Our top three positions represent 82% of the portfolio—concentrated exposure to businesses we believe offer asymmetric risk/reward at current valuations. This concentration will drive volatility, but it reflects our conviction that a handful of deeply researched ideas outperform broad diversification.
This quarter reminded us why conviction requires patience measured in years, not quarters. The same discipline that kept us out of AI infrastructure at 40x earnings now has us buying Clorox during an ERP crisis and holding Alibaba through political headlines. These decisions won't be validated by next quarter's performance—they'll be measured over the next 3-5 year period where dislocations resolve and valuations matter.
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