1st and 2nd *Live Trade Alert*
Characteristics of the Sleep Well Portfolio and the first two BUYS
Hi, I am Trung. I write 10+K words deep-dives on market leaders. I also write Thesis Trackers updates to follow up on their performance. When the right price comes, I buy them for the Sleep Well Portfolio, which I am building for my 4-year-old daughter to redeem in 2037. I disclose the reasoning of all BUY and SELL (ideally never) transactions (1st, 2nd, and 3rd). Join me in building generational wealth.
Today, I'm slowly adding to two positions. Both have been deep-dived and thoroughly tracked in recent quarters. The work has been done, and the price is right today.
This is the easiest part of investing - BUYING. What’s next will be more difficult. Monitor the business to own long-term.
Before we go through the two Buys, let me remind you what the Sleep Well Portfolio is about:
✔ The portfolio will eventually consist of 20 names
✔ The portfolio redemption year is 2037. We buy to own long-term
✔ No market timing. We buy at a price that offers a healthy margin of safety
✔ The portfolio only invests in deep-dived stocks that are monitored closely
✔ They are market leaders who have:
Stable / strengthening market position
Enduring competitive advantages
Management with aligned interests and a strong capital allocation track record
Anti-fragility attributes (healthy balance sheet, adaptable business model, endured competitors and past crises)
Plenty of reinvestment opportunities
Trading at a fair valuation
Below is the current investable universe of SWI Future Portfolio that has been thoroughly researched. I aim to build up the list to 40-60 names and own 20.
“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” - Warren Buffett.
It’s important to highlight that the greatest threat to investing is yourself.
Investing is a marathon, not a sprint. That’s why the portfolio redemption year is 2037. I intend to buy to own long-term. No short-term trades. I will not trade a good night of sleep for a shot at a few extra percentage points of return.
For this reason, access to the portfolio is only available for annual paid subs who are in it for the long run. I apologize to monthly subscribers; I don’t want to mislead or tag you along for the marathon when you are looking for a sprint. You still have full access to my deep dives and thesis-tracking updates.
For annual subs, you have additional access to the following:
Slee Well Portfolio
Thesis tracking summary
Ownership status of SWIs in my family portfolio
Important note: I do not provide ownership details in absolute $ value as it doesn’t matter if you manage a $50K or a $50M portfolio; if you can’t manage the small amount responsibly, then managing $50M will magnify your mistakes.
The purpose of showing how I manage my daughter’s and my family's portfolio is to encourage long-term ownership, showing I eat my own cooking and, for your reference, that it is possible to have a lasting investment process over multiple cycles. Please don’t copy it blindly; your saving is finite; treat it responsibly. We also likely have very different financial goals and circumstances.
Finally, I will only reveal new Sleep Well Portfolio positions after publishing my deep dive. I believe an investor should only consider an investment after thoroughly researching it.
Let’s look at the first two BUYS in the Sleep Well Portfolio.
Today, I bought Medistims (MEDI), deep dived in Aug 2023, at 180 NOK/share for the Sleep Well Portfolio (a portfolio for my daughter, transferable to her name in 14 years, 2037). This long-term portfolio mirrors my and my family's portfolios, which I manage using the same process and philosophy. So, I also bought MEDI for the family portfolio today as well.
Medistims specializes in medical devices that measure blood flow and intraoperative ultrasound imaging for cardiac, vascular, and transplant surgeries. Surgeons use Medistim’s devices to check the blood vessels' condition (function and abnormalities) and operating area to ensure the quality of surgeries. With an 80% market share of penetrated markets, Medistims is the standard of care for Europe and Japan and is becoming one for the US market.
It’s the highest-scoring business regarding moats and financial strength among the sleep-well picks, and I don’t see disruption in Medistim’s market position. Hence, I am excited to own a piece at NOK 180/share or 10x PE 2032.
On 4th Oct 2023, I bought Floor and Decor (FND), deep-dived in Feb 2023, and Thesis Tracked, at $86/share. I notified you in the comment section of the Sleep Well Investments Portfolio post and chat for paid subs. In the future, I will send a notification in Chat and a short email like this one.
FND has the potential of a young Home Depot and the scale advantage of Costco in hardwood flooring. The CEO, Tom Taylor, is the best man to execute the plan to build 500 stores across the US, with over 20 years at Home Depot in its early days (from 1983). Tom Taylor’s expansion plan promises to 10x FND’s current operating income. If Home Depot and Lowe’s tried to imitate FND’s flooring business and failed, I don’t think anyone will in the future. I am excited to own FND at $86/share or 5x PE 2032.
Following is the current status of the Sleep Well Portfolio.
This is the current ownership status of all picks for my family portfolio, highlighted in green (PA - short for personal account).
The portfolio will rebalance itself as each business performs and with cash added each year. There are no trades and no compromises on quality. Annual subscribers can check the spreadsheet for more details. Link here. I'll add more features as we go along.
Finally, remember that investing is a life-long journey, not a sprint.
Let me know in Chat/Email if you have any questions.
Sleep Well Investing,
Your support 🥰 in spreading the word allows me to do what I do best—sifting through the haystack for market leaders, saving you time from turning over your portfolio.
Check out my other sleep-well investments writeups below:
CrowdStrike - Cloud security leader +27% CAGR since IPO
The VAT Group - Vacuum valve leader +32% CAGR
Shimano - Bike component leader +12% CAGR
MIPS - Helmet safety leader +45% CAGR
Thor Industries - RV leader +14% CAGR
Medical device leader +17% CAGR
NVR - Top US East Coast Hombuilder +30% CAGR
If any interests you, check out the thesis tracker section for follow-up updates.