Begin your journey into the world of investments with the monthly Quant Value Investment Newsletter published on 2023-06. Join us to receive it in your inbox the first Tuesday of every month.

For more details, visit: Delving into the intricate process of picking ideas for the Quant Value investment newsletter

Discover the rationale behind my decision not to be invested in all ideas in this edition.

Prior to that, let's delve into the portfolio updates.

Portfolio Updates

Europe – Buy One – Hold One

Introducing one fresh recommendation this month as the index surpasses its 200-day simple moving average.

Amidst this, we have a France-based entity specializing in the distribution of electrical parts and supplies. It boasts a price-to-earnings ratio of 6.5, a price to free cash flow of 8.4, an EV to EBIT of 6.4, an EV to free cash flow of 12.2, a price to book of 1.1, and features a dividend yield of 6.1%.

Hold Strabag SE (+33.2%), recommended in June 2021, as it continues to align with the selection criteria for this portfolio.

North America – Buy Two – Sell One

Unveiling two novel recommendations this month as the index exceeds its 200-day simple moving average.

The primary addition is a Canada-based marketing and business communication company with a price to earnings ratio of 14.8, a price to free cash flow of 5.1, an EV to EBIT of 6.9, an EV to free cash flow of 7.8, and a price to book of 5.5.

The secondary inclusion pertains to a US-based global consulting company featuring a price to earnings ratio of 8.6, a price to free cash flow of 6.1, an EV to EBIT of 5.3, an EV to free cash flow of 5.2, a price to book of 1.3, and showcasing a dividend yield of 3.5%.

Stop loss – Sell

Part ways with Perdoceo Education Corporation, incurring a loss of 12.5%.

Asia – Nothing to do

The most underpriced, top-notch companies identified in Asia are listed in Hong Kong and Singapore.

Unfortunately, both indices have dipped below their 200-day simple moving average, resulting in no new recommendations in Asia this month.

Crash Portfolio – Sell One

There are no fresh Crash Portfolio suggestions as a majority of markets have recuperated.

So far, the 15 Crash Portfolio suggestions put forth since August 2022 have achieved an average increase of 15.7%.

Stop loss – Sell

Part ways with Texwinca Holdings Limited, sustaining a loss of 19.1%.

Rectification – Broker FX charge

I extend gratitude to subscribers who highlighted the inaccuracy of the Interactive Brokers fees for exchanging foreign currency in the previous newsletter.

The charges differ based on customer type; however, for most, it typically stands at approximately 0.2% with a minimum fee of $2.

For further details, visit: Unveiling the intricacies of Interactive Brokers foreign exchange charges

The Logic Behind My Selective Investments

This question echoes in the minds of many subscribers, and rightfully so, as the newsletter's investment approach aligns with my personal portfolio strategy.

There are several factors at play.

I may already be fully invested

Primarily, I may already be fully engaged in investments.

I adhere to varied investment strategies, and based on the allocation of funds in each, there may not be additional capital available to invest in newsletter ideas.

I also pursue alternative investment ideas or themes

Furthermore, I explore alternative investment concepts or themes.

For instance, I diversified my portfolio by investing in tobacco stocks, replacing a bond portfolio to augment income and stability through substantial dividends.

I also explore investment opportunities proposed by acquaintances in fund management, primarily gravitating towards profoundly undervalued corporations. Despite past setbacks, this is an avenue I find challenging to disregard.

Delve into my worst deep value investment misstep that prompted me to redirect my attention towards momentum: My most regrettable investment – A personal tale guiding you through potential pitfalls

I also delve into smaller companies

Moreover, I occasionally come across less prominent companies unsuitable for inclusion in the newsletter due to limited trading volume – less than $100,000 per day.

If I find these companies exceptionally undervalued, I may consider investing in them despite the limited volume.

It's worth noting that research indicates that US companies with minimal trading volume – below $100,000 per day – tend to yield lower returns, regardless of their affordability.

This is logical as inadequate volume diminishes the potential investor pool to such an extent that price movements are scarce, irrespective of the company's low valuation.

I've been inclined to steer clear of companies trading below $100,000 daily, but occasionally I succumb to temptation.

Delving into trend following

I've initiated an exploration of trend-following strategies to diversify my portfolio. This involves momentum-centered strategies in the futures market, offering an extensive array of potential investments spanning stocks, bonds, commodities, currencies, and more. I have allocated capital to a trend-following fund managed by a trusted associate.

I am not more knowledgeable than you

It's pivotal to acknowledge that I am not inherently more astute than you in predicting the performance of companies.

I've made mistakes by overlooking specific newsletter companies due to personal biases, only to realize later that they emerged as top performers.

This reaffirms that no one can foresee the future and underscores the significance of diversifying our portfolios.

Remember, we cannot consistently outperform the market. It's erroneous to assume that prolonged exceptional performance guarantees perpetual outperformance against the market.

There will be periods of underperformance, and the greatest risk lies in forsaking a robust investment strategy to pursue the latest top-performing trend, often culminating in significant capital losses, as evidenced during the dot-com bubble.

Consistent and measured strides yield success

In conclusion, I and hopefully you as well, value consistent, steady returns year after year. It may not be riveting, but it allows us to amplify our capital at substantial rates over the long haul.

Insight into Stop Loss Study Update!

I would like to provide a swift insight into the