This week, it was one of our Norman subscribers, Guillaume*, who entrusted his PEA, in very bad shape it is true, to the editorial staff for an in-depth analysis.
The tax envelope was opened in the year 2000 to accommodate the unlisted shares of his company that he held at the time.
Now retired, most of his assets are placed in life insurance contracts, the balance being invested in this PEA, with the main objective of making this nest egg grow in order to pass it on to his descendants.
A Top 5 in good shape…
For an investment vehicle considered as a diversification that is not very representative of its overall financial assets, the portfolio is still substantial, with more than €225,000 in assets.
The first five positions, which represent more than 50% of the value of the PEA, look great: TotalEnergies, which accounts for 17%, displays a capital gain of more than 65% compared to its cost price, while Air Liquide , second line with a weight of 12.1%, recorded a gain of more than 50%.
Followed by Engie, with 9.3% of the portfolio, which gains a more modest 5.9%, Crédit Agricole (8.4%) which increases by 12.5%, while Bouygues (8%) is almost in balance, with a capital gain of 4%.
…and values in great difficulty
Conversely, certain positions weigh down the overall performance, which shows a loss of almost €19,000.
The fault lies with files in great difficulty like Atos, which lost three quarters of the investment made, or more than €25,000!
Likewise, Alstom is also suffering, with a drop of more than 57% compared to its cost price.
Finally, the only foreign stock appearing in the portfolio shows a similar decline for a loss of more than €10,000: it is the Danish Ørsted, one of the main companies in the energy sector in the country, whose transition from fossil fuels to renewables seems more than complicated, with the renunciation of several large-scale projects which caused the fall of the action.
Arbitrations necessary to revive the portfolio
The rest of the PEA is fairly balanced, and we will notably keep Schneider Electric, in good shape (+45%).
In order to improve a rather disappointing performance, we are of the opinion to resolve the three previous files in great structural difficulty, and which do not seem to be on the verge of recovery.
Better to part with it to move back to more promising values.
We first think of the heavyweights of the Parisian coast, particularly in luxury.
Although valuations appear high, an investment in LVMH remains low risk in the medium term.
L'Oréal also presents an attractive profile in a steadily growing market.
In order to secure investments, favoring yield values is an interesting avenue.
Vivendi falls into this category, and the proposed spin-off of its activities could further serve as a catalyst.
Finally, a technology stock like Capgemini would represent the sector in the portfolio, which is currently lacking.
*the first name has been changed.