The weekly digest — 26.02.25

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 became entitled to our next dividend from 3M earlier this month. Established in Minnesota in 1902 as Minnesota Mining and Manufacturing (later 3M), the company originally launched to mine for corundum — a mineral ideal for sandpaper and grinding wheels. However, upon discovering the low quality of their corundum, 3M pivoted towards the invention of industrial applications instead. Fast-forward more than a century later and 3M is a household name deserving of some serious number-crunching. In 2024, the company generated more than $24 billion in sales; across more than 200 countries; with more than 60,000 products used in homes, businesses, hospitals, schools and other industries (including Post-it; Scotch; and NexCare). For more than a century, 3M has paid uninterrupted dividends and — prior to the 2023 spinoff of its healthcare business, Solventum — the company had increased its dividend for a consecutive run stretching more than 60 years. Notwithstanding significant challenges in recent years, namely surrounding ‘forever chemicals’ and faulty earplugs, a slimmed-down 3M remains focused on innovation. In fact, one third of its products were born in the last five years, highlighting the company’s momentum as evidenced most recently by its share price nearly doubling.

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.