Even the best investors in the world sometimes miss great opportunities.
Warren Buffet is known as one of the disciples of value based fundamental investing after working for the “fundamental godfather”, Benjamin Graham. But as Warren Buffett himself stated “he blew it” on not having invested in Amazon a few years ago.
“yeah, I’ve been a fan, and I’ve been an idiot for not buying” – Warren Buffett
Warren Buffet is not alone; many investors missed the Amazon opportunity and it has cost them dearly. Amazon is not only the largest public retailer in the US but has a market capitalisation larger than the combined value of the next 10 retailers. It has annualised close to 40% since its listing in the late 90s and after the dot com crash in 2000, many said it wouldn’t survive.
To us this shows that you must be adaptable in your strategy, there is no “one size fits all” investment strategy or investment style. Cycles in investment markets are inevitable and the only constant is change, so you need to be sure you invest with an investment manager that follows an investment style that is unbiased, adapts to the current environment and does this with consistency.