Portfolio Update: +40.6% Return

How We Beat the Market by 14.3%

Since inception, Our Portfolio returned 40.6%.

That’s an outperformance of 14.3% versus the S&P 500:

The screenshot above is the official track record from Interactive Brokers. I use Interactive Brokers for every transaction. You can explore Interactive Brokers here.

I am pleased with these results.

Why? We don’t own any Big Tech!

It was tough to outperform the S&P 500 recently when you didn’t own any Big Tech. These companies accounted for over 50% of all the capital gains within the index last year.

It’s the main reason most superinvestors didn’t outperform the market recently.

Only 25% of actively managed equity funds surpassed the S&P 500's return in 2024.

Company fundamentals

Via Finchat, you can screen for the Fundamentals of the companies we own.

When I compare them with the S&P 500, I get the following:

Our companies outperform the market on nearly every metric—without being overpriced.

That’s exactly what you want.

We own far better businesses than the broader market, yet the market hasn’t figured it out… yet.

“Successful investing is having everyone agree with you...later.”  - Jim Grant

How much money are we making?

The evolution of the Free Cash Flow Our Portfolio earns for us every single year:

As you can see, we are investing in companies that are creating more and more value for us.

Currently, we are invested in 15 companies for a total amount of $1 million*.

An easy way to calculate how much money each company is making for us?

To give an example, we own 130 shares of Ameriprise Financial. AMP is expected to generate a Free Cash Flow Per Share of $31.2 in 2025.

What each company makes for us per year = Number of shares we own * FCF per share
What AMP earns us = 130 * $31.2 = $4,056

This means Ameriprise Financial generates $4,056 in pure cash for us every single year!

When we do these calculations for the entire Portfolio, we get the following: