Performance Review Q2 2020

Published on 07/08/20 | Saurav Sen | 2,733 Words

The BuyGist:

  • At the end of this quarter, we mark the 2-year anniversary of The Buylyst Portfolio.
  • We’ve beaten the broad equity markets by a significant margin.
  • We explain why we outperformed.
  • We chart out a path for the rest of the year.

The proof is in the pudding.

We’ll get right to it. This is how The Buylyst Portfolio has performed over the last 2 years:

Calculated another way, more than 40% of our investments, that were rated “Buy” at some point since inception, have exceeded their price target. Many others are on their way there. A few are languishing. But the end result is satisfactory.

The Buylyst Portfolio has completed 2 years. It has been an exciting journey, and we’re preparing for many more years to go. Inherently, we’re long-term investors, so the longer our track record is, the more useful that information will be. We should remind you that past performance is not a guarantee of future performance. Our goal is to beat the broad equity markets by a significant margin. We’ve done that over the past 2 years, but we strive to do even better over the next few years. At this point, after 2 years, we believe it’s legitimate for us to claim this: Our process is working.

Our process has fundamentally been the same since we started the company more than 2 years ago. It was a product of our experience, and what we’ve learned from the giants of investing over the years. The last 2 years have furnished us with a supercharged experience through a tumultuous market environment. In that time, we’ve refined our process by celebrating successes and taking punches in the trenches. And we’re glad we did. The constant refinement of tactics based on timeless principles of investing have paid off.

In our careers before The Buylyst, we’ve never thought as deeply and viscerally about our investment worldview and the art of investing in general. In big investment banks or hedge funds, the kinds of places where we learned our chops, one is usually relegated to serve a specific purpose within a specific machinery. When you start your own investment research firm, backed by a definitive portfolio of investments in which you’ve put most of your savings, it’s a different ball game. What’s more, we publish detailed notes about our worldview and our investments – complete with investment theses and valuations. And the results are there for all our members to see.  

It takes the adage “learning by doing” to a whole new level. They say, “writing clarifies thinking”. We’re living it every day. And our thinking has never been clearer. We’ve spent 15 years leading up to The Buylyst, and 2 years since then, honing our skillset. So far, the evidence suggests that we’ve done a decent job of stacking our new-and-improved clarity in thinking on top of our previous experience – and converting all that into actual, measurable performance numbers.

We’ll keep at it. As Jeff Bezos says, “it’s always Day 1”.

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