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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'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'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's framework, I wanted to share it in this second thread. If you missed Pt. 1, it's fine - I've included P1 elements here.
This is a mix of my personal notes and Saul's words especially when you see "I":
This is a mix of my personal notes and Saul's words especially when you see "I":
3/ First,
Saul is an accomplished professional in his personal life.
Recent returns:
2017:84%
'18:71% (*Yes!)
'19:28%
'20:233%
Nov '21:62% YTD
His records since 1993 can be seen on Mootley F. There are ppl that have followed him from the 1990's, so his reputation is known.
Saul is an accomplished professional in his personal life.
Recent returns:
2017:84%
'18:71% (*Yes!)
'19:28%
'20:233%
Nov '21:62% YTD
His records since 1993 can be seen on Mootley F. There are ppl that have followed him from the 1990's, so his reputation is known.
His Investing Process - Let'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's why he's 1%.
I'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's why he's 1%.
I'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's selling policy.
h/t: @Pavlos__21 put together this together this section recently that reasonated on Saul'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'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's tough.
Most of the following above are Saul'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'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's. He'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's. He'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'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'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't own a l/s hedge fund or analyst etc. Just a backtested process.
This playbook is not for everyone. It's worked for Saul (and many of his community have implemented it successfully for their families).
This playbook is not for everyone. It's worked for Saul (and many of his community have implemented it successfully for their families).
19/ END: Anyways, that'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!
