Just to share what I've been doing with the Partnership's money since the last post for Q2 2012 update, quite a while ago.
1. Sell entire stake in one company worth 10% of the Partnership's fund size.
2. That is all.
Yes, that's right. We did nothing to the Partnership's stable of companies (part-ownership, at least) except for selling our entire stake in a machinery equipment business where although the balance sheet is strong with plenty of 'margin of safety' between its selling price against its book value, I failed to notice any long term advantage to its business. I believe it's worth more time and effort to find a company where one can be at least clearer if not entirely sure of its' long term potential, acknowledging my own limit as well. Additionally the said company too has not been really earning above average returns on capital employed (less than 10% - the minimum that we'd like to see our companies do).
I chose to stick to a common investment mantra - invest in the best AND cheapest companies, instead of invest in the best OR the cheapest companies available. All investors are afforded with the ability to have both best and cheap, why choose either one? That being said, since I am unable to find both best and cheap companies available in the stockmarket today, I'd stay quiet and do nothing until the next good opportunity to employ the Partnership's capital in Bursa Malaysia presented itself. We shall wait indefinitely, if we must.
