I do not have any special knowledge about viruses or epidemiology and will not express opinions on this topic. Yet, I do like to share a few thoughts about our investment philosophy.

Intelligent investing is based on the relationship between the value of a business and its market price. There will always be global events that will have some impact on the operations of our businesses. While longer-term trends drive the values of our firms, daily news can cause market prices to fluctuate widely around these values. Over time, prices will more or less reflect intrinsic values.

Would you sell your successful family business because a virus is spreading?

We do not trade partial ownership (shares) based on macro-economic events. We grow our wealth because we co-own companies that prosper.

Every business is likely to be impacted somehow by a major virus outbreak. Yet, I believe that even in case of a pandemic the values of the businesses we own in the Guardian Fund will be impacted only modestly. All have strong balance sheets that can withstand a temporary decline in revenues. Some of our technology companies may even benefit from people’s reactions to current events.

As we will be net buyers of stocks over the next few decades, we always welcome lower prices and are ready to increase our ownership at the right price. I have great confidence in the management of the companies we co-own to be able to adapt and cope with challenges. The intrinsic values of our businesses are likely to grow significantly over time.

I wish you and your family good health.

Sincere regards,

Georg

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