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Dear Partner 👋
I hope you are doing well.
Let’s face reality: times are currently very challenging for Quality Investors.
In this article we’ll dive into some facts and give you an update.
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Challenging Times
You don’t believe me that times are challenging?
Let’s give a few examples.
1. Chuck Akre
Chuck Akre is a very famous quality investor who owns some of the best companies in the world.
Here are his top 10 positions:
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Chuck Akre has built a very strong reputation and track record for himself over the past few decades.
But lately, he has been underperforming the market.
As a result he’s now even slightly underperforming the S&P 500 since inception:
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2. Terry Smith
Another famous quality investor is Terry Smith.
I had dinner with Team Fundsmith at Gorrat’s in Omaha in 2024.
The least I can say is that these people are incredibly smart.
Terry Smith’s investment strategy is simple, but beautiful:
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His top 3 positions are:
Stryker ($SYK)
Marriott ($MAR)
L’Oréal ($OR)
He managed to report very attractive returns using this strategy.
But recently, Terry Smith is struggling. He underperformed over the past few years:
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3. Compounding Quality
The same is true for Compounding Quality.