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Hi Partner 👋
Over the past few weeks, we’ve been giving you an extensive Portfolio Update.
In case you missed it:
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You know everything about our portfolio as well as the companies we might consider adding.
But how will the portfolio evolve from here?
How will we move forward?
Let’s find out.
The best of the best
Our investable universe consists of 153 stocks.
That’s 0.4% of the 40,000+ publicly traded stocks worldwide.
Only the best of the best is good enough for us.
We will continue to relentlessly track the underlying performance of our portfolio.
Why?
Stock prices always follow the evolution of the intrinsic value over time.
The intrinsic value is mainly driven by the EPS and Free Cash Flow Per Share growth.
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But in the short run, stock prices and fundamentals can diverge a lot.
While this can be painful at the time, it’s also what creates big opportunities.
Warren Buffett says that’s what made him rich.
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Today is such a time if you ask me.
It’s why we only worry about stock prices when we’re looking to buy or sell.
In the meantime, we focus on the underlying fundamental performance.
Here are the most important metrics to watch.
1. The evolution of the Free Cash Flow of Our Portfolio
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