Performance in July 2022
The portfolio has been ahead of the index since 2020, thanks to some essential investments I made in 2021. 2022 has been rough, but a great July and a weakening Norwegian Kroner have dampened the fall to a negative 4,7% year to date. This year hasn’t favored my investing strategy, favoring companies with shorter payback time. Most of my investments have low free cash flow yields but higher earnings growth. Luckily higher interest rates increase returns on incremental capital added to the portfolio. I plan to add substantial amounts of capital to the portfolio in the coming years, which favors a weak stock market rather than a stock market achieving new highs regularly and has lower equity risk premiums.
Portfolio Commentary:
Purchases in July: Added to my position in S&P Global with capital from new deposits. Re-allocated funds from Harvia and Kone to increase my holdings in my portfolio in Alphabet and Intuit and added Mastercard.
I realized a loss in Harvia to exclude exceptions to my rule of owning large and liquid companies. Sold Kone in favor too Mastercard based on higher growth rates, where MasterCard's free cash flow is expected to increase by 18% annually in the next three years. EPS is expected to grow by 20+% CAGR in the next five years.
Mastercard posted strong results in the last quarter, increasing adjusted EPS by 31% year over year and growing revenues by 21%.
Top performers in July:
My portfolio
Key facts to my portfolio:
Recommend following Long equity on Twitter for a lot of good content on quality stocks.
Disclosure
Always do your research before investing! I hope you enjoyed this post, but It should not be considered an encouragement to buy the companies I include in my portfolio or be taken as financial advice. If you want to receive investment advice, you should contact a professional. Free cash flow yields are based on estimates that could be altered due to weaker economic growth.