Business fundamentals of our investments remains exceptional. For the most recent earnings quarter (ending June 30th, 2021), our 22 Long investments collectively reported a record $381 billion of revenue representing +36% growth versus the same quarter in 2020. On a weighted-average basis, our Long portfolio companies grew revenue +52% year-over-year and their management teams are guiding for more robust growth to come (which is echoed by customer surveys and independent data we monitor).
The aforementioned operating results highlight one of the most important tenets of our long-term investing strategy, specifically: investing in dominant franchises whose products and services represent a necessary and increasing portion of the global economy (“structural winners”). To demonstrate the magnitude of the structural tailwinds benefiting our investments, the most recent quarter’s Long portfolio revenue is +58% higher than the same quarter in 2019 – representing an incremental +$140 billion in just two years. For context, U.S. GDP is up ~6.5% over the same period. Our businesses are growing significantly faster than the global economy and it is my expectation that this trend continues for many years.
As always, we look beyond short-term market volatility and remain focused on our portfolio companies’ long-term earnings power which I believe will drive substantial investment returns. Our strategy is unchanged and we maintain a liquid, diversified portfolio and a conservative balance sheet. My family’s capital is fully invested alongside you – thank you for your trust and partnership. Please feel free to reach out anytime.
Your partner and fiduciary,
Faris Jafar, Chief Executive Officer
Phone: (734) 678-8562