Portfolio Update - Q3 2024
Portfolio returns (in €)
2019: +30.2%
2020: +41.8%
2021: +47.4%
2022: -29.9%
2023: +36.2%
2024 - Q3: +21.2%
CAGR 2019 - 2023 (5Y)
Portfolio: +20.7%
S&P 500: +15.8%
MSCI ACWI: +11.9%
This third quarter of 2024 has not brought too many surprises nor unexpected developments. However, I have put these three months to good use and continued consolidating my portfolio, so I have been more active than usual. Since last quarter, I have committed to sharing with paying subscribers all the changes in my portfolio before orders are executed. It is an exercise in transparency that has been well received, so I will continue to use the chat to share some quick reflections, while subsequent posts will continue to explain the reasoning behind each decision I make. In today's post, I will also review all the trades of this third quarter so as not to break the usual dynamic of this type of posts.
Overall, during this period I have tried to stick to what I think I am good at. First, ensuring that the companies in my permanent portfolio continue to do what they do best, which is increasing their EPS at a CAGR higher than 15% and reinvesting enough to widen their competitive advantages. Second, buying good businesses that are experiencing temporary problems and that are being treated by the market as if said problems were going to persist forever. The market's financial myopia is on the rise, and that is great for investors who are able to look beyond a couple of quarters in the future.
I continue to expand my circle of competence, but I will always choose to invest only in businesses that I understand in depth. I am very clear that avoiding unforced errors (chasing the latest fad or the most popular stock on Twitter) is essential in order to achieve good long-term returns. I know that my way of understanding investment and applying what I know will make me miss out on stocks that will end up doing very well, but what I am sure about is that if I continue as I am now, my family will not have any financial worries in 15 or 20 years. That is my objective, I have none other than enjoying the process while I try to achieve my goal. That is why the blog is so important. Finding Moats is some sort of investment journal where I try to capture the lessons I am learning and also share the mistakes I am making. If I had not decided to create this blog, I would no doubt be a worse investor than I am today. So thank you, really, to all paying subscribers who make it possible.
*The following content is exclusive to paid subscribers*