The global economy’s uncertainties continued during the second quarter, and stocks were under downward pressure. So far, the companies’ earnings results and expectations have remained surprisingly high, considering the drastic drop in the share prices of many companies.
The Sifter Fund’s investment strategy has remained unchanged. We invest in business returns, not in share price movements.
Portfolio changes in Q2/2022
The Sifter Fund made two new investments and some more minor changes to the portfolio. At the beginning of May, we invested in The Walt Disney Company (DIS) and at the end of June, we invested in the US-based drug packaging company called West Pharmaceutical Services, Inc. (WST).
We like West’s business because the company is the dominant market leader in its focused segment, and the company’s products are critical for pharmaceutical companies. In addition, according to our estimate, the market is growing at about a 5-10% annual rate.
We financed West’s investment by selling off the rest of our Starbucks shares. Watch more about why we gave up Starbucks, the company we held for over four years in Sifter’s portfolio.