I strive to find situations where the market is not properly valuing businesses due to a fundamental misunderstanding, allowing shrewd investors to profit. This often comes in the form of small-cap stocks and special situations, but nothing is off limits if it has a great risk/reward.
- Long-term, value oriented investor
- Demand a large margin of safety—either from balance sheet protection or from franchise value
- Prefer simple investment theses that do not rely on optimistic growth assumptions
- Strive to find excellent businesses that are trading at bargain prices because of a “masking effect”
- Concentrated positions—focus investments on only top conviction ideas
- My portfolio is very long-biased. Short positions, while sometimes attractive, are expensive and generally offer worse risk/rewards
- Focus on obtaining an edge on the market. This is incredibly tough to accomplish, but the rewards are significant. Always understand why your view is the variant view
- Intellectual honesty—admit when you are wrong and always strive to get better. No shame in staying away from situations you do not understand (helps you avoid getting burned).
My investing process has been greatly influenced by the readings and teachings of famous investors such as Bruce Greenwald, Joel Greenblatt, and Warren Buffett, as well as personal mentors and great investors such as John Lewis and David Gardner. While my own investing style is different from all of them, I try to learn a little bit from each of them and incorporate their greatest strengths into my investing framework to help me better evaluate risk/rewards in the market.