2018 was a disappointing year for us. Disappointing not just because of the negative performance, which obviously was painful, but more so because of our unforced errors. Poor choices caused about one-third of our negative performance. Rupee depreciation and indiscriminate mid-cap selling caused the rest, in roughly equal measures. We spent the entire Q2 letter dwelling on our four problem stocks so we will not rehash it here. We fixed the problems when we found them, even though the temptation to “just wait things out” was quite high at the time. We have a process for handling bad outcomes, and we stuck with it. For that, we are proud of ourselves. Now we just have to work on being less stupid when buying. That’s work in progress.
Notes & Letters
A collection of our thoughts, views, and excerpts from our investor letters.