When I decided in February 2024 to create a new portfolio from scratch, it was clear to me that I wanted to build it on fundamentals and not on impulses. In the process, Iberdrola came almost naturally. It was not carrying over old positions or inertia from the past: it was a deliberate choice. I looked at its price, its ability to generate stable cash flow and the way the company balances renewable growth with a robust regulated business. Everything fit, and the valuation at the time seemed reasonable for a power company with proven strength.
Over the months, the decision has made more sense. The share price has not exploded or made strident headlines, but it has followed a path that I value even more: that of slow validation. Iberdrola has strengthened its networks, has expanded renewable capacity with discipline and has maintained a contained level of debt, which is particularly relevant in a still demanding interest rate environment. It did not need to reinvent itself; it simply continued to stick to its plan.
My initial thesis - that of a predictable, efficient company with sufficient medium-term visibility - has not only been maintained, but strengthened. Iberdrola has been able to absorb regulatory pressures, manage costs and sustain its margins without compromising its roadmap. And when a power sector giant continues to deliver consistent results, the market tends to correct any initial discount. That's just what I've seen since I added it to my new portfolio.
Today I look back on that purchase with the peace of mind of having built a position from scratch at a point that, with hindsight, has proven to be right. Iberdrola offers no big surprises, but it does offer a kind of reward that I value more and more: that of moving steadily forward, even when the market isn't looking. And that steady pace is, in the end, what has validated the price at which I decided to enter.
At this point, I approach the position with a flexible approach: keep it as a stable pillar of the portfolio, but do not rule out a slight profit-taking if the stock enters a clear overvaluation phase. Even so, the risk of being left out of a sustained growth cycle is still there, because Iberdrola has room to continue expanding renewable capacity and improving returns in networks. Therefore, rather than closing the door, I prefer to adjust it, letting the position breathe without losing sight of the fact that the company still has a long way to go.
