Why Investors Are Always Looking for a Catalyst

The Art of (Not) Selling, some elements from the Lotus Bakeries deep dive & thoughts on skin in the game

Hi fellow Partner!

Time for a new bi-weekly presentation, aimed at providing objective no-nonsense information that will hopefully make you a much better investor:

• The Art of (Not) Selling - providing additional color on the blog we shared last week, and why short-termism amongst managers (influenced by analyst and investor expectations) is problematic to earn multi-baggers. Whilst many investors state they’re thinking long-term, the reality is that we’re oftentimes looking for a near-term catalyst or confirmation on the investment thesis. It takes time for growth to compound, and given many’s shortened investment horizon, it becomes difficult to achieve long-lasting attractive returns. We’ll also talk about some elements of the Lotus Bakeries deep dive that exemplify why it’s become a multi-bagger.

• Skin in the game: it should be a case by case analysis, as every situation is unique (personal finances, time of acquiring shares, equity ownership versus salary).

The presentation and slide deck can be downloaded below, as well as a cleaned transcript.