2019 Mid-Year Update - [Company write-up, for clients only]

7/10/2019

I. 2019 Mid-Year Update, 7/10/2019 - [Company write-up, for clients only]:

When you invest with Long Game Financial (“LGF”) you own neither the economy nor the stock market. Rather, you own a portfolio of stocks of generally US-domiciled companies that in our judgment fit our CAM Framework. As a reminder, CAM stands for Competitively-advantaged, Attractively-valued, and Managerially-aligned.

For more on CAM visit our website here and review an excerpt from our 2018 letter here.

LGF’s CAM Framework continues to compel us to focus our time on a group of software and real estate companies that we have studied for years—each of which benefits from at least one multi-year business driver that we expect to persist even during times of economic volatility. Put differently, we believe that each of the businesses we own (1) offers products or services that are scarce and (2) sells into long-term demand that is faster-growing and less cyclical than that of most market sectors. For example, we think our average software company—say, [*]—will continue to grow faster with less economic sensitivity than the market’s average bank, oil company, or industrial manufacturer.

We profiled [*] in our 2018 year-end letter as a company that typifies CAM. [*]

Another company that fits our CAM Framework is [*]. [*]

[*]

Despite LGF’s current focus on software and real estate, we are always searching for superior, CAM Framework-approved, and multi-year risk:reward opportunities across all sectors. I continue to follow all of the diverse industries in which I have specialized at various points of my career, including 4.5 years researching financial services stocks and junk bonds at a large, Boston-based asset manager before, during, and after the last US recession. LGF’s approach is opportunistic, pragmatic, and seeks value anywhere—and we believe our approach is the right one for us because attractive investments tend to migrate, and our investment experience is broad.

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[*]: for clients only