The weekly digest — 15.01.25

A Winning Machine

What is more powerful than a 101-year-old winning machine? Since 1923, the S&P500 index has generated an annualised return of ~10.5%. For more than a century, it has:

• Beaten 99.9% of professional investors, who typically underperform the index annually by ~2-3%, with the gap widening over time.

• Proven its stellar compounding potential; $1 invested in the index in 1923 would be worth more than $13,000 today.

• Comprised of the bluest of the world’s blue-chip stocks, self-regulating and re-weighting these in line with their individual performances — eliminating user selection error.

• Always regained its previous highs, surviving the Great Depression, one World War and the Covid pandemic.

Weekly Digest

On a look-through basis, we received our latest dividend from Kimberley-Clark last week. It marks a significant milestone in the company’s dividend history; this dividend represents the 90th consecutive year Kimberley-Clark has paid shareholder dividends and the 52nd year of continuous annual dividend increases. With a history of more than 150 years, Kimberley-Clark has established itself as a household name in baby and childcare (Huggies), family care (Kleenex) and feminine care (Kotex). Its products are an indispensable part of everyday life for people in more than 175 countries. In fact, it is estimated its products are used daily by nearly one quarter of the world’s population. With more than five billion-dollar brands in its suite, Kimberley-Clark commands #1 or #2 market share position in its segments in 70 countries, driving more than $20 billion in annual sales. While its key products may appear basic, Kimberley-Clark is renowned for its initiative and product innovation; named one of Fortune’s most innovative companies in America in 2024 (again), the company is well-positioned to extend its formidable dividend record in the future.

To Have and To Hold

The greatest threat to our investment success? Us. So, how do we get ourselves from outset to outcome? Over four years, we’ve collected more than four million data points that demonstrate how a particular methodological communication keeps investors on track. This email is part of a powerful anticipatory feedback loop that works as a bad-decision buffer. With our handholding, evidence shows investors are far more likely to hold onto their investments — long enough to enjoy their wins.