Investment research is an ongoing process here at 228 Main. Real-world developments are always intersecting with the changing prices of shares; the mosaic looks a little different each day. In our weekly meetings, we review news about companies we own, trade our insights, and talk about emerging bargains or trends.
We think about what we own—and why.
We sometimes find bargains in a particular industry or sector. Other times we study trends and try to sort out who will benefit in the years and decades ahead. Looking over the whole Buy List, patterns emerge.
The single biggest theme often surfaces as a result of our search for quality companies at fair prices. Dominant, sector-leading firms—the blue chips—run the gamut from big green farm machines and home improvement chains to the largest retail health company and the biggest player in a highly fragmented industry (a consolidation play). This is where you’ll find Warren Buffett’s company, too.
Emerging growth companies may benefit from increasing connectivity, innovation, and automation. Paired with the large technology companies who make the devices, systems, software, and chips we depend on every day, we have solid exposure to what seem to be likely growth areas in our economy.
Natural resources have been a focus for years, and we continue to refine our thinking as the energy revolution unfolds. Copper and other industrial metals may have favorable supply-and-demand outlooks for years and decades to come. The fossil fuel industry persists, even as alternative energy becomes an increasing fraction of our total energy needs.
The evolution of the automobile continues to intrigue us. We have exposure to this theme via big tech companies and copper producers, but also via ownership of automakers old and new, plus a supplier of sophisticated components that support the evolution of mobility.
International diversification in Europe and India makes sense to us, and a few plain old bargains (in our opinion) round out our list. Among the shifting landscape in Europe and one of the world’s largest populations in India, we recognize some opportunities for exposure.
Clients, we share a long time horizon; we stay focused on major trends. This approach provides some continuity in our thinking across the years, even while we work hard to understand the day-to-day factors affecting our holdings. It’s a thrilling challenge, and we’re always happy to share our thinking with you!
Please call or email us when you want to discuss how this relates to your plans and planning.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing includes risks, including fluctuating prices and loss of principal.
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