3Q20 Investor Letter
“One should take the results with a grain of salt. Research shows that out-performance in the long-run and under-performance in the short-run come hand in hand. Although we acquire businesses at a price much below what we believe they are worth and short businesses that we think we have a clear understanding of their fundamental problems and where the misperceptions lay, we can’t predict what will happen in a month or a quarter.
In fact, what such results caution me most was whether our views are truly non-consensus and whether we bet big enough on our convictions. To date, our top two positions represent more than 30% of the NAV, top five positions represent more than 50% of NAV. In the future, I would more likely to increase the level of concentration than to decrease it.”