Recent Investment for October 1, 2024

Good Morning,

I wanted to let you know that I added to an existing position that I initiated this year. This is the third time that I have bought shares in this company in the past three months. If the valuation continues being attractive, I could see myself adding for another month or two.

I like to build positions slowly, and over time, and thus diversifying accross time. This helps me re-check my views and look for any data that could stop me from putting too much at risk in a given security. I want to buy companies that fit certain criteria on profitability, growth, dividends at the right valuation. I want those companies to then continue growing earnings, dividends and intrinsic value. If I see some warning signs, such as management halting dividend increases, or profits dropping precipitously, I would stop adding and re-evaluate. If valuation become too rich, I would also stop adding, because a high valuation reduces current yield and forward returns. I would however hold on to a position for as long as my exit criteria are not triggered. This is inspired by the coffee can portfolio principle. My exit criteria are basically a dividend cut and/or an acquisition.