Letter to Our Partners - H1 2024
The outlook for our high-quality compounders has never looked more compelling
Hi Partner!
As we were writing this letter, summertime has finally arrived. Several months to spend time with our loved ones, watch sports events, enjoy the nice weather, and of course dissect the Q2 earnings reports from our companies, with three new deep dives (Lifco, O’Reilly (complementary to our AutoZone write-up) and Harvia) in the pipeline.
The primary objective of our quarterly letters is to go over the key fundamental drivers of our portfolio and the latest trends for the companies that currently sit in our portfolio. And whilst we’re long-term focused investors, we acknowledge the world is constantly changing.
Therefore, we should never be complacent about past performance, but instead optimize our portfolio for any market environment. Our goal is to explain in detail the long-term investment philosophy behind the selection process for the companies in our portfolio so that our Partners know what to expect.
A fully invested portfolio with our selected companies and corresponding allocation mix returned 11.21% (EUR) over H1 2024. This result mirrors the performance of our public stock investments after taxes and transactions costs, including reinvested dividends. These equity investments are just a portion of our investable wealth and it’s up to you to decide where to put new capital to work as well as how much weight you put to stock-market investments. If your stock selection process is rational, investment returns should and will eventually follow.
We steadfastly believe that the outlook for our high-quality compounders has never looked more compelling than it is today. And as always, we’ll keep you updated on our portfolio/investable universe, continue to publish our deep dives, and look forward to highly interactive discussions on all kinds of investing topics (check out our Discord, exclusive to annual members).
Thank you for your support and let’s keep growing The Compounding Tortoise family, in the second half of 2024 and beyond.
Have a great summer!
Yours sincerely,
The CT
Download the letter through the below attachment.