Performance review for 2015

Marks & Spencer, short initiated April, stock is down 20% – making a nice profit

Air Partner, long initiated April, stock up 30%

Dialight, bought July – sold October, +25% (worth taking a second look at current level)

Stock Spirit: bought Dec’15 sold Jan ’16 +32%

Ladbrokes: bought August ’15 still holding +20%

DX Group: bough Dec ’15 still holding -10% (ludicrously cheap)

Average equal-weighted performance for 2015 : +19% (not too bad)

New year’s resolution:
a) post at least once a month, a decent idea
b) read a quality book per month
c) avoid unnecessary investment mistakes



Fundsmith secret of success

Investment criteria:
Pick stocks that:

● that can sustain a high return on operating capital employed;

● whose advantages are difficult to replicate;

● which do not require significant leverage to generate returns;

● with a high degree of certainty of growth from reinvestment of their cash flows at high rates of return;

● that are resilient to change, particularly technological innovation; and

● whose valuation is considered by the Fund to be attractive.