A few years back, we wrote about Our Worst Investments in our Q2 FY21 quarterly letter. The letter talked about all the investments where we lost more than 15% of our invested capital. Each of those investments hurt our returns and dragged down the overall portfolio performance. In these cases, it was our buying decision that turned out to be wrong.
In this letter, we talk about another kind of decision that has had an even larger impact on the portfolio returns – the selling decision. Since our fund’s inception, 6 out of our 25 exited investments have delivered returns of 5-15x post our exit. If we hadn’t exited these investments, our portfolio returns would have been substantially higher. We discuss below these 6 investments – the investment/selling rationale, what we missed, and learnings, if any.
Continue reading The Ones That Got Away