Matthew McLennan: How to build Resilience Into Your Portfolio

In this article, Matthew McLennan and Kimball Brooker from First Eagle describe how they build resilience into their portfolios and why they think that’s particularly important today. They also share their thoughts on why they tend to be slow to trade and what they think the market is missing today in some of their portfolio companies: Haleon, Shimano, Itaúsa, Douglas Emmett and ONEOK.

Here are the key takeaways

  • Value investing requires patience and discipline: Successful value investors must have the fortitude to stick to their principles even during challenging market conditions. They need to be willing to hold positions for the long term and not be swayed by short-term market fluctuations.
  • Focus on fundamentals, not market sentiment: Value investors should concentrate on a company’s underlying business fundamentals, such as earnings, cash flows, and competitive advantages, rather than getting caught up in market hype or sentiment.
  • Maintain a margin of safety: By purchasing securities at a significant discount to their intrinsic value, value investors provide themselves with a “margin of safety” that helps protect against permanent capital losses and improves potential long-term returns.
  • Be contrarian when necessary: Value investors often need to go against the crowd and invest in out-of-favor companies or sectors. This contrarian approach requires independent thinking and the ability to resist conforming to popular market opinions.
  • Continuously learn and adapt: While the core principles of value investing remain constant, investors must be willing to learn from their mistakes, adapt to changing market conditions, and refine their processes over time to remain successful in the long run.

Our gold-related assets and cash provide liquidity that allows us to be a beneficiary rather than victim of volatility.

Share the news

Disclaimer of liability

The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

You might also find this interesting:

Michael Mauboussin: How to Handle Intangibles in Modern Value Investing

Michael Mauboussin, Head of Consilient Research at Morgan Stanley, delivered a compelling keynote presentation at the Ben Graham Centre for Value Investing’s 2025 conference, addressing how the rise of intangible assets has fundamentally altered the landscape of value investing.

Drawing from nearly a century of investment wisdom while adapting to modern realities, Mauboussin argues that traditional accounting methods have become increasingly inadequate for evaluating companies in today’s intangible-heavy economy. His presentation reveals that intangible investments now represent 1.7 times tangible investments in the U.S. economy, a complete reversal from 1977 when tangible investments dominated by a factor of 1.4.

Cliff Asness: Missing the Best Days Isn’t the Real Problem

Clifford Asness of AQR Capital Management revisits his 1999 rejected paper that challenged one of the most common arguments against market timing. The widespread belief that missing just a few of the market’s best days destroys long-term returns is fundamentally flawed, according to Asness.

His analysis shows that while missing the best performing days does hurt returns, missing the worst performing days provides symmetrical benefits. The author demonstrates through both historical data and simulations that this “evidence” against market timing is mathematically obvious and essentially useless for investment decision-making.

Asness argues that legitimate criticisms of market timing should focus on investors’ lack of skill rather than cherry-picked scenarios of perfect incompetence. His 25+ years of out-of-sample data confirms these findings, showing the argument remains as flawed today as it was when first proposed.

Warren Buffett: Lessons from the Oracle of Omaha

In this special celebratory episode from The Investor’s Podcast, host William Green shares his personal observations from attending the annual shareholder meeting in Omaha where the announcement was made, describing it as the most joyful meeting he’s ever attended.

The episode features powerful highlights from Green’s previous conversations with legendary investors including Joel Greenblatt, Nick Sleep, Thomas Russo, Chris Davis, Chuck Akre, and Christopher Bloomstran, all discussing Buffett’s profound influence on their investment approaches.

Chris Davis: Navigating Todays Turbulent Markets With Bill Miller

Two legendary portfolio managers, Chris Davis and Bill Miller, engaged in a comprehensive discussion about navigating today’s volatile investment landscape, drawing from their combined decades of experience managing billions in assets.

The conversation, structured around nine key topics, covers everything from investment temperament and market volatility to emerging technologies and geopolitical challenges. Miller, famous for outperforming the S&P 500 for 15 consecutive years while managing the Legg Mason Value Trust, and Davis share insights on stewardship, patience, and contrarian investing approaches. The discussion emphasizes the importance of long-term thinking, adaptability, and maintaining perspective during uncertain times.