First Quarter Portfolio Update - Q1 2023

How did the TTI portfolio do in Q12023? I cover what I bought, held and sold in 2022, I also dive into company weightings and my unique performance metrics.

2023 Has been an exciting year for my stock portfolio.

Even though we are under constant recession pressure, the stock market itself is not deciding where it wants to go. Luckily for me, my investing strategy gives zero f^&s about what the market “will” do. My strategy is to own stocks like I would if I fully owned a private business.

Do you think small business owners with long histories of thriving through economic cycles are worrying daily about what a potential buyer of their business is worth?

Not. One. Bit.

This is why I’m consistently trying to make my portfolio as a whole have high-performing metrics. This is how I evaluate my performance. If my businesses remain resilient or improve, I’ve done my job. What happens with the value the market places on it doesn’t matter. In the long run, a stock’s price will track its increase in intrinsic value. And as long as my businesses perform well, intrinsic value will go up at rates I deem acceptable.

Here is my current portfolio and weightings:

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Portfolio Performance

As I stated in the introduction, the price changes in my portfolio are not a metric I use to track performance.

I will however include it since it is a metric that everyone loves to track. So for the benefit of my audience, you’ll get it (if you read to the end)!

I track the following:

• Net Margins

• FCF Margins

• Leverage Ratio

• Interest Coverage

• Free Cash Flow To Debt Ratio

• ROIC

• Portfolio Dividend Ratio

I made a switch and a few additions as you’ll see some differences between the two graphics below.

Here is what I’ve done:

• I’ve switched out operating margins for net margins

• Added FCF-To-Debt Ratio

• Added PF Dividend Ratio

Let’s go over why I made these changes.