Since my last post on on GJT, the stock has plodded along pretty well and in all honesty has been a bit of a sleeper - not causing me massive headaches unlike some other stocks! Good management, good discount, good yield - a solid story. It's one of those stocks that when you reflect on a little bit you wish every stock in your portfolio was like that.
As a side note, one of the reasons for keeping this blog is to improve my accountability by presenting ideas in a public forum. I hope this improves my education and therefore future performance. This process has initially worked well. In September last year, I did a quick comparison of GJT v AJA. It appeared to me GJT was cheaper, however the share price of AJA has since performed much better than GJT unfortunately meaning I am wrong or there are other market dynamics at play in the short term. A much-smarter-than-me fund manager at the time who knew Japan much better actually said AJA was the better buy. So I will need to go back and do a postmortem on this one.
Anyway, GJT management have announced the sale of a relatively small property in the portfolio ($6.2m v the portfolio net assets of $229m). So it's pretty small however the property was sold at a big premium to book and the really impressive part is management have been very sensible in indicating proceeds should be returned to shareholders via a buy-back of units - which are cheap in my opinion. As Nigel and I noted in the Capital Management post, how managers allocate capital is one of the few factors that determine long term performance: it's one area we pay incredibly close attention to and its good to see GJT making seemingly a good capital allocation call.
Kristian
Disclosure: own GJT
As a side note, one of the reasons for keeping this blog is to improve my accountability by presenting ideas in a public forum. I hope this improves my education and therefore future performance. This process has initially worked well. In September last year, I did a quick comparison of GJT v AJA. It appeared to me GJT was cheaper, however the share price of AJA has since performed much better than GJT unfortunately meaning I am wrong or there are other market dynamics at play in the short term. A much-smarter-than-me fund manager at the time who knew Japan much better actually said AJA was the better buy. So I will need to go back and do a postmortem on this one.
Anyway, GJT management have announced the sale of a relatively small property in the portfolio ($6.2m v the portfolio net assets of $229m). So it's pretty small however the property was sold at a big premium to book and the really impressive part is management have been very sensible in indicating proceeds should be returned to shareholders via a buy-back of units - which are cheap in my opinion. As Nigel and I noted in the Capital Management post, how managers allocate capital is one of the few factors that determine long term performance: it's one area we pay incredibly close attention to and its good to see GJT making seemingly a good capital allocation call.
Kristian
Disclosure: own GJT
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