5 Lessons From Scott Fraser

One of the most important lessons for me, another lesson learned, in the areas I invest in, which is largely consumer, I think it's critical you have a theory and defensibility. And for me, that defensibility typically has been network effect.

Successful investing isall about identifying businesses with growing earnings and good capitalallocation at sensible valuations, and firmly holding on to them as long asthey exhibit these characteristics.

Value  investing, the strategy of buying stocks at an appreciable discount from the value of the underlying businesses, is one strategy that provides a road map to successfully navigate not onlythrough good times but also through turmoil. Buying at a discount creates a margin of safety forthe investor—room for imprecision, error, bad luck or t... See more

The necessary conditions for investment excellence are having a high knowledge level, being up to date on the present state of the world, using a Bayesian process on every new piece of data, and accurately framing the four or five analytically bullish and bearish prisms through which we can look at the stock.

Investors should always keep in mind that the most important metric is not the returnsachieved but the returns weighed against the risks incurred. Ultimately, nothing should be moreimportant to investors than the ability to sleep soundly at night.

If you seek extraordinary performance, focus on what you know very well, do your homework, have conviction and take a stand. It’s the right way to build a product, to build a company — and to be an exceptional investor.