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First Quarter 2020 Letter: Confessions

We took a bit longer than normal writing our quarterly letter for the first quarter of 2020.

Click here to read Confessions.

Speed Read: 

  • Reporting our performance feels like entering my first confession, and I outline the important psychological effects confessions have;
  • My research on the most significant value creators of all-time have revealed a psychological dynamic that we had been ignoring up until February. I briefly discuss the psychological process of value creation;
  • We learned our lesson and have accelerated the evolution of our framework to be more empathetic to System 1, the ego, or Mr. Market;
  • We discuss why we love CTT, our coinvestment where we’ve been a constructivist for the past year. We are highly encouraged that 2020 will be a year of major transformation as it leads the the digitalization of commerce in the country;
  • Customer satisfaction is the most important driver of the sustainability of an investment, and we outline how a newer investment in Peloton (PTON) perfectly exemplifies our definition of sustainability;
  • We close with other recent actions taken, and reflect on the performance required for us to keep GreenWood alive in the coming years.

With the moves we’ve seen, the investments we’ve added, and the low-upside shorts we’ve added, we are more encouraged than ever that we can perform in the ensuing months, quarters, and years ahead, no matter what we face.

 Original Diagram of the Psychology of Value Creation

Disclaimer:

This article has been distributed for informational purposes only. Neither the information nor any opinions expressed constitute a recommendation to buy or sell the securities or assets mentioned, or to invest in any investment product or strategy related to such securities or assets. It is not intended to provide personal investment advice, and it does not take into account the specific investment objectives, financial situation or particular needs of any person or entity that may receive this article. Persons reading this article should seek professional financial advice regarding the appropriateness of investing in any securities or assets discussed in this article. The author’s opinions are subject to change without notice. Forecasts, estimates, and certain information contained herein are based upon proprietary research, and the information used in such process was obtained from publicly available sources. Information contained herein has been obtained from sources believed to be reliable, but such reliability is not guaranteed. Investment accounts managed by GreenWood Investors LLC and its affiliates may have a position in the securities or assets discussed in this article. GreenWood Investors LLC may re-evaluate its holdings in such positions and sell or cover certain positions without notice. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of GreenWood Investors LLC.

Past performance is no guarantee of future results.

This Post Has 2 Comments

  1. Great letter. One question. I see CCJ tagged there, but saw no discussion whatsoever about it. What does that mean?
    Thanks.

    1. Thanks Angel! We didn’t actually really talk about all the new positions, that’s been already written up in research reports for our investors. We do indeed love CCJ right now, it’s one of our largest positions.

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