At FJ Research I follow one principle: ultra-concentration. I believe in putting all my eggs in one basket and then watching that basket very carefully. This means my portfolio is constantly under review. Every position is tested again and again against my framework of risk, reward, durability, and asymmetry. If I find a better balance of upside with similar downside, I will act decisively.
This month I made one such move. I sold my position in Pfisterer.
Let me be clear: this decision has nothing to do with the company itself. Pfisterer is a first-class business, future-oriented, and well-positioned in the electrification trend. In fact, since I first published my piece on Pfisterer and invested in early August, the stock has returned roughly +30% in just under two months. That’s a remarkable result in such a short time frame, achieved because the undervaluation was obvious and the market was forced to close the gap quickly. Electrification is too powerful a theme, too present on every agenda, for a quality company like Pfisterer to remain mispriced for long.
That was, in hindsight, a relatively simple bet. The payoff came fast. But my style is not to collect small victories and scatter across many names. My style is to keep pressing my capital into the very best opportunities with the highest conviction. So I took the gain and reallocated.
Where did the capital go?