Valuation Risk: Tesla in 2021 vs. Cisco in 2000 – Distillate Capital
A successful investment process should seek to systematically take advantage of favorable risk/reward asymmetries over time. The value of that process should be revealed not by the performance of any individual stock, but through repetition with a portfolio of stock, and over a longer time horizon. As such, we are usually hesitant to write about individual stocks where we think the odds of outperformance or underperformance are fairly even. Q4 2020 hedge fund letters, conferences and more It is the skew, or extent of potential outperformance or underperformance, around the odds of leading or l...