Luca Mulargiu @LucaMulargiu: "**5 YEARS OF PATIENCE, THEN..."

Italy

**5 YEARS OF PATIENCE, THEN A SMALL TRIM** Today I closed a small part of three long-standing positions in the portfolio: $GOOG (Alphabet), $TSM (Taiwan Semiconductor Manufacturing Co Ltd - ADR) and $SMSN.L (Samsung Electronics Co Ltd - GDR). Let me say this immediately because it’s the key point: I haven’t exited these companies. I’ve simply trimmed a small part of positions that have performed very strongly and that still remain widely represented in the portfolio. After today’s transaction, Taiwan Semiconductor Manufacturing still remains a position of around €9,357, Samsung Electronics remains a position of around €16,581, and Alphabet remains a position of around €10,990. So this is a normal portfolio rebalance, not a change in my view on these companies. More specifically, I closed around 3.6% of my total position in $TSM, realizing a capital gain of +420.47% on the part sold. I closed around 12.8% of my total position in $SMSN.L, realizing a capital gain of +261.27% on the part sold. I closed around 8.7% of my total position in $GOOG, realizing a capital gain of +251.02% on the part sold. These numbers tell a very simple story, but one that is often underestimated: when you own good companies and give them time to work, the results can become very interesting. These three positions have been in the portfolio for around 5 years. In those 5 years, I had never trimmed any of them. I didn’t sell during corrections. I didn’t sell when negative news came out. I didn’t sell when the market became worried about interest rates, inflation, recession, geopolitics or yet another catastrophic forecast. I held them because the investment logic was clear: owning quality companies, with strong competitive advantages, solid balance sheets, strong earnings power and attractive long-term prospects. Taiwan Semiconductor Manufacturing is one of the global pillars of semiconductor manufacturing. Samsung Electronics is a technology giant exposed to memory chips, semiconductors, electronics and technology investment cycles. Alphabet remains one of the strongest companies in the world across digital advertising, cloud computing and artificial intelligence. These are companies that can go through difficult cycles, but over time they have shown a huge ability to create value. This doesn’t mean they’ll always go up. It doesn’t mean they won’t face corrections. It doesn’t mean every price is automatically attractive. It simply means that when you buy quality and have patience, time can become a powerful ally. And today, these small trims also serve another purpose that I consider very useful: gradually rebuilding liquidity. Over the past few months, many positions have performed very well. When this happens, it can make sense to take a small part of the profits and prepare for the future. Not because I know when the next market decline will arrive. Nobody knows that. But I do know that declines will come. They always do. And when they come, having available liquidity allows you to buy with clarity, without being forced to sell other positions at the wrong time. For me, liquidity is not unused capital. It’s optionality. It’s patience. It’s the ability to take advantage of moments when the market offers more attractive prices again. And in the meantime, it’s not sitting idle: it’s currently being remunerated at 3.5%. So today, I’m not changing my investment philosophy. I still want to own quality companies for many years. I still believe that real returns are built by letting businesses work, not by constantly jumping in and out of the market. But every now and then, when some positions have travelled a long way, taking a small part of the profits and rebuilding cash can be a rational decision. The main lesson remains the same: the market rarely rewards impatience. Much more often, it rewards those who buy good companies, accept volatility and allow enough time to pass. Five years may feel like a long time when you live through them day by day. But in investing, often, they’re only the beginning. Have a great day everyone @LucaMulargiu $GOOG $TSM $SMSN.L

Not investment advice. The author may have financial interests in the mentioned instruments.