Picking a decent business at a decent price is hard. When things work out exactly to your investment case, as they did when we first recommended Caltex in Caltex: A fuels errand back in 2013, it can be tempting to tick the success box and move on. That would be a mistake.
While Caltex is now dearer than our original buy price, the business is also better. The Kurnell refinery, long a sink for capital and a source of low and variable returns, is now closed.