Webinar - Our Magnificent 9 to Sleep Well At Night

Sticking with the best-of-breed management teams and boring businesses

Following last week’s announcement on our so-called portfolio “reshuffle” (disposing smaller positions and allocating more to our highest-conviction ideas with the highest risk-adjusted potential), we felt it was appropriate to throw in a special webinar.

We view our current holdings as our “magnificent 9”. And to be fair, you don’t need the traditional magnificent 7 stocks to beat the market. All you need: companies with a proactive capital allocation mix focused on delivering great risk-adjusted returns.

Year-to-date, our portfolio is up 12.9% (we’ll talk about our companies, compile their earnings analysis and much more in our first quarterly letter in April/May). The MSCI World Index is up 7.1%.

We hold boring businesses that have crushed the market over the past 3, 5, 10 and 10+ years. Making money with old friends, as Terry Smith once said.

Ultimately, we believe our Substack’s added value will increase by focusing on the companies we know best and applying our practical and common-sense framework to creating long-term shareholder value. Providing generalist information? It wouldn’t be the right thing to do from a long-term perspective and it would juxtapose with our objective to create an outstanding community of Tortoises who are eager to learn more about enhanced quality-investing and entrepreneurial best practices.

Over the past four years, we’ve been through several economic shocks, some of which have permanently changed business return profiles and value creation opportunities. The below slide highlights what we’re talking about: higher inflation, severe drawdowns and volatility and retail investors still choosing fancy growth stocks over robust boring cash flow compounders. That won’t go away anytime soon. Fortunately, this environment should bode well for our strategy.

Putting it succinctly: you don’t need AI or explosive growth stocks to make serious money in the stock market. What do we need? A laser-focused rational thinking process which is outlined in the below webinar (PDF material can be readily downloaded).