Build It. They'll Come. Long & Short fund manager John Hempton knows HOW to admit when he’s wrong. The maverick investor prides himself on being unconventional.
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Aug 9, 2020 John Hempton, the Chief Investment Officer and Co-Founder of Bronte Capital, is a maverick investor known for unearthing corporate fraud. He shares insights into his unconventional investment strategies and the challenges of the 10-year bull market. Hempton emphasizes the value of mentorship and seeks quality businesses while discussing key indicators of fraud. He also offers unexpected investing tips for young investors, advocating for early career guidance from good bosses and the importance of thinking independently in a competitive landscape.
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Croda's Niche in Cosmetics
- John Hempton explains how Croda, a lanolin producer, created a successful niche business.
- Croda's meticulous quality control and history give L'Oréal, a major cosmetics company, confidence in their product.
Investing in Female Vanity
- Selling to female vanity is a lucrative business, exemplified by the high margins in cosmetics.
- Hair dye, another example, exhibits resilience during economic downturns due to its "addictive" nature and high switching costs for consumers.
Winner-Takes-All Dynamics
- Winner-takes-all companies, like Amazon and Google, benefit investors but increase economic inequality.
- This trend, driven by technology and reinforced by politics, leads to the squeezing out of smaller businesses.
