Earlier this afternoon, Ensemble Capital hosted a conference call during which our chief investment officer Sean Stannard-Stockton explained how we are thinking about this crisis, the multiple economic scenarios that may unfold, and why we believe that exceptional companies will emerge from this crisis uniquely well positioned in their industry. The call included commentary about many of our holdings including, Mastercard, Broadridge, Alphabet, Landstar Systems, Paychex, and Masimo.

You can find a transcript and replay of the call here.

Transcript:

We are living through an unprecedented event. While there have been many past viral outbreaks and other worldwide pandemics over the course of history, today the human species lives as part of a highly interconnected global community. Pandemics have never respected national boarders, but only in our era have the people of earth circled the globe, engaging in business, visiting family, meeting people from different cultures, and in the process knitting all of us together into a tightly woven global economy, at the rate of 4.5 billion airline passengers per year, of which 2 billion represent international travelers.

These people have carried with them knowledge, ideas, business plans, and works of art such that today the people of London, and Shanghai, Dubai, and San Francisco share many of the same interests, wear clothes made by the same companies, watch the same shows on TV, and share so many of the same hopes and dreams. It is this tying together of our global shared interests that has driven the global economy to grow by 15-fold since the end of World War II, bringing a level of abundance to much of the developed world that is simply beyond the imagination of the people who fought to save the world from tyranny. And while our society now wrestles with complex and necessary questions about equality, during that same time period the share of humans living in extreme poverty has fallen from over 70% at the end of the war to less than 15% today. But with all of the good this interconnectedness has brought us; it has also provided the Coronavirus with the means to circle the globe at a speed that has no precedent.

We live in exceptional times.

During our call today, I’m going to be discussing how we at Ensemble Capital are doing our best to process the events that are unfolding, the impact this crisis may have on the economy, and why we believe that despite our expectations that a cataclysmic economic event is unfolding, investors in exceptional businesses, but not all businesses, are likely to be well rewarded for making a thoughtful, rational decision to continue to hold or even buy stocks during this time of panic…

Read more here.

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For more information about positions owned by Ensemble Capital on behalf of clients as well as additional disclosure information related to this post, please CLICK HERE.

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