It has been about half a year since I published the first version of my buy list. So I think it is time for an update.
But before we look at the companies, let’s remind ourselves what this is all about: This list and the companies on it are not meant to encourage constant buying and selling. That is not how I think about investing, and this is simply not my strategy.
The goal is to find great businesses, buy them at reasonable valuations and then hold them for as long as possible.
A great example for this strategy is Berkshire Hathaway. A large part of Berkshire’s returns came from roughly a dozen truly great capital allocation decisions over almost six decades. So the goal is not to be active all the time. The goal is to make the right decisions when the right opportunity appears. Or as Buffett once said:
“We don’t get paid for activity, just for being right.” - Warren Buffett
This is also why only a small number of companies ever make it onto my buy list. As I work through these analyses, I reject the overwhelming majority of companies because they don’t meet the standards I expect before considering an investment. Only a small group remains, and these are the businesses I present in this piece. They are the result of detailed research and reflect the companies that I believe deserve closer attention.
And this time, there are some meaningful changes. I added new quality businesses to the list, removed one company where the risk profile has changed too much for my taste and finally bought one of the names I had been waiting for.
So today, we will go through the updated list, what changed and why these are currently the businesses I am watching most closely.
With that being said, let’s dive in!
