2023 Portfolio Update
Solid performance with a total return of 36.7% compared to 26.3% for the S&P 500.
As we bid farewell to 2023, we're thrilled to report a substantial 36.7% growth in our portfolio. The real showstopper, however, is the impressive surge in our subscribers – from a modest 632 at the close of 2022 to an impressive 3,213 at the end of 2023, marking a phenomenal growth of 408%. These figures are a testament to our shared journey.
Before we delve into the details of the 2023 Portfolio Update, here's a list of the long-form articles we published in the quarter. Just in case any slipped under your radar.
1. One year older, one year wiser
Quite the year, wouldn't you agree? Well, for most folks, it seemed to be an outstanding year. While a single year doesn't define future performance or abilities, rebounding from a -9.5% performance in 2022, reassures us that we're heading in the right direction.
Does this mean we nailed every decision? Far from it. Some stocks we covered in 2023 didn't make it to our portfolio but performed exceptionally well. On the other side, there were stocks that continued to slide, prompting us to increase our position, negatively impacting our overall (short-term) results. Nonetheless, we take ownership for our choices and the rationale behind each decision.
Take Evolution AB, for example. A solid company with a price exhibiting volatility, ultimately stabilizing at 2022 levels by the year-end. In our investment journey, guided by long-term horizon, volatility is our friend. Therefore, lower prices, given intact fundamentals and thesis, present an opportunity to accumulate funds in stocks where conviction remains.
However, always take this with a 'grain of salt.' If a stock persistently underperforms, ensure you understand why you might right and the market may be wrong. Taking a step back for self-reflection is always crucial. Nevertheless, the above examples and our total return for 2023 justify why you don't have to get everything right in your investment process. You can make mistakes but still perform well.
Now let’s turn to the importance of continuous learning. When we initiated this newsletter, our goal was to share our investment journey and research while simultaneously expanding our knowledge. Exploring various industries in 2023 not only allowed us to share valuable insights with you, potentially presenting a couple or more great investing ideas but also enriched our understanding of the world. As evident from our 2023 Yearly Recap, we delved into 17 new companies and revisited 6 of our existing portfolio companies. The longer we keep doing this, the greater the likelihood of discovering another solid fit for our portfolio. After all, in the words of Peter Lynch, “The person that turns over the most rocks wins the game.”
Without further delay, let's delve into our performance analysis and the rationale behind the transactions made during the quarter.
2. Performance
As of December 31, 2023, our total return for Q4 2023 and 2023 was 10.3% and 36.7%, respectively. This compares favorably to the S&P 500’s 2023 total return of 26.3%. Since inception (28 January 2022) our cumulative return stands at 23.6% compared to 11.1% of the S&P 500.
Source: S&P Dow Jones Indices, Broker, StockOpine analysis