We believe our game plan—or our “edge” as others may call it—lies in our ability to model out expectations of this type of innovation process across several verticals. In the short-term, we almost always expect some portion of our portfolio be misunderstood, volatile, or underperforming. That’s okay with us. As Warren Buffett once remarked, “Investing is simple, but not easy.” As we progress with an investment, we consistently benchmark against expectations, and constantly reevaluate and challenge our original hypotheses. And sometimes, inaction is the most difficult action. Owning and truly understanding a great business allows one to have more clarity of thought and conviction through turbulent times. It also allows selective trading around depreciated prices with confidence. And, conversely, reallocations as a price moves closer to its calculated intrinsic value.
All we can do is worry about the underlying value of the business. We have the utmost conviction that the businesses we own are growing their intrinsic values—steadily—and we believe our valuations reflect this growth. Ultimately, we are confident there will be a convergence between their intrinsic values and the quotes offered in the marketplace. Given the areas we invest, this of course can take time and include volatility along the way.
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The opinions expressed herein are those of Worm Capital and are subject to change without notice. This is not an offer to sell, or a solicitation of an offer to purchase any fund managed by Worm Capital. Such an offer will be made only by an Offering Memorandum, a copy of which is available to qualifying potential investors upon request. This material is not financial advice or an offer to sell any product. Worm Capital reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
Past performance Is not indicative of future results. Returns are presented net of investment advisory fees and include the reinvestment of all income.
Worm Capital Management, LLC (Worm Capital) is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Worm Capital including our investment strategies and objectives can be found in our ADV Part 2, which is available upon request. WRC-19-05
