Our experience suggests that the answer lies not in attempting to predict the unpredictable but in identifying businesses with proven abilities to adapt and evolve. The companies in our portfolio have demonstrated this resilience through multiple cycles, which we believe has been upheld by two crucial pillars: strong franchises and exceptional stewardship.
The American economist Frank Knight once observed that uncertainty, unlike risk, cannot be quantified or predicted. This distinction feels particularly relevant today as we navigate an unprecedented series of global challenges - from escalating geopolitical tensions and evolving trade relationships to technological disruptions that are reshaping entire industries.
While the headlines focus on the cross-currents - whether it is the implications of artificial intelligence (AI) or the ripple effects of trade barriers - we believe the fundamental question for long-term investors remains unchanged: how do we identify companies that can not only survive, but actively thrive amid such uncertainty?
