Francois Rochon: 4,000% Returns: How Holding Winners Make You Rich (and One Big Regret)

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During his recent interview with Compounding Quality, François Rochon explained why taking profits isn’t bad, but it won’t lead to immense wealth. He emphasizes the importance of holding onto winning investments for significant returns. A few big winners can transform your investment journey. Here’s an excerpt from the interview:

Q: What’s a famous investment rule you don’t agree with?

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Rochon: It would be ‘You don’t go broke taking a profit’.

You can’t go broke taking a profit, but I highly doubt it will make you very rich.

The key to successful investing is holding on to your winners. It only takes a few very big winners during your career to become a really successful investor.

Q: What’s the best investment you’ve ever made?

Rochon: There are two investments that come to my mind: Dollarama and O’Reilly Automotive.

I bought Dollarama in early 2010 and the stock has increased 24x. We sadly trimmed it a few times. Otherwise we would have benefited even more.

In 2004, we bought O’Reilly Automotive but we sold our last shares in February 2020. If we would have kept them, we would have a return of more than 4,000% on the company.

Both investments are good examples of the importance of letting your winners run.

You can read a transcript of the entire interview here:

Compounding Quality – Interview François Rochon

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Tobias Carlisle is the founder of The Acquirer’s Multiple®. He is also the founder of Acquirers Funds®. The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates.