The question on your mind is likely: "How was the first half?"

To answer properly, I want to remind you of the fund's goal and how I evaluate our progress toward it.

 

My goal is to achieve superior long-term returns by investing in a select few publicly listed companies. I gauge progress using three lenses, beginning with the least important:

 

1) Results

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Six-month price changes—casually referred to as "results"—are just that: price changes. They are noise, even when they go in our favor. Calling them results is as if Novak Djokovic celebrated victory as soon as the referee flipped a coin in his favor. It might help to serve first, but the victory is far from certain. Over the long run, luck gives way to skill, and prices changes will reflect work well done.

 

2) Decisions

 

The quality of my decision-making matters far more than temporary fluctuations. Our long-term record will be defined by the investments we make—and, just as importantly, the ones we avoid and miss.

 

3) Trigger-Ready Club

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The Club consists of companies I would love us to own at the right price. Growing this list is the best leading indicator of our future success. The more companies join the Club, the greater the chances the price and value of one of them will diverge enough for me to pull the trigger. The trick is to refrain from rewarding one’s research by investing when the work is done. Understanding a business is already a job well done.