Watching the Market Come to Me!
As a value investor I find myself wading through discarded or unknown securities looking for that rare cheap item that doesn't belong in the junk pile, or that won't remain unknown forever. After identifying such a security, studying it, and buying it begins the part of the process I dislike the most - the waiting!
These cycles, these changes to investor sentiment can take a long time. I'm no Warren Buffett, and so just because I buy something doesn't mean it immediately increase in popularity (or price). Once an owner, I find myself becoming a promoter of the security purchased, spreading the good word to other potential buyers, and also a willing assistant to the corporation in the removal of any impediments to having my vision of inherent value realized in the share price. Occasionally, but fortunately not very often, the impediment to be removed is management itself. This is where we take on an active role, or a supportive role of another involved investor.
A Takota portfolio then is a simple collection of these fallen angels, and unknown masterpieces. As I write this blog I see this happening in real time all across our portfolio. The gathering momentum of the companies that we own making progress in their businesses. Sales increasing, market penetration increasing, product prices rising, higher quality reserves proven up, and idled assets restarted.
What this means to me is higher securities prices, and takeovers; that for which we paid very little commanding significantly higher prices. We won't be right about everything, but we will be right often enough and to a great enough magnitude that we create an attractive portfolio return, as we have in the past. When the dust settles our capital accumulation focused portfolios should be multiples higher than they are today.