We recently hosted our quarterly client conference call. You can read a full transcript HERE.

Below is an excerpt from the call discussing our investments in Ferrari, First American, and Schwab and why we expect them to survive and thrive on the other side of COVID-related economic and business impacts.

Excerpt

Arif Karim:

We’ll talk about Ferrari next. Obviously being located in one of the hardest hit countries, Italy, has had a major impact on Ferrari’s ability to operate its production operations normally. This hits right at the heart of its ability to supply customers with its highly coveted products.

Given Ferrari’s high average selling price and margins, we believe the company is resilient enough to see through a multi-month period without severe cashflow issues while we expect demand to be fairly inelastic given its long 12-24 month waiting lists across 6 recently launched and limited supply models, all supported by the wealth of its clientele.

So, while supply will be even more constrained at both Ferrari’s and its suppliers’ productions facilities this year, we believe demand will be generally resilient. As a datapoint, even during the depths of the Great Recession in 2009, unit sales only declined 4%. Coming out of the current disruption, we expect a reasonably quick ramp in production to fulfill that pent up demand.

Source: Ferrari

To understand why that might be, lets revisit the core value proposition of Ferrari. Though Ferrari builds and sells cars, the cars are conduits to deliver a great experience to the world’s wealthiest and most elite clientele. Buying and driving a Ferrari is an experience that combines many characteristics including automotive driving and racing passion, status, and an appreciation of design and engineering craftsmanship. Buying a Ferrari also buys membership into an elite global network of peers who share the passionate and thrilling desire for driving and racing. Being a part of this club and being invited to Ferrari’s events provides a lot of value to clients, while working their way up the loyalty ranks earns them the privilege to buy exclusive, limited series models. These limited series models are the most coveted and most restricted in supply. Some of these become collectibles over time and can see strong appreciation in value upon delivery.

Because of the general supply/demand imbalance Ferrari usually favors to maintain product exclusivity, a practice inherited from its founder Enzo Ferrari, those who cancel their order while on the waiting list, do so only reluctantly since there is likely to be someone else nipping at the chance to take their place. And this could also impact their opportunity to buy the next exclusive model creating a strong motivator to follow through on delivery of their orders.

Sean Stannard-Stockton:

First American Financial, along with their competitor Fidelity National Title, control most of the title insurance market in the United States. When you buy a home with a mortgage, the lender requires title insurance to make sure that the seller actually has full and clear title to the property. While it is just one small piece of the overall home buying transaction, when you sit down to sign the final closing paperwork to buy a house you will generally find yourself sitting in the office of First American or Fidelity National as title companies provide the escrow services to allow the buyer and seller to transfer cash and title to escrow before each is released to the other side.

Of course, the number of home sales is going to drop dramatically during this spring selling season. It is not legal in many parts of the country to host or attend an open house. But the fact is Americans are still going to want to buy and sell homes in the future. Indeed, while home prices have increased a lot in recent years, the number of home transactions, the primary driver of First American’s business, have run at historically low levels. The rate of growth in January and February was actually heating up and growing at the fastest rate since prior to the housing bust over a decade ago. So while home buyers may spend shelter in place browsing Zillow and Redfin in search of their next home, when economic activity returns, we expect First American to benefit greatly from the pent up demand that will be even stronger given even lower rates on mortgages.

Source: First American

While there has been little in the way of new competition to title companies, we expect that many of the small digital first startups that are interested in competing will not be able to survive. Instead, industry participants will be far more focused on staying loyal to First American knowing that in a crisis as well as when trying to emerge from a crisis, if you are engaging in multimillion dollar complicated transactions such as buying and selling homes, you want to work with a trusted leader. As an aside, it is worth noting that title services along with many of the functions involved in home transactions have been deemed essential services and thus are allowed to continue during shelter in place.

Arif Karim:

With $4 trillion in custodied assets, Schwab is one of the largest financial institutions in the US and among the fastest growing. It has two main lines of businesses that generate substantially all of its revenue, its asset management and advisory business, which collects revenue from a fee charged as a percent of assets under management, and its bank business, which collects a spread between the interest it pays clients for their cash balances and the rate it collects from investing that pool of cash in predominantly low risk bonds issued or backed by the US government.

