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Hi Partner 👋
In 1999… just before the dotcom bubble burst…
Quality stocks were as cheap as they had ever been.
Investors were too busy chasing the internet hype to notice.
The ones who did notice? They made life-changing returns.
Just look at what they said about Warren Buffett just before the bubble bursted
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Here’s the thing.
That exact same thing is happening right now.
Quality stocks haven’t been this cheap compared to the market since 1999 (!).
It’s like finding a Rolex at a garage sale. The price tag says $20, but the watch is worth $10,000.
Our Portfolio is taking full advantage of this opportunity.
I’ve never been more excited about what I see.
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Even my friend and billionaire Bill Ackman said it this week:
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Our Portfolio versus the S&P 500
Let’s start with the basics.
The S&P 500 is what most investors use as a benchmark. It’s a solid reference point.
In the long term, you can expect a return of 7% per year from the S&P 500.
But here’s where it gets interesting.
Quality has proven to outperform the index over time:
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If we look at Our Portfolio, you see that we are invested in fundamentally way healthier companies compared to the market:
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The two most important takeaways?
We own way better companies (healthier balance sheet, higher profitability, higher growth, …)
And this while these companies are trading at cheaper valuation levels!
Better and cheaper…
… What else do you need?
It makes complete sense that these companies will outperform the market over time if you ask me.
It’s exactly why quality outperforms in the long term:
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