A must-read for all in this particular market and your time spent hugely appreciated. I add my acclaim for all your altruistic work on our behalf.
My occasional mild criticisms of your comments being sometimes being just a tad disingenuous (the whole point of diversification is the adjustment of a portfolio’s risk, not the nature of its marketplace, thus a portfolio with a very high PS is ipso facto not well-diversified and few widows and orphans would find it so; we may not care about PS valuation but there may come a time when the market does not either and slashes it; a lovely liquidity-driven momentum bull market with the glorious double-whammy of multiple-expansion on rising sales and earnings - whoops, omit the earnings - is always fun until, to mix metaphors, the music stops and the receding tide exposes who has been swimming naked; a good benchmark is not the widows and orphans S&P etc. but possibly something like IGV or the no-work, no trade 5 Saas blue chips… do not and never have detracted from my massive grateful thanks!
Your explanation of terms and how you find suitable companies and these regular updates have been especially educational and valuable. Thank you.
I’m a bit later to the party but I just want to chime in and say how much I look forward to reading your monthly updates. They are a “must read” for me. They have been so helpful for me in learning to be a better investor. I learn a lot by seeing how your thinking evolves over time. Many many thanks!
Saul, Great read, I have no idea how I found this thread but it was really a breath of fresh air. Finally… Someone who is not afraid to put everything out there and back it up with results on paper. Also, the first time that a philosophy has made perfect sense outside the mainstream financial media. I know it is not human nature, but I really believe it would bring even more value to your post if you gave us the full transparent picture of what the losses are that you incur along the way. Really awesome though and some of the best laid out pieces I have read in quite some time.