Schwab has a long history dating back to the 1970’s and has lived through many recessions and shocks. Consistent along its history has been the ability to adapt and grow by winning for its clients and itself by delivering valuable services more cost effectively as it has leveraged its growing asset and operational scale.

We believe its business model is built for both growth and resilience. The combination of the AUM based asset management business and the spread based bank can create a balancing dynamic, though with the fed funds rate cut this year at 150 basis points, both businesses will be pressured but with some offset as clients raise cash due to uncertainty and market volatility.

Source: Schwab

Net-net, we expect to see Schwab’s revenue decline relative to 2019 in one of the most severe economic periods in history, while operating margins are expected to remain robust even after declining materially.

On the other hand, we believe many of the FinTech startups competing in this space will see a much harsher impact in their ability to continue serving customers and investing in their businesses during this period of tighter capital availability and their subscale, developing business models. This will earn Schwab even greater competitive advantage exiting this period.

You can read the full transcript here.

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.

While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. The opinions expressed within this blog post are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. All opinions are subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Nothing contained herein should be construed as a comprehensive statement of the matters discussed, considered investment, financial, legal, or tax advice, or a recommendation to buy or sell any securities, and no investment decision should be made based solely on any information provided herein. Links to third party content are included for convenience only, we do not endorse, sponsor, or recommend any of the third parties or their websites and do not guarantee the adequacy of information contained within their websites. Please follow the link above for additional disclosure information.

We recently hosted our quarterly client conference call. You can read a full transcript HERE.

Below is an excerpt from the call discussing our investments in Netflix, NVR, and First Republic and why we expect them to survive and thrive on the other side of COVID-related economic and business impacts.

Excerpt

Arif Karim speaking:

As the leading streaming video provider around the world with over 160 million paying subscribers, Netflix has seen a huge increase in engagement as a result of global lockdowns. A recent estimate we saw indicated 4 billion people have been ordered to restrict their movement. And what do people do when they stay home? Well, one thing they have been doing is watching a lot more Netflix. In fact, so much so that it’s put a strain on regional internet networks that have also seen a surge in capacity utilization from work at home and school at home activities such as video conferencing.

As a result, in parts of the world including Europe, Netflix has voluntarily reduced video streaming quality to free up bandwidth for other productive uses. This indicates strong user engagement, which is always the first level proxy in value creation in a service that is about consumer attention at its core. And the more valuable a service, the less likely the consumer is to drop the service for any reason and the higher the pricing power the service builds up.

Source: Netflix

So, from our reading, the value of Netflix has gone up tremendously for its users as they stay in and socialize less. In the meantime, with economic pressures on consumers globally, we think it’s reasonable to expect that Pay TV subscriptions like cable and satellite, could see accelerating declines, especially here in the US where that trend has already been in place. This would free up five to 10 times more budget than cancelling a Netflix subscription of $13/month. Netflix is more likely to be near the bottom of costs to cut and near the top of services to add in our view.

Finally, Netflix announced it would spend $100 million to support out of work members of the creative community as a result of the impact of Coronavirus. This is a strong show of support for creative partners and potential partners on the production side of its business but also demonstrates the company’s financial strength and culture. It undoubtedly wins Netflix even stronger sway as the preferred partner for creators to help Netflix fill its growing global audience’s appetite for new content across categories.

Todd Wenning speaking:

We’ve previously discussed our interest in finding idiosyncratic businesses, or companies that aren’t easily compared to others. NVR is one such company. While it is a homebuilder and is impacted by macroeconomic trends in housing, it has a unique culture and business model that is primed to not only survive near-term shocks but thrive on the other side.

Most homebuilders started as land developers and later got into homebuilding. As such, land development is in most homebuilders’ DNA. Owning and developing land has its benefits, especially in boom times when land values are appreciating and property is scarce. This works both ways, however, and as we saw during the housing crisis in 2008/2009, land-heavy homebuilders are often forced to write-down land values and some go out of business. In fact, the largest homebuilders were more land-heavy going into the COVID downturn than they were in the years leading up to the housing crisis.

Source: Ryan Homes

Rather than owning land, NVR’s long-time strategy has been to option its land, providing it with more financial flexibility when times get tough. Further, NVR had over $500 million of net cash at year-end 2019. During the housing crisis, NVR expanded into new territories and in the coming quarters we expect management to once again capitalize on opportunities to both expand and consolidate share of key markets.

