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
Q1 2023 Investment Commentary: Where we are h...
The first quarter of 2023 was marked by a partial recovery of 2022s losses, though the path to recovery was not without emergent risk. In early March, Silicon...
Q4 2022 Investment Commentary: Trends to cons...
2022 was an incredibly difficult year in financial markets. Not much went right for our portfolios other than Elon Musk buying Twitter for what was likely far too...
Q3 2022 Investment Commentary: The Long-Term ...
The third quarter saw a continuation of the ugly trend from the first half of the year. September was the worst month for stocks since 2008 and the first three...