Zechariah Bin Zheng
๐Ÿ‘‹ Hello World ๐Ÿงญ ๐—ฆ๐—ผ๐—บ๐—ฒ ๐—ง๐—ต๐—ถ๐—ป๐—ด๐˜€ ๐—”๐—ฟ๐—ฒ ๐—™๐—น๐˜†๐—ถ๐—ป๐—ด, ๐—ข๐˜๐—ต๐—ฒ๐—ฟ๐˜€ ๐—”๐—ฟ๐—ฒ ๐—๐˜‚๐˜€๐˜ ๐—–๐—ต๐—ฒ๐—ฎ๐—ฝ โ€” ๐—”๐—ป๐—ฑ ๐—ง๐—ต๐—ฎ๐˜โ€™๐˜€ ๐—˜๐˜…๐—ฎ๐—ฐ๐˜๐—น๐˜† ๐—›๐—ผ๐˜„ ๐—œ ๐—Ÿ๐—ถ๐—ธ๐—ฒ ๐—œ๐˜ A LOT to cover this week โ€” so I wonโ€™t cram it all into one post. Iโ€™ll touch on a few key updates now and go deeper over the coming weeks. ๐Ÿง  ๐—ง๐—Ÿ;๐——๐—ฅ ๐Ÿ  $VTY.L (Vistry Group PLC) (Vistry) surged 8%+ this week โ€” weโ€™re up 30โ€“40% on entry and still holding long term ๐Ÿ›ข๏ธ ESSO.PA (Esso) trimmed โ€” upside capped post-announcement, spread now less attractive ๐Ÿ‡ณ๐Ÿ‡ด $HAUTO.OL (Hoegh Autoliners ASA) (Hรถegh Autoliners) entered โ€” exciting setup, watching concentration ๐Ÿช™ Silver & ETH moving โ€” we have exposure, but theyโ€™re not core bets ๐Ÿงฑ $PGRE (Paramount Group Inc) (Paramount Group) bought at 0.3x book โ€” now exploring strategic options (possible asset sale) ๐Ÿš˜ $PAH3.DE (Porsche Automobil Holding SE) (Porsche SE) classic value trap โ€” weโ€™re patient, but not adding without a catalyst ๐Ÿ“ˆ Quick Portfolio Highlights ๐Ÿ›ข๏ธ ESSO.PA (Esso S.A.F.) โ€” still a great company, but Iโ€™ve trimmed slightly. While thesis is strong, the upside is limited to the merger spread and anything below 5ish% is not interesting. More on this later. ๐Ÿ‡ณ๐Ÿ‡ด $HAUTO.OL (Hoegh Autoliners ASA) (Hรถegh Autoliners) โ€” Iโ€™ve started buying, and there are more Oslo-listed names on my radar that look very exciting. That said, Iโ€™m watching concentration risk, but some of these setups are too attractive to ignore. ๐Ÿช™ Silver & Precious Metals โ€” Flying lately. We have exposure, but Iโ€™m not overly bullish. Itโ€™s there more as a hedge than a conviction trade. ๐ŸŒ Ethereum ($ETH) โ€” Itโ€™s moving. Iโ€™m optimistic, but keeping it as a smaller position for now. Not every rally is worth chasing. _____________________________________________ ๐Ÿ  $๐—ฉ๐—ง๐—ฌ.๐—Ÿ (๐—ฉ๐—ถ๐˜€๐˜๐—ฟ๐˜† ๐—š๐—ฟ๐—ผ๐˜‚๐—ฝ) โ€” ๐—ช๐—ต๐˜† ๐—œ๐˜โ€™๐˜€ ๐—จ๐—ฝ, ๐—ฎ๐—ป๐—ฑ ๐—ช๐—ต๐˜† ๐—ช๐—ฒโ€™๐—ฟ๐—ฒ ๐—ฆ๐˜๐—ถ๐—น๐—น ๐—œ๐—ป Vistry $VTY.L (Vistry Group PLC) has had a fantastic week โ€” shares are up 8%+ today as of writing. According to Investing.com, the company: Expects FY profit to hit the top end of guidance Benefits from strong demand in the affordable housing sector Is seeing success with its asset-light partnership model We bought this when tariff-related panic caused a temporary sell-off โ€” and weโ€™re now up 30โ€“40% on entry. But even after this rally, I still see more upside: The UK housing crisis wonโ€™t be solved overnight Vistryโ€™s model allows it to scale without heavy capital investment Fundamentals are solid, and the stock isnโ€™t expensive This will remain a core holding in the portfolio for the foreseeable future. _____________________________________________ ๐Ÿ“š ๐—œ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜๐—ถ๐—ป๐—ด ๐—ฆ๐˜๐˜†๐—น๐—ฒ: ๐—•๐—ผ๐—ผ๐—ธ ๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ & ๐—”๐˜€๐˜€๐—ฒ๐˜-๐—•๐—ฎ๐—ฐ๐—ธ๐—ฒ๐—ฑ ๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ Last week, I talked about value investing through low P/E ratios โ€” buying companies that generate strong earnings for cheap. But another classic method is book value investing โ€” where instead of focusing on earnings, you look at what the company owns (its assets). ๐Ÿข $PGRE (Paramount Group Inc) (Paramount Group) โ€” Buying $1 of Assets for $0.30 We picked this up at around 0.3x book value โ€” meaning we paid 30 cents for every $1 of assets. This contrast with $NVDA (NVIDIA Corporation) that has a price book of 41.51. So you are paying $41 for every $1 of assets the company owns. Not quite the same because of the business models, but the contrast is clear. Why was it so cheap? The company is loss-making from a PE not FFO perspective Sentiment around Seattle office space is negative But thatโ€™s exactly what gave us an opportunity. We ran stress tests (including 2008-style downside) on the real estate โ€” and found the market was overreacting. Now, because the assets are so attractively priced, $PGRE (Paramount Group Inc) is exploring strategic options. That usually signals a potential sale or asset realization, which could unlock the full value of the portfolio. That said โ€” book value investing without a catalyst can be risky. Itโ€™s easy to fall into what we call a value trap, where the stock stays cheap indefinitely. ๐Ÿš˜ $๐—ฃ๐—”๐—›๐Ÿฏ.๐——๐—˜ (๐—ฃ๐—ผ๐—ฟ๐˜€๐—ฐ๐—ต๐—ฒ ๐—ฆ๐—˜) โ€” ๐—” ๐—ง๐—ฒ๐˜…๐˜๐—ฏ๐—ผ๐—ผ๐—ธ ๐—ฉ๐—ฎ๐—น๐˜‚๐—ฒ ๐—ง๐—ฟ๐—ฎ๐—ฝ? This is a holding company that owns major stakes in Volkswagen and Porsche AG, yet trades far below the value of its holdings. It looks great on paperโ€ฆ But the reality is โ€” weโ€™ve been waiting for a catalyst that hasnโ€™t come. Weโ€™re still holding: It pays a dividend It trades at a low multiple โ†’ So itโ€™s still a decent risk-reward But Iโ€™m not looking to add more right now. Without a near-term trigger, thereโ€™s a cost to holding โ€” in the form of portfolio drag. _____________________________________________ Stay tuned for more updates and sharing next week
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