Investment Strategy
We invest with a 3 to 5 year timeframe, hoping to hold each position as long as possible, though knowing markets often overshoot to the upside as they do the downside. Given this reality, we understand that an infinite holding period is the exception, not the rule. We target the 3 to 5 year timeframe because while the market itself tends to price in a long duration, the average annual turnover of US stocks is over 250% per year, and consequently, the average transaction is premised on the quarterly newsflow of a given company rather than the long-term value proposition. This mismatch between the duration of equities and the holding period of the average investor is a crucial source of inefficiency in market valuations. Moreover, longer holding periods provide a tax advantage and minimize transaction fees.
Investment Commentary
Q4 2020 Investment Commentary: “2020 is...
None of us will forget 2020. Collectively, we faced immense challenges brought on by a kind of pandemic that infects humanity once every hundred years. We find...
Q3 2020 Investment Commentary: Ignition
It certainly is a bizarre feeling observing the strength in our investment portfolios amidst the backdrop of an unprecedented global pandemic and recession; however...
Q2’2020 Investment Commentary: The Tale...
In our Q1 2019 commentary we expressed how “COVID-19 will kick off one of the most profound reshaping of our world any of us will see in our lifetime,”...