Q1 2025: 12.5%, the best businesses in the world, will AI replace SaaS/VMS and Topicus
Disclaimer: Nothing on this site, including this page, constitutes investing advice. Please do your own due diligence. In Q1 2025 we returned 12.5%. In the same period, the Nasdaq 100 and SP500 returned -8.3% and -4.6% respectively. In the previous letter, for Q4 2024, I argued for cash as valuations were high and then-president-elect Trump would likely introduce disruptive policies. Looks like that thesis worked out. However, I really don’t have any competency for short term trading. If I ever make a habit of making more short term calls like that, please kindly berate me. Now, onto boring long term investing! The Best Businesses in the World If you, from first principles, were to describe the perfect, high quality business, it would likely include the following descriptors: recurring revenue, forever indispensable to customers, impenetrable moat, high returns on capital, asset light, low customer concentration, low labour/supply risk, low operational complexity, no supply chain risk,...
