Adding to a Long-Time Winner
Substantial growth runway is still under-appreciated
Later today, we’ll be adding quite significantly to an existing position (increasing the allocation by roughly 4.6% of the portfolio value). We’re not selling out of any existing positions. It’s been a little over two months since we added to our stock portfolio, as we awaited more buying opportunities.
The company we’re buying more of has been a long-time winner, and its recent earnings report confirms management’s long-term focus on taking market share more aggressively while maintaining very healthy, though not record-high profitability and free cash flow. These actions will lift the total growth in intrinsic value.
Let’s take a closer look.