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Hi Partner 👋
I hope you are doing well.
Today, we are adding more to an existing stock in Our Portfolio.
As a reminder, you can find the entire portfolio, including all transactions here.
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Performance
In the Community, some Partners ask questions about the performance of the Portfolio.
You can see all positions + all transactions in Our Portfolio Spreadsheet.
The current results are below our expectations.
Quality has had a rough time recently.
Every active strategy will out- and underperform the market from time to time.
That’s exactly why this statement is so important:
“You can borrow someone’s stock idea, but you can never borrow their. conviction.”
If you blindly follow someone else’s stock tip but you’re not convinced in the stock idea yourself, you’ll never be able to stay the course when things get though.
And that’s exactly what’s needed to outperform the market in the long term.
While I’m not happy with the recent result of the Portfolio, I am sticking the course.
I hope you do too.
The expected return for Our Portfolio now looks as follows:
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The average company in Our Portfolio is expected to grow by 13.9% per year.
Here’s what the valuation (FCF Yield) looks like:
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As long as our companies keep generating more and more value for us, I am less concerned about what the stock market is doing in the meantime.
I would highly encourage you to use a similar mindset.
Jochen also wrote an excellent piece about this recently.
It’s called What if you fired Warren Buffett in 1999.
You can read it here:
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Buying more of this stock
Today it’s time to buy more of a stock we already own.
This company:
Wants to double every 5 years
Is led by one of the best capital allocators in the world
Management thinks the company is too cheap
On top of this, it’s one of the best performing stocks in the US since 1985 (!):
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