The Intellectual Investor – Value Investing by Vitaliy Katsenelson

Learn, Adapt, Conquer – Conversations with Vitaliy – Ep 20

Jan 3, 2024

Reflecting on the struggles and successes of investing in a controversial video game company. Analysis of Berkshire Hathaway's investment in McKesson and the impact of Amazon's entry into the pharmacy business. Lessons from investing in different stocks in the pharmaceutical and technology industries.

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Quick takeaways

Do not let emotions drive investment decisions and evaluate the long-term worth of a company during the painful parts of the investment journey.

Staying invested in undervalued companies despite short-term challenges can lead to significant returns in the long run.

Deep dives

Lesson from Investing in Electronic Corrants

One of the main lessons learned from the podcast episode is the importance of not letting emotions dictate investment decisions. The speaker shares the example of buying a controversial stock called Electronic Corrants, which was named the worst company in America at the time. Despite a good initial thesis on the company's transition from analog to digital, the stock value halved and then doubled, leading the speaker to sell for a victory. However, the stock price then quadrupled over the next few years, highlighting the mistake of not staying invested as the original thesis was just starting to play out. The lesson is to zoom out during the painful parts of the investment journey and evaluate the company's long-term worth.

Introduction

4min

Investment in McKesson and the Fear of Amazon's Entry into Pharmacy Business

2min

Lessons from Roller Coaster Ride Investing

3min

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