“If you cant stomach 50% declines in your investment, you’ll get the mediocre returns that you deserve.” – Charlie Munger, Vice Chairman, Berkshire Hathaway

Investing is simple, but it’s anything but easy. I look for companies in their infant stages that possess the possibility to make a better future. Whether it be in genomics research, cloud computing, etc. While I don’t normally mention individual companies anymore that we invest in, I thought this might help those out there questioning the process. I’m going to boil this down the most simple way that I can. Read this twice if you have to…

Emperically, long term revenue growth, and in particular organic revenue growth, is the single most important driver of shareholder return. Not worries about inflation, not rotation out of growth and into value, and not something you saw someone say in a tweet.

Find a thematic, find a company within the thematic with a moat, pay attention to what they say quarterly, and if the story is still intact, stop worrying about the short term price fluctuations.


These seem bad?:

Then look at these instead:

I am very long, and no I’m not selling.

Trent J. Smalley, CMT

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