1st Quarter 2019
Accounting practices serve as a reflection of a management team. When analyzed properly, accounting does not answer many questions, rather it raises topics to further explore. Thoroughly understanding a company’s accounting practices and philosophy provides a richer fundamental understanding of a company and the integrity of its management team.
Relevant as of March 31, 2019
Equity investors could not have asked for a better start to 2019, as all major equity averages appreciated more than ten percent in the first quarter. Nevertheless, investors made rather large redemptions in the first quarter, likely reflecting some collective angst. The present mix of optimism and skepticism may actually be a good balance for long-term investors.
4th Quarter 2018
More than any other investment discipline we deploy, internally financed growth shapes our compelling downside protection in weak markets and contributes to the relative predictability of our investment returns.
3rd Quarter 2018
Enduring investments require leadership to cultivate a culture encouraging and even demanding constant innovation—even if it comes at the expense of near term earnings.
2nd Quarter 2018
While few dispute growth is a necessary ingredient for capital appreciation, an oft-neglected piece of analysis is the sustainability of such growth, which requires a deep look at a company’s strategic market position.
1st Quarter, 2018
We focus on companies that are producing enduring unit growth while maintaining high returns on invested capital. Sustained unit growth combined with increasing returns on invested capital creates earning power.
4th Quarter, 2017
The ability to resist near-term market emotions and not deviate from their stated investment philosophy is what separates enduring managers from those that come and go based on short-term market phenomena.
These archives of past market commentary do not represent Riverbridge’s commentary past the date indicated.
Relevant as of December 31, 2018
This past year forced investors to contend with renewed volatility spurred by increased inflationary pressures, a hawkish Federal Reserve, trade wars, and decelerating economic growth. As we conclude the year, investors are left to ponder whether 2019 will be reminiscent of the idyllic market of 2017 or if they will be forced to relive the headaches of 2018.