A.U.M. John Rotonti - Building a Winning Research Process
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Mar 4, 2025 John Rotonti, Portfolio Manager at Islamorada Investment Management and former Motley Fool analyst, shares insights from his investment journey shaped by icons like Peter Lynch and Warren Buffett. He emphasizes the power of thorough research, balancing traditional valuations with innovative strategies. John dissects investment pitfalls, highlighting valuable lessons learned from past investments like BlackBerry. He also discusses his high-quality picks, Amphenol and Trane Technologies, and offers essential advice for aspiring investors on cultivating independent thinking and community engagement.
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Investment Strategy
- Focus on high-quality, profitable, and growing businesses run by owner-operators.
- Prioritize the duration of growth over the rate of growth, aiming to beat the market over rolling five-year periods.
Research Process
- John Rotonti's research process involves quickly eliminating most ideas based on quality, management, growth, or valuation.
- He deep-dives into remaining ideas over three weeks, analyzing financials, reading transcripts, and speaking with management.
Idea Generation
- Rotonti generates ideas from his network, investor letters, 13Fs, and competitor analysis.
- He considers long-duration secular trends and looks for dominant businesses intertwined with the US economy, such as railroads.
