Another month, another Portfolio Update.

What’s going on with our companies?
And which companies are the most attractive right now?

Let’s dive in right away.

Stocks? Or Companies?

Warren Buffett is the best investor in the world.

In this interview, he said that he tried to pick stocks when he was 11 years old:

• He paid attention to the price

• Read books on technical analysis

• He thought the most important thing was to be able to predict what the price would do

Then he read Ben Graham’s book ‘The Intelligent Investor’.

From that point on, he never bought another stock.

It sounds crazy.

Warren Buffett is the best investor in the world.

He is known for buying stocks like Apple, Coca-Cola, and American Express.

But since he read The Intelligent Investor…

He stopped buying stocks and started buying businesses.

Some of these companies, like Apple, Coca-Cola, and American Express, … just happened to be traded on the stock market.

This is an important mindset shift.

In the short term, there are a lot of random things that will drive the price of a stock.

Things like:

• Changes in interest rates

• Sentiment

• Analyst ratings

• Headlines

• …

But in the long run, the underlying performance of the business will drive the stock price.

Just listen to Peter Lynch:

The important lesson?

Over short periods of time, a stock's price can jump up or drop down because of things that aren't really about the company at all.

But given enough time, a strong business will lead to a strong stock.

In the long term, stock prices always follow the evolution of the intrinsic value:

Let’s dive in and see how our businesses are performing.

Our Portfolio

Fundamentally, our businesses are doing great.

Our companies are healthier than the ones in the S&P 500.

And this while they are substantially cheaper than the index.

As you can see we own better companies that are 23% (!) cheaper than the S&P 500: