Q1 2024 Portfolio Update
Portfolio Changes, Q1 2024:
Popular Posts, Q1 2024:
Ally: From Headwinds To Tailwinds
Valuation and Long-Term Investing
Tomorrow marks the three-year anniversary of the TSOH Investment Research Service. At the launch in April 2021, I planned on giving TSOH a year to find its footing. It has only become a sustainable venture because of people like yourself, for which I’m incredibly grateful. Thank you for your continued support. I work to produce the highest quality output that I’m capable of, and I hope TSOH has proven well worth your time and money.
I’d also like to thank Francisco Olivera of Arevilo Capital Management, who has greatly contributed to TSOH behind the scenes since launch. Francisco and I met years ago because of our mutual interest in business and investing, and we’ve learned a lot together over time. Here’s one notable example: after an unnecessarily long delay, we finally pushed each other to appreciate the enviable moat Netflix had dug in the media business (as they say, better late than never!). More importantly, I have also learned a lot from Francisco about what it means to be a great friend and a great dad. Thank you Francisco.
On to the update.
Strong 2023 results continued into early 2024, with the TSOH portfolio +19% in Q1 (full results below). I shared some thoughts on judging performance in the Q4 2023 update, so I’ll keep today’s comments brief: I’ve spent 15+ years slowly building the foundation of my investment approach. Today, I have a clear view of the type of investor I’m trying to be, and I think portfolio changes made in recent years have pushed me further in the right direction. Hopefully this recent performance is an early indication of what’s to come over the long run. (As a reminder, TSOH has been my sole professional endeavor since launching in 2021; I intend on keeping it that way for many years to come.)
As it relates to my most recent investment activity, the decision to trim NFLX, META, and MSFT wasn’t made lightly (particularly MSFT, where the position dates to early 2011 and has rarely been tinkered with). Over the years, a frequent topic of my investment philosophy discussions has been the balance between owning great businesses while remaining cognizant of valuations and long-term expected returns. The latest discussion was “Valuation and Long-Term Investing”, which hopefully provided clarity on how I thought through the most recent changes. Speaking more broadly, I’ll be curious to see what Mr. Market has in store for us throughout the rest of 2024. While I’m happy with the collection of businesses I currently own and their weightings, I will be ready to take further action if I believe Mr. Market is forcing my hand.
Here’s the current TSOH portfolio: