STREET DOGS: ‘Connoisseurs’ hold winners and take the strain
Most multi-baggers have long periods of stagnation and take time to develop, writes Michel Pireu
I’m "accustomed to hanging around with a stock when the price is going nowhere. Most of the money I make is in the third or fourth year that I’ve owned something." – Peter Lynch In his book, The Art of Execution, portfolio manager Lee Freeman-Shor tells how he invested more than $1bn with 45 top investors. There was just one rule: they could only invest in their 10 best ideas. He then tracked their performance over several years and found that the most successful group – which he called the Connoisseurs – had two things in common: "The presence of a couple of big winners in their portfolios [and] a high boredom threshold. "Meeting some of my Connoisseurs could be very, very boring," he writes, "because nothing ever changed. They would talk about the same stocks they had been invested in for the past five years or longer. "The fact is, most of us will find it difficult to emulate the Connoisseurs because we feel the need to do something when we get to the office every day. We look at...
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