In today's issue...

• Portfolio performance review​
• New stock additions
• Key takeaways

And More!

⏳ Read Time: <3 minutes

Dear Reader,

I hope this email finds you well.

It’s the first Sunday of the quarter, and that means its performance review time! Let’s take a look at how our stock picks have performed and what lessons we can take away from this past quarter.

As a reminder, I pick one stock every two weeks using a proprietary, science-backed, data-driven approach focused on five key factors: value, growth, profitability, financial health, and shareholder-friendliness.

This month marks two years since we began this stock picking journey together! It’s been an incredible ride, and I couldn’t have done it without your trust and support. So, without further ado, here’s the 2024 Q3 performance update, celebrating two years of stock picks.

📈 2024Q3 Factsheet

🆕 New Additions

This quarter, we welcomed six fantastic companies to the portfolio:

• ​Paycom​
• ​Lululemon​
• ​Hermes​
• ​Zoetis​
• ​Starbucks​
• ​McKesson​

Each of these companies passed our rigorous selection process and brings something unique to the table. I'm excited to see what they will bring to our portfolio moving forward.

🏆 Top Performers

Some of our stocks really stood out this quarter. Fortinet surged ahead with a 27% gain, and Lululemon impressed with a 13% increase. These are the kind of results we love to see.

But investing isn't without its bumps. Lam Research was our biggest laggard, down 25%—mainly due to falling memory chip demand and some broader market challenges. Every portfolio has its ups and downs, just remember, we're playing the long game here.

📊 Portfolio Performance

Overall, the portfolio continues to outperform the market:

Total Return: Since inception, the portfolio has outperformed the S&P 500 by 20 percentage points, delivering a total return of 54% compared to the index's 34%.

Annualized Return: We’re averaging 24.79% per year.

Dividend Yield: A steady 0.72% per year.

💡 Key Takeaways

Here are a few important insights from this quarter’s performance:

Positive Returns: 69% of our stock picks have delivered positive returns, exceeding our 60% target.

Standout Performers: Both ServiceNow and Lam Research Corporation are now multibaggers—have returned over 100%—demonstrating the power of picking strong companies early.

Worst Performer: Atlassian has underperformed, with a 16% loss—largely due to slowing revenue growth, rising expenses, and increasing competition.

🚀 The Power of Multibaggers

Now, here’s where things get interesting: Multibaggers—stocks that return over 100%—play a crucial role in portfolio performance. The asymmetry of investing is clear: a big winner can more than cover for a series of smaller losses, while there's a limit to how much you can lose.

For example, just one of our top picks like ServiceNow or Lam Research far outweighs the accumulated losses from all of the underperformers and way more. This illustrates the incredible potential of finding just a few multibaggers, which can transform your overall returns.

⭐ Conclusion

All in all, I’m pleased with how the portfolio performed this quarter. While we’ve had some winners and a few underperformers, our strategy of focusing on high-quality companies with strong fundamentals continues to pay off.

🙏 My Ask to You

Before I say goodbye, I want to take a moment to thank you—your trust and support mean the world to me. We’re not just trying to beat the market; we’re building something bigger here, one step at a time.

If you've gotten any value from these emails, I'd love to hear from you:

• Have you bought any of these stock picks?
• What's your experience been like?
• Do you have any feedback for me?

Just hit reply—I promise to read every single message!

Also, if you’ve found value in these stock picks and insights, it would mean a lot to me if you shared this newsletter with others. The results we’ve achieved over the past two years have been amazing, and with more people on board, we can help even more investors succeed.

And, if someone forwarded this to you, you can sign up at https://convert.monk.st.

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🔮 Next Week:

Don't miss out on a stock pick that could redefine your portfolio.

Thank you again for being part of this journey!

Have a great weekend and happy investing,
​Alberto Echevarría​
​The Investing Monk