Some of the strongest and best-known companies in the world make up the largest portion of the Portfolio. This fact is nothing new. What is unusual though is the opportunity created when short-term concerns depress the share prices of these companies allowing us to purchase shares at below-average prices. For example, United Technologies (NYSE:UTX) holds a preeminent position in three attractive industries: jet engines and other aerospace equipment through its Pratt & Whitney division, elevator manufacturing and servicing through its Otis division, and heating, ventilation and air conditioning and refrigeration systems through its Carrier division.11 Each of these businesses generates a high return on equity and possesses durable competitive advantages. Yet, the entire company trades at a discount valuation as the market frets about short-term concerns. The opportunity to own such a global leader at a discount price is a value investor’s dream.
From Chris Davis (Trades, Portfolio)' Davis New York Venture Fund 3rd quarter 2018 shareholder letter.
