Our Portfolio in 2024
Hi Partner 👋
What a year 2023 has been.
Since the launch on the 1st of October, the Portfolio returned 17.5% versus 9.1% for the S&P 500 (until end of 2023).
I couldn’t have dreamed of a better start.
Let’s give an update of the portfolio and set our expectations for the new year.
Compounding Quality uses Interactive Brokers as a broker. Every stock I buy can be bought via IBKR. You can find out more here:
Our goal for 2024
I’m more than happy with the performance of the Portfolio so far.
I even think this level of outperformance is unsustainable.
Remember that Compounding Quality targets an annual outperformance of 3%.
With this target, we should always remember The Rule of 3 from François Rochon:
One year out of three, the stock market will go down at least 10%
One stock out of three we buy will be a disappointment
One year out of three we will underperform the index
Our Portfolio will underperform the S&P 500 from time to time without doubt.
But it’s important to remember that we’re running a marathon and not a sprint.
The goal is not to have the longest train but to arrive at the station first using the least fuel.
The essence of the portfolio remains the same:
Buy wonderful companies
Led by outstanding managers
Trading at fair valuation levels
We want to invest in the best companies in the world.
We don’t care what the stock market will do in the short term.
The only thing we care about is the evolution of the intrinsic value per share.
And I’m comfortable to say that in the long term, our companies will be able to grow their intrinsic value per share at higher rates than the S&P 500.
Let’s find out why.