Value investing can appear to be quite easy: thoroughly analyse a business and its risks and then ensure the price paid offers an adequate margin of safety. Many advocates postulate that because the analysis has been thorough and a margin of safety has been incorporated, intelligent investors can then concentrate their capital in their best ideas (“Why invest in your sixteenth best idea?”). However we highlight reasons why even seemingly-diligent analysts can make poor investment decisions that could prove catastrophic in a concentrated portfolio.
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The ACAP Strategic Fund's managers see a "significant scarcity of attractive asset allocation choices globally," but also a strong environment for fundamental stock picking. Q2 2021 hedge fund letters, conferences and more According to a copy of the fund's second-quarter investor update, which ValueWalk has been able to review, its managers currently hold a balanced Read More
Portfolio Concentration – Sleep With One Eye Open