Company Overview - Intuitive Surgical, Inc. (ISRG) was founded in 1995 and is based in Sunnyvale, CA, specializing in robotics for minimally-invasive surgical procedures across various medical fields including urology, gynecology, cardiothoracic, head/neck, and general surgery [1]. Investment Philosophy - The company emphasizes the importance of patient investing through both good and bad times, highlighting that the slow accumulation of high-quality assets is key to wealth creation [1]. - It advocates for a balanced investment approach that includes both steady investments and high-risk/high-reward opportunities, as well as transformative technologies [1]. Educational Background - The company has a strong academic foundation, with its team members possessing advanced degrees and extensive teaching experience, contributing to a well-informed investment strategy [1].

Core Insights - The ASX index saw significant returns in 2025, driven primarily by materials, industrials, and telecommunications sectors, with commodities, infrastructure, and connectivity playing key roles in the rally [1] Materials Sector - The materials sector led the ASX with a remarkable 27% gain, primarily driven by gold and critical minerals rather than traditional iron ore [2][3] - Gold prices surged approximately 60% in 2025, with notable performances from Evolution Mining Ltd, which rose 160%, and Newmont Corporation, which increased by 149% [4] - The strategic importance of rare earths led to a 97% increase in Lynas Rare Earths Ltd, reflecting the sector's role in defense, electrification, and clean energy [5][6] Industrials Sector - The industrials sector achieved a solid 9% return, supported by high-quality businesses such as Transurban Group, which benefited from resilient traffic volumes and inflation-linked tolls [9] - Brambles Limited saw an 18% increase, leveraging its global pallet pool amid steady demand for consumer staples and e-commerce [9] - ALS Ltd rose 44%, driven by demand for testing and inspection services across various markets [10] Telecommunications Sector - The telecommunications sector combined defensive income with growth, achieving an 8% return in 2025 [2][13] - Telstra Corporation Ltd gained 21% as it raised prices across services while maintaining cost control, solidifying its position as a defensive stock [14] - Aussie Broadband Ltd stood out with a 42% increase, expanding its market share and transitioning into a national player [15] - Tuas Ltd experienced an 11% rise, benefiting from offshore growth in Singapore with its low-cost mobile offerings [16] Future Outlook - The performance of these sectors in 2026 will be influenced by commodity prices and interest rates, alongside macroeconomic factors [18] - Long-term success will depend on disciplined investment in high-quality businesses that can grow earnings and maintain strong balance sheets [19]