Steven Gorelik: Investing Lessons from Stock Picking in Two Very Different Regions

Talking Billions with Bogumil Baranowski

My guest today is Steven Gorelik, in the spirit of keeping these intros short, find all about Steve in the notes. In two sentences — Steve was born in Belarus during the Cold War, moved to the States, fell in love with investing, and has a lot to share both about the US market and the Eastern European markets.

In my mind, both experiences build on top of each other and complete a much deeper, broader perspective that can be very helpful in long-term investing. If you want to hear more about how investing in two very different regions can make you a better investor, tune in, and listen to our conversation.In addition to being Head of Research at Firebird Management, Steve Gorelik is the Lead Fund Manager of Firebird U.S. Value Fund as well as portfolio manager of Firebird’s Eastern Europe and Russia Funds. He joined Firebird in 2005 from Columbia University Graduate School of Business while completing education from a highly selective Value Investing Program. Prior to business school, Steve was an operational strategy consultant at Deloitte working with companies in various industries including banking, healthcare, and retail. He holds a BS degree from Carnegie Mellon University as well as a CFA (chartered financial analyst) charter and a membership in Beta Gamma Sigma honor society. Steve serves on the number of supervisory boards of listed and private companies in the Baltics. He speaks Russian, English and his native Belarussian.www.fbird.com

Takeaways

Understanding the economic environment and incentives is crucial for successful investing in different regions.Family ownership in Eastern European businesses often leads to long-term decision-making and alignment with investment approaches.Corrupt democracies pose challenges for investment decisions, while non-corrupt democracies provide more stability.Investing in the best financial institutions in growing economies can lead to significant returns. Local knowledge and understanding of the local market is crucial for successful investing.Banks play a crucial role in the economy and can benefit from long-term growth trends.Being a minority shareholder requires careful consideration of the company's treatment of minority shareholders.Having conviction in investment decisions is important, but it's also necessary to admit when you're wrong and make necessary adjustments.Investing in companies with shrinking addressable markets can be risky and may lead to poor returns.The concentration of market performance in a few companies raises questions about the long-term sustainability of their success.Active management can provide opportunities to outperform benchmark indexes.

Podcast Program – Disclosure StatementBlue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.