A whole year without a post! Well, it reflects my investing attitude in the year. I haven't traded much. I have added significantly to two positions: KCLI and PM. But probably for the time, I have not opened any new positions. PMI and MO - the two Philip Morrises - announced briefly that they were in talks to re-merge. But that got shot down quickly. I PMI bought just after the announcement when it was not well received. It dropped to $72 from $80 when I bought, now it is at $86.
For my holdings from a year ago, use this link.
| Long Position | Category | Business | Holding Period |
|---|---|---|---|
| IEH Corp (IEHC) | US Microcap | Manufacturing | 6 ½ yrs |
| Anthem (ANTM) | US Large cap | Health insurance | 15 yrs |
| Kansas City Life (KCLI) | US smallcap | Life insurance | 5 yrs |
| European Reliance (ATH:EUPIC) | Greek smallcap | Insurance | 5 ½ yrs |
| Tachibana Eletech (TSE:8159) | Japanese smallcap | Electronic Distributor | 6 ½ yrs |
| Seaboard Corp (SEB) | US Mid cap | Food Conglomerate | 14 yrs |
| Senvest Capital (TSX:SEC) | Canadian smallcap | Investment Company | 4 ½ yrs |
| Installux SA (PAR:Stal) | French microcap | Manufacturing | 6 ½ yrs |
| Riken Keiki (TSE:7754) | Japanese smallcap | Manufacturing | 6 ½ yrs |
| Pacific Healthcare (PFHO) | US Microcrap | Health insurance | 5 yrs |
| Philip Morris Int. (PMI) | US Largecap | Tobacco | 19 yrs |
| New Century Hong Kong (HK:0234) | Hong Kong smallcap | Hotel, cruise line | 5 yrs |
| Bruce Fund (BRUFX) | Mutual fund | Mid-cap value | 12 yrs |
| McRae Industries (MCRAA) | US Microcap | Footware | 7 yrs |
| Lewis Group (JSE:LEW) | S Africa midcap | Furniture Retail | 4 yrs | Short Position |
| S&P500 E-mini (CME:ES) | Index Futures | 2 yr | |
| Direxion S&P500 Bear (SPXS) | ETF | 3x Inverse ETF | 1 yr |
Note this year I continue to hold two market short positions. They have been hemorrhaging money. I take solace in the fact that the higher they go, they more they are likely to make money.
To me, the US public markets are just too mature and saturated. In the coming decade or two it will only yield around 3-5%. I think people look back to the good old days when value investors prospered, like in the 50s to the 90s. This was a time when investing isn't as hot a thing as it is now. In the coming years I believe money will chase other areas, like foreign markets, developing markets, and private equity.
Despite not much activity on my part, there are still some things that I'd like to post but just didn't have the time. Things I would have like to write about are:
- Adrenna Property Group screwing the small minority shareholders like me royally.
- New Century Group HK majority shareholders extracting HK$497M (US$63M) cash from the company.
- IEH stock, revenue and profits did great. But the CEO also got a generous option package that could give shareholders 10% dilution.
- My chess sucks. But playing chess is serving it's purpose. It has distracted my overactive mind from making impulsive moves with my porfolio.
Happy new year and may 2020 be a happy and prosperous year.