Q1 2013 Investment letter. Our current outlook for stocks is cautious, especially given the sharp run-up in their prices, and we have taken some profits. We still find emerging-markets stocks attractive over our five-year time horizon and are tilted towards foreign emerging markets and developed markets stocks, despite their recent underperformance. We also believe that the bond market offers a paltry return potential over our five-year investment horizon, given our expectation for rising rates, and we are underweight bonds. Q1 2013 Letter