Global Legends

1Strategy Overview

Global Legends is Stoquity's most conservative equity strategy — and historically, its best risk-adjusted performer. The portfolio invests in businesses that have not merely survived but thrived across decades, demonstrating the kind of durable competitive advantages that compound wealth through every market environment.

These are not boring businesses. They're monopolies (ASML's EUV lithography), duopolies (Visa and Mastercard), brand empires (LVMH, P&G, Coca-Cola), and compounding machines (Berkshire Hathaway, Microsoft). What they share is an ability to generate consistently high returns on capital, reinvest intelligently, and adapt to changing competitive landscapes without destroying their core advantage.

2Investment Thesis

Most investors chase returns. Global Legends chases durability. The philosophy is rooted in a simple observation: the companies that were great 20 years ago — Visa, Microsoft, Johnson & Johnson — are still great today. And the companies that will be great 20 years from now are probably the same ones.

This approach is supported by extensive research. A study by Credit Suisse found that the top quartile of quality stocks (by ROE, stability, and leverage) outperformed the market by 3.8% annually over 50 years. More importantly, they did so with 25% less volatility. Quality investing is the rare strategy that offers higher returns AND lower risk — the investing equivalent of a free lunch.

3How the Strategy Works

The Global Legends selection process is deliberately conservative:

1. Competitive Moat — the company must possess a demonstrable competitive advantage that has persisted for 15+ years. This can be a brand (Coca-Cola), a network effect (Visa), a regulatory moat (Moody's), or a technological monopoly (ASML). 2. Capital Allocation — management must have a proven track record of intelligent capital allocation. This means consistent ROE above 15%, disciplined M&A, and returning excess cash to shareholders. 3. Global Diversification — revenue must come from multiple geographies, reducing dependence on any single economy. 4. Financial Fortress — strong balance sheet with manageable debt, investment-grade credit rating, and consistent free cash flow generation. 5. Adaptability — the company must demonstrate ability to reinvent itself across technology cycles (like Microsoft's cloud transformation).

4Risk Metrics

5Current Holdings

6Recent Trades

7Risk Considerations

Global Legends is the lowest-risk equity strategy in the Stoquity suite, but it's not risk-free. Quality stocks can underperform during speculative growth rallies — in 2020-2021, many "meme stocks" outperformed decades-old blue chips. This tracking error is temporary but can be psychologically challenging.

Disruption risk exists for any company, however legendary. Kodak, General Electric, and Nokia were once considered "permanent" businesses. The portfolio mitigates this through the adaptability requirement — only companies that have demonstrated successful reinvention (like Microsoft) qualify.

Currency risk applies to international holdings (Nestlé, ASML, LVMH). The portfolio accepts this risk as part of global diversification, and over long periods, developed-market currencies tend to be relatively stable.

8Who Is This For?

Global Legends is designed for every investor — from retirees seeking capital preservation to young investors wanting a quality core allocation. It's the one portfolio suitable for almost any investment objective.