Last week I had the pleasure of attending Bestinver's last annual conference in Coruña. As you already know, safety margin has been reduced quite a bit.
They have 1% of the portfolio in the company.
According to Bestinver, its management team is excellent, offers a good margin of safety and is a solid company with a high sustainable dividend yield.
It is an excellent company that is on your “shopping list”.
The only problem it has is its price, which is still too high.
About CTT Correios de Portugal
It is a difficult business to value.
Its traditional business is in a vertical decline. Its biggest client, the Portuguese state, is starting to notify its citizens via emails, which is causing its sales to continue to decline.
It is true that your banking business may have potential, although it is not a sure thing.
Therefore, we are facing a possible value trap.
The problem you have is the lack of visibility of your results. For that reason, they focused on Acerinox instead of Arcerlor.
About the telecommunications sector
It is a complicated sector, in which companies are heavily in debt. Furthermore, the market is very competitive, highly regulated, and the sector requires significant capital investments.
About the banking sector
They consider that there was a significant discount in the summer, which was when they acquired shares in companies in this sector.
About fixed income
If interest rates rise, something that is likely to happen in the medium or long term, fixed income will perform negatively.
The best alternative today is equities, as it offers higher returns and protection against inflation.
Videos of the Bestinver Annual Conference in Barcelona 2017
To finish, I also recommend the videos of Bestinver's Annual Conference in Barcelona 2017, in which they explain their investment philosophy and their vision of the markets.
Investment philosophy and vision of the markets