Actionable insights — Our Portfolio in 2026

1. Report the portfolio in look-through cash flow, not market value

1. For each holding compute shares owned × free cash flow per share — the cash the underlying businesses earn on your behalf.
2. Sum it, then divide the annual figure down to month, week, day, hour and minute so the number becomes concrete.
3. Record the same figure every year, so the series is a growth rate you can audit — independent of what the market paid that year.
4. Publish the per-share FCF assumption you used, so a reader can disagree with one input rather than the whole total.

• A cash figure that rises because you added money rather than because the businesses grew. The series needs a per-share or contribution-adjusted version to mean anything.
• Forward FCF per share taken from consensus. The 2026 and 2027 bars on the chart are estimates; the pre-2026 ones are not.

2. Publish a standing rating per holding, and let it contradict your P&L

1. Give every position a current rating (Strong Buy / Buy / Hold) that answers only one question: would you put new money in at today's price?
2. Set it without reference to your cost basis, so a winner can be a Hold and a loser can be a Strong Buy.
3. Publish it alongside the weight and the profit/loss, so the disagreement is visible.
4. Re-rate on a fixed schedule rather than after price moves, so the ratings are not a reaction to the tape.

• A Hold that is really a deferred sell. OTCM is rated Hold here and sold four weeks later — the rating did not carry the information the sale did.
• Ratings that never change. A scale with no downgrades in it is a marketing device.

3. Date every position, and let holding period be visible

1. Keep the purchase date beside each holding permanently, not just in the transaction note.
2. Read the roster in date order once a year: what has been owned longest, and has it earned the tenure?
3. Treat a position that is flat over multiple years as requiring an explicit re-underwrite, regardless of its rating.
4. Note starter positions explicitly — a recent buy at a small weight is a different commitment from a full one.

• Dead money disguised by a dividend. OTC Markets returned "only… the yearly dividend yield of 4.8%" and looked like a functioning position on the ratings sheet.
• A new position at a small weight being read as a full endorsement. It is a first tranche.

4. Track portfolio-level cheapness as a yield, not a multiple

1. Aggregate the book's free cash flow and divide by its market value to get a single portfolio FCF yield.
2. Compare it with the same figure a year earlier and with its own decade range — not with a peer group.
3. State the expected growth in intrinsic value alongside it, so the yield and the growth can be added into a rough expected return.
4. Use the yield when comparing across years, because it survives changes in accounting and in which earnings measure is fashionable.

• A yield that improved because the price fell on names whose cash flow is about to fall too. A cheapening yield and a deteriorating business look identical for a while.
• Portfolio-level statistics that hide the dispersion. The same book contains a 9.9x forward PE (Evolution) and a 37.8x one (Medpace).

5. Cost the long-term goal in savings, return and years — then say which lever dominates

1. State the objective as a cash-flow figure, not a portfolio value ("$1 of free cash flow per minute").
2. Convert it into the capital required at an assumed yield, so the target is a number rather than an ambition.
3. Solve for the years, disclosing all three inputs: current capital, monthly contribution, assumed return.
4. Notice which input actually drives the answer, and say so — that is where the effort belongs.

• A 12% assumed return quietly compounding away the difference between plans. Rerun the same sum at 7% before accepting the timeline.
• Goals expressed in portfolio value, which move with the market. A cash-flow goal does not.

6. Pre-commit to the concentration of returns before it happens

1. Write down the base rate you expect: how many of your picks need to work for the portfolio to work.
2. Publish the per-position profit and loss so the actual concentration is visible, not inferred.
3. Do not let the losers force a style change while the winners are still compounding — the arithmetic only works if the winners are left alone.
4. Separate "this is down" from "this is wrong": the first is expected, the second requires an argued case.

• The rule being used to excuse every loser. It justifies holding through drawdowns, not holding through broken theses — which is exactly the distinction the OTC Markets sale draws.
• Winners rated Hold and then trimmed anyway. The arithmetic depends on not doing that.