Thursday, July 26, 2018

Mr Market and second chances

Yesterday, after Facebook released their results, it seems like everybody thought this is the end of the world to have 42% revenue gain and somehow muted guidance.

But I felt like I was given second chance. I missed badly on recognizing Facebook a few years back, and after recognizing the mistake, I was not aggressive enough during the Cambridge Analytica storm. I only brought FB to ~10% of my portfolio, even though I estimated the intrinsic value to be twice of the market price.

My estimate is not change much based on latest results, so I welcomed the sell-off, backed up the truck and loaded to a full-position, with $171 average price now.

With that, I now have five core positions of roughly equal size: Baush Health (formerly Valeant), Berkshire, Facebook, General Motors and Alphabet. I like all of them and I'm considering getting rid of smaller, no-growth, holdings like Vereit, Walmart and Kraft Heinz to focus on these. 

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