๐ฃ๏ธ Investor Talk #45: Dillon Valdez
Growth Investor
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: Dillon Valdez @Dillon_Valdez
Age: 34
Residence/Country: Minnesota, United States
Invests since: 2019
๐๐ป๐๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป
I currently work in medical sales while managing my own investment portfolio, something Iโve been doing for nearly six years now. My core belief is this: if I can earn money, then learn how to make that money work for me โ passively โ it will lead to a future where I can be truly free. I focus on achieving freedom, not collecting material possessions.
I started investing when I began my career in medical sales and finally had some disposable income. Before that, I earned very little while serving in the Marines and studying in college. It was during my first job in pharma that a colleague who casually picked stocks recommended I read โRich Dad, Poor Dadโ. That book completely changed the way I thought about money.
Today, I'm laser-focused on achieving financial freedom. I even share my journey publicly through my portfolio, so that others can learn from what I do โ if they choose to.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ผ๐๐ฟ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐?
I run a growth-style portfolio, focusing primarily on companies that are profitable, or close to profitability, and have durable business models that can last for many years.
If I decide to invest in an unprofitable stock, I limit it to around 1% of my portfolio, and I need to have a strong belief that the company will reach profitability within 12 months of my initial purchase.
My biggest losses came from buying either unprofitable companies or stocks that were simply too expensive. Once I cut those mistakes out, my returns improved dramatically.
๐๐ผ๐ ๐บ๐ฎ๐ป๐ ๐๐๐ผ๐ฐ๐ธ๐ ๐ฎ๐ฟ๐ฒ ๐ฐ๐๐ฟ๐ฟ๐ฒ๐ป๐๐น๐ ๐ต๐ฒ๐น๐ฑ ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ?
Currently 19, but I like to be closer to 15. All my companies are still performing well, so itโs hard to move on from exceptional profitable growth companies.
๐ช๐ต๐ถ๐ฐ๐ต ๐๐ฒ๐ฐ๐๐ผ๐ฟ๐ ๐ฑ๐ผ ๐๐ผ๐ ๐บ๐ฎ๐ถ๐ป๐น๐ ๐ณ๐ผ๐ฐ๐๐ ๐ผ๐ป?
I donโt like to limit myself to specific sectors, because with the right research, any sector can make sense. That said, I do have a strong preference for companies involved in the data explosion weโre currently experiencing. Data isnโt just fueling AI, the buzzword of the past few years, itโs also helping businesses make more informed decisions across the board. Many companies are now leading the way in organizing and applying this data effectively.
I also believe globalized commerce, and the logistics that support it, represents a major secular tailwind going forward.
๐ช๐ต๐ฎ๐ ๐ฎ๐ฟ๐ฒ ๐๐ผ๐๐ฟ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ฐ๐ผ๐ป๐๐ถ๐ฐ๐๐ถ๐ผ๐ป ๐๐๐ผ๐ฐ๐ธ๐?
$TSLA - Tesla
$PLTR - Palantir
$MELI - MercadoLibre
I have owned all these companies for years.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ต๐ฒ ๐๐๐ผ๐ฐ๐ธ ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ ๐๐ถ๐๐ต ๐๐ต๐ฒ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ฟ๐ฒ๐๐๐ฟ๐ป?
$PLTR - Palantir, since I bought at $8 per share.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ต๐ฒ ๐ฏ๐ถ๐ด๐ด๐ฒ๐๐ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐บ๐ถ๐๐๐ฎ๐ธ๐ฒ ๐๐ผ๐ ๐ต๐ฎ๐๐ฒ ๐บ๐ฎ๐ฑ๐ฒ?
I mentioned it briefly above, but my biggest mistake was buying unprofitable companies because I believed more in the โstoryโ than in the actual path to profitability. At the beginning of 2022, I was overweight in several of these unprofitable companies, which hurt my returns early in the year.
Back in 2021, I also fell into the narrative that cloud computing companies were the greatest businesses ever, only to watch their growth expectations continually get revised downward. Even today, many of their stock prices still havenโt returned to their previous all-time highs.
Moral of the story: size your positions carefully when it comes to unprofitable companies, and never assume a companyโs momentum will last forever.
๐ ๐ ๐ณ๐ฎ๐๐ผ๐ฟ๐ถ๐๐ฒ๐
Favorite book: Mastering the Market Cycle by Howard Marks @HowardMarksBook
Favorite podcast: I donโt listen to many podcasts.
Favorite quote: โBehind every stock, there is a companyโ - Peter Lynch
Favorite FinX account: I donโt follow anyone particularly close
๐ช๐ต๐ฒ๐ฟ๐ฒ ๐ฐ๐ฎ๐ป ๐๐ฒ ๐ณ๐ถ๐ป๐ฑ ๐บ๐ผ๐ฟ๐ฒ ๐ถ๐ป๐ณ๐ผ ๐ฎ๐ฏ๐ผ๐๐ ๐๐ผ๐?
You can find me on X @Dillon_Valdez โ or on Savvy Trader where you can see my full portfolio: https://savvytrader.com/BluSuitDillon/blusuits-growth-investing-portfolio?s=NTQ1NDoxMjI4
Thatโs a wrap!
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