From a macroeconomic standpoint, we keep an eye on global financial and geopolitical news for major events. We believe most day-to-day events are minor in the grand scheme of the world and inconsequential for our long-term investment success. Even major events will rarely trigger a portfolio change. Instead, I focus my investment ‘activity’ on reading– books, research publications, and websites, to learn about long-term, sustainable, winning strategies.
Within our portfolio, we monitor for any significant changes in our holdings, changes that may alter our original investment thesis. The “5C’s” monitoring framework below handily summarizes the key factors we look for.
- Continuity: in the investment personnel, and parent organization, including its investment philosophy and partnering dedication
- Changes: in the portfolio research or construction process, passion (dedication, e.g. “Ferrari syndrome”) of the manager, or expenses
- Consistency/ Conformity: to the fund’s objective and strategy, based on recent performance history and manager communication
- Catalysts: any signposts we look for future change (e.g. capacity of the strategy, merger, vote)
- Conditions: any major macroeconomic, geopolitical, or global financial market changes that may warrant a portfolio shift