Daniell Wright @Twistery: "𝗗𝗲𝗮𝗿 𝗙𝗼𝗹𝗹𝗼𝘄𝗲𝗿𝘀 𝗮𝗻𝗱 𝗖𝗼𝗽𝗶𝗲𝗿𝘀 I hope..."

South Africa

𝗗𝗲𝗮𝗿 𝗙𝗼𝗹𝗹𝗼𝘄𝗲𝗿𝘀 𝗮𝗻𝗱 𝗖𝗼𝗽𝗶𝗲𝗿𝘀 I hope you are all still doing well. A quick update from my side for May 2026. Over the past month, I made a series of portfolio adjustments that I believe have strengthened our long‑term positioning. 𝗧𝗿𝗶𝗺𝗺𝗶𝗻𝗴 𝗦𝗺𝗮𝗹𝗹, 𝗟𝗼𝘄-𝗖𝗼𝗻𝘃𝗶𝗰𝘁𝗶𝗼𝗻 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝘀 We have been holding several small, low‑conviction positions for the last few years that no longer fit our long‑term strategy. These allocations were too small to contribute meaningfully to performance and added unnecessary complexity. I have therefore closed the following positions: AON, Aramco, Bank of America, Lockheed Martin, Mastercard, Occidental Petroleum, Raytheon Aerospace, Constellation Brands, Visa, and Alibaba. Combined, these accounted for ~8% of the portfolio, with most closed in profit. The capital has now been redirected into high‑quality compounders that better align with our long‑term philosophy. 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝗶𝗻𝗴 𝘁𝗵𝗲 𝗖𝗼𝗿𝗲 𝗼𝗳 𝗢𝘂𝗿 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 The freed-up capital from closing these positions have been reallocated as follows: 𝟣.) 𝘐𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘥 𝘰𝘶𝘳 𝘱𝘰𝘴𝘪𝘵𝘪𝘰𝘯 𝘪𝘯 $MSFT (Microsoft) Microsoft has been one of our core holdings since 2018 and remains an exceptional long-term compounder. Microsoft has had a bad year in terms of stock price performance, which has resulted in a relatively attractive buying opportunity in May, with the stock trading at one of its lowest earnings multiples in quite some time. I posted a Microsoft DCF (link in comments) about a year ago, but at the time it was trading above its intrinsic value, and I was considering trimming my position. Today, the valuation is more reasonable. 𝟤.) 𝘐𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘥 𝘰𝘶𝘳 𝘱𝘰𝘴𝘪𝘵𝘪𝘰𝘯 𝘪𝘯 $QCOM (Qualcomm Inc) Earlier this year, I shared a Qualcomm DCF (link in comments) showing the stock trading significantly below intrinsic value. I opened a small position at the time, and since then Qualcomm has delivered excellent Q1 results, including new automotive deals and competitive low‑cost laptop CPUs. Our initial position is up ~82%, and the two follow‑up positions are up ~42%. I have now sized Qualcomm as one of our core holdings. 𝟥.) 𝘈𝘥𝘥𝘦𝘥 $META (Meta Platforms Inc) 𝘵𝘰 𝘰𝘶𝘳 𝘱𝘰𝘳𝘵𝘧𝘰𝘭𝘪𝘰 I have been monitoring Meta closely since my original DCF (link in comments) I shared a few months ago. At the time, WACC was elevated, and legal uncertainty was high. Since then, the share price has fallen further while fundamentals have continued to improve. This created an opportunity to add a high quality compounder at a reasonable valuation. 𝟦.) 𝘐𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘥 𝘰𝘶𝘳 𝘱𝘰𝘴𝘪𝘵𝘪𝘰𝘯 𝘪𝘯 $GOOG (Alphabet) Google remains one of my favourite companies, with outstanding financials and world‑class products. My DCF last year (link in comments) showed meaningful undervaluation, but the DOJ lawsuit kept me from adding to our position, something I still regret. Although Google now trades at a slight premium, the long‑term quality remains exceptional, and I have increased our allocation. 𝗨𝗽𝗱𝗮𝘁𝗲𝗱 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 Our portfolio is now structured into three layers: 𝟣.) 𝘊𝘰𝘳𝘦 𝘊𝘰𝘮𝘱𝘰𝘶𝘯𝘥𝘦𝘳𝘴 High‑quality, durable, profitable businesses with strong long‑term potential. These form the growth engine of our portfolio. 𝟤.) 𝘚𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘢𝘯𝘥 𝘉𝘳𝘰𝘢𝘥𝘦𝘳 𝘔𝘢𝘳𝘬𝘦𝘵 𝘌𝘹𝘱𝘰𝘴𝘶𝘳𝘦 Broad-market ETFs and defensive positions that reduce volatility and provide balance. This includes our large $VGSH (Vanguard Short-Term Treasury Index Fund) position, which acts as dry powder to deploy into Core holdings during bear markets, as well as VOO and IVW for broad exposure. 𝟥.) 𝘓𝘦𝘨𝘢𝘤𝘺 𝘗𝘰𝘴𝘪𝘵𝘪𝘰𝘯𝘴 A few remaining small positions that no longer align with our strategy. I will trim these gradually, taking market conditions and tax implications into account. This structure keeps the portfolio focused on high‑performing companies while remaining resilient during market drawdowns, with significant upside potential when deploying VGSH into Core positions during future bear markets. 𝗢𝘁𝗵𝗲𝗿 𝘂𝗽𝗱𝗮𝘁𝗲𝘀 I recently received a promotion at work with a substantial increase in income. As a result, I plan to add larger contributions going forward. I will also be focusing on preparing for my CISI Level 3 exam during June to ensure I get the most out of the course. I am not planning any further major changes in the near term. After a period of restructuring, it is time to let compounding do its work. I will continue monitoring valuations and sharing updates as I complete them. Thank you for your continued trust and support. All the best, Daniell

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