I am buying these 4 companies today

(plus 2 honorable mentions)

The portfolio currently stands at an interesting crossroads. I believe there’s a significant difference in valuation across the companies in my portfolio (similar to what we see in the market). After trimming some positions and bringing my cash balance to around 10%, I wanted to share where I am starting to deploy this liquidity. I believe that many companies have been caught in narratives that won’t hold up over the long-term. These businesses continue to perform very well despite these narratives, and I expect them to continue doing so going forward.

When will the inflection come? What’s the catalyst? I have no idea, but I do know that narratives can change on a dime and that, sometimes, one just needs the stock price to perform well for the narrative to shift (plenty of examples over the past couple of years).

Just for context…

• Three of the companies mentioned here are trading at appealing valuations while growing their earnings at mid-teens or higher rates (with no signs of slowing down).

• Three are run by “outsiders” and, in all but one, there is significant insider ownership.

So, here they are.