The Motley Fool investing team is always trying to learn, grow, and adapt. One of the many ways we do this is by speaking with other investors who we admire. Sometimes we hold these chats at Fool headquarters and other times we meet remotely using Zoom Video Communications' conferencing technology.
On Dec. 11, Marcelo Lima graciously agreed to share his quality growth investing philosophy and strategy with us. Marcelo is the founder and managing member of Heller House, a fund based in Miami. We were particularly eager to learn from Marcelo because he adapted from being a more traditional deep-value investor to one focused on investing in innovative businesses in large, growing markets with competitive advantages and high-return reinvestment opportunities. Presently, 100% of his portfolio is invested in businesses powered by software.
Because so many of Marcelo's portfolio holdings are also some of The Motley Fool's highest-conviction ideas, we thought it would fun (and educational) to share the video of our meeting with Marcelo. Click on the video link below to learn about Marcelo's thoughts on...
- Investing in companies that are in a state of perpetual beta (constantly testing, learning, innovating, and adapting).
- Investing in companies riding technology adoption (or S curves) with phenomenal management teams.
- Why he is overweight culture and management teams.
- The importance of understanding the DNA of a company.
- The difference between missionary and mercenary corporate management teams.
- The importance of understanding the context and competitive landscape that a company operates in.
- His investing checklist and the one unique question he likes to ask before buying stock in any company.
- Loosely incorporating the Kelly Criterion to determine position sizing.
- Some of his favorite academic and empirical studies.
- How he thinks about margin of safety and why he thinks using a discounted cash flow (DCF) model is the most appropriate way to estimate fair value for a fast-growing software as a service (SaaS) business.