When the market gets concerned about homebuilding, NVR often gets thrown out with the bathwater and we believe this has been occurring again. Going into the economic pause, there were several strong tailwinds supporting new home builds including the largest cohorts of millennials moving into household formation and prime earning years, a lack of existing home inventory, low mortgage rates, and low unemployment. Indeed, in February, monthly new home sales hit their second-highest level in 12 years. Though unemployment is a big question mark over the next few quarters, the demographic, existing home inventory, and low interest rate tailwinds remain in place. In fact, the rise of remote work during COVID quarantine may be another tailwind for new home sales (which are typically in suburban and exurban areas) as more workers may find they do not have to live close to companies’ urban headquarters to do their job.

Sean Stannard-Stockton speaking:

First Republic is a bank that caters to high net worth families. They are widely seen as the most conservative bank in terms of underwriting loans and over the long term, including during the housing bust and financial crisis, they have seen a rate of losses on their loans at about 1/5th the level of losses reported by the big banks.

There is no doubt that First Republic will earn less this year than we would have expected them to earn prior to Coronavirus. The main reason for this is the rapid decline in interest rates and thus the rate of return they can earn on the home loans they offer their clients. Yet it is important to note that it is the spread between the amount they earn lending money vs the rate they pay on checking and savings account deposits that drive earnings. While this spread will narrow, part of the decline in mortgage rates will be offset by a decline in the interest the bank pays on deposit accounts. In addition, the drop in rates has triggered a boom in refinancing and as we saw during the refinancing surges in recent years, First Republic is typically a net winner as more people with loans at other banks refinance the loan over to First Republic rather than refinance their First Republic loan to another lender.

Source: First Republic

In making the decision to invest in First Republic years ago, we certainly did not forecast a viral outbreak occurring. But we did assume that there would be deep recessions and ever financial crises that may occur while we owned the stock. Their strong credit profile is important not just from a financial modeling perspective, but in attracting customers. For as long as we’ve been invested in First Republic, the bankers’ desks at the local branch near our office have displayed a one-page summary of the company’s credit ratings, illustrating how they are better capitalized than all the well-known big banks. It is the companies that recognize the importance of being safe and secure all of the time that are best positioned to retain their customers’ trust during a crisis. So when Americans started thinking about sheltering in place and wondering if their cash in the bank would still be there after the crisis, knowing that First Republic has always stood for risk avoidance and high levels of service provides their customers with the confidence they need to keep their assets with the company or even consolidate other loans or deposit accounts they might have elsewhere.

You can read the full transcript here.

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.

While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. The opinions expressed within this blog post are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. All opinions are subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Nothing contained herein should be construed as a comprehensive statement of the matters discussed, considered investment, financial, legal, or tax advice, or a recommendation to buy or sell any securities, and no investment decision should be made based solely on any information provided herein. Links to third party content are included for convenience only, we do not endorse, sponsor, or recommend any of the third parties or their websites and do not guarantee the adequacy of information contained within their websites. Please follow the link above for additional disclosure information.

Below is the Q1 2020 quarterly letter for the ENSEMBLE FUND (ENSBX). You can find historical Investor Communications HERE and information on how to invest HEREEnjoy!

 

The performance of the Ensemble Fund (“the Fund”) this quarter was down significantly along with the market. After outperforming significantly during the strong rally of 2019, the Fund finished the quarter down a bit less than the market in the first quarter. The Fund was down 18.64% vs the S&P 500 down 19.60%. Over the last year, this brings the Fund’s performance to down -3.28% vs the S&P 500 down -6.98%.

As of March 31, 2020

1Q20 1 Year 3 Year Since Inception*
Ensemble Fund -18.64% -3.28% 8.24% 8.49%
S&P 500 -19.60% -6.98% 5.10% 6.95%

*Inception Date: November 2, 2015

Performance data represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Performance data current to the most recent month end are available on our website at www.EnsembleFund.com.

Fund Fees: No loads; 1% gross expense ratio.

While we write about performance on a quarterly basis and we think this is the appropriate cadence on which investors should evaluate us, we saw a significant impact on our relative performance over the last four days of the quarter that we thought would be worth sharing as it speaks to some of the unique dynamics driving market performance during this unprecedented time.

