Portfolio Update July 2024
An update on the performance of the Compound & Fire performance in July 2024.
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I am a bit late with my update of the portoflio last month due to vacation, but the Compound & Fire portfolio had a good month and total portfolio value increased by 1.4%. The results of the portfolio for July 2024:
At the top of the list for the month we have Kinsale Capital Group gaining almost 18% which is the result of better than expected Q2 results. Revenue came in at $ 384M (expected $ 374M), but especially the earnings per share outpaced expectations: $ 3.97 for the quarter (expected $ 3.53). The investment case for Kinsale in my opinion is very strong and this will be a long-term holding for me.
Also Rightmove announced their earnings and revenue was up 7% and operating profit up 2% as a result of some one-offs. Average ARPA was up 6% and the EPS excluding the one-offs would be plus 6%. Rightmove is buying back a lot of shares and 10.1 million shares were cancelled the first half (1.2% of share capital). Rightmove has a very strong moat and next to some bolt-on acquisitions they can continue buying back shares and I expect to benefit greatly from this. The dividend in the month has been added to the monthly result.
Kelly Partners Group gained for the third month in a row, however currency impact was negative so total result is around flat. KPG shared a fantastic trading update in July.
Dino Polska has been showing the biggest decline in the month, because their competitor Biedronka announced disappointing results with declining margins, pointing at a price war in the market. Dino will announce their results August 22, but expectation is margins will be declined. I think this is a temporary market situation and Dino will continue their strategy and reinvest their cash flows to build new stores. Long-term stock price will go up. I am even considering to add a little bit to the current position.
Coupang and Nedap also declined, where Nedap was showing a bit disappointing results, but I wasn’t surprised. Here you can read more.
Finally new addition of last month, Japanese ZIGExN. Stock price declined but as the yen gained against the euro the monthly results is still positive. In general I don’t really look at currency risks but for ZIGExN I do hope a bit to gain on both currency side and stock side, as the yen was at a historical low point and interest rates in Japan are slightly up, while in US / Europe it is expected the rates will drop. But in the end I have bought ZIGExN because I expect them to compound over the years to come.
Finally, the total return since I start sharing my portfolio as per May 2024:
Since May 1st my portfolio is up 4%.
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.