In the NED I give myself the advantage and space to think about businesses over years, and how they can create value for the longer term.
This long-term approach means almost everything blurs into the distance except for long-term intrinsic value. Even current valuation starts to look insignificant the longer you move forward in time…
And so quarterly earnings don’t phase us, market narratives don’t bother us and we don’t care much what analysts say.
In the NED we not only look for safety and predictability, but also upside. In investing you can have your cake and eat it too.
We shared the first four NED names publicly but from the fifth addition onward, the index is exclusive to subscribers. Here are the first four names we added. You can find them all here.
Fever-Tree
Ball Corporation
Jumbo
Greggs
Stock #7 is a leader in its category — a long-term compounder that’s selling for cheap due to what I see as a misunderstanding of the robustness of the business model and the embedded upside in times of business expansion.
In the meantime, the company is repurchasing shares and growing while they wait for booming markets, that’s where they make the big bucks.
Remember, all business is cyclical — the point is to know how to differentiate between them.