The US election result ushers in a new era in American Politics and to say the least, the result was unexpected by many.
It is important to remember in times like these …. the future is always unknown and no-one can accurately time the market or predict the future. That is why we focus more on what we can control or influence.
As long-term investors we believe that downside protection is accomplished by maintaining conservative positioning - (we entered the election with +20% cash in the Fund) - and we attempt to purchase businesses below what we estimate is their intrinsic value. This provides a “Margin of Safety” allowing for the vicissitudes of the market, including unexpected events.
That being said, the financial markets were expected to react poorly to the unexpected Trump presidency, and the opposite was true - markets were up overall - with the Dow Jones Industrial Average now at a new record high (at the time of writing).
The Elevation Capital Value Fund is invested globally, holding fractional interests in businesses, for the long term. We focus on buying businesses with a “Margin of Safety” built into the purchase price and businesses that are conservatively financed.These sorts of business exhibit longevity whoever is in “The White House” and are well financed to weather unexpected events and storms.
A reminder of the businesses we own fractional interests in can be found at: www.elevationcapital.co.nz/current-investments
Our latest presentation on Edgewell Personal Care (EPC:US) can be found here: http://www.elevationcapital.co.nz/edgewell
Putting aside personal views (whatever they maybe), we sincerely hope Trump is a good President – the American people will have him as their “Commander in Chief" for the next four years.
Warren Buffett once said "Buy into a business that’s doing so well an idiot could run it, because sooner or later, one will." We have followed Mr Buffett’s sage advice in all aspects of the Fund’s holdings.