06/03/2026
Gold & Oil – Why we don’t own Commodities
We don’t buy gold bars or barrels of crude. Here’s why.
Commodities are “things,” not businesses. They don’t generate cash flow, hire smarter people, or make strategic pivots when markets change. Their prices move on macro forces—supply shocks, geopolitics, and short-term sentiment—so you’re betting on price swings, not on durable growth.
Instead, we invest in high‑quality companies that may:
*Grow revenue through strategy (new products, markets, pricing power)
*Reinvest profits to compound returns over time
*Deliver cash flow, dividends, and buybacks
*Improve margins via better operations and leadership
*Be held to governance and transparency standards
Put simply: we prefer owners to spectators. A company can decide to innovate, expand, and return capital to shareholders. A commodity can’t.