First of all, it is worth noting how volatile the market was in February and March, and how this volatility was apparent in our relative performance, not just absolute performance. During 2019 for instance, the excess return of the Fund vs the market on any given day tended to be much less than half a percent. While the last two months have seen many days on which the Fund under or outperformed by a full percentage point or more. During the six-week period after the market began to decline in mid-February, we saw our relative performance vs the market swing by 1.5% or more on six separate occasions. These swings were caused by the highly unusual market volatility which saw days in which many stocks were up 10%, while many others were down 10%. Historically, the volatility of the Fund has been similar or somewhat less than the market and in the last quarter it continued to display similar relative volatility. So, these big price swings and shifts in our relative performance were a function of broader market volatility, not a function of our portfolio of holdings exhibiting higher than normal relative volatility.

From the market high on February 20th though Wednesday March 25th, we saw our relative outperformance expand materially. This was true during the selloff, as well as during the first leg of the market recovery through March 25th. But the last four days of the quarter saw a large decline in our relative performance of approximately 2.5% which led to us finishing the quarter just a bit ahead of the market compared to having been materially ahead just a few days earlier.

There is one highly unusual statistic to know about the market recovery at the end of the quarter that speaks to why the Fund did not keep up with the overall market during the last few days. The utilities sector of the S&P 500 only makes up 3.5% of the index and so, the performance of these stocks does not by themselves influence overall returns all that much. However, these stocks are generally considered the safest stocks in the market having exhibited far less volatility than the overall market during the past twenty years. But during the sharp 15.6% rally in the S&P 500 from the lows, the utilities sector exhibited much higher volatility than the market while rallying 23.8%.

The unusually strong performance of low volatility stocks, of which utilities are one example, was most pronounced during the last four days of the quarter, the period during which the Fund rallied significantly but not as strongly as the market. We believe that this unusual dynamic was a function of the massive, forced rebalancing by many allocators who have a mandate to maintain a pre-set allocation between stocks and bonds. With forced selling of bonds and many investors still terrified of risk, these bond sale proceeds appear to have been dumped into low volatility, “bond proxy” type stocks that offer the closest risk/return profile in the equity market to what investors might otherwise find in bonds.

We like low risk investments as much as anyone. In seeking out companies to own, we put a high value on businesses which exhibit stable, long duration cash flows that can be depended on. But we also pay close attention to how much in the way of potential returns we must give up in order to reduce risk. So, it is very notable to us that the utilities sector finished the quarter trading at a valuation that puts it at the average level seen over the past 30 years, while the overall market is trading about 10% cheaper than the 30-year average. And, more economically sensitive sectors, such as Industrials, are trading at a nearly 25% discount to average valuation, at levels only seen during the depths of the Great Recession.

As we move forward, we are focused on owning companies which we strongly believe can make it through this crisis as well as thrive on the other side in an environment in which many of their competitors may be deeply damaged. But we also seek to control risk by refusing to overpay for perceived safety. Balancing these three considerations; near term resilience, long term opportunity and current valuation are all critical to investment success during this crisis and we urge investors to not overly focus on any one of these attributes to the exclusion of others. This is what appeared to happen during the last four days of the quarter as investors became willing to pay a significantly higher valuation for stocks offering perceived short-term resilience even in the absence of any compelling long-term opportunity or particularly attractive current valuation.

CLICK HERE TO READ THE FULL LETTER

 

DISCLOSURES

Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. You may obtain a prospectus at www.EnsembleFund.com or by calling the transfer agent at 1-800-785-8165. The prospectus should be read carefully before investing.

An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. There can be no assurance that the Fund will be successful in meeting its objectives. The Fund invests in common stocks which subjects investors to market risk. The Fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. The Fund invests in undervalued securities. Undervalued securities are, by definition, out of favor with investors, and there is no way to predict when, if ever, the securities may return to favor. The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. More information about these risks and other risks can be found in the Fund’s prospectus. The Fund is a non-diversified fund and therefore may be subject to greater volatility than a more diversified investment.

Distributed by Rafferty Capital Markets, LLC Garden City, NY 11530.

While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. The opinions expressed within this blog post are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. All opinions are subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Nothing contained herein should be construed as a comprehensive statement of the matters discussed, considered investment, financial, legal, or tax advice, or a recommendation to buy or sell any securities, and no investment decision should be made based solely on any information provided herein. Links to third party content are included for convenience only, we do not endorse, sponsor, or recommend any of the third parties or their websites and do not guarantee the adequacy of information contained within their websites. Please follow the link above for additional disclosure information.

