Keeping your eye on the big picture


Patience isn’t just a virtue in life. It’s a really important factor in investing as well.

When you look at the holdings in our Covestor portfolios, quite a few are undergoing corporate events which will take some time to complete.  

 

big-picture-investing

 

Web Enterprises

For example, Liberty Interactive (QVCA), which makes up over 20% of the Long Term GARP portfolio and is the largest position, recently announced it is reevaluating how it wants to handle the company’s composition of web based enterprises.

This comes after selling its stake in ProFlowers for a large position in the combined FTD group.  

Spin Off

Then there’s the upcoming spin off of Liberty Broadband (LBRDK) to wait for as well.

In addition, IAC Interactive (IACI) is evaluating how to potentially spin their dating businesses into a separate company, which I assume will also include their holdings in the wildly popular Tinder application.

 

Long Game

Another developing story is oil major BP.  

The company is in the process of creating a new structure for their on-shore energy holdings, called the Lower 48, and this also could ultimately wind up being a separate company.  

 

Takeaway

All of these kinds of transactions take some time to complete, and after they take place, usually shareholders reap the rewards for any number of reasons.  

Investing requires the patience and fortitude to hang in with what you own when the results are not spectacular, which is more often than not the case.  

In August, the Long Term GARP portfolio returned 0.6%, lagging the S&P 500 which returned 1.9%.

 

Photo credit: NASA Goddard Space Flight Center via Flickr Creative Commons

 


Yale Bock

About Yale Bock

Y H & C Investments is a registered investment adviser based in Nevada. Yale Bock founded the firm after 15 years of experience as an individual investor. Yale also manages the secured lending operations of a family-owned business.