to slow, dragging the S&P 500 to 3,900 by year-end, down 11% from 4,362 on Tuesday.
The risks he's more worried about are the cyclical headwinds and tailwinds that impact specific industries, especially those he invests in. "With the concentration and the long-term orientation, we're typically only making two or maybe three new investments per year," Macauley said."And so we could be really selective in the types of businesses that we look at. We can conduct a lot of fundamental research on those companies, and we could be patient looking for the right entry and exit points."
An attractive growth opportunity; his picks typically have a small market share in a large market and are well-positioned to gain market share.They are reasonably priced and have a high probability of compounding at a mid-teens rate or a 15% compounding of earnings-per-share or cash-flow conversion.