The Companies Controlling Their Own Destiny, on Sale at Unusually Attractive Prices

Why It Matters

The widened fair‑value discount gives long‑term investors a rare entry point into high‑quality, AI‑resilient businesses, potentially delivering outsized returns as the market re‑prices the underlying growth.

Key Takeaways

• Aoris avoids banks, energy, telcos, focusing on self‑driven businesses.
• Portfolio’s intrinsic value up ~10% while share prices fell.
• All recent earnings beat expectations; margins expanding across holdings.
• Visa’s 17% growth outpaces GDP, driven by digital payments shift.
• AI concerns examined, but core businesses remain resilient and relevant.

Summary

The Livewire Markets interview with Aoris Investment Management CIO Steven Arnold examined why the firm’s 15‑stock portfolio has lagged the market despite solid fundamentals.

Arnold attributes the 18‑month underperformance to three forces: sectors the fund avoids (banks, insurance, heavy industry) that have surged; a super‑cycle in AI‑related chips and metals; and market skepticism that some holdings are on the “wrong side” of AI. Behind the price drift, the portfolio’s intrinsic value has risen about 10 % and every reporting company beat expectations, with expanding margins.

He highlighted standout results such as Visa’s 17 % revenue growth, Grainger’s double‑digit sales increase, and Compass Group’s high‑single‑digit organic growth. Arnold also cited Cintas and the AI‑enhanced offerings of Microsoft, SAP and Experian as proof that the businesses remain relevant and can create new solutions.

With fair‑value gaps widening, Aoris sees the current pricing as “unusually attractive,” offering investors a chance to own durable, macro‑agnostic companies that control their own destiny and are positioned for multi‑year value creation.

Original Description

If you could buy a dollar of value for much less than a dollar, would you?

If you consider yourself a serious investor, the answer is 'every day and twice on Sundays'.

Well, that's what Aoris Chief Investment Officer Stephen Arnold believes is on offer at the moment for investors who are patient and disciplined.

Indeed, Arnold's own patience and discipline are being tested in the current market environment, where his conviction-driven strategy focused on quality compounders has endured a period of relative underperformance.

He has seen this movie before, however, and the process – and long-term performance – have stood up. He has no reason to believe they will not again.

The reason is simple. While parts of the market have been captivated by banks, insurers and artificial intelligence beneficiaries, many of Aoris' portfolio companies have continued to grow earnings, expand margins and increase their intrinsic value. Yet in several cases, share prices have failed to reflect that progress.

For Arnold, that disconnect has created an unusually attractive opportunity.

As he puts it, investors can currently access "businesses that we expect to continue to grow in intrinsic value at a very healthy rate, on sale today at unusually attractive prices."

In the interview above, Arnold explains what defines an 'Aoris quality' business, why companies that control their own destiny remain central to the firm's philosophy, how he is assessing AI-related risks across the portfolio, and why the current portfolio holdings continue to strengthen his conviction despite recent market scepticism.

Please note, this interview was recorded Thursday, 21 May, 2026

TIME CODES

00:00 – Why Aoris has lagged despite strong markets

01:30 – Backing the process

02:05 – What defines an 'Aoris quality' business?

02:54 – Reporting season: evidence over opinion

04:20 – The result that stood out most

05:29 – Why Aoris avoids banks, energy and utilities

06:20 – Investing in businesses that control their own destiny

07:26 – How Aoris assesses AI disruption risk

08:47 – Buying a dollar of value for much less than a dollar