Diary of an Investor: 01 - Introduction
Introduction
Hello everyone. I decided to start writing my investment theses on Substack to keep a logbook of my ideas and see how they evolve. I am doing this mostly for myself and expect nobody to be particularly interested in my work. However, I welcome any feedback and opinions to further hone my propositions and meet like-minded individuals.
I always thought of investing as a means to express my philosophy in the working sphere. The lack of limitations in the investment landscape allows me to select only the companies that resonate with my persona, that I feel are doing something right.
I believe that companies need to be approached through a child’s eyes, a night story to be told and believed in. Ultimately, businesses are a product of the people, and every work of people must be interpreted with a touch of humanity and heart, and not only through a cynical and cold mind.
More often than not, models will only reveal what you already know is the truth. Numbers will help you understand your biases and bring you back to what is the feeling of your heart and not the product of your mind.
A good investor understands that valuing companies is not a game won by those who elaborate more precisely information on a spreadsheet, but by those who better understand the narrative.
This is my investment philosophy.
Portfolio Update
As of the time of writing (10 March 2024), I am currently exposed to only 2 stocks. I recently liquidated a position and am searching for opportunities to reinvest the proceeds. I have more cash than I would like, but the market soared to new highs and cheap stocks are becoming tough to find, at least in developed countries.
The two stocks I own are Crocs (CROX) and Nintendo (7974), bought respectively on the 30th of August and the 1st of September at an average price of 91.13 USD (I averaged downwards on the 12th of September) and 6255 JPY.
I will make individual posts for the two stocks in the future.
The position I recently closed was Arhaus (ARHS).
I bought the company on the 28th of August after announcements of a secondary underwriting brought down the stock price, providing an attractive entry price (9.94 USD). I closed the position on the 1st of March after the company released full-year results and the stock soared to levels I believe are overvaluing the underlying business.
I don’t exclude a re-entry in the future if the price were to become attractive once again.
I will probably make a separate post to illustrate what was my investment rationale.
Conclusion
This post serves as an introduction to my diary, outlining my investment philosophy and providing an initial update on my current portfolio.
I will post investment theses on specific companies when I decide to buy them, explaining my narrative and showing my valuation approach in detail.
I am excited to start this journey and thank you for your time.
Riccardo Sorelli