๐ฃ๏ธ Investor Talk #42: Kris Patel
Podcast-host Hidden Edge Capital
Welcome to Investor Talk โ where we interview successful investors to uncover their journeys, strategies, and the lessons they've learned. Get inspired by real stories and gain valuable insights to sharpen your own investment approach.
Every interview follows the same set of sharp, insightful questions โ such as โWhat is your investment strategy?โ, โWhat are your highest conviction stocks?โ, and โWhatโs the biggest investment mistake youโve made?โ
๐ Check out all previous Investor Talks here
Including interviews with Brian Feroldi (Founder - Long Term Mindset), Shay Baloor (Host of Stocktwits) and Gav Blaxberg (CEO - WOLF Financial).
In this edition, we have the pleasure of interviewing:
Name: Kris Patel @KrisPatel99
Age: 39
Residence/Country: United States
Invests since: 2011
๐๐ป๐๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป
Reflecting on my journey, I canโt help but remember a time when things felt darker and the light at the end of the tunnel was dim.
Like many first-generation immigrants in New York, my family faced financial struggles. My parents tried to shield my brother and me, but we still saw the hardships, which largely stemmed from my fatherโs failed business ventures. Despite initial success, his inability to part with those close to him and his belief in people's goodness ultimately hindered him in a world that values pragmatism over kindness.
Failure, though painful, is a great teacher. Growing up, I often wondered why some people thrived while others didn't. My brother and I would ride our bikes to the Brooklyn Promenade, dreaming of the day we'd work in the shiny offices across the river. I still remember the awe I felt being part of NYC.
After college, I joined the Army to give back, and upon returning home, I focused on finding a job and my next steps. Although I missed the 2008 financial crisis, I paid close attention to its causes.
Since then, I've invested successfully, and after the pandemic, I connected with like-minded individuals, building a thriving community of investors to explore new ideas.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ผ๐๐ฟ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐?
While many people tend to fixate on the equity side of the equation, I focus more on cash flow and credit. Understanding a companyโs financials provides a unique insight into its overall health and whether itโs worth investing in. People often get caught up in trends and forget that, ultimately, companies need to generate profits to survive. I look for those businesses that can create meaningful cash flow while the market isnโt paying attention.
๐๐ผ๐ ๐บ๐ฎ๐ป๐ ๐๐๐ผ๐ฐ๐ธ๐ ๐ฎ๐ฟ๐ฒ ๐ฐ๐๐ฟ๐ฟ๐ฒ๐ป๐๐น๐ ๐ต๐ฒ๐น๐ฑ ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ?
I currently own 10 stocks.
๐ช๐ต๐ถ๐ฐ๐ต ๐๐ฒ๐ฐ๐๐ผ๐ฟ๐ ๐ฑ๐ผ ๐๐ผ๐ ๐บ๐ฎ๐ถ๐ป๐น๐ ๐ณ๐ผ๐ฐ๐๐ ๐ผ๐ป?
I focus on Capital intensive Infrastructure with solid cashflows.
๐ช๐ต๐ฎ๐ ๐ฎ๐ฟ๐ฒ ๐๐ผ๐๐ฟ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ฐ๐ผ๐ป๐๐ถ๐ฐ๐๐ถ๐ผ๐ป ๐๐๐ผ๐ฐ๐ธ๐?
$CCL - Carnival Cruise Line
$NCHL - Norwegian Cruise Line
$VG - Venture Global
$GOOGL - Alphabet
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ต๐ฒ ๐๐๐ผ๐ฐ๐ธ ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐๐ถ๐๐ต ๐๐ต๐ฒ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ฟ๐ฒ๐๐๐ฟ๐ป?
$CCL - Carnival Cruise Line. While many wrote it off, I picked it up near the bottom and have done exceptionally well. The company's turnaround is a prime example of prudent capital allocation and effective credit management.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ต๐ฒ ๐ฏ๐ถ๐ด๐ด๐ฒ๐๐ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐บ๐ถ๐๐๐ฎ๐ธ๐ฒ ๐๐ผ๐ ๐ต๐ฎ๐๐ฒ ๐บ๐ฎ๐ฑ๐ฒ?
After a series of wins in 2016, my overconfidence in distressed debt in the oil and gas sector caught me off guard. I invested heavily in a distressed E&P company's debt, trading below its intrinsic value. It performed well at first, but I later realized secured lenders had struck behind-the-scenes deals, getting paid in full while unsecured lenders like me were left with nothing when the company collapsed. This reminded me that, in the end, those with capital make the rules.
๐ ๐ ๐ณ๐ฎ๐๐ผ๐ฟ๐ถ๐๐ฒ๐
Favorite book: The Money Masters by John Train
Favorite podcast: The All-In podcast @theallinpod
Favorite quote: "Investment success doesn't come from 'buying good things,' but rather from 'buying things well.'" - Howard Marks
Favorite FinX account: Liz Ann Sonders @LizAnnSonders. She is Chief Investment Strategist at Charles Schwab.
๐ช๐ต๐ฒ๐ฟ๐ฒ ๐ฐ๐ฎ๐ป ๐๐ฒ ๐ณ๐ถ๐ป๐ฑ ๐บ๐ผ๐ฟ๐ฒ ๐ถ๐ป๐ณ๐ผ ๐ฎ๐ฏ๐ผ๐๐ ๐๐ผ๐?
I currently host two podcasts with some colleagues I recently started working with, and we have a Patreon for those who want to be a part of our community.
http://youtube.com/@hiddenedgepod
http://youtube.com/@CashflowChroniclesTV
http://patreon.com/krispatel99
Thatโs a wrap!
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