Rob's half-year letter to his co-investors in the Business Owner Fund.

The letter begins with an update on the fund, detailing why the portfolio's underlying progress is significantly stronger than the first-half headline performance suggests.

It continues with a post-mortem of his investment in Wix, the website-design platform. How did Wix do relative to his original expectations? And what are the lessons learnt?

The proceeds went into Constellation Software, the serial acquirer of vertical market software companies. Rob outlines why the current pessimism around AI created the opportunity to buy a compounder at an attractive price.

The letter finishes with a discussion of the debate around value vs. momentum. Should value investors continue to buy companies for less than they are worth, trusting that eventually price will reflect value? Or should they buy those companies with a strong narrative and the wind at their back even if valuations seem a little stretched?

In his 2025 letter, Rob discusses:

A framework for selling investments;

Why we sold Prosus;

The idiosyncratic reason for selling PDD Holdings;

Why we sold IPCO and kept Aker BP;

Understanding RV's elevated cash position;

The Crans-Montana tragedy and regulatory implications;

Exploring AI's impact on jobs and the future of work;

Analysing the AI scare trade and software moats.

In his half-year letter, Rob discusses:

Business Owner's "Big Five" investments;

Why the portfolio looks different to traditional funds;

The unsuccessful investment in Ryman Healthcare: mistakes made and lessons learned;

And, whether the AI boom is a repeat of the dot-com bubble in the late 1990s.

Rob describes a recent trip he made to China, Japan and the US and discusses what he learned.

As the trip started shortly after President Trump declared Liberation Day on 2 April, the trade war and tariffs were a recurring topic of the trip.

The postcard discusses the trade war, but it is not just about the trade war.

The trade war is in the news today but news cycles get ever shorter. It is important not to be so focused on the news that you miss the bigger picture.

As such, the postcard also touches on broader developments in China including AI, Electric Vehicles and the growing prominence of Chinese companies.

In his 2024 letter to co-investors, Rob discusses:

• What a near 50% drawdown feels like
• Six investments in China
• One new investment in the energy sector
• Business and the moral high ground

Panel Discussion at RV Capital's Annual Gathering in Engelberg on 12 January 2025 with Graham Rhodes, Yixin Li, Fred Lui and Sofia Hou.

Show Notes

Fred's letter on China: https://www.haydencapital.com/wp-content/uploads/Hayden-Capital-Quarterly-Letter-2021-Q2.pdf

Blog referenced by Fred: https://www.baiguan.news/

Rob's book recommendation: "The Battle of Bretton Woods" by Benn Steil

Amelie hosts the panel "Women in Investing" at RV Capital's Annual Gathering in Engelberg on 12 January 2025 with April Li, Cynthia Maasry and Franziska Reh.

Rob does a mountainside chat with Will Thorndike, private equity investor and author of "The Outsiders", at RV Capital's Annual Gathering in Engelberg on 12 January 2025.

Rob and Andreas' Q&A at RV Capital's Annual Gathering in Engelberg on 11 January 2025.

Rob does a mountainside chat with Will Lundin, CEO of International Petroleum, at RV Capital's Annual Gathering in Engelberg on 11 January 2025.