Gavin Baker
+ Your AuthorsArchive @GavinSBaker Managing Partner & CIO, Atreides Management LP. Formerly Fidelity OTC Fund. No investment advice, views my own. gavin-baker.medium.com/ Apr. 21, 2021 1 min read

Early in my career, I told a portfolio manager that “everyone knew” that company XYZ was going to miss #’s

The PM said “there’s usually someone who doesn’t know” and then bought the stock down 15% after the miss.

Always think of this during earnings season. Investing is hard.

To clarify: I had a buy on the stock and was recommending PMs buy in front of the earnings miss that I expected because I thought “everyone knew” and I was a “long term investor.”

Having a stock down 15% feels terrible as the analyst even if you are a “long term investor.”

BTW not anywhere near my top 1000 mistakes.

Only reason it’s memorable was the older, wiser PM telling me “there’s usually someone who doesn’t know” and then buying it lower post miss.

The price you pay determines the return you get regardless of time horizon.


You can follow @GavinSBaker.



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