💼 02/25: The Smart Way to Sell a Company for 179% of What You Paid
Three Exits, Nine New Buys. A Bold Portfolio Transformation
Welcome back dear fellow 🧙♂️ Hermits 👋
Want more context? Track the journey so far:
💼 The Hermit Portfolio: January Update
💼 The Hermit Portfolio: February (previous) Interim Update
Index
Investment Case for New Company #8
Investment Case for New Company #9 + (1.0%)
Portfolio adjustment #1 (GREEN)
Portfolio adjustment #2 (CDLX)
Full Exit of 9% Position w/ +79% gain
Partial Exit #1 (77.6%)
Partial Exit #2 (58.0%)
Briefing
This ninth installment explores the boldest changes we've made since COVID-19. We seized the opportunity to invest in companies we'd been analyzing for months, and they finally fell within our target price range.
Given the necessary level of detail, this post is a long piece (46 min read), even with a streamlined thesis-style structure.
From a commercial standpoint, this approach might not make much sense. People tend to prefer short, bite-sized content. But then again, this isn’t a commercial publication.
🧙♂️ The Hermit operates with a dual mandate:
Delivering clear, high-quality information; and
Ensuring timely access to it
We’re not here to tell you what to think. Instead, we provide the best research and insights, empowering you to piece together your own mosaic of information to make informed decisions.
This edition will thoroughly examine the investment thesis for each of the NINE new companies we’ve acquired, covering both the fundamental business model and their key catalysts for unlocking value.
Nonetheless, we will explore three of these companies in greater depth in the coming months, providing full 30-plus-minute in-depth thesis breakdowns.
In addition to examining all new holdings, we will discuss how portfolio concentration affects performance, the best way to handle early winners and losers, and the art of exiting in illiquid stocks.
We hope you enjoy what is undoubtedly our best (and longest) update to date.
Please note that this portfolio faithfully reflects the author’s personal seven-figure investment portfolio.
This publication is confidential and intended solely for the use of the person or entity to whom it is given or sent. It may not be reproduced, distributed, or transmitted without the author's prior written consent. By accepting to receive the full post as a 🧙♂️ Hermit Premium member, the recipient agrees to be bound by the foregoing limitations.
None of the following should be construed as investment advice. Please consult a financial advisor before making any investment decision. You will find a full disclaimer at the end of this post.
