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Saul is my 2021 Investor of the year.
I have studied many successful fund managers this year but nobody beats the success of him.
He has averaged over 32%+ CAGR for over 28 years and 6x& #39;d his portfolio returns.
This is Thread Pt. 2 of where I dig deeper into his framework:
I have studied many successful fund managers this year but nobody beats the success of him.
He has averaged over 32%+ CAGR for over 28 years and 6x& #39;d his portfolio returns.
This is Thread Pt. 2 of where I dig deeper into his framework:
2/ Many got interested in my first thread, so after absorbing Saul& #39;s framework, I wanted to share it in this second thread. If you missed Pt. 1, it& #39;s fine - I& #39;ve included P1 elements here.
This is a mix of my personal notes and Saul& #39;s words especially when you see "I":
This is a mix of my personal notes and Saul& #39;s words especially when you see "I":
3/ First,
Saul is an accomplished professional in his personal life.
Recent returns:
2017:84%
& #39;18:71% (*Yes!)
& #39;19:28%
& #39;20:233%
Nov & #39;21:62% YTD
His records since 1993 can be seen on Mootley F. There are ppl that have followed him from the 1990& #39;s, so his reputation is known.
Saul is an accomplished professional in his personal life.
Recent returns:
2017:84%
& #39;18:71% (*Yes!)
& #39;19:28%
& #39;20:233%
Nov & #39;21:62% YTD
His records since 1993 can be seen on Mootley F. There are ppl that have followed him from the 1990& #39;s, so his reputation is known.
His Investing Process - Let& #39;s GO!
4/ How Saul decides to Buy and start a position - the key elements (a):
4/ How Saul decides to Buy and start a position - the key elements (a):
5/ Buying Criteria & Selection Criteria (b):
6/ How he sells a stock (a) -
IMO, Pay more to his selling strategy (4-sections!)
99% of ppl reading this will disagree. Well, that& #39;s why he& #39;s 1%.
I& #39;ll emphasize this section MORE bcos many ppl close to him attest to the fact that this has contributed the MOST to his success:
IMO, Pay more to his selling strategy (4-sections!)
99% of ppl reading this will disagree. Well, that& #39;s why he& #39;s 1%.
I& #39;ll emphasize this section MORE bcos many ppl close to him attest to the fact that this has contributed the MOST to his success:
7/ How he Sells/Exits (b):
Saul has no favorites. He is extremely analytical, unemotional/detached, and ruthless to every company.. More below:
Saul has no favorites. He is extremely analytical, unemotional/detached, and ruthless to every company.. More below:
8/ Third context more on how he Sells/Exits (c):
h/t: @Pavlos__21 put together this together this section recently that reasonated on Saul& #39;s selling policy.
h/t: @Pavlos__21 put together this together this section recently that reasonated on Saul& #39;s selling policy.
9/ Final section on selling:
In a Past Interview, he shared one of the reasons why it is difficult for people to sell or move on from a stock.
Note: Saul is someone who WILL buy back a stock ONLY when the company fixes their fundamental flaws.
All the above 4-sections are key.
In a Past Interview, he shared one of the reasons why it is difficult for people to sell or move on from a stock.
Note: Saul is someone who WILL buy back a stock ONLY when the company fixes their fundamental flaws.
All the above 4-sections are key.
10/ Valuation in his process:
11/ Portfolio Management and Stock Picking:
12/ Additional points on Portfolio sizing/mgmt (shared prior):
13/ On Bear & Red Markets:
Shared before but Saul is almost all 100% invested. He accepts the volatility that comes with his territory (however due to the very expectations for his companies, his companies have always come back - even in 2000 and 2018).
Shared before but Saul is almost all 100% invested. He accepts the volatility that comes with his territory (however due to the very expectations for his companies, his companies have always come back - even in 2000 and 2018).
14/ Finally, on other general philosophies that he applies in Investing that he has learned over 30 years of Investing beyond the core ones:
15/ My Comments:
Most of the following above are Saul& #39;s writings or from his members that have been close over the yrs.
I had the opportunity to meet him once. Also having followed his board/spoke to ppl close.
The framework appears easy on paper, but it& #39;s tough.
Most of the following above are Saul& #39;s writings or from his members that have been close over the yrs.
I had the opportunity to meet him once. Also having followed his board/spoke to ppl close.
The framework appears easy on paper, but it& #39;s tough.
16/ My thoughts:
a) Selling has been huge to his success. Minimizes drawdowns.
b) Ability to DISAPASSIONATELY Own + sell a stock FAST when fundamentals* slow + Openness to re-buy in future
c) LOTS of hardwork/THOROUGH analysis of his Co& #39;s. He& #39;s developed good instincts.
a) Selling has been huge to his success. Minimizes drawdowns.
b) Ability to DISAPASSIONATELY Own + sell a stock FAST when fundamentals* slow + Openness to re-buy in future
c) LOTS of hardwork/THOROUGH analysis of his Co& #39;s. He& #39;s developed good instincts.
17/
d) High focus on the key metrics that matters. Numbers/Execution focused.
e) Concentrated bets
e) No emotions, disciplined approach to a process and system for Investing.
f) Consistently keeping his standards for his Co& #39;s high is key to how he has been consistent in results.
d) High focus on the key metrics that matters. Numbers/Execution focused.
e) Concentrated bets
e) No emotions, disciplined approach to a process and system for Investing.
f) Consistently keeping his standards for his Co& #39;s high is key to how he has been consistent in results.
18/ Overall, Saul is my person of the year bcos he is a simple guy. He doesn& #39;t own a l/s hedge fund or analyst etc. Just a backtested process.
This playbook is not for everyone. It& #39;s worked for Saul (and many of his community have implemented it successfully for their families).
This playbook is not for everyone. It& #39;s worked for Saul (and many of his community have implemented it successfully for their families).
19/ END: Anyways, that& #39;s all!
He is a great model that the average investor (with hardwork + process + no emotions), you can outperform the index.
If this was helpful, feel free to share! Hope some new investor finds at least one thing helpful from here, I had to share! Thnks!
He is a great model that the average investor (with hardwork + process + no emotions), you can outperform the index.
If this was helpful, feel free to share! Hope some new investor finds at least one thing helpful from here, I had to share! Thnks!
