Investing Round Table (March 2023)

Join us for the Investing Round Table, a monthly session of name your favorite stock right now in true round table fashion. The round table knights include small company champion and Mid-Michigan Director Ken Kavula; Cy (MythBuster) Lynch; guest damsel Anne Manning, pharmaceutical scientist Hugh McManus; and Manifest Investing’s Mark Robertson who will analyze their favorite stocks. The team will be identifying companies positioned for strong performance and share some ideas about their potential. The tracking portfolio has an annualized total return (since July 2010) of 16.0%.

The March 28, 2023 Investing Roundtable session brought together five experienced investors—Ken Kavula, Mark Robertson, Cy Lynch, Ann Manning, and Hugh McManus—to discuss the performance and strategy of their 13-year-old tracking portfolio. The group demonstrated strong results, achieving a 14.8% annualized return against the Wilshire 5000 benchmark's 9.1%, yielding a relative return of 5.7%—exceeding their 5% goal. They emphasized that their 50.6% outperformance accuracy aligns with industry standards, noting that even the best stock pickers achieve success rates of 50-55% rather than the previously targeted 60%.

The panelists reviewed their portfolio holdings, highlighting major successes like Microsoft (up $70,000 from $5,000 invested) and discussing current challenges in positions like Regeneron, LGI Homes, and Nvidia, which show declining growth prospects relative to money market returns. A significant portion of the discussion focused on banking sector holdings, specifically Western Alliance Bank and First Foundation Bank, which have been heavily impacted by recent market turbulence. The panel expressed confidence in these positions as long-term holds, viewing the recent sell-offs as temporary market panic rather than fundamental deterioration, and suggested that current valuations present buying opportunities rather than reasons to exit.

The roundtable reinforced the Manifest Investing philosophy of quality companies at reasonable prices, long-term buy-and-hold strategies, and disciplined portfolio management. The session showcased the power of consistent investment decisions over extended periods while acknowledging that patience and conviction during market downturns are essential to successful investing.