There's a gentleman who manages a $115 million AUM fund with annualized returns of 35% (before fees) since inception.

And he wrote a 3,150-word letter for those who dream of compounding their money at 20-25% per year over the course of their careers.

1. Your chance of becoming a great investor is 1/50 of 1% or something. If not less… You have almost no chance of being a great investor.”

2. Going to Harvard, Stanford, Wharton or reading every book ever written on investing won't make you a good investor

3. I don’t believe there is a correlation between investment performance and number of books read.

4. Experience is overrated. It’s important but it’s not a source of competitive advantage. If that wasn’t true, all the great money managers would have their best years in their 60s, 70s and 80s. And we know that’s not true.

“There are 7 traits great investors share that are true sources of advantage because they can’t be learned once a person reaches adulthood. Some of them can’t be learned at all, you’re either born with them or you aren’t.”

Show notes:00:00 - Intro

00:43 - Why only very few can compound money 20% for their entire career

05:22 - To protect your investment, you need one of these four sources of economic moats that are hard to duplicate

07:59 - Having advantages over fellow fund managers and individual investors

11:12 - 7 traits that can’t be learned yet true investors who end up compounding at 20% or 25% over their careers ALL have in common

Follow PrivatEquityGuy on Twitter: ⁠https://twitter.com/PrivatEquityGuy⁠⁠

Join HoldCo Builders weekly newsletter on finding deals, raising capital, and growing small profitable niche businesses: ⁠⁠⁠https://privatequityguy.beehiiv.com/⁠

This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.