Know Your Enemy
"Like all great surges in valuation-agnostic investing, this one too will wane," says Harris Kupperman.
One of my favorite investors that I love reading and following, Harris Kupperman, has offered up his latest thoughts on the market this week.
Harris is the founder of Praetorian Capital, a hedge fund focused on using macro trends to guide stock selection.
Harris is one of my favorite follows and I find his opinions - especially on macro and commodities - to be extremely resourceful. I’m certain my readers will find the same. I was excited when he offered up his latest thoughts, published below (slightly edited for grammar, bold emphasis is QTR’s).
Please be sure to read both my and Harris’ disclaimers, located at the bottom of this post
Whenever someone takes the other side of my trade, I want to put myself in their shoes. Is this a worthwhile opponent with a differentiated view? Am I stepping into a trap? Or are they doing something for totally uneconomic reasons? I need to know my enemy.
“Yes, I know my enemies
They’re the teachers who taught me to fight me
Compromise, conformity, assimilation, submission
Ignorance, hypocrisy, brutality, the elite
All of which are American dreams…”
– Rage Against the Machine
Naturally, I prefer the situations where my opponents are being absolute complete fuckwits—totally disengaged from valuation-based decision-making. Those are the opportunities where I want to wave it in with both hands.