Executive summary We aim to create wealth over decades and manage our investor’s capital just like our own. We only invest in our own funds and seek clients that share our values and long-term perspective. A common interest with our investors is crucial for long term success. When your goal is to compound capital for a generation you focus on other areas than most market participants. We do not have a qualified view on the market returns over the next year and do not know how the macroeconomic picture will look like over the next three to five years. What we know is that we have invested in companies that will grow and prosper over the long haul, irrespective of market conditions. Ultimately the value creation of these companies will be reflected in the stock prices. We sleep very good at night as owners of these companies. We spend several pages in this half-year report to provide more insight into our portfolio holdings in REQ Global Compounders. Over the short run the stock market is a voting machine. Over the long run the market is a weighing machine. As you expand your time horizon and invest with a generational perspective you need to get the fundamental return contributors, represented by profitable earnings growth and dividends, right. The companies in which we have invested have the best prerequisites to create profitable growth over the coming years. They share some common characteristics. Our companies are led by management teams with excellent capital allocation skills. They are strong investors. They tend to organize themselves in a very decentralized manner to release entrepreneurial energy. Last, but not least, the management teams own a lot of shares just like we do. Incentives matter. As you head for the beaches, cabins and holiday resorts we provide you some suggested reading material at the end of the report. The whole team at REQ wishes you the best summer. We look forward seeing you in person during the 2nd half of the year.
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