. No share issuance at least for last 10 years. Brokers cannot make any money out of it so they are not even allowed to research and issue reports. The guy who is running it owns more than half of the company and only the other half is in circulation. It has been growing slowly and steadily and that’s the kind of game I like to play in when it comes to stock picking.

 

 

Portfolio performance

Let’s take a look at how we are doing so far this year?

 

I just realized that S&P/TSX composite index yearly returns have been changed (it increased from last update) and I am guessing that’s because index is market cap based (just like S&P 500) some of the companies that were in index may have been kicked out and other companies that have been performing better were added in? Give me a shout if you know the answer…

That change of index made me actually lose against the market in 2016… Damn you whoever you are! so it is not 4:0 but 3:1…. I lost in 2016… by a wide margin (3.26%…). Shame on me. What’s the point of picking individual stocks if I lose against the markets… This gotta be added to reasons why I am in semi-midlife crisis mood lately pool.

 

Anyway if you invested $100,000 on September 8, 2014 with us, hypothetically speaking, you would have had $134,810 now whereas the Canadian Markets would have given you $8,770 during last 3 years. Not too bad!

If you invested one of those mutual funds, then you would have considerably less because those greedy bastards mutual fund managers would have fed themselves as well. Ever wondered why Canada big 5 banks make so much money? Because some people have been contributing it (hint- not me.. 🙂 )

I am beating the markets by 4.57% in 2017 but we still have another 3 months to go so let’s see who will eventually win this year.

So far BSR :TSX = 3:1 including 2017.

 

 

Did you enjoy my post? Here are my most popular posts.

 

 

I recently put Warren Buffett’s top 50 quotes together. Check it out.’

 

 

Don’t forget about his stock picking tips!

 

 

Have you heard about Peter Lynch, a Wall street legend? Check out Peter Lynch’s top 13 best stock picking tips as well. You won’t regret it.

 

I also shared why cash flow is so important when you buying any stocks

 

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Many people like this post as well.

 

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This was interesting

 

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