Good AnswerPsychologically, I struggle to add to positions that have already gone up so much. I have positions in ATD, DOL, WELL, ENB, GSY, DCBO, LMN, TOI, CSU, PRL, TCS, VHI, HPS.A (as well as some others) and have some cash to deploy and weightings to adjust. I would like to know which of these positions would you feel most comfortable adding to positions at their current levels. Do any of them stand out more than others as opportunities to accumulate?
We have always found it better to add to winners, up to a comfortable weighting level. Winning companies tend to be winning stocks, and have qualities that make them so. These qualities do not typically change in the short term. Winning small caps in particular tend to attract more attention, and valuations can change simply because they get 'bigger'. Of the list, we think WELL, GSY, DCBO, VHI and HPS.A look good today. The others as well, but our choices are largely geared to the expectations that small/mid cap companies will finally start to do better, for various reasons, including valuation and the possible benefit from US protectionist policies. (5iResearch)