As we have written many times in the past, our firm’s charter over the long term is seeking and investing in financially strong companies with a demonstrated ability to grow earnings and cash flows while remaining attentive to the price we pay. This is the foundation of our Quality Growth stock approach.

Since the end of the Federal Reserve’s zero bound interest rate policy in 2021 and the launch of ChatGPT in November 2022, enthusiasm for Artificial Intelligence (“AI”) technology has helped a relatively small and narrow group of companies account for much of the stock market’s (S&P 500 Market Cap Index) gains over this period. This has overshadowed many other established companies with strong financial results and when taken together, has created a challenging cycle to navigate managing a diversified stock portfolio.