Portfolio Update: 1 New Large-Cap Stock + Additions + 1 Stock Sold

We can still find opportunities in the market

Great beginning of the year with several stocks having great performance in only 2 weeks. 3 stocks have +9% performance in my small-cap portfolio. The overall performance is positive (+1.2% vs -0.8% for the S&P 500, so a 2% overperformance).

In this article, I will present a new addition in my large-cap portfolio, it is a very interesting stock currently at a great price. I also reinforced 2 other stocks to benefit from appealing valuations. Let’s dive in!

Performance

Since inception, my performance has been more than satisfactory. I have a diversified approach, meaning that my portfolio aims to experience lower drawdowns in case of market consolidation.

In any case, my quality-focused strategy offers very good long-term prospects, and I will continue to earn money as long as the fundamentals of the stocks I own continue to improve. Please note that those are my real portfolios. I present all my moves, the wins and the losses, so you can learn from it to improve your own investments.

Today, I reinforced my large-cap portfolio with a very interesting stock. I also reinforced 2 positions of my portfolio and sold another one. Here was the impact on the metrics:

• Past growth: 18.4% —> 18.8% / Estimated future growth: 13.1% —> 12.9%

• Estimated EPS growth: 16.0% —> 15.7%

• Net profit margin: 28.5% —> 28.7%

• ROE: 40.6% —> 40.4% / ROIC: 24.4% —> 24.7%

• Debt leverage: -0.64x —> -0.67x EBITDA (so average net cash position)

• PE: 29.9x —> 29.7x / PE Y+2: 21.5x —> 21.4x

• FCF yield: 3.97% —> 3.95% / FCF yield Y+2: 5.89% —> 5.88%

• Dividend yield: 1.19% —> 1.20%

• Dividend growth: 8.7% —> 8.9%

• Buybacks: 0.69% —> 0.72%

• Expected TSR: 13.5% —> 13.5%

The stock I bought is at the center of the next technological revolution and excels in quality metrics such as strong margins, growth, and increasing recurring revenue.

The expected total shareholder return I expect from this investment is above 13% a year.

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