I have made the 10th purchase for the 10foot portfolio. I will not be writing about this one for a while, possibly a year or longer, as I consider I have an extensive edge in this small company. I think that a limited percentage of investors understand the business as well as I do, and even fewer are willing or able to invest here.
That’s not to say that only I understand the opportunity – I know at least one skilled investor is looking – but I would prefer not to tip off the crowd before I am ready.
I have a clear path laid out where, if a couple of near-term events happen (50/50 chance), I could see myself deploying up to 20% of the portfolio here. I think the conceivable upside is a maximum of between 2x and 4x over the next 5 years with relatively low risk, and the downside if things don’t go as planned in the near term is perhaps 30%.
This company is reasonably similar in investment style to the rest of my merry band of misfits. If the near-term events occur, I will buy a stack more shares and the investment will require a 3-5 year timeframe from then. I’ll disclose the thesis at that point. If milestones are not met, I expect there will be an exit in the next 6-12mths, likely without loss, in which case you will also read about it then.
Fear not, I’m not going to suddenly turn up with a miracle 5-bagger in some ridiculous no-revenue penny stock.
On 5 October 2017 I bought x shares for $550.45 after brokerage.
I have subsequently disclosed the position here, it is Tower Limited (ASX:TWR). Here is my purchase theses. Info on all my purchases and average cost are contained in the first link:
I apologise as I know it is frustrating to see a post about a purchase only to get no detail (hellooo clickbait) but I thought it was necessary for my accountability.
I own shares in Tower Limited. This is a disclosure and not a recommendation.