Sleep Well Portfolio June 2025 Update - Two new BUY, 61% annualised return per pick
No LOSER; 17% Outperformance vs. S&P500. 61% annualised return per pick, 24/26 transactions were correct.
Hi, I am Trung. I own only niche market leaders. They must pass my initial Sleep-well checklist and perform well in my Thesis Tracker to enter the Sleep Well Portfolio, which I am building for my daughters to redeem in 2037. I disclose my reasoning for all BUY and SELL (ideally never). Access all content here.
Good morning, sleep-well owners,
The market was in a good mood in June, so I was pleased to introduce two niche leaders [20th, 21st]. Both are available at very reasonable valuations, between 28-35x free cash flow, offering midterm 20-30% free cash flow growth, pristine balance sheets, and limited competition.
Paid members said one was very ‘juicy’. Don’t miss out.
20th sleep well - Supply Chain Network leader [deep dive, buy alert]
21st sleep well - Public Safety SaaS leader [deep dive, buy alert]
Coincidentally, both are seeing their founder-CEO, who has held the role for 20 years, step down, so the leadership uncertainty presents an excellent opportunity to accumulate shares.
Quick overview of June:
The portfolio's annualized return per pick is now 61%, compared to 64% in May, 51% in April, and 38% in March.
NO Loser status is narrowly retained (the one loser is at a 1% loss), with 11/12 making money, and 24/26 transactions were correct decisions.
2025 Year-to-date return was 15% vs S&P500 5.5%: ~9.5% outperformance.
Return from inception was 37% vs. S&P500 20%: 17% outperformance.
How do we do it?
We are active in fearful periods and quiet in happy times. In March and April, we reviewed every pick for their tariff resistance, reviewed Magnificent Seven, bought Sea Limited (up 72%), Wisetech (up 36%), and GTT (up 17%), and sold MIPS (for a 10% gain). In May, we reviewed Q1’25 results of most picks, and in June, we dived deep into two leaders at great prices.
We are focused on owning only the highest-quality businesses.
Daily prices and news seldom catch our attention. Stock price fluctuations don’t alter the true value of our businesses, so we observe them, buy at fair prices, and keep learning. It’s straightforward.
Remember, Sleep Well is all about not losing. We have likely found a good formula, and I am excited about the future. Time is on our side.
Quality > quantity.
Trung
Current portfolio - No losers.
Previously - May 2025
Previously - April 2025
Previously - Mar 2025
Consider becoming an annual premium member to track the Sleep Well Portfolio, transactions, and Sleep Well scores. The link to the Sleep Well Portfolio Spreadsheet is here. For all other write-ups, click here.
Transactions with notes below:
Performance reporting since inception 37% vs 20% S&P500 - Interactive Brokers:
Expanding investment universe
You will only see me buying businesses that I thoroughly know (see the deep dives below). I’ll expand the list when I find ones that pass the Sleep Well Investments checklist.
Thesis tracking updates - linked in spreadsheet
One key reason for my incredible investment decision record so far is that I have a tracking system that allows me to observe the progress of my businesses over time. You can track the table and notes in the spreadsheet linked next. However, it’s only for annual premium readers.
**Links to thesis updates, buy-and-sell, and deep dives are all in the Sleep Well Portfolio spreadsheet. (Annual Sub only)
Businesses I am currently considering and Sleep Well Picks to add now.
A basket of luxury (LMVH, Hermes, Kering, Brunello, Ferrari), ASML, Evolution Gaming, Airbnb, Ferguson, TerraVest, IES Holdings, Teqnion AB, Manhattan Associates, Grupo Aeroportuario del Centro Norte, Uber, Veralto, Nekkar, Subaru, Axon, TMO.
Sleep well picks that are good buys right now.
As I write, I believe the following businesses are still good buys. However, as markets are currently in a happy mood…I’d wait for pullbacks or buy in stages.
Please visit the deep dives and updates before considering buying these businesses. If you don’t know what you own, you won’t know what to do with your shares when the market overreacts.
20th sleep well - Supply Chain Network leader [deep dive, buy alert]
21st sleep well - Public Safety SaaS leader [deep dive, buy alert]
Mercado Libre - most impressive execution amid political uncertainties.
[The Most Sleep Well Investment Of LATAM, Tariff Review, Top pick for 2025, Q4’24, Q3’24, Buy Alert]
Grab - steady market share gains and profitability amid local competition.
[deep dive, Tariff Review, Q4’24, local competition, buy alert, Q3’24 update]
Veeva Systems - no viable alternative within the life science SaaS, Salesforce + IQVIA partnership is a disjointed solution.
[deep dive part 1, part 2, Tariff Review, Q3’24, CRM+ IQVIA]
Sea Limited - Return of growth in the former core segment (gaming), with the e-commerce arm starting to become profitable, driven by low-cost logistics, the fintech arm generating significant profits, and advertising just getting started.
Logistics Leader - less expensive given the leadership instability (a temporary issue, in my opinion).
[deep dive, Tariff Review, BUY, H125 update, CEO update, FY24 update]
Naval Engineering gold standard - indisputable leader and a good candidate to preserve wealth.
VAT - pick and shovels of the semiconductor and AI mega trend. [Q1’25, Tariff review, Top pick beyond 2025, Deep dive]
Sleep Well Portfolio reviews
How can Sleep Well Investments help you?
High success rate stock picks—61% annualized time-weighted. No losers.
High-quality research and detailed follow-up. Buy and verify.
Free samples of deep dives, tracking updates, and buy alerts.
Free knowledge of investment framework to help find quality companies and execute with discipline.
Free book reviews on Pulak Prasad’s, Terry Smith's (15% CAGR), Scott Fraser's (19% CAGR), Ralph Wanger's (16% CAGR), and Peter Lynch's (29% CAGR) teaching.