đ¨Â New Article đ¨ - Q4 2021, Portfolio Update
Gâday, Money Pals! Itâs time for a final portfolio update to cap off 2021.
This article will fill you in on:
My current investment strategy and status against it;
2022 portfolio goals;
Companies/ETFs Iâve bought;
Companies Iâve sold and;
2 companies I have on the watch list
You can read the full article via the link below âŹď¸
What Caught My đ This Week
The Zuck incurred the second-largest drop in personal wealth ever ($29.8Bn) in one day, when Mark Zuckerberg's Meta, (formerly Facebook) fell 26% after reporting worse than expected Q4 results.
Talk about a Zuckerpunch..
#From Around The Web
Buffett Vs Wood: Value Rises Again
Cathie Wood, CIO of innovation focussed fund manager ARKK Invest stole headlines in 2020 after ARKKs publically listed innovation-focused ETF (NYSE: ARKK) outperformed the S&P 500 by a jaw-dropping 157%.
Unfortunately for ARKK unitholders, 2021 wasnât as kind. After reaching an all-time high in Feb 21â, the ETF has cratered over 50% largely due to ARKKs heavy weighting towards fast-growing âstay at homeâ tech stocks that underperformed as economies re-opened.
While ARKKs dramatic rise and subsequent fall captured headlines, Warren Buffettâs Berkshire Hathaway enjoyed a year of outperformance.
Figure #1 Berkshire Hathaway vs ARKK (Source: Yahoo Finance)
Buffettâs value focussed style has come under scrutiny in the past as growth has dominated, although he has been clear Berkshire would likely underperform during periods of exceptional growth. However, in 2021, Buffettâs focus on acquiring profitable businesses that return cash to shareholders at reasonable valuations once again proved its merit.
The contrast in performance demonstrates how two diverse investment styles can deliver outperformance under the right market conditions.
Is Nick Scali a buy?
Nick Scali (ASX: NCK) could be one of the most underrated businesses listed on the ASX. That may sound like an outlandish statement, but hear me out.
With CEO Anthony Scali (son of founder Nick Scali) at the helm, the furniture maker is a family-led business. The Familyâs holding company, Scali Consolidated Pty Ltd is also the companyâs largest shareholder, which makes sense considering not a single share has been added to the register for over 10 years. Tick, tick.
NCK has created enormous wealth for shareholders over time, largely thanks to its consistently impressive financial results. Over the past 10 years, NCK has returned 814%, compared to the 69% return delivered by the S&P/ASX 200 while consistently reporting ROIC (return on invested capital) north of 20%. Considering NCK have grown EPS at a CAGR (compound annual growth rate) of 25% p.a over the same period, outperformance like that is hardly surprising.
Perhaps the best thing about NCK is its unassuming price/earnings multiple of 15x earnings, which is well below the broader market.
In this article, Patrick Poke from Livewire Markets & Tim Carleton, Principal and Portfolio Manager at Auscap Asset Management dicuss how NCK could be the âbest buy on the ASXâ after releasing their 1H FY22 result.
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