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
In this edition, we have the pleasure of interviewing:
Name: Simon Anders Erickson @7Innovator
Age: 42
Residence/Country: Texas, United States
Invests since: 2004
๐๐ป๐๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป
Born in a small town of 10,000 people in rural Iowa, my career path has already taken several twists and turns.
Originally trained as a chemical engineer and later working as a sales representative for GE, I returned to business school and subsequently helped drive the renewable energy strategy for Chevron. After holding various growth-focused investing roles at The Motley Fool, I am now living my dream as the founder and lead advisor at 7investing @7investing.
Iโm an innovator, always seeking better ways to get things done.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ผ๐๐ฟ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐?
Iโm a believer in playing both offense and defense when it comes to investing. Playing offense means looking for fast-growing and often disruptive companies who are doing something important very differently than their larger competitors. I am specifically looking for companies that I believe have 10-bagger potential.
Playing defense is what allows me to sleep at night. I look for well-established, cash compounding machines who are generously sharing their massive cash flows with us through dividends and buybacks.
๐๐ผ๐ ๐บ๐ฎ๐ป๐ ๐๐๐ผ๐ฐ๐ธ๐ ๐ฎ๐ฟ๐ฒ ๐ฐ๐๐ฟ๐ฟ๐ฒ๐ป๐๐น๐ ๐ต๐ฒ๐น๐ฑ ๐ถ๐ป ๐๐ผ๐๐ฟ ๐ฝ๐ผ๐ฟ๐๐ณ๐ผ๐น๐ถ๐ผ?
I currently have 47 active positions
๐ช๐ต๐ถ๐ฐ๐ต ๐๐ฒ๐ฐ๐๐ผ๐ฟ๐ ๐ฑ๐ผ ๐๐ผ๐ ๐บ๐ฎ๐ถ๐ป๐น๐ ๐ณ๐ผ๐ฐ๐๐ ๐ผ๐ป?
I love semiconductors, enterprise software, and e-commerce platforms. I steer clear of energy, automakers, and most FinTech.
๐ช๐ต๐ฎ๐ ๐ฎ๐ฟ๐ฒ ๐๐ผ๐๐ฟ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ฐ๐ผ๐ป๐๐ถ๐ฐ๐๐ถ๐ผ๐ป ๐๐๐ผ๐ฐ๐ธ๐?
A shameless plug: I publish my top 5 Best Buys every month for 7investing. Come take a look at September's list: http://7investing.com/advisor-update/7investings-best-buys-september-2024/โฆ
Personally, my 3 largest positions are:
$AAPL - Apple
$MELI - MercadoLibre
$TSLA - Tesla
๐ช๐ต๐ถ๐ฐ๐ต ๐๐๐ผ๐ฐ๐ธ ๐ต๐ฎ๐ ๐๐ต๐ฒ ๐ต๐ถ๐ด๐ต๐ฒ๐๐ ๐ฟ๐ฒ๐๐๐ฟ๐ป?
My biggest winners have come from buying undervalued companies right before they hit an inflection point.
My winners list includes buying Amazon $AMZN at $2.50/share in 2008, Apple $AAPL at $18 in 2012, MercadoLibre $MELI at $87 in 2014, and Tesla $TSLA at $11 in 2016.
All of these are split-adjusted prices and I'm still holding on to the positions.
I also picked up some Bitcoin $BTC at $247 in 2015 and then sold it two years later for $17,000 to buy a hot tub. Which is lovely in December but goes mostly unused during the Texas summer.
๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ต๐ฒ ๐ฏ๐ถ๐ด๐ด๐ฒ๐๐ ๐ถ๐ป๐๐ฒ๐๐๐บ๐ฒ๐ป๐ ๐บ๐ถ๐๐๐ฎ๐ธ๐ฒ ๐๐ผ๐ ๐ต๐ฎ๐๐ฒ ๐บ๐ฎ๐ฑ๐ฒ?
My biggest losers have come from buying ultra-high risk flyers that had zero competitive advantages and struggled to ever generate a profit.
My loser list includes buying China Marine Food Group $CMFO, Invitae $NVTA, Stratasys $SSYS, and Westport Innovations $WPRT, all of which I lost 80% or more on.
๐ ๐ ๐ณ๐ฎ๐๐ผ๐ฟ๐ถ๐๐ฒ๐
Favorite book: The Innovatorโs Dilemma by Clay Christensen.
This is an absolute must-read for anyone who wants to understand and invest in disruptive innovation.
Favorite podcast: Anything that's related to the NFL or to Fantasy Football (Go Saints!). Favorite quote: "Don't give up. We can do hard things." - My daughter, when she was only 4 years old.
Favorite FinX account: Anyone who is similarly sharing insights to empower other individuals to make better investing decisions to support their family and their future.
๐ช๐ต๐ฒ๐ฟ๐ฒ ๐ฐ๐ฎ๐ป ๐๐ฒ ๐ณ๐ถ๐ป๐ฑ ๐บ๐ผ๐ฟ๐ฒ ๐ถ๐ป๐ณ๐ผ ๐ฎ๐ฏ๐ผ๐๐ ๐๐ผ๐? You can find more info about me on https://7investing.com/our-team/ or take a look at my X profile @7Innovator.
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice or a recommendation to buy, sell, or hold any financial product, security, or asset. The Future Investors does not provide personalized investment advice and is not a licensed financial advisor. Always do your own research before making any investment decisions and consult with a qualified financial professional before making any investment decisions. Please consult the general disclaimer for more details.