Portfolio Update May 2026
Improvement over April.
Sold Nomad Foods.
Trimmed Copart.
Added to existing holdings Pool Corp and Floor and décor.
New buy Tractor Supply.
Hello and welcome to this months portfolio update.
As we cross the halfway point of 2026, it’s a natural time to pause and reflect on the year so far. While the market is currently experiencing a significant boom reaching all time highs, my own portfolio is trailing, down 4.54% year-to-date. This divergence between a bubbly market and my personal performance serves as a sobering reminder that even in a rising tide, individual results can vary. More importantly, this disconnect encourages me to view the current market exuberance with a degree of caution as history suggests that when market sentiment reaches these heights, it is wise to prioritize discipline and risk management over chasing short-term momentum.
As I look at the DInvests portfolio today, I see one that’s filled with strong, resilient businesses with bright futures. Another important factor about my holdings is that I believe I’ve purchased them all at excellent prices that “should” result in attractive Investment returns. Remember, even investing in the worlds best businesses can make for a bad investment if purchased at the wrong price and that’s where I believe the market sits today, especially at these heights ………
Will the market grow in the future? I have no doubt that it will, but how long will it take the market to reach attractive IRR’s from here?
Ill start this update looking at performance and metrics, something I usually do towards the end of my updates.
These are approx. weighted average metrics for the market as on June 2026 and the portfolio. As you can see the DInvests portfolio is cheaper on all counts. You might be wondering why the P/E ratio isn’t included - Its because many of my businesses are serial acquirers and therefore incur non-cash charges against income reducing GAAP earnings making the companies look more expensive.
I believe free cash flow is the better metric to use but even then can be skewed by high capital cycles currently being exercised by Greggs, Floor and Décor, Tractor Supply, Eurofins. This is why for my portfolio, I like to use a blend of P/OCF and P/FCF to project a more accurate actual free cash flow metric. This logic is simple, as soon as the capital cycles taper for these companies, free cash flow will rise reducing the P/FCF metric more towards P/OCF.
Performance to date sits at -4.54% compared to the markets +10.9%. A huge lag of 15.4%. Sure, this isn’t ideal but the worst option for me is to chase momentum and walk away from my investing principles. This isn’t the way to invest.
My returns will come in chunks as three of my top holdings account for 50% of the portfolio. All I believe will come in time. For now, I wait.
Portfolio May 2026
Buys
Tractor Supply Company - TSCO 0.00%↑ is the new addition to the portfolio in May. You can access my latest article on the company here. Nomad foods was sold to partially fund this purchase “I’ll discuss this in the sold section”
Tractor Supply Company is the largest rural lifestyle retailer in the United States operating a total of 2,641 stores in 49 states. Tractor Supply operates as a "one-stop shop" for individuals who embrace a rural, hands-on, or "do-it-yourself" lifestyle. These customers are generally recreational and hobby farmers, rural and suburban homeowners, pet owners, contractors and tradesman While their name suggests a focus on heavy machinery, they do not sell tractors; instead, they provide the essential goods and maintenance supplies needed to sustain land, homes, and animals. Their moat revolves around catering to these specific demographic through their Neighbors loyalty program and high frequency customer visits for their needs based inventory.
As of recently, their stock price has taken a huge decline in value which made me re-analyse the business from a valuation and return perspective. Considering the risks involved, my conclusion was one that was positive and favourable for a long term investment.
The business is trading at very reasonable valuation and its highest starting dividend yield in over a decade. Not bad for a retail niche leader.
Adds
Floor and décor - Another add to this niche hard surface flooring retailer which traded below $50 during the month. A decline of 69% from its peak. The company is currently experiencing higher fixed costs due to store expansion that isn’t being offset by revenues as same store sales have been weak for three years, affecting the bottom line. This is mainly due to a weak housing market and a price conscious consumer who delay large flooring projects.
I would be highly cautious here if the company was loaded with debt, but this isn’t the case. Floor and décor has very minimal debt and fund its store growth through cash generated from operations. This business is cyclical but one that keeps widening its moat through a larger store base and scale through increased leverage from vendors which promotes the “economies shared” business model over time.
Pool Corp - Another addition to one of my highest conviction holdings. May was a brutal month with the stock down 17% at one point. Again ill display their drawdown from the peak, which is again at a 10 decade low of 67%. Pool Corp, similar to Floor and Décor relies heavily on the health of the economy. As pools are generally an expensive project, they are mainly installed when the economy is strong and consumers feel richer. However, post COVID this hasn’t been the case due to high inflation and interest rates. Pool installation declined from a peak in 2021 of 117,000 units to 60,000 in 2025. The caveat here is that all these installed pool “which typically increase every year” need maintaining. This is Pool Corps biggest advantage as approx. 60%-62% of their revenues come from recurring maintenance products. Pool Corp now represents 8% of the portfolio.
Sells
Nomad Foods - Unfortunately Nomad Foods was sold to make way towards the purchase of Tractor Supply.
I still believe the business to be highly undervalued and so do management by the amount of insider purchases over the last few months, but the competitive landscape I believed was a lot higher than TSCO 0.00%↑ which was the main reasoning behind the decision. As I pointed out in the article for Nomad, they compete with private label frozen products who offer premium frozen foods and are now in more direct competition. Before, frozen foods from private label competitors was classed as a cheaper alternative and consumers would have to trade down on quality and taste. This gap has narrowed dramatically during the last decade as consumers can have access to these private label offerings at price points that are similar, if not cheaper than Nomads products. Selling NOMD 0.00%↑ and adding Tractor Supply I believe, gives the portfolio more resilience with attractive IRRs.
Trims
Copart was trimmed slightly to release funds towards other purchases. The business still holds a 4%+ weighting in the portfolio. Nothing materially has changed towards my views on the business or my thoughts on its valuation.
Conclusion
During May the portfolio increased by 3.21%. A huge improvement from the April disaster. We are half way through the year and overall a disappointing performance so far. I’ve continued my high conviction in many of the businesses I owned coming into the year and remain bullish that my business are a collection of undervalued assets being ignored by the market.
As I highlighted in last months update, I will not be shifting my investment dollars into speculative asset classes and chase momentum. I’m more than happy to underperform during market euphoria. I believe I will outperform during times of distress. The returns will come in chunks as I only own 11 businesses and three of these account for 50% of the portfolio. Time is the friend of the long-term investor.
Thank you for taking the time to read this monthly update. 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.
Great read!