Workday: 4 Reasons The New S&P 500 Addition Is Expected To Outperform

Core Insights - The investment strategy focuses on acquiring strong businesses when they are undervalued, emphasizing a concentrated portfolio approach in various industries [1] - The current focus is on high-quality businesses, particularly in the technology sector, which have large user bases and content libraries, highlighting the potential for cross-selling opportunities [1] - The investment philosophy values companies at the EBIT plus R&D level, recognizing the importance of certain R&D investments [1] Performance Metrics - The annual return from February 2019 to October 2024 was reported at 11.4% CAGR, which is below the market's 15.18% CAGR [1] - The belief is that the knowledge gained since 2019 will enable future outperformance of the market [1] Investment Philosophy - The approach does not endorse traditional "Buy" and "Sell" recommendations, instead categorizing stocks into "Strong Buy" and "Strong Sell" based on their pricing relative to exceptional business quality [1] - A "Hold" position may be initiated for high-quality businesses if their pricing is not favorable [1]