New Position in Compound & Fire Portfolio
This morning I have bought a new position to the Compound & Fire Portfolio and have sold an existing position.
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Today I have sold the NN Group position in the Compound & Fire portfolio at a stock price of EUR 43.50. This position came over from my legacy portfolio. NN Group wants to grow in banking and try to challenge the position of competitors like Rabobank, ING Bank and ABN Amro Bank. I prefer a company which is focused on purely insurances and find banking less attractive. AlsoNN Group I was holding more for their dividends and I want to focus my portfolio towards quality companies which focus on compounding their results.
The same time this morning I have add a Japanese smallcap called ZIGExN, which is a so-called owner operator company and can be classified as a serial acquirer.
ZIGExN has been growing significantly over the years, with an exception for the covid years. However, they still show a 10-year revenue CAGR of around 28%, high gross profit margins above 80% and net profit margins around 16%. Ten years ago the share price was around Yen 592 and I have bought the shares this morning at Yen 598. With a net cash position, high cash flows compared to net income and a company which is asset light it checks all the boxes of my investment strategy. For my investments generally I don’t pay a lot of attention to potential impact on foreign currencies, however EUR - YEN is around a 30-year high which doesn’t seem bad for this investment. I will soon post my deep dive on ZIGExN and show the growth perspectives and the undervaluation of the company.
As per today these are the positions of the Compound & Fire portfolio (3679 - in pink is the new position ZIGExN):
Hopefully you have enjoyed this update of my portfolio. Feel free to like the post and share it with friends!
Disclaimer
The information in this article is provided for informational and educational purposes only.
The information is not intended to be and does not constitute financial advice or any other advice, is general in nature, and is not specific to you. Before using this article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence.
None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. The author is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.