The Rob Vinall Podcast RV Capital's 2023 Letter to Co-Investors
Mar 15, 2024
Rob Vinall discusses the perils of reading too much into recent experiences, the current sentiment towards China, and a new investment in PDD Holdings. Topics also include exploring knowledge and lessons in investing, adaptation and efficiency in challenging times, and analyzing Pinduoduo's expansion strategies and competitive advantage.
AI Snips
Chapters
Transcript
Episode notes
Beware Short-Term Lessons
- Investment feedback loops are very long, making short-term lessons unreliable.
- Focus on a priori truths rather than recent experience when forming investment convictions.
Crisis Often Breeds Stronger Companies
- Deep crises can create greater potential upside as companies tighten and improve.
- Many firms cut costs, sharpen focus and repurchased shares, boosting intrinsic value despite lower prices.
Carvana’s Turnaround Example
- Carvana turned unit economics from poor to solid, raising gross profit per retail unit dramatically.
- It renegotiated debt, faced weakened competitors, and regained focus under its CEO Ernie Garcia.