I couldn't agree more with your wonderful article! Patience and discipline are pressure-tested during tough times. It's not easy and it's not pleasant, however as Shelby Davis eloquently stated:"You make most of your money during a bear market, you just don't realize it at that time."
Stay the course, my friend! Our community should remember that patience is often bitter, but its fruit is sweet.
Humbly, I ask if the pics are being reassessed for quality management, moat and business potential.
For example, Novo has been absolutely outmaneuvered by Lilly, faces patent challenges, new competition (upcoming Lilly pill), and regulatory pricing pressure.
Totally understand not every pick is going to work out and I do love the interesting quality companies you bring to the table.
But I would like to see hard-nosed analysis when potential disruptive threats face your portfolio choices.
In martial arts we say the stance comes before the strike. Without discipline and balance, speed is useless. Investing is similar. People chase quick gains, but compounding rewards the ones who stay in their stance the longest.
Magnificient article. I believe we are currently experiencing the "separation of the wheat from the chaff"... we are always talking and reading about Quality Investing, focusing on the fundamentals and finding ourselves admiring the CAGR of the great investors, even though they went through many tough periods – it seems the time has now come that we have to maintain course and weather the storm – and especially show that we are made from the same cloth! The ones that were never really interested in this way of investing and only sought after the returns, without the sacrifice, are now probably feeling the stomach... BUT... as a community we will be able to come together and sail through these times. Thank you for the continuous qualitative content, I am sure this is not easy for everyone.
What a wise comment. I couldn’t agree more with you. Let’s stick to the plan. If we do, the rewards at the end of the journey will be very very rewarding!
Just one small correction to point out: In the chart under the Portfolio Fundamentals, the chart shows the Forward P/E of the portfolio at 19.5x, but your example uses 17.1x. Which one is correct?
The 1999 Buffett comparison is the right one to make here. A 40% lag versus the index, in a single year, from the best allocator of the 20th century. The strategy didn't break. but it sure seems like the environment did.
The forward P/E spread you're showing is an interesting signal to me because fundamentals diverging from price is where long-term returns are built.
Hello, Pieter!
I couldn't agree more with your wonderful article! Patience and discipline are pressure-tested during tough times. It's not easy and it's not pleasant, however as Shelby Davis eloquently stated:"You make most of your money during a bear market, you just don't realize it at that time."
Stay the course, my friend! Our community should remember that patience is often bitter, but its fruit is sweet.
Much appreciated, Pavel. Are you coming to Omaha this year? Would love to see you!
Pieter. I don’t mind volatility.
Humbly, I ask if the pics are being reassessed for quality management, moat and business potential.
For example, Novo has been absolutely outmaneuvered by Lilly, faces patent challenges, new competition (upcoming Lilly pill), and regulatory pricing pressure.
Totally understand not every pick is going to work out and I do love the interesting quality companies you bring to the table.
But I would like to see hard-nosed analysis when potential disruptive threats face your portfolio choices.
Hi Justin,
I appreciate your feedback and I hear you!
We are working on an extensive portfolio update w-once again where we'll give an overview about every company.
In martial arts we say the stance comes before the strike. Without discipline and balance, speed is useless. Investing is similar. People chase quick gains, but compounding rewards the ones who stay in their stance the longest.
Keep Moving,
TuDi
Love it, Tudi!
Hi Pieter and team!
Magnificient article. I believe we are currently experiencing the "separation of the wheat from the chaff"... we are always talking and reading about Quality Investing, focusing on the fundamentals and finding ourselves admiring the CAGR of the great investors, even though they went through many tough periods – it seems the time has now come that we have to maintain course and weather the storm – and especially show that we are made from the same cloth! The ones that were never really interested in this way of investing and only sought after the returns, without the sacrifice, are now probably feeling the stomach... BUT... as a community we will be able to come together and sail through these times. Thank you for the continuous qualitative content, I am sure this is not easy for everyone.
Hi Leopold,
What a wise comment. I couldn’t agree more with you. Let’s stick to the plan. If we do, the rewards at the end of the journey will be very very rewarding!
The market favors those who wait. Quick reactions often cost more than they earn.
Exactly—patience is the true edge in investing.
Great article, Pieter - thanks!
Just one small correction to point out: In the chart under the Portfolio Fundamentals, the chart shows the Forward P/E of the portfolio at 19.5x, but your example uses 17.1x. Which one is correct?
Hi Joel,
Thanks for spotting that typo. 17.x should be the correct one!
Gracias Pieter! Es justo lo que necesitaba leer
Appreciated, Borja!
Every several years, people declare quality and value investing dead. Then, not long after that they both enter a period of huge outperformance.
The cycle of the market! :)
The 1999 Buffett comparison is the right one to make here. A 40% lag versus the index, in a single year, from the best allocator of the 20th century. The strategy didn't break. but it sure seems like the environment did.
The forward P/E spread you're showing is an interesting signal to me because fundamentals diverging from price is where long-term returns are built.
Much appreciated, Matthew!