I have to periodically remind myself that Uniti Wireless is trading at 10x sales. Great business, but with incredible expectations baked into it.


IEL, another great business, now has a yield of less than 1%.


RMD, a truly fabulous company, whose earnings need either to moon, or be valued at c40x 10 years from now.


The odds of RMD being valued at 40x ten years from now, when it is a plausibly mature business, deeply saturated across sleep disordered breathing markets, seems unlikely to us.

Still, these are all secular growth stocks, and not owning them means we are feeling some (relative) portfolio pain (relative in brackets, absolute is fine). It appears to be the right thing to do, avoiding these names, but still, it doesn’t feel great.

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