In our inaugural podcast for 2020, I sit down with Peter Stevens, Investment Analyst at Frazis Capital, to discuss the lessons we’ve taken to heart from last year and how we’re going to keep things simple and focus on what we do best going forward.

In particular, we discuss how to identify multi-bagger growth opportunities like Carvana, Afterpay, and Pinduoduo early on in their growth stage and why the best returns in the future won’t be from investing in value companies.

“The best investments will not be buying a dollar of cash for 50 cents; it’ll be paying $10 for $1 of revenue that’s worth $100 in 20 years’ time. That’s going to be the exceptional return and that’s certainly proven to be the case over the last decade.”

Listen on to hear our key takeouts from 2019 and how we’re positioning our portfolio for the next 3-5 years.

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Timestamps:

  • 1:00 – Recap of 2019; how shorts hampered performance and the stocks that went well
  • 3:58 – Why doing less is a key lesson
  • 5:58 – Where Frazis Capital sits in portfolios
  • 8:06 – How companies like Xero and Afterpay shot the lights out and how investors can find the next 20-baggers
  • 14:14 – Michael Frazis’s background
  • 17:30 – The only ‘real way’ to make money
  • 18:46 – 3 most exciting companies in the Frazis portfolio
  • 20:34 – The thesis for investing in life sciences companies