Aug. 7 at 3:33 PM
Often times, the best stock to buy is not a new idea.
It’s more of what you already own.
That’s the lesson from this week’s earnings.
$PH and
$HONA both reported, but the outcomes were very different.
Parker Hannifin continued delivering as a proven industrial compounder.
Honeywell Aerospace, on the other hand, disappointed after the spin-off.
I was already cautious on HONA before the separation, explaining why it was not a
$GE-style situation.
But I ignored my own research and got pulled into the new story.
The same lesson applies to
$ROL vs
$CTAS.
Different companies, but both show how quality businesses can earn premium valuations over time.
Going forward, I’m not planning to add more HONA and may consider selling.
New companies are harder to evaluate, especially after earnings volatility and potential tax-loss selling pressure.
Sometimes the best move is not chasing the newest opportunity.
Sometimes it’s simply adding more to the businesses that have already proven themselves.
NFA. DYOR.
