In this edition, we speak with a global equity investor about why fundamentals without valuation are dangerous, how mistakes matter more than misses, and what it really takes to build a resilient global portfolio in an uncertain world.

1. Many investors obsess over picking winners. You talk more about avoiding mistakes. Why?

“Getting one thing wrong can undo ten right decisions.”

In equity investing, errors compound faster than insights. You can have the fundamentals right, but if the valuation is stretched, the outcome is rarely forgiving. The real damage often comes from three places: weak governance, chasing narratives you don’t fully understand, or investing without enough rigor.
Avoiding these doesn’t guarantee success, but ignoring them almost guarantees failure.

2. How do you think about fundamentals and valuation together?

“They are inseparable. One without the other is incomplete.”

Strong fundamentals matter only when they are supported by reasonable valuations. If you overpay, even a great business can deliver disappointing returns. The discipline is not in forecasting perfection, but in insisting on a margin of safety. Markets forgive patience more than they forgive enthusiasm.

3. Global investing is fashionable. But what does diversification actually mean?

“Diversification is not geography. It’s behavior.”

For someone starting out, simplicity matters. A broad exposure to the US through indices can be a sensible first step. Gold can play the role of insurance, especially in a world where monetary discipline has become optional.
Only after that does active global allocation make sense, when you’re equipped to judge countries, currencies, and cycles. Otherwise, complexity becomes confusion.

4. Many global portfolios look crowded around famous names. How do you avoid that?

“We go where value exists, not where familiarity lives.”

The process is unconstrained. Market cap, geography, or popularity don’t define opportunity—value does. That said, we narrow the universe to stay sharp. Large companies dominate global market cap for a reason, but when smaller opportunities with clear economics appear, we don’t ignore them.
Filters guide us; they don’t imprison us.

5. What defines value for you in a global context?

“Value needs a catalyst. Without it, cheap stays cheap.”

A business must have three things: long-term growth potential, reasonable valuation, and a trigger for value recognition. Sometimes the catalyst is visible, sometimes it’s simply time and cycle normalization. But without one, patience turns into inertia.

6. How do you deal with politically complex markets like China?

“You don’t predict politics. You size risk.”

Every geography carries risk. Democratic or otherwise. Policy shocks, sanctions, regulation, they’re not exclusive to any system. The response isn’t avoidance; it’s calibration.
China has produced exceptional businesses and extraordinary wealth creation over decades. The risk is real, but so is the opportunity. Position sizing is how we respect both.

7. How do you handle situations where the market runs away without you?

“Missing an idea hurts less than owning a mistake.”

There are times when patience turns into regret. Being too valuation-conscious can mean watching great businesses rerate without you. But discipline demands consistency.
If the margin of safety isn’t there, you let it go. Investing is not about capturing every upside, it’s about surviving long enough to benefit from the right ones.

8. Why are you comfortable holding cash at times?

“Cash is not a forecast. It’s optionality.”

We don’t hold cash because we’re bearish. We hold it when opportunities don’t clear the hurdle. Cash gives you speed and clarity when markets dislocate.
It’s not a drag, it’s dry powder for moments when fear returns faster than reason.

9. How do you think about big themes like AI and technology?

“Great businesses outlast narratives.”

Technology leaders have repeatedly reinvented themselves, cloud, platforms, ecosystems, and now AI. The challenge isn’t believing in innovation; it’s valuing it correctly.
When outcomes become too hard to handicap, stepping aside is also a decision. Not everything needs to be owned.

10. Do you believe in having an information edge?

“Understanding beats access.”

In today’s world, information is abundant. Insight is rare. Being physically closer to markets doesn’t guarantee better decisions. What matters is how deeply you understand a business, its economics, and its incentives.
Time spent thinking often beats time spent traveling.

11. What advice would you give a long-term investor starting today?

“Start simple. Add complexity only when conviction grows.”

A core allocation to proven markets, patience through cycles, and a willingness to judge managers by process, not just performance.
The goal isn’t to predict the next decade. It’s to stay invested through it.

Editor’s Note:
This conversation is a reminder that investing is less about brilliance and more about restraint. By focusing on fundamentals, valuation, and mistake avoidance, the framework doesn’t promise excitement, but it does offer endurance. And in markets, endurance is underrated alpha.

Watch the full conversation: