My 22 (+1) investments for 2024

Following an annual custom, by the top of the yr, I overview my portfolio by writing/updating very brief summaries for every particular person place.  16 of the 23 positions from final yr are nonetheless within the portfolio and I’ve added 7 new positions. That turnover has been partially pushed by exits/take-overs (Schaffner, Logistec) and by discovering new concepts. A extra complete Efficiency overview will comply with in early January 2024.

A brief person information:My most well-liked model of investing is a backside up strategy, specializing in 20-30 small/midcap shares that for my part have return/danger profile over the subsequent 3-5 (or extra) years. Many of those shares are usually not family names and are unlikely to make spectacular good points in any single yr. A lot of them look attention-grabbing solely after the second or third look and are somewhat boring, which is strictly what I’m searching for. So in case you are searching for a “Scorching inventory for 2024”, this publish received’t assist you a lot.

And at all times bear in mind: THIS IS NOT INVESTMENT ADVICE. PLEASE DO YOUR OWN RESEARCH.

As a particular service and to supply one thing “recent”, I’ve created a brand new portfolio overview chart based mostly on holding durations which I proudly current right here:

The summaries of the earlier years might be discovered right here:

My 23 Investments for 2023My 28 Investments for 2022My 21 (+6) Investments for 2021My 20 investments for 2020My 22(+1) Investments for 2019My 21 investments for 2018My 27 investments for 2017My 27 investments for 2016My 28 investments for 2015My 24 investments for 2014My 22 investments for 2013

Let’s go:

1. TFF Group (Portfolio weight 7,4%, Holding interval 13,0 years)

TFF is the “Final inventory standing” from the preliminary portfolio 13 years in the past. It’s the world main, household owned & run oak barrel producer. Their official motto is “Time is in your facet”. Has grown properly over a few years on account of Asian demand for aged French wines and opportunistic acquisitions. Whisky barrels have added to  development. After a few years of organically constructing US operations (Bourbon) from scratch, which required vital capital outlay and no gross sales, gross sales have elevated considerably within the earlier enterprise yr and likewise Q1 2023/2024 seems to be promising. No motive to alter a lot aside from some rebalancing, “Long run Maintain”

2. G. Perrier (5,1%, 10,8 years)

French, household owned & run small cap, specialist for electrical installations with a powerful place in Nuclear upkeep. Good development regardless of financial headwinds. They added a brand new section in 2021 (aerospace and defence). Even in a troublesome 2023, they managed to develop revenues with the Defence section main. Again in 2013 I purchased it as an affordable inventory, it turned out to be a properly run, decently rising firm that compounds properly. “Long run Maintain”.

3. Thermador (4,6%, 10,5 years)Thermador is a French based mostly, specialist building provide distribution firm with a give attention to pumps and something linked with water circulation. Distinct “outsider model” company tradition with an emphasis on decentralized resolution making and common M&A exercise. 2023 began properly however the development slowed down fairly dramatically with the development sector. I added a little bit to the place through the yr. “Long run maintain”.

4. Admiral (6,5%, 9,4 years)

A direct retail insurance coverage firm. UK based mostly, price benefits, founders nonetheless personal share positions, nevertheless have now left the corporate for age causes. The EU subsidiaries are nonetheless making good progress with an extended development runway in entrance of them. After a nasty 2022, the inventory has rebounded and it could possibly be that 2023 was the underside of the occasion claims cycle. I’ve been “re-underwriting” Admiral a while in the past, however there are additionally some facet that I like lower than up to now, particularly the growing UK price ratios and incapability to resolve the US drawback with the loss making subsidiary there.   “maintain, however watch”.

5. Bouvet (3,8%, 9,4 years)

IT consulting firm from Norway. After I purchased the inventory eight years in the past, the inventory value beforehand had been hit onerous by the oil value decline, Statoil was the most important shopper. The enterprise and the inventory confirmed a powerful restoration since 2016. I used to be not sure in regards to the inventory in some years however the firm stored rising. In early 2020, I bought half of the place (a lot too early after all). The corporate surprises me yearly, once more with double digit (organc) development in 2023. In comparison with the standard of the enterprise, the inventory will not be too costly. “Maintain”.

6. Companions Fund -MSA Capital (4,0%, 8,3 years)

An funding right into a fund run by an excellent good friend. Mathias is a “Munger model” investor with a concentrated portfolio of “moaty” corporations, a lot of them from the US. I believe it’s a good complimentary publicity for my funding model and he has been ouperforming my portfolio by some proportion factors per yr till 2022. After a nasty 2022, the fund value has recovered lately. Apart from many “Cathy Woods model” development traders, I’m 100% positive that the Companions Fund will proceed to do properly over the subsequent 10-20 Years “Long run maintain”.

7. Sixt AG Choice shares (4,1%, 3,9 years)

Sixt is an organization I’ve been admiring for a very long time however by no means managed to “pull the set off” to purchase. Lastly, through the darkish days of Covid-19, I managed to construct up a place within the cheaper pref shares.

2023 noticed a rebound after a major loss in 2022. The present P/E of 8 doesn’t give any credit score to the standard of the corporate. What I’ll by no means perceive is the actual fact, that the Pref shares commerce at such a reduction to the widespread shares. “Long run maintain, doubtlessly add”.

8. Chapters Group (1,0%, 3,8 years)

Chapters is the brand new title of Mediqon and one of many  remainders of my “German Basket” try. The corporate tries to place itself as one thing like a “Mini Constellation” or “Mini Danaher” and has established just a few platforms by means of which they purchase small enterprise. The corporate once more managed to promote shares to new traders at excessive share costs. Jan, the CEO did an excellent podcast this yr that introduced some publicity. With a market cap of 280 mn EUR, the corporate now additionally would possibly entice extra traders. “Long run maintain”.

9. AOC Fund (4,1%, 2,4 years)

The second fund funding. This time into an “activist fund”, most well-known due to its profitable marketing campaign on Stada some years in the past. They take a fairly concentrated long run strategy and actively work with/in firm boards. Apart from te actually nice ong time period efficiency, a purpose can also be to comply with and making an attempt to be taught from them. After a really sturdy 2022, 2023 to date seems to be like a weak yr yr in absolute and relative phrases as a few the psotions (AGFA, PNE Wind) have been struggling. The long run observe file continues to be excellent. “Long run Maintain”.

10. Alimentation Couche-Tard (4,9%, 2,9 years)

ACT entered the portfolio in 2021 as one in every of my only a few giant cap investments. It was the uncommon likelihood to get into a top quality compounder at an inexpensive valuation (13-14x trailing PE) nearly 3 years in the past. The corporate is known for its decentralized, entrepreneurial tradition and wonderful capital allocation. After a failed bid for Carrefour, ACT had fallen out of favor with some traders which opened this chance. After all there are some points similar to the difficulty how EV charging will develop and sure ESG matters (Tobacco gross sales), however total that is one for the long term though it wants cautious watching (EV charging). “Long run maintain”.

11. BioNTech AG (1,1%, 2,8 years)

BioNTech was an “inspiration” from the start of 2021. It was meant to be a “wager” each on the founders and the know-how in addition to a hedge towards a protracted Covid-19 pandemic. 2023 was very unhealthy, with the inventory down -40%, however fortunately I bought round 1/3 of the place near peak costs. I nonetheless suppose that there’s a respectable likelihood that BioNTech can develop the mRNA platform additionally right into a pipeline towards different ailments, particularly most cancers which was the unique objective of the corporate. The billions in money they made on the Covid vaccine may velocity up the method. To be trustworthy, it’s extra a “Collector’s nook inventory” than a core place. “Maintain”.

12. Photo voltaic Group A/S (3,3%, 1,6 years)

Photo voltaic Goup was the primary results of my “all Danish Shares” sequence. It’s a small Danish wholesale firm that gives provides for heating, cooling and different electrical centered elements to craftsmen in Scandinavia and the Netherlands. After “hibernating” for a few years, the corporate has began rising in 2021 and has continued to take action in 2022. In 2023, the corporate skilled a decelerate with the remainder of the development trade, however for my part managed fairly properly. The inventory value nevertheless is down -22%, valuing within the firm at 5x 2023 earnings. A few friends have already recovered up to now few weeks, so perhaps 2024 will likely be a greater yr.  “Maintain”.

13. DCC Plc (5,9%, 1,1 years)

At its core, DCC is a really unglamorous, mid-cap distribution firm headquartered in Eire and working by way of 3 completely different platforms (Vitality, “Know-how” and healthcare) across the globe and could possibly be characterised as “serial acquirer”. Regardless of a particularly sturdy 20 yr+ observe file, the inventory fell out of favour and traded at very enticing valuation ranges. The primary enterprise, (fossile) Vitality clearly has challenges, however DCC is adressing this actively of their technique. YTD 2023 has been excellent for the Vitality section, whereas the opposite segments struggled a bit. Over the previous few months, the inventory recovered properly. “Maintain”.

14. Royal Unibrew (3,6%, 1,2 years)

Royal Unibrew is the second Danish addition ensuing from my “all Danish shares” sequence. What I preferred in regards to the firm is the actual fact, that on high of a really sturdy observe file, they appear to have a really attention-grabbing decentralized tradition and actually good capital allocation expertise plus high notch reporting. The enterprise as such appears to be a vey steady on and really enticing in comparison with different beverage classes.

As the remainder of the alcoholic beverage trade, that they had issues in passing price inflation to clients in 2022/2023. Inititally, traders ignored that earlier than than the inventory value suffered within the second half of the yr. Moreover, they must digest a bigger acquisition. For me, the long run case continues to be intact,“Maintain”.

