September 15, 2023

Bob Desmond names his ”forever” stock

44 minutes

We're constantly told that diversification is the only free lunch in finance. Yet most of the world's top investors choose not to eat it.

Warren Buffett, Charlie Munger, John Maynard Keynes, Lou Simpson, George Soros. All run concentrated portfolios.

Today's guest on the Rules of Investing is similarly esteemed, with a similarly concentrated portfolio.

Claremont's Bob Desmond runs a portfolio of just 10-15 "quality growth" stocks. And many of the stocks he owned during the 'free money' period of high liquidity and high growth are the same stocks he owns today.

In today's episode, Bob explains why quality growth is the best strategy in all markets, why investors shouldn't react to "bear porn" headlines, why nVidia might not be overpriced despite its recent run, and the one stock he would love to own "forever".

Note: This episode was recorded on Monday September 11, 2023.

Timestamps

0:00 - START

1:46 - Surprises and uncertainty

2:46 - Is nVidia overvalued?

8:14 - Predicting the future is a mug's game

9:40 - Trouble at Apple

12:09 - Markets change, so pick companies that [mostly] stay the same

15:40 - Forever stocks

17:41 - High conviction bias

21:50 - When's the right time to sell?

26:50 - Don't get sucked in to "bear porn" headlines

28:30 - Do investors sell out of growth too soon?

34:10 - Sidestepping the GFC

35:30 - Quality is armageddon armour

41:01 - A bullet proof business model

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