Benjamin Graham said that the greatest losses are made in investments in poor companies during favorable times (high markets). The Philosophers’ Legacy Portfolio core idea is that it is far better to invest in wonderful companies at fair prices. As a group they basically don’t lose money when bought cheap enough. Time is the friend of a wonderful business. I do not believe the portfolio’s current drop is a permanent capital loss. But I feel sorry for the ones who bought poor businesses at the peak. The picture shows how our portfolio has developed during the bear market.
