My question is, if CSU has "an event" that drags it down really badly, will the sister companies also get tarred with the same brush? Would I be better looking at something completely different like HPS.A?
Thanks for your advice - I have done well by it!
We certainly understand. CSU has done so well and is so reliable it is hard to part with we are sure, even for portfolio management purposes. It is still early days for the subsidiaries. LMN recently grew revenue at 99% so certainly is off to a good start. TOI may be a bit slower with a European recession. Certainly if there was an issue at CSU the sentiment towards the subs would be negatively impacted. Even worse probably, is that an issue at CSU might mean it would be a seller of its shares in TOI/LMN. With trading thin, we would expect a big price decline. But it is always hard to position a portfolio for a 'problem' that hasn't occurred. Every company could see a black swan event for nearly any reason, at nearly anytime. It is the nature of equities. Keep in mind that an investment in CSU means an indirect interest in the others as well. We like LMN for growth, and think TOI will do well longer term. But if 'overweighting' of one stock is the issue to be dealt with, we would be a bit more comfortable owning something else not related to the big position in any way.