I have sold my holding in Compass Group for a 5% profit in order to buy back into Just Eat. I need to be careful not to trade too much…

My sale of Compass Group is motivated by wanting to buy Just Eat, rather than anything wrong with Compass. I still think Compass is a good business for these reasons but there seem to be better options about at the moment.

I have bought a 4.5% position in Just Eat. I previously explained the reasons why I like Just Eat last time I bought here. Overall, I think Just Eat has very good prospects at a decent valuation. Since I sold my previous holding, Just Eat has issued a positive trading update but its acquisition of Hungry House has been referred for a second phase merger investigation. I don’t think what happens with Hungry House is very important in the big picture of Just Eat’s future. My main reason for buying back in is that prospects still look great and the price is breaking out to new highs after a long period consolidation. Again, my previous sell decision seems like an error in hindsight. I’m going to sit on my hands now!