Portfolio at the end of January 2025
January performance: 2.6%
FCF ROC = 37%
FCF per share CAGR (5yr) = 24%
FCF Linearity (5yr) = 0.94
FCF Margin = 35%
FCF Margin Expansion (5yr) = 6%
FCF Yield = 2.76%
There were no outright sales or purchases. The top contributors to performance were KLA Corp $KLA-Tencor(KLAC)$ and Applied Materials $Applied Materials(AMAT)$ . The top detractors from performance were NVIDIA $NVIDIA(NVDA)$ and Fair Isaac $Fair Isaac(FICO)$ .
Over the last 15 years, quality investing has crushed value investing.
• The MSCI's quality index has an average outperformance of 2.71%, compared to -2.32% for their value index.
• Quality has outperformed in 11/15 years, while value only managed 5/1
• Quality delivered the lowest volatility (SD=4.36%).
Critics may argue that 15 years is a short time frame, but the consistency and lower volatility speaks for itself.
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