Returns earned in 2025

For 2025, the fund since its inception (2022) has grown +99.81% cumulative (or +19.79% annually), while the S&P 500 index (the global benchmark) grew an impressive +77.55% cumulative (or +16.16% annually) over the same period. I say impressive because it's not at all common for such a large index to grow that much — the average over the last 100 years is 10% per year.

Looking at 2025 alone, the fund grew +12.48% (exceeding the +10% annual target), while the S&P 500 index grew +16.39% annually. This means that evaluating ONLY 2025, the S&P 500 outperformed the fund (but note, the S&P 500 did not outperform the earlier investments that had already been made in the fund). The fund, counting only pre-2025 investments, grew +18.54% (more than the index). For those interested, I explain this in more detail in the paragraph after the chart.

Explanation of why the fund's total return is higher since 2022 but was lower looking only at 2025: 2025 was the year I opened the fund to the general public, which is why there was a significant inflow of new capital. My strategy is based on taking advantage of market downturns to buy when no one else wants to — buying excellent companies at excellent prices, as happened in 2001, 2008, 2020, 2022, etc.

While those opportunities don't present themselves, I keep the capital invested in fixed income to protect investors' money and, in doing so, eliminate long-term losses. This temporarily limits the fund's returns but preserves high liquidity to increase total performance over the medium to long term (which is the time horizon this fund invests in).