Chef to Investor: Ms. Aberdeen's 10% Growth in the Hospitality Sector
Ms. Aberdeen worked as a cooking chef in a restaurant in the UAE. She knew her job very well, but her savings didn't work at all. Moreover, it was April 2020, the worst time in her career due to the COVID lockdown. She wanted to find a substitute for active business investment and have an opportunity to use her expertise during the investment period.
We proposed that she create a portfolio of large restaurant and hotel networks to generate passive income in the same sphere she knew perfectly. She actively participated in stock picking for every company we suggested investing in. As a result, we created a conservative portfolio that Ms. Aberdeen was ready to hold for years.
Her portfolio included: Darden Restaurants (ticker DRI – 15%), Texas Roadhouse (ticker TXRH – 8%), Wendy's Company (ticker WEN – 7%), Bloomin Brands (ticker BLMN – 5%), Marriott Vacations (ticker VAC – 8%), Hilton Grand Vacations (ticker HGV – 8%), Red Rock Resorts (ticker RRR – 7%), Hyatt Hotels (ticker H – 11%), and Wyndham Hotels (ticker WH – 7%). In summary, her portfolio was diversified across nine companies with 76% in stocks and 24% in cash positions.
Her initial capital was USD 350,000 in September 2020. The total growth of investments by the end of 2022 was 6.2%, and the cash portion increased by 3% per year. The average dividend yield per year was 2.29%.
By the end of 2022, Ms. Aberdeen had USD 385,000 in her account, with a 10% gain during the investment period. Her portfolio's stability was the primary objective she wanted to achieve relative to the generated yield. The correlation with the S&P 500 index was very low, which is why her portfolio didn't experience a drawdown in 2022 compared to long-term index investors.
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Ms. Aberdeen remains a client of INFINA and regularly checks the financial quarterly reports of the companies she has invested in.
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