Letter From Cobleskill: Autumn 2025
Letter From Cobleskill
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Dear Fellow Investor,
The late author and naturalist Hal Borland wrote, “Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instill in us.”
As the Fenimore team enters 2025’s final quarter, we are taking the wisdom we have accumulated over the first nine months of this year ― and across the last five-plus decades ― and putting it to work every day on our investors’ behalf. We continue with our mission of seeking to protect and grow your capital over the long term, and we are pleased and humbled to have you with us on the journey.
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IT HAS BEEN A GOOD YEAR
Maybe not gangbusters like we hoped, but through three quarters the stock market and economy have both performed well, overall, in a challenging environment.
Stocks and bonds are up. The current annual return on cash equivalents, like money market accounts and treasury bills, is healthy. Furthermore, publicly traded real estate investment trusts have sound performance in general.
Adding to our encouragement, as Fenimore’s research team travels the country, we are routinely hearing our holdings’ management teams talk positively about earnings growth and the reinvestments they are making ― both in their own company and through acquisitions. These businesses are the compass we primarily focus on as we navigate the always unpredictable, occasionally turbulent world of investments and they have helped guide us successfully for more than a half-century.
IMPORTANT QUESTIONS
At Fenimore, we ask ourselves big-picture questions every day as we strive to make the most informed investment decisions:
- Where are interest rates headed? What is the latest on tariffs? How is employment?
How about inflation? Is there a recession around the corner?
However, the most important question is at the company level:
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What are the companies in which we invest doing to stay strong and keep growing
no matter the answers to those macro questions?
Investing in what we believe are quality businesses with strong financials ― including significant free cash flow generation, high profitability, and manageable debt ― has been the foundation of Fenimore’s investment philosophy since day one. And a key factor in these businesses’ success is always an astute leadership team that anticipates and prepares for almost every possibility.
Fenimore’s research analysts are in touch with our companies, and others we are considering, on a regular basis to verify our quality assessments. Sometimes it is a phone check-in. Other times it is a lengthy visit with the C-suite or on the factory floor. In each instance, our message is the same: show us what you are doing to grow earnings, outsmart the competition, minimize debt, and create value for shareholders ― even in times of uncertainty.
We are pleased to say that we like what we are hearing and this gives us a positive long-term outlook.
LET’S TALK
Please do not hesitate to connect with us about your investments and financial goals in our Cobleskill or Albany office, or from the comfort of your own home. Call 800-932-3271 or email us at info@fenimoreasset.com.
Thank you for your confidence in us.
Sincerely,
John D. Fox, CFA®
CHIEF INVESTMENT OFFICER
CELEBRATING A RETIREMENT
John Fox, Chief Investment Officer (CIO), is retiring in December after a successful career at Fenimore of nearly 30 years. His professional and personal contributions have made a positive impact on our investors, firm, and community. We hope that John enjoys his well-deserved retirement and express our heartfelt gratitude for his dedicated service!
FOCUSED ON YOU
Fenimore Founder and Executive Chairman Tom Putnam built the framework for a long-term succession plan years ago to ensure the continuity of our investment philosophy and investor experience for decades to come. Fenimore’s succession planning is thoughtful, enduring, and seamless ― always keeping our investors’ best interests in mind.
When associates retire, our highly collaborative process keeps operations running smoothly. Each of the three investment strategy teams (Value, Dividend Focus, and Small Cap) works together as a cohesive unit. They implement our market-tested approach in pursuit of performance excellence, just as they did during John’s time as CIO. What this means is that the teams who pick our stocks remain the same.
Fenimore’s research analysts include three astute industry veterans of more than 30 years as well as generations of talented professionals. We look forward to sustaining our collegial environment as we diligently seek to grow your assets over the long term.