Today’s portfolio changes were not about finding the next winner. They were about making the portfolio more balanced, diversified and resilient. Over time, even a portfolio built around high-quality businesses can gradually become too dependent on a few sectors, currencies or economic drivers. That does not necessarily mean that the individual investments are wrong. It…
Today’s portfolio review was a useful reminder that a sound investment decision can change once you step back and look at the portfolio as a whole.
Over the past two days, I made a few adjustments to the portfolio. Yesterday, I increased my positions in Safran and Alphabet. Today, I reduced my position in ASML and used the proceeds to strengthen Visa. These decisions do not reflect a change in my conviction about ASML. I continue to consider it one of…
After retiring, I finally had something that had always been in short supply: time. Time to read. Time to learn. Time to think. For many years, investing had been one of my greatest interests. Like many people, I started by following markets and stock prices. Gradually, my attention shifted towards something far more interesting: the…
One of the biggest mistakes investors make is believing that a cheap company is automatically a good investment. It isn’t. A low share price may reflect real problems: weak management, declining demand or a business with little competitive advantage. On the other hand, exceptional companies rarely look cheap. Businesses such as Visa, ASML, Air Liquide…
Imagine two companies. Both sell excellent products. Both are well managed. Both are profitable. Now imagine that rising costs force them to increase their prices. One loses customers almost immediately. The other barely notices any change in demand. Which business would you rather own? That simple difference is known as pricing power. It is the…
Some companies compete. Others define an industry. ASML does both. The company builds the world’s most advanced lithography machines, essential for manufacturing cutting-edge semiconductors. Its technology is so complex that no competitor has been able to replicate it successfully. This gives ASML an extraordinary competitive advantage. But technology alone doesn’t make a great investment. What…