Between Activity and Outcome

Careful, thin ice. Two weeks ago, in our Viewpoint newsletter, I conjured up the image of a coffeehouse gathering. A colleague reacted with concern to my piece Espresso with Experience: “Doesn’t this leave clients thinking: ‘They’re just sitting around drinking espresso’?”

I’m not sure. That’s something only you – dear reader – could answer. I certainly hope there’s more that sticks.

Perhaps the image of the well-prepared ship captain who doesn’t start fixing the rotten planks in the middle of a storm? Neptune would give a tired smile and send the boat straight to the ocean floor. Preparation is what counts. Even if it often remains invisible.

Between Action and Impact

My colleague raised an important point. In conversations, you sometimes hear comments like: “You’re not showing enough activity.”

I see it as our responsibility to continually explain what we’re doing. And why we are doing it. At the same time, we try not to overwhelm you with details - because most of the time, what matters is the outcome, not every single intermediate step. Not just over months or quarters, but over years.

Each day, we turn many small levers: we subscribe to bonds, reinvest coupons and dividends, adjust equity positions, swap holdings, and process information constantly. Not everything is immediately visible in the portfolio. And even deliberate inaction – holding positions – is a decision.

Between Vienna and Jesolo

Discipline is baked into our central Gutmann equity strategy. Every position is equally weighted. Four times a year, we bring that balance back. That means: contrarian investing. What has fallen gets topped up. What has done well is trimmed. Large concentrations don’t even get the chance to develop.

And the espresso? It tastes even better that way.

By the way, next week I’ll be enjoying it in Jesolo Italy. But you’ll still get your Gutmann Viewpoint. It will feature coffee one last time – but in a way you might not expect.