| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.2% | - | 11.3% |
| 2025 |
|---|
| 11.3% |
Ironvine's core thesis centers on owning businesses that generate growing profits by meeting customer needs, with portfolio companies achieving 12-16% earnings growth in 2025. The firm focuses on companies with durable competitive advantages and attractive reinvestment opportunities across technology infrastructure, aerospace, semiconductors, and financial services. Key holdings include Amazon's dominant e-commerce and cloud positions, HEICO's aerospace aftermarket leadership during supply chain constraints, Amphenol's explosive AI-driven datacenter growth, and payment networks Visa and Mastercard benefiting from digitization trends. Semiconductor investments in TSMC, ASML, and Applied Materials capitalize on AI demand and industry consolidation. The portfolio also includes near-monopoly credit rating agencies Moody's and S&P Global, Microsoft's enterprise software dominance, insurance broker Aon, and Berkshire Hathaway under new CEO Greg Abel. Despite acknowledging risks including potential datacenter capacity oversupply and semiconductor cyclicality, management expects continued mid-teens earnings growth and sees a path to double-digit annual returns even with 20-30% multiple compression, supported by strong business fundamentals and reinvestment opportunities.
Ownership of quality businesses with durable competitive advantages and attractive reinvestment opportunities provides a navigable path to double-digit annual returns through mid-teens earnings growth, even assuming significant multiple compression.
The majority of our companies appear to have tailwinds ranging from modest to quite strong. Barring exogenous events we expect another year of mid-teens weighted-average earnings growth across Ironvine companies. Should this group achieve what we believe to be reasonable multi-year objectives, we see a navigable path to double-digit annual returns even assuming forward earnings multiples compress by 20-30% from current levels.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | ADI, AMAT, AMZN, AON, APH, ASML, BRK-A, HEI, MA, MCO, MSFT, SPGI, TSM, V | aerospace, AI, Capital markets, infrastructure, payments, Quality, semiconductors, technology |
AMZN HEI MCO V MSFT AON BRK.B |
Amazon's e-commerce marketplace connects massive customer base with millions of third-party sellers, providing unmatched breadth and depth at competitive prices. Its increasingly dense fulfillment network… |
| Oct 20 2025 | 2025 Q3 | ASML, ORCL, UNP | AI, ASML, Capital Allocation, Data centers, semiconductors | - | Ironvine presents a detailed investment case for ASML as a dominant enabler of global semiconductor production, benefiting from structural demand for advanced chips and near-monopoly… |
| Jul 25 2025 | 2025 Q2 | HON, UNH, UNP | - | - | - |
| Apr 22 2025 | 2025 Q1 | APH | - | - | - |
| Jan 16 2025 | 2024 Q4 | AMAT, DG, ENTG, TSM | - | - | - |
| Nov 1 2024 | 2024 Q3 | - | - | - | - |
| Jul 18 2024 | 2024 Q2 | DE | - | - | - |
| Apr 29 2024 | 2024 Q1 | AMZN, GOOG | - | - | - |
| Jan 23 2024 | 2023 Q4 | MSFT | - | - | - |
| Oct 30 2023 | 2023 Q3 | CSGP | - | - | - |
| Jul 25 2023 | 2023 Q2 | ADBE, DLTR, HEI, ODFL, UNH | - | - | - |
| Apr 28 2023 | 2023 Q1 | JPM | - | - | - |
| Jan 27 2023 | 2022 Q4 | ADBE, CSGP, HEI | - | - | - |
| Oct 26 2022 | 2022 Q3 | CSGP | - | - | - |
| Jul 27 2022 | 2022 Q2 | AMZN | - | - | - |
| Apr 22 2022 | 2022 Q1 | CHTR, CMCSA, DLTR | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
Capital MarketsExchanges operate as essential high-margin toll roads for the economy with immense operating leverage. They benefit from trading volume flowing directly to profits with minimal extra cost and have natural inflation hedging through transaction values. |
Exchanges Nasdaq CBOE Trading Fees Market Data | |
CloudAmazon's positioning to benefit from both infrastructure and application layers of AI is highlighted. The company's logistical prowess represents one of the foremost moats in business and will be enhanced with AI through better orchestration of logistics assets and buildout of more sophisticated robotics. |
Infrastructure Logistics Automation Efficiency Coordination | |
E-commerceSeveral investments in e-commerce leaders across Asia and Latin America, including MercadoLibre, Sea Limited and Alibaba, faced a more competitive operating environment during the period. As long-term investors, SGA observes that competitive intensity in these markets tends to ebb and flow over shorter time horizons, with market leaders typically emerging from such periods with strengthened strategic positions given inherent network effects. |
Marketplaces Competition Network Effects Asia Latin America | |
PaymentsWise represents the most asymmetric investment in the portfolio, taking market share from legacy correspondent banking through cheaper, faster, and more transparent infrastructure. The company is evolving from a remittance app into a global financial services platform with three reinforcing routes to market: Consumer, Business and Platform. |
Cross-border Fintech Infrastructure Platform SME | |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable | |
SpaceSpaceX represents the fund's largest position at 12.5% of net assets, generating significant value through rapid expansion of Starlink broadband service and establishing itself as a leading launch provider with reusable technology. The company is making tremendous progress on Starship, the largest most powerful rocket ever flown. |
