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Equity Mates Investing Podcast

Will Dowd - US, small caps, industrials: The 3 building blocks of a 30 year portfolio | Summer Series

Jan 12, 2025
In this chat, Will Dowd, a Partner and Portfolio Manager at Fairlight Asset Management, shares his passion for small and mid-cap industrial businesses. He discusses Fairlight's unique investment philosophy, focusing on under-studied markets. Will outlines how to filter for hidden gems and his approach to building a resilient portfolio for the next 30 years. He also addresses common industry pitfalls that every investor should be aware of, emphasizing discipline and rigorous analysis in investment decisions.
44:16

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Will Dowd emphasizes the importance of investing in under-studied industrial businesses and small to mid-cap stocks for long-term growth.
  • The podcast highlights the need for a disciplined selling strategy to optimize returns while focusing on quality investments over time.

Deep dives

Navigating Investment Decisions

Investing is characterized by the challenge of deciding between holding onto successful businesses and entering new, potentially undervalued opportunities. It’s emphasized that selling is often more difficult than buying due to emotional attachments and biases that develop over time. Research indicates that fund managers frequently harm their portfolios by selling winning stocks too early or holding on to losing ones to avoid recognizing losses. Therefore, maintaining a strategy that allows for disciplined selling, while also recognizing the potential growth of existing investments, is crucial to optimizing returns.

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