Portfolio Update March 2026

• Purchased Nomad Foods. My article on the business can be accessed here.

• Purchased Judges scientific.

• Added to Constellation Software.

• Trimmed Roper Technologies.

• Sold out of United Health.

Hello and welcome to this months portfolio update. March 2026 was another painful month for the market and the portfolio, both down 4.1% and 4.57% respectively. Some moves where done to capitalise on opportunities and to also diversify the portfolio by adding two new stocks and selling one.

As you can see my portfolio is still highly concentrated into three stocks (Greggs, Roper Technologies and Constellation Software) accounting for over 50% of my asset allocation. If or when these businesses regain some momentum and price appreciation I will be willing to trim and allocate the proceeds into my other high quality businesses. I believe all three are trading at very attractive price points for highly acceptable IRRs in the future.

Two businesses I’m currently keeping a close eye on, are Floor and Décor and Berkshire Hathaway. Berkshire will inevitably add more stability and defensiveness to the portfolio and I’m willing to sacrifice some upside in certain stocks if that where to happen. I’ll give my reasoning behind this later on in the update. We will see what occurs in the next few months 🤷‍♂️. Now onto this months update in a bit more detail.

Nomad Foods Limited NOMD 0.00%↑ - Nomad Foods was added during the start of the month after it caught my attention from huge decline in share price to decade low valuations. There are reasons for this sell- off.

• The stock is under pressure from private label competitors.

• Price inflation has also been a factor which has not been offset by price increases.

Although the business is currently undergoing intense competitive pressure and higher input costs, lets not forget Nomad is the largest frozen food manufacturer in Europe with massive operational scale and an iconic brand portfolio which hold #1 or #2 market share in 90% of their core product categories. Low valuation aside, what really caught my attention was the extremely high insider ownership (18.3% of total outstanding shares) , high dividend yield that’s well covered and their aggressive buyback program showcasing their shareholder friendly return policy.

This isn’t my usual high quality business purchase displaying high margins and high return on capital with excellent growth runways to deploy that capital, but rather a value play looking for a high return through shareholder returns with hopefully decent stock price appreciation.

More detail on my thesis can be accessed in the link in the summary above.

Judges Scientific is a serial acquirer of niche scientific instrument businesses and is listed on the London Stock Exchange. Since 2005 (When the company started its Buy and Build” strategy) they have acquired 25 businesses and have evolved into a business highly respected, culture driven and great disciplined allocator of capital. Through this time the company has compounded revenues and Adj EBIT (a preferred metric which adds back amortization and one off costs) at a 20 year CAGR of 18% and 22% respectively.

Since their 2003 IPO Judges reached 100-bagger status in late 2023 when the share price reached £95. Even after the share price weakness of late the company is still over a 40x bagger for shareholder who purchased at IPO.

There are many appealing factors to this investment. I’ll list them below and will continue to add to this position over the coming year.

1. Their businesses are mission-critical and operate in niche segments of the scientific instrument industry.

2. Their products produce high margins.

3. Capital light and highly cash generative.

4. High insider ownership.

5. High returns on capital with a long runway through a deep pipeline of acquisition opportunities.

6. Disciplined acquisition strategy with multiples paid between 4-6x EBIT. Right off the gate the business is making 16-25% return on investment.

7. Low market cap of approx. £300m.

Obviously price always matters and I believe after a massive sell-off in Judges shares, (69% from its highs) the company is in attractive territory for the long term investor that wants exposure to a disciplined serial acquirer with an embedded culture of decentralisation, high integrity and entrepreneurial ownership.

The sell-off in share price is due to headwinds the company is currently facing. A lack of federal funding being the huge factor and 2026 will be without a coring expedition from their Geotech subsidiary. 2026 is expected to be another tough year for the business but I see it as an opportunity to build out a meaningful position size in the portfolio.

I added further to my existing position $CSU. For a more in depth read on this position here’s a link to my Feb portfolio update.

