Opportunistic. Concentrated. Disciplined.

Geopolitical experts anticipated that President Trump’s tariffs would cause inflation to surge and that the US consumer would bear the burden…

When constructing our portfolio, we try to assess risk factors, or storms which could potentially cause a permanent loss of capital.  The power of compounding is astonishing, but permanent loss of capital is the hole in the boat that sinks the ship. 

Anyone following the news this year would think investing in stocks is a fool’s errand. Threatening tariffs, global warfare, the drumbeat of an imminent recession…

Five years and two weeks ago to the day, we wrote to our clients, “Great businesses have endured the Tech Bust, 9/11, and The Great Recession (GFC), and they will eventually emerge from the 2020 coronavirus panic.”  We now face a new set of circumstances, but once again believe great businesses will endure. 

On January 4th, 2010, we set out to do two things, “Make Money and Have Fun.” We recently passed the 15-year anniversary for our firm, and we are on the path to achieving both. A seed investor with $1mln on day one now has an account with over $5.7mln net of fees. To use private equity parlance, we achieved a multiple on invested capital (MOIC) of 5.7x. Over this period, numerous macro events and amplified market volatility caused market participants to abandon their processes. Yet, we’ve never wavered from our strategy to recognize that investor psychology and market volatility create investment opportunities. As we said in our first-ever letter to investors, “our strategy will remain unchanged regardless of economic developments.” The same applies today.

A swell is a set of waves produced by wind that blows across the water’s surface typically a long distance away from shore. The size and length of the waves can be attributed to…