2020 results will never happen again

Election year where I got out for 4 months and still ended up 120% YTD. Saul et al was in the 200’s percentages.

You know this could happen again, correct me if I’m wrong, because that was mainly do to one stock: Zoom.

How many times has one stock grown so fast? Many times I believe.

One or two years before, putnid got scolded by Saul for boasting about his ENPH position being up 150%.

Anyway, it could happen again if the right company comes along irregardless of overall market performance.

3 Likes

MSlob:

When I was a in my Big Game hunting phase years and years ago (Which mainly entailed fat squirrels and speedy rabbits) I happened across a book titled, ‘The Quirks of Quail’. The book explained in finite detail the habits and minutia of Quail. In short - it laid out how to play the perfect game in hunting quail. And, with some people, for whatever they are focused on, it’s more about perfecting their efforts, style and technique and playing the perfect game which is just as important as the end result.

Now…playing the perfect game in investing seems like an impossibility to me. There are just too many moving parts in investing for anyone to capture a perfect game. For example, sure…I have decent enough results I suppose but I flounder around here and there - lurching this way and that way, and it takes a great deal of effort. Hardly the perfect game for investing although in my defense I might note that TBs have more than covered up for my investing mistakes. However, such as that might be, on no planet would that be adjudicated as remotely close to a perfect game in investing. But…we have two examples of investing that, in my ever so humble opinion, are very close to perfect game investing: Brothers Saul and Ears. Hear me out.

The beauty of Saul’s strategy is that it performs on a relentless, systematic and ruthless basis: Which is to say, that he invests in the highest level growth companies he can find that have ‘It’ and dumps them immediately when the ‘It’ waivers. And make no mistake - it’s the ‘It’ part of it that allows Saul to get close to the perfect game in growth investing. Sure…his results vary from year to year but his movements in investing are limited to those meager few that seem to produce the best result. Having said that - Saul is human and makes mistakes which is the crucible that prevents him for attaining that perfect game.

Now let’s shift over to Brother Ears. He doesn’t dance around much with finding out which specific stocks he might invest in. It’s not that he has less ruth than Saul; but rather, while us Growth folks go about it like we are killing snakes - Ears methodology reminds me of someone floating along on a Sunday afternoon on a picturesque lake. (Note: Ears is on record that he no longer invests but that has no direct impact on my comments.) How does he do this? Simple, he points to the Bessemer Venture Partners Index of Cloud-Based businesses and its market crushing performance over the last 10 years or so. Easy Peasy - lemon Squeeze. Purchase the whole BVP Index Shebang and just casually float along on that peaceful, picturesque profit generating lake.

Now…on to your comments which I thought were very timely for growth investing folks such as ourselves: Whether 2020 results may- or may not, be repeated anytime soon, is hardly irrelevant if at all. What is relevant to us fancy pants, hoity toity high growth company investing folks is the dance of maximizing our own results vs the market. Which is to say - playing the perfect game against a market opponent that cares not one whit for the perfect game.

At least thats how I look at it.

All the Best,

5 Likes

Well said