In our investment philosophy framework, our evaluation of management features prominently. For every investment we make, we ask ourselves these key questions;

  • Does management understand and execute on creating economic value?
  • Does management thoughtfully weigh dividends, buybacks, M&A and debt repayment?

Our framework also refers to phrases such as integrity, culture and the difference between visionary and optimizer management approaches, which are soft metrics that we evaluate.

But in the midst of a crisis what matters most is leadership.

In every crisis, humans look around for a leader. We are a tribal species and we are genetically programmed, especially during times of stress, to seek out someone who will stand up and lead. Humans’ superpower is our ability to coordinate our activities across huge groups. We are able to organize into teams, organizations, cities, nation states, and even on rare occasions engage nearly our entire species in organized activities.

But to do this, we need leaders. And it is in crises such as the current one that great leaders emerge.

We think that our portfolio of companies includes a wide range of excellent leaders. But the best example of corporate leadership we have witnessed during the Coronavirus crisis, or quite possible in our careers, is this video message from Arne Sorenson, the CEO of Marriott hotels, speaking to his employees. Hotels are quite possibly the most hardest hit industry due to the Coronavirus crisis and so Sorenson is speaking as a leader of an organization facing the biggest challenges.


(Click here to view video if you are reading in an email)

Notice how Sorenson is completely authentic. It is clear that he is speaking from his heart. He discusses the “common crisis” that his team faces. He offers reassurance and expresses empathy for those listening. But he offers no false hopes.

He calls this crisis “like nothing we’ve ever seen before,” while noting how remarkable this statement is given that Marriott operated through the Great Depression and World War II. In describing the issue, he doesn’t just speak in generalities. He speaks to his audience like the intelligent people they are and provides data and evidence that illustrates the depth of the crisis.

He does not pretend that getting through this will be easy, but he describes specific actions the company is taking to see their way through. He is blunt about the need to radically pare back expenses, while making clear that these cuts will impact the most senior leaders of the organization, not just the rank and file. He then points to examples of why all is not lost, such as the early signs of hotels reopening in China.

And in the last minute of his message, Sorenson, with nothing but the purest expression of authenticity, begins to lose his composure when he says in an emotion laden voice;

“I can tell you that I’ve never had a more difficult moment than this one. There is simply nothing worse than telling high valued associates, people who are the very heart of this company, that their roles are being impacted by events completely outside their control. I’ve never been more determined to see us through than I am at this moment.”

What Sorenson only mentions in passing, but what his team well knows, is that he has been undergoing treatment for pancreatic cancer and has recently lost his hair due to the chemotherapy.

I don’t know about you, but I’m ready to follow this leader through a brick wall after hearing that speech.

Business is not a zero-sum game. The reason that GDP per capita increases over time is that humans, acting in overlapping groups, are literally creating value. As shareholders in a business, we expect that the company will create value and that as part owners of the company that value will accrue to us. But this definition of value creation only captures part of the value being created.

A company is not just an entity owned by shareholders; it is a collection of people, all of whom have a stake in the value being created by the business. Whether you are a shareholder, an employee, a customer, a supplier, a regulator, or any of the other roles in which people interact with a company, you are a stakeholder in the value (or harm) the company is creating.

If there are no employees, there is no value being created for shareholders. If there are no suppliers, there is no value being created for shareholders. If there are no customers, there is no value being created for shareholders.

But what is amazing about capitalism is that by definition every stakeholder who voluntarily engages in a transaction with a company, whether it is exchanging labor for compensation, inputs for payment, or buying the company’s product or service, both sides of the transaction end up with more value than if they had not completed the transaction. If this is not true, the transaction will quickly stop occurring.

When you understand that the value created for shareholders is intertwined with the value being created for all stakeholders, when you understand that shareholders’ profits are a function of the value being created for other stakeholders, then the actions of the very best corporate leaders suddenly make so much sense.

It isn’t enough to get a company through this crisis, as a leader you need to carry all of your stakeholders to the other side as well. But what’s wonderful is that those stakeholders, the employees, suppliers and customers, want to help. They need leadership. They crave someone to stand up and tell them what is going on, what we’re going to do about it, and how they can help. And when they understand that, they will move heaven and earth to help do their part to get to the other side of the crisis.

