2019 A Look Back
"Good better best, never let it rest, until your good is better, and your better is the best." - Unknown
I don't know who to credit for that quote, but my grandmother used to say it often whenever she felt there was room for improvement. 2019 was good for The Seville Report, but there is room for improvement.
The markets were down big going into 2019, started by a massive sell off that kicked off in October 2018. While our total portfolio ended 2018 down 2.6%, we had positions that were down more than 30%, and our subscribers were not happy. We fielded emails and discussed strategy and positions with anyone one who had questions. We advised anyone who would listen to buy more Taiwan Semiconductor, Cognizant Technologies, Synchrony Financial, Apple, and Alibaba while they were down. By the end of January 2019, the markets were moving back up and our readers felt a bit more at ease.
I expect what happened to us in 2019 happened to any patient investor or brokerage house who didn't panic. Typically when money starts to flood back into markets after a drop, the first place the money heads is into the good companies, the companies like Apple, Amazon, and LVMH. Because these are the companies that make up the bulk of our portfolio and recommendations, we were able to see a quick turn around as the markets started moving up.
There is still room for improvement however. Last year we emphasized patience on our part. In 2018, we recommended good companies but at the wrong prices, and a lack of patience caused us and our readers to deal with gut-wrenching declines that could've been avoided.
We emphasized patience in 2019, constantly asking ourselves after isolating an idea, "Is now the time to buy?" Many of the times it was not. Ideas we discovered in February were held and fleshed out and then reconsidered for the June or September issues instead of the March issue. Being patient has served us well and we will continue to practice patience in 2020.
There are big gains to be made over the next year and over the next decade.
We are excited for all the opportunities 2020 will bring. This could be the decade where blockchain, artificial intelligence, machine learning, and automation really take off. Investors should keep their ears and eyes open moving forward. Blockchain could be in this decade what cloud technology was in the last decade. Amazon, Google, and Microsoft were able to hit trillion valuations off the backs of their cloud computing businesses. That alone proves how things can turn in 10 short years. We entered the decade with many people not understanding the full capabilities of cloud computing, we exit the decade with investors making big gains from it. Who knows what will be the big thing in the 2020s, we assume it could be Blockchain technology or artificial intelligence, but it could be anything.
For 2020 and the 2020s we want to continue being diligent and patient. We want to hurry up and do the research, but then wait for the right time to buy. We want to keep bringing undervalued situations to our readers, and more importantly we want to continue to usher in a new generation of investors. We will continue to work to be the investment tool that creates wealth for a generation of new investors.
Thanks for sticking with us last year, and we hope to be of value to you in 2020.
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The last four recommendations were not revealed purposely. We typically wait six months from the release date of the newsletter before revealing what investment ideas we discussed.