Birdienumnum's Wallet

[birdienumnum]

Here is my long-term portfolio, with dividend appreciation in mind. I have positions in most of the companies mentioned, with the others on my "wish list".

USA

MCD – Purchase under USD 85 – Good management and strong expansion in emerging countries.
CLX – Buy – Why buy PG when there is CLX?
KMB – Purchase – Dividend growing strongly year after year.
HNZ – Buy – Heinz is not as popular as KMB or CLX yet it is not just a ketch-up manufacturer
but the company is also active in infant nutrition, especially in emerging countries. Finally, HNZ is quite
small to be targeted by rivals. Growing dividend.
WDFC – Purchase on fold – An innovative box to discover. Their WD-40 is used everywhere in the
world.
RPM – Buy on dip – One of the companies that has increased its dividend year after year for over 50 years.
KMP – Strong Buy – A bit like the Vinci of the pipeline. No matter the price of the barrel, the income is fixed per barrel passing through their
tubes. Management has indicated that it wants to increase the dividend by 12% per year until 2015. The decline in these
last few weeks offers a good entry point. Be careful: this is a Master Limited Partnership. Some brokers do not
do not allow it to be processed on their platform (evil bankers lowering their tunics in front of the IRS!!!)
BIP – Strong Buy – If I had to invest all my money in one stock, it would definitely be Brookfield Infrastructure
Partnership. Attention: same story as for KMP.
PFE – Purchase – Refocuses on pharmaceutical activities after the sale of the infant nutrition business to Nestlé and the sale
imment of their animal division.
BMY – Buy – Good yield.
JNJ – Buy – Good momentum. Both defensive and growth. Dividend increases year after year
year.
SYY – Keep – Sysco not Cisco. Anyone going to the US will be able to see their trucks
all over the streets. Largest supplier to US restaurants.
EMR – Purchase – Better than GE or HON.
ETN – Strong Buy – Current dividend of 4%.
MAT – Buy under USD 30 – Toy leader offering a growing dividend year after year.

FRANCE

SEV – Purchase – Value slashed partly because of Veolia. Healthy balance sheet and mega dividend.
THEP – Strong Buy – Thermador Group is a gem. Pro-shareholder management. Shares
Free in 2012.
FP – Stock lost ground after North Sea leak. Good time to buy despite
the fall in the price of a barrel in recent times.
RAL – Strong Buy – Financial holding company owning Casino supermarkets. Huge yield.
DG – Purchase – Recurring business with the management of parking and motorway concessions. I love it!
SGO – Purchase – Masacred value. US Housing recovery play.

SWISS

NESTLE – Hold – Following warnings from Danone, PG and co, wait for results
H1.
SWISSRE – Buy on decline – World leader in reinsurance.
KOMAX – Purchase – Cable manufacturer, automotive equipment supplier. Good company!
RIETER – Purchase – The world leader in weaving machines. Spin-off of its automotive business in sight.
INFICON – Strong Buy – Good management creating shareholder value.
SWISS LIFE – Purchase – Massacred insurance offering an excellent dividend.
ZURICH – Purchase – Same as for Swiss Life.
ROCHE – Conserve – No need to introduce Roche.
NOVARTIS – Purchase under CHF 50 – Pharmaceutical stock shunned by investors.
GEBERIT – Purchase – More than just the king of toilets in Europe, an innovative and well-managed company.
SIKA – Conserver – Very little known to the general public, world leader in chemical specialties.
SGS – Conserver – World leader in inspection. Watch out, CGG Veritas is not far behind!
FORBO – Purchase on withdrawal – Specialist in special coatings. The RPM of Europe!
BOSSARD – Strong purchase – Manufacturer and distributor of spare parts, screws, etc. A real gem!
Bossard may have an equivalent in the US: Fastenal
BUCHER – Purchase – The Swiss John Deere!

[Jerome]

wow nice panel
I don't know all of these titles but when I see the sectors you are targeting it looks good
I didn't know WD-40 was rated!
I will look at this list in a little more detail in the coming days.

[Lopazz]

Nice wallet! Lots of discoveries for me, you give me something to read

Jerome, get to work analyzing all this

[birdienumnum]

Small clarification all the same: all the values mentioned have a sustainable dividend distribution ratio. Finally, I have not analyzed them all recently but let's say that the ratio should be lower than 65%. Exceptions: BIP and KMP which are MLPs, with a special tax status, and which have the particularity of distributing all of their profits. The ratio can therefore be 100% or even higher.

I also forgot 3 stocks (DEO, PM and MO) that are so deep in my wallet that I haven't even looked at them for ages! These "vice" companies absolutely must be included in any portfolio.

Finally, to lubricate your portfolio I suggest (once again) WDFC (if you don't buy their stock, at least buy their WD-40 lubricant...to put in the hands of any handyman!) and CHD (with their Trojan condom)... but these 2 stocks, like CLX, CL and KMB are at their highest. It might be more prudent to buy after a correction.

[Lopazz]

Excellent!! I am also thinking of buying some "vice" stocks to fill my portfolio and give it meaning. At one time, I even wanted to open a securities account dedicated solely to vice, just to make my broker laugh. We are on the same wavelength!

[Jerome]

just about this I don't know if you know:
http://www.usamutuals.com/vicefund/phil.aspx

[Jerome]

I like this portfolio, with its unsexy grandpa-style value-oriented titles
especially WDFC, I have known this product since I was little, my father already used it to lubricate squeaky doors, I didn't even think it could be listed on the stock exchange
Regarding Sysco, I know it well because I bought some 3 years ago… it is a growing dividend stock, but I do not follow it in my global dividend growers strategy because Sysco has a big flaw: it is particularly sensitive to the dollar because its turnover is achieved at 100% on US territory. Otherwise it is true that it is a very good company.
For the other US stocks you mention, there are a lot of very nice things, good dividend payers, even if there is not necessarily a long history of increasing dividends.

