Highlighting Eagle Fund holding Oshkosh Corp. (OSK).... a lesson in investor patience
Legendary investor Warren Buffett frequently emphasizes patience as one of the most critical virtues in investing. Some of my favorite Buffett quotes include "Someone’s sitting in the shade today because someone planted a tree a long time ago." and "The big money is not in the buying and selling, but in the waiting."
I think our patience in Oshkosh may be finally paying off. OSK stock is rallying sharply pre-market following robust Q4 earnings and strong 2025 guidance.
Recommended last spring by student analysts (and recent 2024 FGCU graduates) Andrew Garner and Brett Becker, Oshkosh checked all the boxes we look for in our equity investments... compelling valuation, improving growth and momentum, solid cash flow generation and deployment, and multiple fundamental catalysts to drive future stock price appreciation. I remember thinking, at the time, that this was one of the best student stock pitches I've ever heard.... but the market disagreed....at least in the short run.
After rallying 15% post-purchase, OSK underperformed the market meaningfully throughout the remainder of 2024. New Eagle Fund analysts assigned to the Industrials Sector would ask, "What's wrong with OSK? " My response was, "Nothing I'm aware of; do the research." After reaffirming our initial view, the new analyst and PM team added to our OSK position later in the year.
NOTE - THIS IS NOT AN INVESTMENT RECOMMENDATION, but rather an example of the type of work FGCU's Student Managed Investment Fund "Eagle Fund" students are doing.