5 Stocks to Invest in According to Victor Ho's Yarra Square Partners – Insider Monkey

Today I am going to share three secrets to successful investing. We share our portfolio of 20-25 stock picks in our monthly newsletter since March 2017 and these stocks returned 191.6% cumulatively vs. 100.4% for the S&P 500 ETF (SPY) over the last 4.5 years. Our stock picks returned 26.8% on an annualized basis, vs. 16.7% for the S&P 500 ETF. So, how did we manage to beat the market by more than 10 percentage points per year? We aren’t traders. Most of the times I have no idea which stocks are going to outperform the next day, week, or month. We are long-term investors. We try to identify stocks that are going to outperform the market over the next one to 10 years. Long-term investing isn’t competitive at all. Short-term investors cause a lot of distortions in stock prices which create a lot of long-term investment opportunities. I call these long-term opportunities because I don’t know when exactly the market will correct these pricing errors. We covered our shorts and loaded up on beaten down stocks at the end of March 2020 when the S&P 500 Index was trading at 2450. That’s the #1 secret to our success. On…
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