697 days after first buying into Victoria PLC, I’ve let the old girl go. During that time I gained 18% in total, which works out at about 9% annualised.
The departure of Victoria means that the UKVI fund no longer holds any of the old asset based valuation companies. These were companies where the balance sheet was bomb proof, where there was little debt, good liquidity and not much else; other than a very very low price for those assets.
The company has a 10 year ROE average of 6.7% and a 3 year average of 4.2%. This combined with a price/book value of about 0.4 means that my returns yield estimate (ROE10 divided by p/b) is about 14% which put it at the bottom of my current holdings by that measure.
On that basis, and using my new rule of one buy/sell decision each month, it was sent back into the wild on December 6th, to be replaced by something completely different.