15. ABO Wind (1,9%, 1,8 years)

ABO WInd is one in every of my two German renewable shares. Operationally, issues look exceptionally good. ABO Wind may be very energetic and income from the rushing up of permiting in Europe in addition to from initiatives similar to Inexperienced hydrogen in Canada. Sadly, the founders determined that they need to rework right into a “KGaA” which curtails minority investor rights. Personally, I believe they’re acted extra silly than evil, however investor punished the inventory with a lack of -40% in 2023. Nevertheless, that makes the inventory extraordinarily low cost in comparison with the worth that’s inside this firm. Nevertheless one wants to look at if and the way Administration will be capable to give attention to enterprise and the way capital allocation will develop. “Maintain & Watch”

16. Sto SE (3,3%, 1,3 years)

Sto SE, the German insulation firm, is the remaining member of the “freedom Insulation” basket”.Sto is financially actually strong and the valuation is average. Nevertheless, as different building associated shares, Sto suffered from the decline and likewise regulatory uncertainty esp. in Germany. I had added to the place by means of the yr. I do suppose that over a interval of 2-3 years, a restoration particularly in renovation may be very probably. Regardless of guiding down their gross sales for 2023, they upheld their EBIT goal which supplies me confidence into their mid time period targets. “Maintain”.

17. SFS Group (3,9%, 0,9 years)

SFS Group was one of many first new addition in 2023. Swiss based mostly SFS produces steel precision elements and likewise distributes instruments for the equipment trade. They managed to accumulate Hoffmann, a well-known German device distributor. As a world energetic Group with some publicity to building (fasteners), SFS noticed a decelerate in 2023, however particularly distribution did properly. I additionally just like the tradition with a giant give attention to the apprenticeship system. The CEO has began his carreer as an apprentice and labored his technique to the highest. I hope for a really boring, however long run optimistic improvement regardless of a doubtlessly dificult 2024. “Maintain”.

18. Logistec (4,3%, 0,7 years)

Logistec is a Canadian Bulk terminal operator that I “found” in March. Run by the daughter of the founder, this seemed like an awesome long run compounder. Fortunately or unluckily, the household determined to promote to a World Infrastructure fund. The deal will likely be settled in January 2024 with an honest +50% achieve, that’s why it’s the (+1) share that can mechanically disappear early subsequent yr. I’m not positive that the timing for the sale was optimum, however I can’t complain an excessive amount of both. “Maintain”.

19. Energiekontor (3,6%, 0,5 years)

Energiekontor is my second renewable vitality firm. The primary distinction to ABO Wind is that additionally they personal and run renewable energy vegetation and do have an excellent capital allocation. They don’t function as internationally as ABO Wind. Energiekontor will not be as low cost as ABO Wind however nonetheless excellent worth and may be capable to enhance income significatly, regardless of haveing an excellent yr already in 2023 with a “final minute” improve in steering. “Maintain, doubtlessly add”.

20. Italmobiliare (4,5%, 0,3 years)

One other 2023 newcomer. Italmobiliare doesn’t deal in actual property or furnishings, as a nasty translation would possibly point out, however is a Personal Fairness model investor into Italian “High quality” corporations, run by the present head of the founding household. On the time of buy, the inventory traded at round 50% of intrinsic worth and lots of the portfolio corporations, particularly the bigger ones like Espresso model Borbone and excessive finish fragrance maker Santa Marie Novella have excellent development prospects. “Maintain, doubtlessly add”.

21. Laurent Perrier (1%, 0,4 years)

Laurent Perrier can also be an 2023 addition, a small place that I see somewhat as a part of a “inventory assortment”. Laurent Perrier is a pure play Champagne firm with an extended historical past, an excellent model and based mostly on “publish Covid” numbers seemed fairly low cost. It must be seen how Champagne does by means of a possible 2024 recession, however Champagne is one thing that has been round for a very long time and would possibly keep related for an equally very long time. “Maintain”.

22. DEME Group (3,4%, 0,1 years)

DEME, a Belgian dredging and offshore wind building firm got here onto my radar in 2023 when on account of some (for my part distinctive and non permanent) points at Oersted, Offshore wind instantly obtained a really unhealthy popularity and DEME’s share value git hammered. DEME is among the major world gamers in Offshore Wind building and can very probably develop for a few years with the trade. As well as they’ve a really strong dredging enterprise and a few attention-grabbing “actual choices”. In 2023, profitability was not nearly as good, however I count on this to enhance going ahead. the corporate is majority owned by Ackermans van Haaren, a Belgian Holding firm. “Maintain”.

23. SAMSE Group (3,1%, 0 years)

SAMSE was my remaining 2023 addition. A french distributor of constructing supplies that has been rising properly for an extended timeand is majority owned by the founding households and the workers. A really good company tradition mixed with a fairly low cost valuation which may replicate the uncertainties within the building sector and a doubtlessly troublesome yr in 2024. Nevertheless, as capital allocator, SMASE would possibly come out of this as a a lot stronger firm, particularly if they will purchase competitor Herige at an honest value. “Maintain”.