2018 Q3 - Investment Letter (Copart)

2018 Q3 - Investment Letter (Copart)

The S&P 500 Index returned 7.71% in the quarter ended September 30, 2018.[1] In our previous quarterly letter, we discussed our investment process, which essentially consists of two parts. First, we narrow the investment universe down to businesses we feel confident possess enduring pricing power and significant volume growth opportunities. Second, we attempt to construct …

2018 Q2 - Investment Letter (Process)

2018 Q2 - Investment Letter (Process)

The S&P 500 Index returned 3.43% in the quarter ended June 30, 2018.[1] We believe an investor who aspires to achieve attractive risk-adjusted returns must first identify at least one exploitable and persistent investment mispricing. In our case, as we’ve discussed in past letters, we believe we’ve identified two: 1) a great business mispricing that …

2018 Q1 - Investment Letter (Moody's)

2018 Q1 - Investment Letter (Moody's)

The S&P 500 returned -0.76% in the quarter ended March 31, 2018.[1] In our last letter, we discussed our belief that the best investments benefit from two sources of mispricing: 1) a great business mispricing that we believe results from investors generally undervaluing the rare businesses with both enduring pricing power and long-term volume growth …

2017 Q2 - Investment Letter (Alphabet)

2017 Q2 - Investment Letter (Alphabet)

The S&P 500 posted a 3.09% gain during an uneventful second quarter.[1] Despite this relative tranquility, we were able to acquire a new position in Alphabet (GOOG) at what we believe were attractive prices. Because the world changes so much over time, and at seemingly accelerating rates, successful investors must wholeheartedly embrace continuous learning. We …