Volatility has returned to markets, and with it the familiar temptation to do something – anything – in response. We’ve been doing something: adding to high-quality names we know well at prices that have become reasonable again. That is the quiet advantage of doing the work in advance. When others are reacting, we are positioned to act. Pullbacks are not problems to be solved; for disciplined long-term investors, they are opportunities to be used.
It’s worth remembering that there is always a reason to be nervous about markets. A war, an election, a policy shift, a trade dispute, a crisis somewhere in the world – and yet over any meaningful time horizon, equity markets have managed to find their way higher. The companies we own continue to earn, innovate, and return capital to shareholders regardless of the daily news cycle. Consider 2025: if you had been on the sidelines for the single best trading day – which just happened to be April 9th – you would have given up roughly 9.5% of the year’s return. One day. The best days and the worst days tend to sit right next to each other, and no one rings a bell to tell you which is coming. Market timing sounds sophisticated in theory; in practice, missing just a handful of those days can quietly undo years of patient investing. We don’t try to time the market, and we’d encourage you not to either.
Our philosophy is straightforward and unchanged: own high-quality businesses, pay a sensible price, and stay disciplined when others are not. That is how durable wealth is built, and it is what we are doing on your behalf right now. As always, please reach out if you’d like to discuss your portfolio in more detail.