Saturday, May 26, 2018
These recent rebuses are notes from the real-life Anodyne, Inc. which I don't post about much these days, other than to say that after practicing for thirty-odd years, I am definitely a better value investor than a bookseller.  Most of the portfolio consists of legacy businesses in Halifax, southern Ontario and southern California that: a/ own real assets (specialized manufacturing facilities; commercial real estate), b/ are underfollowed by investors and analysts and, c/ pay a dividend.  IRR on the portfolio with fully reinvested dividends was 24% last year and 21% over the last three years ended April 30 2018, with volatility below the TSE's over the same three year period.

Three companies that didn't make the cut, but would have been appealing to a younger & greener CJB:

Halmont Properties, Inc. (HMT.TO)
Hammond Manufacturing (HMM.TO)
King George Financial Corporation (KGF.TO)

Undergrad exam: figure out what's wrong with each business.  Honors thesis: figure out the better version of the same (or almost identical) business model now owned by Anodyne, Inc., or a plausible alternative of your own. Document your work in writing to your own satisfaction. 

Reading SEDAR on these guys' business models & complex internal problems may shed some light on the kind of businesses I seem temperamentally suited to owning.  If you would like market-average or slightly- above-market-average returns with considerably less stress, you could do a lot worse right now than to buy:

Alphabet (GOOGL, NASDAQ)
Markel Corporation (MKL, NYSE)
Citigroup (C, NYSE)

Or, even better, buy a low-cost US index fund, "set it & forget it."

Standard disclaimer:  I don't manage money for others & my thoughts don't constitute investment advice.  I have previously owned a produce distributor, a manufacturer of tainted pet food, and Jolt Cola, and you should treat my investment thinking with extreme skepticism. You are responsible for your own anxiety & your own returns.

<< Home

Powered by Blogger

.post-title { display: none!important; }