My Personal Portfolio Update
Introducing a New Company
It’s been a little over a month since my last portfolio update, and the market has certainly kept us on our toes. August saw equity markets surge to fresh record highs, with both stocks and bonds delivering strong returns despite a backdrop of persistent policy concerns. It felt, for a moment, like clear skies ahead. September, however, brought an immediate reminder of the market’s fickle nature. The first trading sessions were met with a global bond selloff and equity declines, as renewed inflation concerns and seasonal weakness patterns took hold.
This rapid shift from euphoria to caution is the perfect illustration of the daily "noise" that can distract and distress investors. The financial news cycle is a relentless barrage of macroeconomic forecasts, shifting central bank rhetoric, and geopolitical headlines, all of which create volatility. In times like these, it's easy to get caught up in the narrative of the day and feel pressured to react. But my philosophy remains unchanged: the key to long-term success is to ignore the noise and focus on the signal.
The signal is not the daily gyration of the S&P 500; it's the fundamental execution of the world-class businesses I am proud to own. My strategy is, and always will be, rooted in concentrated conviction. I believe the greatest returns are generated by owning a small collection of the world’s highest-quality companies - businesses with impenetrable moats, exceptional leadership, and vast runways for growth. The market's short-termism, its tendency to panic over a single data point or a cautious quarterly forecast, is not a threat; it is an opportunity. It creates price dislocations in excellent companies, offering moments for the disciplined, long-term investor to act.
It was precisely such an opportunity that led me to expand the portfolio this month. I am thrilled to announce the addition of an eleventh pillar: Fair Isaac Corporation, or FICO. This is not a move toward diversification, but rather the seizing of a rare chance to own another undisputed champion that perfectly aligns with my stringent investment criteria. In this update, we’ll do a deep dive into FICO and revisit all ten of our existing holdings, examining how they’ve performed and, more importantly, why the signal of their underlying business strength is shining brighter than ever.
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