Thanks for a very good blog post and portfolio review. And stable returns should not be underestimated - it may indicate moderate risk-taking, a a good thing in the long run.
For Nilorn, it has recently been highlighted as a top case by a respected, highly skilled analyst in a Swedish podcast (Market Makers). The view is that there is a relatively large upside (30-60%) and not much risks, although you can never know everything. I just wanted to add this comment to let you know that the company has a good local reputation, e.g. the cheapness is not due to questionable quality.
Disclaimer: I don't own Nilorn myself but I definitely think it's an interesting case!
Thank you for the comment Gustav. Yes, the Nilorn business (fashion labels) is largely driven by the inventory cycle in the fashion industy. While the company has grown fairly steadily over time, operating margins have ranged from 8-12%, surpassing 12% (i.e. overearning) in 2021, followed by a hangover in 2023 (op margins below 8%). It seems liek we are back to 9% and there is quite some potential for improvement from here in my view.
Thanks again for the portofolio review. Very generous of view. Funkwerk and Nilorngruppen looks interesting. Thanks for putting those on my radar. Eurotel I would be careful, this is the type of business that can be disrupted in the digital era, just my 2 cents!
Thank you for the comment. I have produced wirte-ups on both Funkwerk and Nilorn, so please feel free to use them just like I use your excellent ideas and write-ups.
Also, thanks for your scepticism on Eurotel, this is a very small company which can be vulnerable to a lot of factors.
I will definitely visit the Funkwerk and Nilorn writeup and might ask you one question or 2. I am due for some analysis on the blog. I have taken 2 large positions (top 10) in recent months (and recent weeks) respectively in Monarch cement and Barry Callebaut but I havent written about it. I sold a lot of very lt compounders (10y + of holding) like fastenal, Hershey, nike due to valuation / growth ratio not being favorable.
Thanks for a very good blog post and portfolio review. And stable returns should not be underestimated - it may indicate moderate risk-taking, a a good thing in the long run.
For Nilorn, it has recently been highlighted as a top case by a respected, highly skilled analyst in a Swedish podcast (Market Makers). The view is that there is a relatively large upside (30-60%) and not much risks, although you can never know everything. I just wanted to add this comment to let you know that the company has a good local reputation, e.g. the cheapness is not due to questionable quality.
Disclaimer: I don't own Nilorn myself but I definitely think it's an interesting case!
Thank you for the comment Gustav. Yes, the Nilorn business (fashion labels) is largely driven by the inventory cycle in the fashion industy. While the company has grown fairly steadily over time, operating margins have ranged from 8-12%, surpassing 12% (i.e. overearning) in 2021, followed by a hangover in 2023 (op margins below 8%). It seems liek we are back to 9% and there is quite some potential for improvement from here in my view.
Thanks again for the portofolio review. Very generous of view. Funkwerk and Nilorngruppen looks interesting. Thanks for putting those on my radar. Eurotel I would be careful, this is the type of business that can be disrupted in the digital era, just my 2 cents!
Thank you for the comment. I have produced wirte-ups on both Funkwerk and Nilorn, so please feel free to use them just like I use your excellent ideas and write-ups.
Also, thanks for your scepticism on Eurotel, this is a very small company which can be vulnerable to a lot of factors.
I will definitely visit the Funkwerk and Nilorn writeup and might ask you one question or 2. I am due for some analysis on the blog. I have taken 2 large positions (top 10) in recent months (and recent weeks) respectively in Monarch cement and Barry Callebaut but I havent written about it. I sold a lot of very lt compounders (10y + of holding) like fastenal, Hershey, nike due to valuation / growth ratio not being favorable.