In this episode of Yet Another Value Podcast, host Andrew Walker returns with his monthly solo ramblings covering several themes shaping current markets. He starts by discussing recent volatility and why markets feel inconsistent despite relatively modest index declines. Andrew then explores how long-term tailwinds in software and growth investing may have influenced investor track records over the past decade. He also revisits his three-year rule for evaluating stagnant investments, examining its limitations in cyclical sectors. The episode closes with a discussion on position sizing, emphasizing the need to re-underwrite positions after large price moves and avoid inertia when fundamentals change.
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[00:00:00] Introduction and volatile market overview
[00:00:47] Software investing and track record concerns
[00:01:40] Three-year rule and exceptions
[00:01:56] Position sizing after major moves
[00:05:08] Markets feel inconsistent and strange
[00:08:04] SaaS and growth investing tailwinds
[00:09:43] Track records shaped by favorable cycles
[00:13:49] Revisiting and questioning three-year rule
[00:15:58] Cyclical tailwinds impacting outcomes
[00:17:00] Value creation versus timing importance
[00:19:49] Position sizing mistakes and inertia
[00:22:52] Re-underwriting after losses
[00:24:15] Risk management and cost limits
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