I’ve been in the investing world for almost 10 years now, in which time I’ve garnered a lot of experience around what works and what doesn’t. Over this period, one lesson that has impressed itself upon me is that you should really be looking for investment opportunities that “hit you like a 2×4-to-the-head with how obvious they are,” to paraphrase Mohnish Pabrai. As a result of this, in my writing on Seeking Alpha, my goal is to be able to communicate ideas simply, as the investing game is already difficult enough. If I can’t communicate a ‘buy’ recommendation, in particular, simply to you, that probably means I’m not doing a good job, and it may not be what I claim it is. In my own investing, I tend to be rather concentrated, oftentimes initiating positions at 5-10% of the portfolio. In fact, I’m not afraid to allow positions to be or become significantly larger than that, if the situation merits it. Early on, I was more into the “cigar-butt” approach of deep-value investing, but, over time, I’ve come around to the Munger approach of trying to buy wonderful businesses and holding onto them for a long time. In general, my hope is to hold a business for a very long time, and especially to never trim, no matter what percentage of the portfolio it balloons into. Put another way, I very much subscribe to the approach which says “don’t cut your flowers and water your weeds.” I don’t claim to be an expert on most things, so when I go wrong, I will be looking forward to an education from the smart readers and participants of the SeekingAlpha community. Happy investing!
Analyst’s Disclosure:I/we have a beneficial short position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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