technological advances

Portfolio Themes: Fall 2022 Edition
graphic shows a photo of a basket of apples and the words "Fall Themes"

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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Portfolio Themes: Fall 2022 Edition – 228Main.com Presents: The Best of Leibman Financial Services

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Time and Space, Compressed

© Can Stock Photo / khunaspix

In his memoirs, Civil War general and president Ulysses S. Grant wrote about the first time he rode on a train. (When Grant was a young man, trains were a new technology.) Traveling overland at the unprecedented speed of 15 miles an hour, it seemed to him that time and space had been compressed.

In our age, one might have consecutive meals on opposite coasts. A journey that first took months, then weeks, then days, takes hours in the jet age.

Time is compressed in other ways, here in the 21st century.

• New forms of media let us interact at the speed of light with dozens or thousands of people, for less than the price of a stamp.

• Email and other forms of digital messaging allow communication between people who are never available at the same time. This represents quite a productivity boost over the days of telephone tag.

• Research begins with fingertips on keyboards, virtually everywhere, instead of with trips to the library.

Necessity is the mother of invention, as they say. We had to effectively integrate these technologies into our business with you, and use them to maximum effect over the past few years.

21st century technologies have helped our old-fashioned conversations begin with more common ground, then go deeper into the topics in which you are interested. It seems to me we are closer now than ever before. This makes sense, if we are communicating more than we used to.

Clients, if you would like to talk about this or anything else, please email us or call.