Hello, greetings from sunny Spain.
The portfolio returned 12.87% year to date, after returning 30.8% last year in Euros, beating the SP500 handsomely. (9% and I think flat in real terms in 2025).
This is achieved even as I see the portfolio as an undervalued rocket ready to jump as emerging markets and small caps remain cheaper than ever relative to large cap SP500, because the fair value of most of the stocks in the portfolio is probably 80% above their current value.
Buying the cheapest stuff works, despite the occasional error. The agressive re-balancing I did in early 2026 sets it up for a good return in the future.
There are a few positions that did maybe extremely well and are not undervalued but they represent a tiny portion of the portfolio.
In July, I stopped being active around July 15 to focus on writing and organising summer trips, but I will share my last movements below, and companies updates. Writing this feels good as I love a portfolio review and checking back on companies.
The markets.
We have seen the AI bubble start cracking and prodigies like Leopold Aschenbrenner rise and fall already. I explained numerous times that we were in a bubble and it’s not over.
It is depressing that every “bubble boy” is popular and attracting millions in capital while having investing lifespans of less than three years and are all momentum traders that end up blowing up peoples funds and dreams.
On the other hand, serious investors like me and others on Substack, and most of you readers remain unknown and with small followings. We get little traction on the posts we put on social media, while we are beating these bubble guys over the long turn (Actually they are beating themselves), and we will probably be very popular after 10 or 20 years runs of doing serious value/quality investing. I have no doubt about this, fellow serious writers.
The movements:
(followed by top 10 and company news).
As always, I repeated the process that works, but being even more strict on entry valuations, adding to quality companies below ten times earnings, bordering 5 to 8 times earnings, and letting winners run, and mostly in Emerging markets.
The opportunity set in 2026 remains excellent: