FRFHF - Yoav Zelikovic Investments' Annual Letter 2020 (Updated Q1 2021)

• I would like to review several economic developments for the year 2020 and share with you some financial thoughts for the coming year (2021).
• The Passive vs. Active debate.
• Our portfolios are divided into three parts: "Micro-Cap Value Stocks," "Compounders," and "Special Situations." Compounder stocks are stocks of profitable companies which operate in various fields (including many owner-operated  stocks of public insurance companies around the world), led by honest, reliable Outsider-like CEOs with a proven track record. We prefer to purchase these at a healthy discount to their economic value.
• It is much easier for an investment manager who manages relatively small sums of money to produce excess returns. On the other hand, Kathy Wood (or any other investor), who manages sums of dozens of billions of dollars, will find it difficult or even impossible to reproduce such numbers over long-term periods, which will necessarily lead to a decrease in the returns which she will produce for her investors.

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