Satellites Launch Services Broadband Aerospace Rockets | |
| 2025 Q3 |
SemiconductorsRGA initiated a position in Lattice Semiconductor, viewing it as an under-appreciated AI winner with immediate gains and longer-term optionality. Lattice's focus on efficiency and advantages in low-power, small footprint FPGAs position it favorably for AI servers, particularly as the only Post-Quantum Cryptography secure chips on the market. |
FPGAs Security Efficiency AI Infrastructure Programmable |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 29, 2026 | Fund Letters | Matt Barnes | AMZN | Amazon.com Inc. | Consumer Discretionary | Broadline Retail | Bull | NASDAQ | advertising, AWS, cloud, ecommerce, infrastructure | Login |
| Jan 29, 2026 | Fund Letters | Matt Barnes | HEI | HEICO Corp. | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, aftermarket, Decentralization, Free Cash Flow, Pricing power | Login |
| Jan 29, 2026 | Fund Letters | Matt Barnes | MCO | Moody’s Corp. | Financials | Capital Markets | Bull | New York Stock Exchange | buybacks, cash flow, credit ratings, Debt Markets, Regulatory Moat | Login |
| Jan 29, 2026 | Fund Letters | Matt Barnes | V | Visa Inc. | Financials | Transaction & Payment Processing Services | Bull | New York Stock Exchange | digital payments, Fintech, Margins, network effects, transaction growth | Login |
| Jan 29, 2026 | Fund Letters | Matt Barnes | MSFT | Microsoft Corp. | Information Technology | Systems Software | Bull | NASDAQ | AI, cloud, Enterprise software, productivity, recurring revenue | Login |
| Jan 29, 2026 | Fund Letters | Matt Barnes | AON | Aon PLC | Financials | Insurance Brokers | Bull | New York Stock Exchange | buybacks, financial services, insurance brokerage, recurring revenue, risk management | Login |
| Jan 29, 2026 | Fund Letters | Matt Barnes | BRK.B | Berkshire Hathaway Inc. | Financials | Multi-Sector Holdings | Bull | New York Stock Exchange | capital allocation, cash flow, conglomerate, diversification, Insurance | Login |
| TICKER | COMMENTARY |
|---|---|
| ADI | Best economics in analog: 70%+ gross margins, 45–50% EBIT target, rising ROIC. Premium positioning: 4X average selling prices, mission-critical sockets, extreme switching costs. Hybrid manufacturing edge: ~5% capex vs. peers 15%+ → superior free cash flow + resilience. Maxim synergies: power + systems mix shift, margin accelerator. Secular and cyclical tailwinds: industrial automation, EV electrification (wireless battery management system), AI data center power & test, 100% ADI alpha hit rate~39% annualized returns in past upcycles and we believe 2Q25 marked the restart; pricing + margin inflection underway. |
| AMAT | Top gainers in the Fund this quarter included Applied Materials (+26%). During the quarter, we trimmed the Fund's holding in Applied Materials as it rallied |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| AON | increased exposure to insurance brokers (Aon and Willis Towers Watson) |
| APH | We trimmed Amphenol Corp. |
| ASML | ASML, TSMC, and Arista Networks are key players in the AI build out supply chain. |
| BRK-A | Miles mentioned that he had been a long-term shareholder of Berkshire Hathaway and had never sold his shares. Over roughly twenty-five years, his investment compounded at about 10.9% annually. The first dollar he invested became approximately thirteen dollars. Since around 1990, Berkshire has only marginally outperformed the S&P 500. By Buffett's own historical standards, this period could be described as mediocre. And yet, admiration for Buffett has not faded—if anything, it has intensified. |
| HEI | We've held HEI since early 2021. It's one of those quietly excellent family businesses. The Mendelsons have run it for decades, they own a meaningful stake, and they've built durable niches in aerospace parts and defense electronics. HEI was up 36% in 2025, hitting new highs on strong results across both their Flight Support and Electronic Technologies divisions. They keep doing what they do: disciplined acquisitions, high returns on capital, strong cash generation. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| MCO | Moody's Corporation represents 13.9% of company owned with cost basis of $248 million and market value of $12,603 million, providing $93 million in 2025 dividends. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| SPGI | Leading rating agency and data provider S&P Global Inc. contributed to performance. Shares rebounded from a pullback in September that stemmed from a competitor's cautious commentary around market demand and margins. S&P Global alleviated these concerns by delivering strong third quarter results and raising its full-year financial guidance. |
| TSM | TSMC was a top contributor during the quarter, driven by robust demand for advanced semiconductor manufacturing and improved gross margins as AI continues to grow strong and the non-AI segment showed signs of recovery. Management raised its revenue growth guidance to the mid-30% range, and given continued strength in demand, AI-related growth targets are expected to move above the current mid-40% level. |
| V | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
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