Hong Kong Stock Picker Who Generated 20% Annual Return Since 1995

Economy & Finance
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Bloomberg: The 20%-a-Year Stock Picker Who Wishes His Edge Would Disappear

David Webb quit his job at 33, got rich investing in Hong Kong

Webb estimates his annualized gains since 1995 at about 20 percent, versus an 8.4 percent total return for the Hang Seng Index. While he declined a Bloomberg News request to view his trading records, Hong Kong market veterans including CMB International Securities Ltd. strategist Daniel So and Accudo Capital Ltd. Chief Executive Officer Manuel Schlabbers have said that his stated returns are plausible.

Here’s how Webb describes the basics of his investment strategy:

  • Owns about 35 stocks at a time, with an average holding period of “five-plus’’ years
  • Long only, never short
  • Prefers large stakes in small companies and isn’t afraid to take an activist role: “If you are going to be a minority shareholder, it’s better to be a big one’’
  • Doesn’t use leverage
  • Looks for businesses that are well-governed and undervalued
  • Reads the regulatory filings –- almost all of them
  • Avoids large caps
  • Refuses to manage outside money: “It’s a lot of hassle’’
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1.2 for 23 years = 66 times initial investment.

Have he invested in AAPL 23 years ago, his return is 357 times :crazy_face: with today close.
If AMZN, 313 times.

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