My Largest Position Just Printed the Best Quarter in Its History
Q2 2026 earnings update on my largest position
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In January, I introduced an asset class that has delivered ~32% IRRs over four decades - and the only publicly traded company in the US running that model at scale.
A lot has happened since.
More recently, the stock fell to 52-week lows on no major news at all.
I dug into possible reasons why - mechanical selling around a corporate rebrand, short interest creeping up on thin volume, profitability screens filtering it out.
My conclusion was that nothing about the business had changed - only the price.
So I added.
I said at the time that the next earnings report would be the real test.
If the margin progression showed up, that was the confirmation that earned a climb. If it didn’t, the same discipline would apply in the other direction.
Last Thursday, the report landed.
It was, in the CEO’s own words, “the strongest operating performance” of his entire tenure.
The stock jumped around 13% on the release, and I’ve since promoted the position to 12% of the model portfolio - my largest holding.
In today’s post, I’ll reveal the company, the full Q2 breakdown, the refreshed valuation maths, the risks, and what I’m looking for next…