Among Swiss stocks, apart from the famous Nestlé, Roche and Novartis, Bossard interested me the most. Another "unsexy grandpa" stock. Screws! Excellent. The only downside: the stock is a little too volatile for my taste. Otherwise, it is indeed a gem.

[birdienumnum]

hehe….grandpa’s values are precisely highly recommended for the long term. On the other hand, there are star values…but who knows if AAPL will still exist in 10 years (or in what form)? Same for FB…

[Jerome]

I have a lot of trouble with these techno values, especially FB
I admire APPL and especially GOOG, but more as a company
On the other hand, I would have difficulty investing in it... too volatile, too complicated, too ephemeral...

[birdienumnum]

Quick overview of my portfolio after 3 months (June 21 – September 21)

For information purposes (because I am not trying to beat the market), the S&P500, CAC40 and SMI indices
all three climbed well during this period: +10.2%, +13.4% and +9.9% respectively.

This development makes me cautious for the coming weeks. To illustrate my distrust I will take MCD: McDo announced Friday morning an increase in its dividend of 10%. What did the stock do that day? …..Well nothing!!! +0.6%….Why? …..My interpretation is that the stock is correctly valued or even overvalued in relation to the risk/benefit hence the market's non-reaction to such news. I maintain my purchase price on MCD of USD 85-87.

MCD +6.9%
CLX +0.5%
KMB +5.7%
HNZ +5.3%
WDFC +10.4%
RPM +12.9%
KMP +10.3%
BIP +7.7%
PFE +8.5%
BMY -3.4%
JNJ +4.0%
SYY +6.4%
EMR +10.0%
ETN +27.4%
MAT +11.9%
DEO +12.1%
PM +7.6%
MO +0.5%

SEV -3.4%
THEP +9.0%
FP +17.1%
RAL +12.2%
DG +1.9%
SGO +9.2%

Nestle +7.7%
Swissre +7.5%
Komax +2.2%
Rieter +27.6%
Inficon +6.7%
Swiss Life +30.2%
Zurich Insur. +14.3%
Rock +10.6%
Novartis +8.9%
Geberit +15.3%
Sika +6.5%
SGS +9.3%
Forbo -7.6%
Bossard +5.4%
Bucher Indus. +8.8%

Among the best performers are Eaton (+27.4%), Total (+17.1%) and Swiss Life (+30.2%).
For these 3 values, I believe I have recognized an overreaction of the markets for XY reason (for example the leak in the North Sea for Total). This will end up paying off.

The only stocks with a downward trajectory, Bristol-Squibb Myers (-3.4%) and Forbo (-7.6%) weigh down the result a little. For BMY, the stock fell sharply following the end of clinical trials for a new drug against hep C. The stock has recovered since then, I am not worried, it happens from time to time, I have seen others! As for Forbo, the stock declined following an announcement of disappointing results. To be monitored.

Small slip of the tongue for the title SGS: its French competitor is called Bureau Veritas and not CGG Veritas (which is also a good company).

[Jerome]

Congratulations on this great birdie performance. I too am increasingly skeptical about this rise in prices. Regarding MCD, I think the market had already largely anticipated the dividend increase. And then in the short/medium term the price fluctuates enormously without worrying too much about the value of the dividend. It is only in the long term that it manages to pull the share price towards it.

You have a pretty big portfolio. Are you able to keep up with all your titles?

[birdienumnum]

Thank you. But this is just a virtual portfolio in the sense that it was kind of like my "value/dividend" portfolio from 3 months ago. I own most of the stocks in this portfolio but I acquired them much earlier. Some of them were years ago.

I also have a bunch of other positions that are not detailed because they don't fit the spirit of this site. For example: Alleghany Corporation (Y) and Markel (NKL) which are both called "mini Berkshire" or "next Berkshire".
These two companies, like Bershire Hathaway, do not distribute dividends. They distribute them from time to time in the form of free shares (1 share for 50 shares).

I monitor my positions using apps on my smart phone. A quick glance allows me to see any abnormal movement compared to the market trend of the day. Paradoxically, I don't look much at my already acquired stocks. Especially defensive stocks such as MO, DEO or Nestle. I don't care if Nestle gains or loses 2-3%. From more than 4% I start to look at what is happening more closely.

On the other hand, I constantly watch (almost obsessively) the titles on my watch list.
I always have a watch list up my sleeve. Especially during earnings announcement periods. That's when you can get some good deals. A bit like the sales for my wife.

[Jerome]

You are quite right. There is no point in remaining obsessed with the price variations of a share, especially for defensive values such as those you mention. At most it becomes interesting with a view to a purchase, to acquire a dividend income at a good price.

[Jerome]

Nice shot with Heinz Birdie! 😎

[birdienumnum]

Thanks Jerome :D

 

I am several years ahead of this dear Warren and am lucky to have made a considerable capital gain given that my HNZ line was important. On the other hand, I am not very happy because I had left with HNZ for at least 20 years and Mr. Buffet did not call me to ask my opinion!

 

The most annoying thing about all this is that good deals are hard to find at the moment, after a nice rise in the US or Swiss market to name just two.

I'm looking at KO maybe, after the mini correction of the last few days. We'll see when I receive the cash from this (forced) sale.

 

 

 

 

[Author]

Posts