Like many investors, I follow other professional investors through their quarterly letters and public writing. I am sometimes bemused when I read about their investment process, extolling their deep due diligence, focus on cash flow, and companies with incremental investment opportunities. Or something like that. Then I look at their holdings and see a bunch of cash-burning growth stocks, busted SPACs, and what looks like a hodgepodge of random companies. My smug attitude doesn’t last long - as soon as I look at my portfolio, I see a bunch of cash-burning growth stocks, busted SPACs, and a hodgepodge of random companies. I realize that I know almost nothing about where other investors’ cost basis is on their holdings and what the variant perception might be that led them to make an investment that,
There is definitely an art to investing and this is where it shows up.
People mainly discuss the logic and not the art.