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12 June 2023
By Maynard Paton
We talked about Roland’s investment in house builder Bellway (BWY), Mark’s investment in wiring specialist Luceco (LUCE) and Bruce’s investment in fashion retailer Superdry (SDRY). We also discussed whether investors should run concentrated or diversified portfolios:
- Bellway (£23/£2.8b) from 03m45s:
- Roland recaps why he owns Bellway.
- Should investors buy a basket of house builders instead?
- Ensuring a margin of safety as higher interest rates impact property transactions.
- Bellway’s balance sheet, comparisons to 2008 and the outlook for the housing market.
- Luceco (126p/£203m) from 16m15s:
- Mark recaps why he owns Luceco.
- Is Luceco really a quality business?
- UK dependence, low margins and return on equity.
- Comparisons with FW Thorpe, China manufacturing and recent customer de-stocking.
- Superdry (80p/£79m) from 34m00s:
- Bruce recaps why he owns Superdry.
- Selling the Asian business for £34m, option-like equity and risk versus reward.
- Lease obligations, wholesale versus retail and the potential for a brand revival.
- Poor financial controls, founder Julian Dunkerton and a distressed valuation.
- Concentrated versus diversified portfolios from 48m30s:
- How many shares to own, overconfidence with stock-picking and other factors to consider.
- How much cash to hold, largest percentage weightings and top-slicing.
- Bellway website.
- Luceco website.
- Superdry website.
- Roland Head’s dividend website.
- Mark Simpson’s Small Caps Life newsletter.
- Bruce Packard’s SharePad articles.
PS: The episode was recorded on 08 June 2023.
Disclosure: Maynard owns shares in FW Thorpe.