Adding a New Holding to The Portfolio

Software compounder with below-average volatility delivering a >15% shareholder CAGR

Tomorrow, we’ll be adding a new holding to the portfolio (3% of the portfolio value, i.e., what we would consider a toehold position). It’s a software compounder we’ve been following for quite some time now with a proven track record of delivering a 15+ % shareholder CAGR.

Most importantly, it has significantly outperformed during bear markets, which is when outperformance matters most. We are steadfastly convinced that the majority of our premium members are conservative investors seeking relatively predictable outcomes.

Overall, we believe it will enhance the portfolio’s overall risk/reward. There’s no overlap with existing positions, and the stock’s below-average volatility (on a quarterly trailing basis) is a feature we highly pay attention to.

Here’s a brief overview of the new holding, which we'll be exploring in great detail next year.