Constellation Software is a serial acquirer of vertical software businesses. They run a decentralised operating model giving management full autonomy of their respective businesses, usually management of these small niche companies are the founders who have continued to stay on and run the businesses after being acquired. From the very beginning only up until recently after he stepped down for health reasons, $CSU was run by their Founder Mark Leonard. He built the business from the ground up creating a compounding fly wheel with a culture that is built to last.

The share price weakness and my ability to be able to build out a position is mainly due to the stepping down of Leonard and fears of AI eroding Constellations business model. Again I wrote about this in more detail in last months update and many have different views on this competitive threat whether its credible or not.

United Health was sold in March for a slight gain. If I have to be honest, this businesses was outside my comfort zone and too complex to understand fully. The financials looked very appealing and I believe the business was under earning with potential to reach its previous profitability. It was one of them reality check scenarios for myself and I ended up cutting ties and allocating the capital to other opportunities that I feel more comfort holding for long periods. The sale was made to fund my purchases listed above, primarily Constellation Software and Judges Scientific.

Roper was slightly trimmed to release funds to further build out of my Constellation Software position. Both positions now account for 16% each and are 2nd and 3rd in allocation positioning behind Greggs. Thesis still intact.

March was another disappointing month for the overall market and the portfolio, both down 4.1% and 4.57% respectively. For the first three months of 2026 my performance is -7.5% which is lagging the market.

I’m sure most do this and try to come up with an explanation on why at any particular point in time as to the reasons why your either beating or trailing the market.

I do this frequently, whether I’m beating the market or trailing. My thoughts here is due to the massive concentration I have in my top five positions, of which make up 68%. I know that my performance will come in large chunks and I have full conviction in these top five positions that my target IRRs will come to fruition in time. For now though, albeit a tough pill to swallow I have to just wait.

This is the first time I’ve published a “Watchlist” in my portfolio updates. Two businesses currently have my attention (Berkshire Hathaway and Floor and Décor) and its a case of me either swapping my existing holdings for these businesses or waiting on the side lines and keep what I’ve got 🤷‍♂️

For those who have followed me over the years will know I own Berkshire Hathaway and I’ve owned Floor and Décor in the past resulting in some good gains. Here’s a link to a deep dive on FND 0.00%↑ for those who are interested.

Here’s my current thoughts on Berkshire Hathaway.

I’ve owned this stock for four years and I haven’t added since my first purchase back in Jan 2022 but recently I’ve wanted a bit more defensiveness and stability which made me re-enter the Berkshire rabbit hole.

In a nutshell. Berkshire Hathaway has its large group of operating businesses, its large stock portfolio and its unmatched fortress cash pile.

The best way to value Berkshire in my opinion is through a “Sum of the parts” valuation model - Through this method, investors must value each part of the business separately and add them together to reach an intrinsic value. Here’s my valuation of Berkshire below.

As of the LTM I value the business per B share at $566. This is a discount on todays price of $478 by 18.5%.

In the model I’ve gathered all the operating earnings from Berkshires subsidiaries and applied a multiple of 12x. Adding then the cash on the balance sheet and the equity investments results in a ballpark value in my opinion for the business. The cash above might be slightly higher than on some data platforms as I’ve added the cash from the railroad also.

This remains an option for my portfolio in the near future and I’m undecided whether to add more to my existing position.

That’s it for the March monthly update and I hope you’ve enjoyed it.

If you’ve got this far then thank you.

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See you in the next one.

DInvests

DRGInvests on X.

Disclaimer: I hold a beneficial position in the stocks mentioned in this article. My buys and sells aren’t recommendations. I can’t guarantee the accuracy of the information provided in the newsletter. All statements express personal opinions and information gathered online. Any estimates, forward looking statements and assumptions made in this newsletter are unreliable. Always do your own research. Any information in this newsletter is for educational and entertainment use only and should not be taken as investment advice.