I just spoke with Pulak this morning about his long-term investing approach and how it was influenced by evolutionary biology.
Similar to our 7investings principles, he follows three pillars:
- Avoid big risks
- Get a fair price
- Never sell
This has led his firm Nalenda Capital to amass very large position sizes in the best-in-class business. He has two funds, and the large position in each has reached 29% and 20% allocations. Overall, the average return on invested capital of the companies in his funds is 41%. That is incredibly high.
I’ll publish the full conversation to our podcast next week. Very enlightening, and further explains how individuals can vastly outperform larger institutions.
