๐ฆ ๐ผ ๐ฉ๐ง๐๐๐๐๐ ๐ก๐๐๐๐ฉ ๐จ๐ฎ๐จ๐ฉ๐๐ข ๐ฉ๐ค ๐จ๐๐๐๐๐ช๐๐ง๐ ๐ฉ๐๐ ๐ซ๐๐ก๐ช๐ ๐๐ฅ๐ฅ๐ง๐ค๐๐๐ ๐ค๐ ๐ข๐ฎ ๐๐ฃ๐ซ๐๐จ๐ฉ๐๐ฃ๐ ๐จ๐ฉ๐ง๐๐ฉ๐๐๐ฎ
Generally speaking, when it comes to decide when it is the right time to add a company, to increase the exposure to it or, even more, to give that specific company a bigger role in my portfolio, I use an approach which I like to describe as a โtraffic light systemโ.
Each month I analyze every single company in my portfolio and in my watching list, monitoring a limited (but important) number of financial parameters (PE ratio,PB ratio, PEG ratio and, first and foremost, ROIC and WACC) in order to assess the fundamentals of the companies and to decide how I should act.
Below the details on how I work to guarantee high standards to my value portfolio.
๐ด Red light: Wacc is higher than Roic. This is the reason why Veolia Environnement SA is not present yet in my portfolio. I patiently wait the moment the company again return to create value when it grows;
๐ Yellow light: during the year the Roic has turned lower than the Wacc. That is why Vinci SA and CK Hutchison Holdings are in standby mode. I will resume the purchases once the Roic gets higher than the Wacc;
๐ข Green light: all the companies which present a great financial situation, especially a Roic higher than Wacc;
Moreover, among the green lightโs companies I have decided to select few companies on which I invest more capital (100% more in comparison with the others). The selection has been made using a key tool, the PEG ratio.
$SPX500$AGRO (Adecoagro S.A.) (Adecoagro S.A.) $AENA.MC (Aena SME) (Aena SME) $0390.HK (China Railway Group) (SBM Offshore NV) $HKG50
If you like my posts and my profile please add my to your watching list. If you are looking for a global value portfolio with stable dividends which includes also cryptos I advice to check @AndreaRavalli... Show More
