VALUE: After Hours (S07 E39): I’m a Value Buyer but a Growth Holder

During their recent episode, Taylor, Carlisle, and Bogumil Baranowski discussed I’m a Value Buyer but a Growth Holder. Here’s an excerpt from the episode:

Bogumil: I love the labels, as you can imagine. I call myself– [laughs] If you really corner me, I’m going to say I’m a value buyer, but a growth holder. I want a deal when I go in, mostly because, of course, it improves the returns if you’re right. But if I’m wrong and I paid half of what I think something is worth, there’s a lot of room for me to get out without too much damage. That’s how I look at it. I always go in thinking, what if I’m wrong? Can I afford it?

I think a lot of people get into investing, because they have this urge to be right. I think it’s a dangerous place to be. So, I want to get a deal up front. Even if you look at the largest and most successful companies out there, if you look at the last decade or two, there’s so many windows where these stocks were down 40%, 50%. And we forget it. But I was in rooms with people that were convinced that among the top Magnificent Seven, all of them, they had really convincing reasons why these companies will never grow again, whether there was a switch to mobile at some point, and new competition, all of those things. People were convinced that these things are done and they’re multi-trillion-dollar companies today.

I was in rooms when really smart people were very close to convincing me that these companies are done. So, I owned some of them and many others over the years, but I go through this realization that I met enough people that told me they bought the right thing at the right time, even at the right price, but they were not in a position to hold these holdings long enough. I think that’s where you really create value. That’s why I call myself a growth holder, because once I bought it right, it really takes me a lot to sell. So, that’s the philosophy in a nutshell.

You can find out more about the VALUE: After Hours Podcast here – VALUE: After Hours Podcast. You can also listen to the podcast on your favorite podcast platforms here:

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