This is why Starbucks is paying all of their staff even if they don’t show up for work. This is why Home Depot is seeking to protect their most at-risk, older employees. This is why Netflix is setting aside $100 million to support the content creators whose work is at the core of Netflix’s value proposition. This is why Landstar Systems is paying truckers who are not even technically their employees if they get sick during this crisis. This is why Google is working on a range of ways to help from free Chromebooks for kids trying to do remote school to working with the government to trace who a COVID infected patient may have interacted with before realizing they were sick.

These actions are not just “nice”. They aren’t just “the right thing to do”. They are the actions of corporate leaders who understand that the value their company creates for shareholders is intrinsically tied up with the value created for and by all of the company’s stakeholders.

In every moment of crisis, certain people step up to lead. For the executive teams of public companies, these moments call on them to be brave, to be the leader their stakeholders so desperately need. These moments are painful, and stressful, and no matter how much they think they’ve prepared, each pass through the gauntlet will test them in ways they never expected.

But there is a pattern to how great leaders respond. They take responsibility, they are honest and empathetic, they promise to do everything in their power (and then some) to lead their stakeholders to the other side. And for their efforts, their stakeholders will step up and do their part (and then some).

Every crisis is unique. But the need for leadership when crisis strikes is not. In a 2002 Harvard Business Review article about leadership lessons from the days after 9/11, the ideas discussed are exactly the same as what needs to happen today.

“Suddenly, crisis management was every executive’s job… What I discovered is that, in a time of extreme crisis, internal communications take precedence. Before any other constructive action can take place—whether it’s serving customers or reassuring investors—the morale of employees must be rebuilt.

In periods of upheaval, workers want concrete evidence that top management views their distress as one of the company’s key concerns. Written statements have their place, but oral statements and the sound of an empathetic human voice communicate sincerity… In the words of Rob Densen, Oppenheimer’s Director of Corporate Affairs and a survivor of the 1993 bombing of the World Trade Center, most people engulfed in a crisis “want to be led and accordingly need to trust that you are going to lead them.”

A focus on work, in fact, can be enormously helpful to employees in a time of crisis. It provides an outlet for their desire to help, gets them back into a normal routine, fosters their pride in the company and what they do, and builds strong bonds between themselves and their customers, many of whom desperately need the company to keep their products and services flowing.”

As we’ve discussed, this particular crisis is unprecedented. But the key lessons from past crises can still guide corporate leaders on how they must react. It won’t be possible to thrive on the other side of this crisis, when weaker competitors have been hobbled and great companies will have enormous opportunities, unless on the other side of this crisis a company’s stakeholders are still intact and ready to help the organization execute.

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.

While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. The opinions expressed within this blog post are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. All opinions are subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Nothing contained herein should be construed as a comprehensive statement of the matters discussed, considered investment, financial, legal, or tax advice, or a recommendation to buy or sell any securities, and no investment decision should be made based solely on any information provided herein. Links to third party content are included for convenience only, we do not endorse, sponsor, or recommend any of the third parties or their websites and do not guarantee the adequacy of information contained within their websites. Please follow the link above for additional disclosure information.

Each quarter, Ensemble Capital hosts a conference call with investors to discuss the current market, economic conditions, and a few of our portfolio holdings.

This quarter’s call will be held on Tuesday, April 7, 2020 at 1:00 pm (PST)

We’d love for you to join us on the call, which you can do by REGISTERING HERE or following the dial-in information below:

  • Dial: 1-877-830-2590
  • Conference ID: Ensemble

If you’d like to listen to our previously-held quarterly calls, an archive can be FOUND HERE.

While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. The opinions expressed within this blog post are as of the date of publication and are provided for informational purposes only. Content will not be updated after publication and should not be considered current after the publication date. All opinions are subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Nothing contained herein should be construed as a comprehensive statement of the matters discussed, considered investment, financial, legal, or tax advice, or a recommendation to buy or sell any securities, and no investment decision should be made based solely on any information provided herein. Links to third party content are included for convenience only, we do not endorse, sponsor, or recommend any of the third parties or their websites and do not guarantee the adequacy of information contained within their websites. Please follow the link above for additional disclosure information.