Taaleri’s portfolio manager Mika Heikkilä presented his dream stock at Sijoitus Invest. Dream stock:
A familiar, understandable industry
Good, understandable management that explains what will be done to succeed in the future.
A product that improves the world, preferably a megatrend (e.g., climate change).
Expertise hidden among other things, nobody wants the stock (no one in the audience at the Investment Fair would raise their hand to say they own it).
This is value investor Heikkilä’s dream case. What do you think Mika Heikkilä’s stock is?
Heikkilä himself listed three stocks he would buy now if he were starting: “I said, put your mouth where your money is. Let’s say where he has invested.”
Taaleri
The largest in the value market, Stora Enso
The largest in the micro market, Exel
Edit: So, add to the thread stocks that you think meet Mika Heikkilä’s dream stock criteria.
Stock pickers, yeah, well… if I’m allowed to be critical. Sauli’s video picks in his own portfolio haven’t been pure diamonds from what I recall him highlighting, and Mika’s edge seems to have dulled, not least because of Nordea. Mistakes happen, of course.
What’s my “Nordea” stock or MH-stock? Well, enough with the teasing. MH-stocks are Elecster, Apetit, Fiskars, Oriola, Rovio… Of course, too many negative things combine these as well, and the valuation is understandably poor due to current pathetic performance. Perhaps if one had to pick higher quality stocks, Remedy is unnecessarily held back due to its valuation because of Control.
What bothers me the most is that the mistake can’t be admitted, but the positive outlook is continued even though everyone else has noticed the negative development. That’s why I can’t rule out personal gain from the analyses. I only trust myself, so I can also blame myself for losses.
Don’t diss stock pickers. Few find only diamonds, but even a few in a portfolio can do wonders. It’s an understatement to say it feels good when you find an undervalued stock whose future you believe in. And then you ride the wave You then have to let go of some, which isn’t easy because you get attached… but some you can hold onto forever.
This is my under-the-radar mid-cap MH stock in my portfolio. All the above criteria are met, plus low indebtedness, good organic growth, high ROE/ROI, and a couple of percent dividend.
MH-stocks are Elecster, Apetit, Fiskars, Oriola, Rovio… Of course, too many negative things combine these as well, and the valuation is understandably poor due to current pathetic performance. Perhaps if one had to pick higher quality stocks, Remedy is unnecessarily held back due to its valuation because of Control.
You then have to let go of some, which isn’t easy because you get attached… but some you can hold onto forever.
