By George Droulias
Many advisors consider a fund’s performance over a three-year period as an integral part of their investment decision-making process. This time frame is often used as a benchmark for evaluating a fund’s consistency and long-term performance. Obviously, we prefer our performance to be evaluated on a much longer time horizon, but nonetheless understand the importance of this figure. Fortunately, our three-year results across all of our prospectus Portfolios look quite pleasing on both an absolute and relative basis.
Our absolute performance is driven by the capital appreciation and investment income of the businesses that we own. We think owning a collection of businesses is the best way to safeguard your hard-earned money from inflation and achieve your long-term financial goals. The problem with owning businesses, especially publicly traded ones, is that often their outlook and prospects can appear challenged. The ease of being able to sell a publicly traded business often leads to selling at inopportune times. At EdgePoint, we attempt to avoid these situations by taking a longer-term approach and capitalizing on this mistake that others frequently commit. This is no different than what any rational businessperson would do.
Read the rest of the commentary on the EdgePoint site: A Mea Culpa To Some Obvious Growers
Or download the PDF: Q1 2023 Equity commentary
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