Performance

The Extraordinary Companies portfolio is up 27% over the past year. The market has been volatile over the past few months. So this figure goes up and down from update to update.

But I’m more interested in the portfolio’s long term performance.

The portfolio recently turned 3 years old. In that time, our portfolio has returned 17.3% per annum versus the MSCI Index which returned 6.3% per annum.

$100 invested in our portfolio at inception would now be worth $173, whereas the same amount invested in the benchmark would only be worth $128.

Our portfolio is outperforming.

That is great news because the thesis behind owning Extraordinary Companies is that they have superior ability to grow in value compared to ordinary companies.

All the performance, risk and company statistics are in the fact sheet below.

Conclusion

Periods of market volatility can be hard to stomach. The way to get through these periods is to own great companies and to ignore price movements.

Stock prices are there to serve us when we buy and sell. In between, they don't tell us anything useful.

We own great companies, they will do fine over long periods of time. They will have challenges from time to time, like Visa is currently having, but they will get through it.

Buy the best companies at good prices, then leave them alone.

I would like to hear what you’re up to.

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