Introduction
This “Librarian Capital’s Monthly Letter” tracks our “Select 15” model portfolio, which we have run since the start of 2023. The portfolio showcases our most-preferred stocks, quantifies our view of the relative attractiveness of each, and closely resembles how we manage capital in real life, including more than 80% of my personal assets.
We last published an update after February month-end. Since then our model portfolio first lost 6.7% in March, but regained 5.6% in Q2, underperforming market indices and with our underperformance widening over time:
As of H1 2026, “Select 15” was down 1.4% year-to-date, far behind MSCI World’s 9.9% gain; this means our model portfolio had a total gain of 60.3% in the 3.5 years since inception, a solid number but far behind MSCI World’s 98.3%.
Subsequent to H1, “Select 15” gained 2.5% in July 1-13, taking our year-to-date gain to 1.0% and since-inception gain to 64.3%. Beginning with a notional $1m at the start of 2023, the model portfolio now stands at $1.64m:
Our underperformance has been disappointing, but in our view the result of unique market conditions and temporary. We are in the cross-currents between a valuation bubble in some assets and extreme pessimism about AI in others.
This letter consists mostly of our qualitative opinions on the current market and why we should largely stay the course, with a longer-than-usual Market Commentary section, then sections on AI and long-term investing. These are followed by the usual Current Portfolio section with the standard valuation metrics, and a section on Portfolio Changes, where we replace two stocks in the model portfolio, reflecting recent research and company developments.
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