“I am very disappointed with the bail out when the going gets rough. I followed your advice & bought when you said & then held. Now you bail out & I now question the quality & depth of your research. How easy it is for you.” This is one of the 116 comments on an article Gaurav published when he decided to take the loss on his investment in Magellan Financial Group and change his recommendation to a sell and this is where we start our conversation.
In our first interview with Gaurav we dived deep into his upbringing and how he became the investor he is today. One of his strengths is something that can’t be taught but it’s a valuable one as an investor, resilience and the ability to not become overly emotional when you’re winning and losing and that’s where we start. This conversation is very much a continuation of the exceptional interview between Owen and Gaurav and I encourage you to go back and give it a listen. Make it a double feature. Here’s a link.
Topics covered in our wide ranging chat include:
- The lessons he learnt from his investment in Magellan Financial Group
- What he looks for in the funds management businesses now and which ones he holds
- How he uncovers resource opportunities (hint, it’s in the most beat up opportunities he can find)
- Why he loves “oddball” CEOs
- How to look into short term and long term incentive plans for management as well as what makes a genuine investment by company insiders as opposed to a token one
- We even create our own (very) unique ETF
Stocks mentioned in the discussion (and there were a few):
- Magellan Financial Group (ASX: MFG)
- Pinnacle Investment Management Group (ASX:PNI)
- Australian Ethical Investment Limited (ASX:AEF)
- Microequities Asset Management (ASX:MAM)
- Mineral Resources (ASX:MIN)
- Karoon Energy (ASX:KAR)
- Alumina Limited (ASX: AWC)
- Lovisa Holdings Limited (ASX: LOV)
- Dicker Data Limited (ASX: DDR)
