Preserve Your Wealth With This European Centenary Business
Founder-led for four generations, with a near-zero chance of disruption, 5-10% growth, and a 2.5% dividend, this is for you if you want to preserve your wealth.
Hi friends,
Sleep Well is pretty good (and lucky) at avoiding losers. Since October 2023, only one of 16 transactions has lost money, and the average gain of our 11 sleep-well portfolio holdings is 45%.
This 19th sleep-well pick aims to avoid another loser and preserve our wealth.
The business has endured everything in the last 100+ years and is still founder-led after four generations. They think and act with an ultra-long-term mindset. I am impressed with their track record and relentless investments, which the market has yet to appreciate because it wants complete visibility and instant results! As such, it has created a reasonable entry point today.
Most importantly, as a prerequisite of a sleep-well pick, the core of the business is exceptionally resilient.
What do I mean?
It has a timeless product that delivers superior customer surplus.
Predictable cash flow stream from a diversified revenue and a vertically integrated business.
It has an ultra-long-term investment horizon that builds moats that competitors can’t replicate.
Abundant slack capabilities and redundant resources to buffer for unknowns.
This business doesn’t care about next year’s earnings per share. It only cares about consolidating its dominance, widening the moat for the next generation, and building resilience for uncertain times.
While the market will focus on the ‘low profitability’ today, the above is music to my ears, as growth is delayed in a coiled spring.
Longevity is the name of the game.
So, if you are here for a quick gain, it’s not for you.
I am confident they will be around beyond 2037 when my daughters take over the Sleep Well Portfolio.
As a reminder, while Sleep Well Investments has the potential to continue beating the S&P500, its first aim has always been to preserve wealth by building a resilient portfolio.
Companies we own are vetted to endure knowable risks and have capabilities buffers for the unusual ones!
The most recent pick perfectly fits the description. It has been the gold standard for the naval industry for over 60 years. Despite the tariff noise, the position is already in the green.
Ok, get a coffee and protect our wealth with this indestructible business.
If you are new, check out the Sleep Well Portfolio performance, construction, and financial metrics. For everything else, read here.