Jose Najarro

The second thing is part of the difficulty of a value investor is that

patience is required.

And patience is really hard, especially if you're going against the tide.

Like for example, right now, even though we do have high growth companies, we're pretty much almost entirely, there's a few exceptions, but almost entirely out of anything that's AI.

And that's regardless of the layer we're talking about, whether that's the infrastructure layer, whether that's the application layer, we're almost entirely out of AI.

I mean, all of our companies are using AI in one way, shape or form, right?

But I mean, people who are trying to develop an AI themselves or provide the infrastructure for that development.

We're almost entirely out of that.

And for now, that has been like a bad decision, if you want to call it.

I mean, if you look at what the index of the chip index SOXX or something like that has done in the past year or so, it's incredible performance, right?

But when you study history and you look at how

uh things eventually uh even though they take time can revert and when they revert they can do so very strongly and for a long period of time that's what you kind of need to go back to as a value investor and not get the the not not fall into the fomo trap right uh and

We could have had this same conversation now, for example, we could have had in 1999 or even early 2000, where we're saying, look, the S&P 500 and the indexes and the .com stocks have done incredibly well over the past five to eight years.

And it's been a bull market since early 1990s to 2000.

That's a decade long, right?

But if you had bought at the peak of 2000, you wouldn't have made in the S&P 500, you wouldn't have made a cent until 2010.

That's including dividends.

And if you exclude dividends until like 2012, 2013, right?

And so as a value investor, we're more focused on protecting the downside and being like, we don't want to be subject to that possible scenario.

We're willing to maybe forego some upside.