Beyond the Noise: Finding True Value in a Volatile World – An Oakmark Journey

You know, in this ever-spinning global economy, it's easy to get caught up in the daily headlines, the market’s frenetic dance. But for us at Oakmark, particularly with our Global All Cap Strategy, the third quarter of 2025 wasn't just another three months on the calendar; it was a testament, perhaps even a quiet triumph, to sticking with what we truly believe in: genuine value, patiently sought.

We saw some truly fascinating movements, and I’ll be frank, navigating these waters demands more than just a quick glance at the ticker tape. Our strategy, for once, didn't just meet expectations; it actually delivered a rather encouraging performance, handily outpacing the broader MSCI World Index. And honestly, it’s not about bragging rights. It’s about the underlying philosophy proving its mettle yet again—a focus on quality businesses, those gems trading at a meaningful discount to what we believe they're genuinely worth, regardless of where they sit on the market cap spectrum.

So, what fueled this progress, you might ask? Well, it wasn't a single, magic bullet, you could say. Rather, it was a confluence of thoughtful selections that truly resonated across the portfolio. Take, for instance, some of our deeper dives into European industrials; these companies, often overlooked in the frenzy for the 'next big thing,' quietly demonstrated their resilience and earnings power. We also saw strength from select U.S. technology firms, not the flashy, high-flying types necessarily, but those with robust business models and defensible competitive advantages that, in our estimation, the market had unfairly dismissed.

It’s about seeing the forest for the trees, isn't it? While many were perhaps preoccupied with short-term blips, we remained steadfastly committed to businesses we understand, with management teams we trust, and whose long-term prospects remain compelling. In truth, this quarter reinforced our belief that fundamental research, paired with a healthy dose of patience, is not just a quaint notion from a bygone era; it’s a living, breathing strategy that continues to unlock significant potential for our investors.

Of course, it wasn't all smooth sailing—the market never is, right? Geopolitical uncertainties and persistent inflation worries continued to cast long shadows, reminding us that vigilance is always key. But these very challenges often create the dislocations we look for, offering opportunities to acquire fantastic businesses when others are perhaps more hesitant. As we peer ahead, our conviction remains unshaken. We’ll keep turning over stones, dissecting balance sheets, and engaging with leadership teams, all in the pursuit of finding those undervalued, high-quality companies that are poised for long-term growth. Because, at the end of the day, that’s what true investing is all about.