11 Comments

Hi Bertrand, thanks a lot for your very helpful and teaching newsletter. I'm in the finance world for 2 or 3 months, and yet I'm really interested in it. But a question I'm asking right now is how can you say in one hand to select assets with a lot of attention and in the other hand to let them live over decades without really caring. I mean, I understand but still an asset is good at a precise time. So if I select a good asset right now, it might not be in 2 or 3 years and if I don't pay attention well I could lose a lot of money ? Sorry if I'm not clear, I'm French and still learning how to write a proper English.

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Hi Bertrand, as always very insightful. One qualification, the buy and hold forever philosophy applies to investments in quality companies with a long growth run ahead of them. If you are betting on reversion to the mean in no or low growth companies or investmens in cyclical industries like Energy, which some of us do, this would be bad advice in most of the cases. My portfolio is growth, reversion to the mean / cyclicals, dividends and a small portion for macro bets. Appreciate you can also sell these investments too early, but most of the time you need to exit and reinvest in other opportunities with a better upside eventually. Regards, Denis

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I would remove the following from your portfolio:

TTD - Strong position in ad tech but limited competitive moat and cash flows.

MDB - Growing database software provider but faces entrenched competition.

MTCH - Leading dating app player but limited switching costs.

HUBS - Benefits from cloud growth but niche HR software market.

I have an idea or two as replacement(s).

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Oct 13Β·edited Oct 13

Can you send a note to Meb Faber to let him know that his post has a dead link for The Capitalism Distribution – The Realities of Individual Common Stock Returns by Eric Crittenden and Cole Wilcox, BlackStar Funds.

See link below to see what happens

https://ibb.co/7GWhbgw

A note from you has a higher probability of Meb reading than me.

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