May roundup

What I bought, sold, wrote, and read this month

About this blog: I have been investing for 25 years, professionally and personally. I look for stocks that have a high probability of compounding at 15% for at least 5 years with limited downside. I write these stocks up on my blog. You can find more about me, my philosophy, my mental models, and my portfolio structure on my site.

This email is a summary of my activity this month.

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First, a big thank you. Building Arks has tripled its subscribers this month. Quite incredible, and very pleasing.

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Trades

• Added to Exor, which is at a silly discount (as usual).

• Bought a tracker in Derwent London. There is value in the UK.

• Added a little to my largest position, Fairfax Financial. First time I have added since June, 2020.

• Added a little IRSA when it sold off.

• Bought a tracker in The Hong Kong Shanghai Hotel.

• Several reductions to Ensign Energy Services, Borr Drilling, and Transocean to add to Howard Hughes. Notes and reasoning here, here, here, here, and here. As you can tell I tend to average in and out!

• Reduced Grupo Aval and Grupo Cibest into the Colombian election. Not a smart move so far but I had good gains I wanted to protect.

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Articles I wrote

• Brookfield results. Going through a slow patch.

• Millrose results. Fine…for now.

• Microsoft results. Copilot becoming a growth engine.

• Howard Hughes results. Strong MPC cash flows.

• IRSA results. Very promising as Argentina changes.

• Uber results. Thesis developing nicely.

• Cheniere results - strong, and a masterclass in how to execute a buyback.

• Can Microsoft Compete? Part 1, Part 2, Part 3. Tl;dr: yes, it has an exciting future as the distributor of commoditised intelligence to enterprise.

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What I found interesting this month

• Tokyo Deep Value on Hokkaido Electric Power.

• CastleMoat Partners on why SAAS companies have time to respond.

• Kairos Research on Kingsway, which I have my eye on.

• UncoverAlpha on AI harnesses as moats. Interesting, but I had a question.

• Ara Kharazian on Anthropic business adoption.

• FDW Capital on YPF. Highly relevant to Argentina and therefore IRSA.

• Price to Tangible Bruce on Derwent London.

• Alexander Steinberg on Apollo’s strong results and Howard Hughes.

• Alpha Engines by Gianni on Amazon’s robotics growth.

• Nicolas Boudreau on deep value in The Hong Kong Shanghai Hotel.

• Rei Saito on Japan’s collapsing car industry.

• R-Capital Research on moats in the codebase.

• SaveInvestLive on Uber Freight. Is this an emerging growth driver?

• Daniel's Deep Dive on Hermes. Persuasive piece on moats.

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Thanks for reading - and please get in touch if you have questions.

Pete

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