The Rob Vinall Podcast RV Capital's 2024 Letter to Co-Investors
Mar 1, 2025
Rob shares his experiences navigating a 50% market drawdown, highlighting the psychological effects of volatility. He discusses six investments in China, showcasing growth strategies of companies like Tencent and Yum China despite challenges. The conversation shifts to a new energy sector investment, analyzing undervalued opportunities like PDD and ACA BP's strengths. Competition in the Swiss grocery market is explored, focusing on ethical and efficient disruptors. Finally, there's a celebration of innovation and the importance of diverse perspectives.
AI Snips
Chapters
Transcript
Episode notes
Painful Drawdown and Medical Emergency
- Rob Vinall experienced a near 50% drawdown, the most painful of his career, bottoming in December 2022.
- It felt worse than losing his own money and was compounded by a medical emergency, though the latter put things in perspective.
Recovering from Drawdowns
- Recover losses responsibly by doubling down on unfairly marked-down stocks and selling those lacking conviction.
- Aim for a reasonable recovery timeframe (e.g., 5 years at 15% annualized return).
Pain of Correlated Drawdowns
- Drawdowns are painful when fully invested and holdings fall simultaneously, especially if caused by poor investment decisions.
- Value investors should theoretically delight in market crashes, but the reality can be different.