Three Names We'll Buy in November
Real returns on capital & healthy growth
No Big Overhauls
Similar to last month, we’d like to give an update on what we’ll be buying in November. Pre-set purchases to steadily increase our positions. No big overhauls or timing of quarterly reports - just continuing to add to resilient companies at a time when many quality growth stocks have taken a beating.
Even stocks you’d say were/should be stable now behave uncharacteristically volatile, also names we had on the list such as Wolters Kluwer. It also highlights why we should be willing to say no to several names on our potential watchlist. There are several companies now where our personal conviction in modeling returns, growth and the impact on the valuation multiple has become too difficult.
As mentioned earlier, it takes time to build conviction, and only over several cycles, you’ll learn more about the true strengths and weaknesses. That’s when the model’s being tested - rather than looking only in the rearview mirror.
This weekend, we’ll also cover Constellation Software’s earnings (the full recap, including valuation of the spin-out companies) and the bi-weekly presentation. We’ve already highlighted Topicus’ Q3.
I’m having a minor oral surgery in hospital next Friday, so I probably won’t be able to talk properly for a few days 😅 The video update will be recorded and shared tomorrow instead.
Also, in this blog, we’ll share a couple of items on Harvia’s Q3 we didn’t mention yesterday - cause we felt it was already a longer than normal recap. Nonetheless, these items add more color on how broad-based strength was, in particular in the heating equipment with the highest organic growth rate since Q3 2021 (the COVID boom and inflation).
So, let’s get going!