Kentz is a specialist construction company for the oil and gas industry. It earns returns on equity of 25%, has net cash equal to a quarter of their market cap ($181m) and trades at a PE ratio of 9, the lowest it has been since 2009. This is a fantastic long term investment with a large margin of safety at today’s prices.
Having shares spread over a number of brokers and accounts makes monitoring a portfolio difficult. This guide teaches you how to use Google Spreadsheets to make a custom built portfolio tracker that will automatically update via the web to give you a live value of a portfolio.
One of my most successful investments over the last couple of years was in Kentz, which was a typical Buffett buy and hold forever type stock. Kentz operates in the oil and gas industry, offering engineering and construction services with high returns on capital. I bought it at a time when the oil & gas industry wasn’t doing too well and it was around a P/E of 13, but Kentz went from strength to strength and netted me a 134% gain in just over a year. If they hadn’t been taken over I would still hold them.
But moving onto Bouvet, this is a Norwegian IT consultant and bears some similarities to Kentz.
It’s that time of year again, I review my portfolio performance every 6 months as a compromise between short term volatility and waiting too long between reviews. The first half of 2014 has been a bit of a roller coaster for my portfolio, driven mainly by swings in the price of my biggest holding Craven House Capital. The rest of the portfolio has been much smoother, seeing nice steady gains.
There have been a lot of changes to my portfolio in the last week. Here they are along with my reasoning behind them.
Had a couple of changes to my portfolio so now is a good time to give an update. Here is my portfolio as it currently stands, with % allocations.
I’ve made a couple of portfolio changes in the last couple of days. My holdings in JD Sports (LSE:JD) and Kentz (LSE:KENZ) are trading at around my estimate of fair value so I decided to significantly reduce the positions, by about 60%.
In the second half the portfolio returned 29.8% beating both the S&P 500 at 15.4% and FTSE All share at 11% (both including dividends). I am pleased with the performance this year, which has totalled 49.4%. I wouldnt have expected to beat the market by such a margin in what has been quite a frothy year, with a lot of companies selling at full or over-valuations. I am also reluctant to give myself a pat on the back as there are many companies I didn’t pick that also did well, it was a good year to be a small cap investor.
My portfolio performance for the first 6 months of 2013 and what it looks like as at the end of June.
A quick scan of the markets nowadays shows that many banks are selling for below their net tangible assets. For a value investor such as me, this is usually a great sign that an investment is undervalued. If a company has net assets above its market value then it can simply liquidate and return cash to shareholders, giving an instant return. However banks are different.