Buying High-Quality Companies When They’re Undervalued: My Investment Philosophy

How I’m Approaching the Stock Market in Q3 2023

Introduction:

Welcome, esteemed readers, to the John Danson Blog, where we engage in thoughtful analysis and discussions surrounding the world of investments. As a seasoned long-term investor, I find great value in identifying quality companies that actively participate in markets experiencing long-term secular trends. In this article, I aim to shed light on my investment philosophy and provide an overview of my portfolio’s performance during the second quarter of 2023. While adhering to the guidelines and standards of government communications, I will maintain a professional tone to ensure a credible and authoritative discourse.

Steadfast Confidence in Quality Holdings:

Throughout the second quarter, my portfolio encountered a period of relative stability. Although noteworthy movements were observed in key holdings such as Amazon and Microsoft, I opted to maintain my positions without making any substantial changes. Despite these companies’ high valuations, I remain unwavering in my conviction regarding their long-term prospects. In my assessment, such quality companies consistently surpass expectations and prove to be more prudent long-term investments than index funds.

Selective Expansions in Promising Ventures:

However, I did undertake strategic maneuvers during this period by adding to my positions in Admicom, AF Gruppen, and Teqnion. Admicom, a construction firm currently experiencing a temporary downtrend, shows promise for a robust recovery in 2024. Similarly, AF Gruppen, another construction company, issued a profit warning for the upcoming quarter. Nevertheless, I firmly believe that AF Gruppen possesses the resilience to navigate this downturn and emerge even stronger. As for Teqnion, a serial acquirer trading at a premium compared to similar entities, I recognize the imperative for the management team to execute with precision to substantiate this valuation. Nonetheless, I maintain a steadfast confidence in their capabilities.

Portfolio Performance and Long-Term Outlook:

In retrospect, the overall performance of my portfolio during the second quarter of 2023 warrants contentment. While acknowledging the inevitability of short-term fluctuations in the stock market, my unwavering focus lies firmly on the long-term prospects of my investments. I remain resolute in my commitment to identifying and seizing opportunities that align with my investment strategy.

Prospecting Scandinavian Ventures:

Moving forward, my attention is drawn to exploring potential opportunities within Scandinavian companies. My conviction stems from the belief that the relationship between the US dollar and the Norwegian krone (USDNOK) will eventually revert to the mean. This thesis presents an intriguing landscape for potential investments, and I am keen to capitalize on these opportunities as they arise.

Conclusion:

In closing, I extend my gratitude to all the esteemed readers who have joined me on this insightful journey. As an ardent advocate of long-term investing and prudent decision-making, I trust that this article has provided valuable insights into my investment approach and portfolio performance during the second quarter of 2023. May we continue to navigate the ever-evolving world of investments with discernment and resilience, always striving for sustainable growth and prosperity.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the official positions or policies of any governmental entity. Investment decisions should be made based on thorough research, individual risk tolerance, and consultation with professional financial advisors.