11.23.2021 Portfolio Update (Weekly Edition)
Topics for this Week: Exiting $BUR, Portfolio Update, Commentary, and Citigroup/$C.
I’m guessing I wont be hitting $250,000 with the way market was for the past week.
Hello everyone, for this week I wanted to mix it up a little bit since I sold out of $BUR and I wanted to share reasons and thought process behind it with everyone but I didn’t want to wait until next week’s post (which is free for everyone).
So I will start with “Why I sold out of $BUR” segment and then will go to portfolio stuff plus a few other things that I wanted to share this week.
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Otherwise lets begin…
Exiting $BUR (Burford Capital Limited)
Before I dive into “why I exited $BUR”, I wanted to do a quick follow up on my two previous positions that I exited not too long ago $SGC and $OPBK.
For $SGC I sold out at $25.94 on 10/25/2021 and since then on 11/23/2021 its at $24.17 and it went as low as $23.54
For $OPBK I sold out at $12.45 on 11/03/2021 and since then on 11/23/2021 its at $13.68 and it went as high as $13.72
Not too much time has yet passed but gave me a though of doing a “review” in January of 2022 post of how all of the companies I sold out of did for the whole year since my exit.
Now on to $BUR or Burford Capital Limited.
The thought and the decision came in after three events that happened.
My experience (so far) with $OPFI.
Listening to podcast series called Bad Bets, season delving into Enron.
Watching webinar with Terry Smith that is called Talking success with Terry Smith.
My NEW Investing Checklist
Before I continue I want to say, I don't think $BUR is a fraud (or that $OPFI is a fraud), what I am saying is I don’t understand Burford as well as I “thought” I do and that I was kidding myself when I would tell myself that I understand it well enough.
What I would keep telling my self (in my head) are the same things that everyone else would say but whenever I really thought about it and listening to the management speak be it via Earnings calls or Investor Day, I realized that I just don’t feel comfortable (personally) to own it and say that I understand it.
Now I feel comfortable to say that with $OPFI and that is because I really do NOT fully understand it but it also came out as SPAC and well this is my learning journey with SPACs and investing in companies that have less then 5-10 years of data.
So that is a quick summary of the first 3 reasons, the last (4th) is the one that drove the point.
My new checklist is/will keep me from making rash decisions on buying companies without doing my due diligence and stopping me from (hopefully) investing in businesses that I have no desire or reason to be investing.
I’m not ready to share my check list (I will do a post on it in the future on checklists) but I do want to share a comparison between what I think is a “great/good” company and no so.
$FB being “great” $LKQ being “good” and obvious $BUR being “bad”.
This comparison is only to show what kind of metrics I look in companies and you can see $BUR is not matching up the first two.
Maybe I’m wrong, but I would rather be wrong for my reasons and thought process then being right for gambling and not putting enough “thoughts and research” into a company that I’m investing and wanting to hold for a long time.
Sold $BUR for break even/slight gain.
*I am NOT a financial advisor and all of this is for informational and educational purposes only.*
Always do your own research and your own due diligence!
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