Our latest thoughts

Dear Partner, For the third quarter of 2025, our portfolio modestly increased in value with a much calmer market backdrop relative to last quarter’s tariff tantrum. Overall, the AI buildout theme continues to underpin financial markets, while underlying uneconomic activity in the real economy becomes more uneven. We continue to witness pockets of excess with...

Dear Partner, For the second quarter of 2025, our portfolio experienced a strong surge in value as markets rebounded and our stock purchases during the tariff sell-off featured last letter performed exceptionally well. As is so often the case, the market downdraft presented an opportunity rather than a risk. By treating our investments as long-term ownership of businesses and following a strategic plan, we can look past difficult periods. Imagine how...

Dear Partner, For the first quarter of 2025, our portfolio experienced a modest decline in value as markets reacted to the potential implications of the new administration’s policies. This letter intends to expand on our April flash report to investors, though we surprisingly have come full circle since our 2024 letter. In the annual letter, we had expressed caution regarding both the generally accepted theme of US exceptionalism and the fervent enthusiasm for all things AI. Then, in a...

Dear Partner, For calendar year 2024, our portfolio generated solid performance in uneven global markets. While US markets benefited from optimistic conditions and strong tailwinds driven by themes like US exceptionalism and AI, international markets remained more subdued. Historically high US index valuations coupled with increased risk-taking outside of the stock market have created a backdrop that...

Dear Partner, During the third quarter, the portfolio continued building on its strong yearly performance. Overall, equity markets appeared to grow more enthusiastic about lower interest rates as the Federal Reserve began to unwind its tight monetary policy of the past two years. In fact, long-term yields declined by almost a full percentage point during the quarter, which is particularly unique when...

Dear Partner, During the second quarter, equity markets advanced, though at a more measured pace as compared to the first quarter’s leap. Despite the seemingly calm market surface, individual stocks continue to experience exaggerated moves, usually in response to earnings reports or macro data that causes a rotation from one industry group of stocks to another. And a calm market entices some to...