Dear Fellow Investor
Portfolios holding up very well
So far in 2016 the portfolios are holding up very well with the European portfolio down only 1.6% (index is down 8.6%) and the North American portfolio is up 0.8% (index is up 1.1%).
And are optimally positioned
And both portfolios are well positioned to profit from current market conditions. The European portfolio is 51% in cash, and the North American portfolio holds 89% cash.
The percentage of your portfolio in cash will of course be different but it gives you an idea of how much of each portfolio (Europe and North America) is invested at the moment.
Average returns still outstanding
On average (since July 2010) 144 European ideas have increased by 29.2% and in North America (since October 2011) the average return of all 92 investment ideas is +17.4%.
This month’s recommendations
In Europe, I am recommending a cheap French market research company (PE = 10, EBIT/EV = 10.5%, Dividend yield = 4%) and a very undervalued Norwegian oil and gas engineering and construction company (PE = 5.4, Dividend yield = 8.7%, EBIT/EV = 181.8%).
In Asia, I am recommending an undervalued Japanese manufacturer and seller of commercial heating and cooling equipment (PE = 11.3, EBIT/EV = 80.3%, EV/FCF = 9.7).
In North America, I have still not been able to find any attractive investment ideas for you.
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Wishing you profitable investing
Tim du Toit