Hi Partner 👋
In Part 1, we zoomed out to look at the macro environment and the math behind our growing income.
In Part 2, we zoomed in to look at every single business in Our Portfolio through a simple stoplight framework.
We identified a few Red Tier stocks that it might be time to think about selling.
But selling a stock is only half the battle.
If we are going to free up capital from businesses, we also have to figure out what to do with it.
Remember Opportunity Cost.
We only want to sell a position if we have a better place to put the money.
We’re looking to improve our forward returns by trading into better opportunities with strong pricing power, high Returns on Invested Capital (ROIC), and great capital allocation.
The best place to start might be with the best businesses we already own.
Feeding Our Winners
Peter Lynch called this watering your flowers and cutting your weeds.
Sometimes the best new idea is the one you already know well.
Here are the businesses that we already own that are at the top of my list to add more capital to.
See the Full Portfolio
We’ve got four existing positions that are flowers deserving of more water.
In addition, I’ve identified six new businesses that could be interesting to add to Our Portfolio.
If you want to see what we own, what we’re selling, what we might add to, and what new businesses we might buy, upgrade your subscription right here:
One Dividend At A Time,
-TJ
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Fiscal.ai: Financial data
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