Justin Dopierala of Domo Capital has been one of the best-performing value investors in recent years. In 2022, he lost 65%. Let's try to understand what happened to avoid the same mistakes.
Justin Dopierala was one of the early investors in GameStop $GME and one of the first to predict the GameStop Short Squeeze. That's how I learned about him. Another great investment that he made was UNFI $UNFI and I got the idea from him.
In 2022, however, he lost 65% and now his portfolio is underperforming the S&P 500 $SPX500 since inception in 2008.
Here's what went wrong according to me:
1. The gains on GameStop caused a big influx. of capital to his fund, and he had to invest with pressure.
2. Overconcentration.
3. Regression to the mean. We should not expect investors who are making 30% or more a year to keep doing it. Warren Buffett has returned 20% per year with Berkshire Hathaway $BRK.B which is great.
https://www.youtube.com/watch?v=28kKLx1maCA