Channarong Kitinartintranee – Do Not Let Past Success Make You Overconfident

Channarong Kitinartintranee is the Senior Financial Advisor of KBank Private Banking Group. He joined Kasikornbank in 2018 with a key focus in Thai economics and equities. Before that, he worked as a mutual fund and institutional private fund portfolio manager at Krung Thai Asset Management with more than 10 billion baht focusing on mid-scale cap stocks. Channarong holds an MSc Finance from Thammasat University and has been a Chartered Financial Analyst (CFA) since 2012. Hear from Channarong as he shares his worst investment story.  Know why it is essential always to remember the basics and fundamentals of investing. Learn why we should not let past success make us overconfident.   “Don't forget the basic investment things, the valuation, the fundamental.” - Channarong Kitinartintranee Topics Covered: 01:07 – Andrew gives a summary of our guest’s working experience 03:04 – Channarong tells how the mid to small cap stocks he invested when he started in Krung Thai Asset Management performed very well at the start but turned out his worst investment 09:44 – Revealing the valuable lessons he got in his investment loss 11:40 – Andrew shares his takeaways in this story 15:17 – Additional important lesson from Channarong 16:48 – Actionable advice to avoid suffering the same fate: “Don't let past success makes you overconfident because you will end up failing. Challenge your past successes. Don't trust them.” 16:57 – Parting words from our guest: “Keep investing. If you don't invest, you'll never get the compounding effect of having your money in the market.” Main Takeaways: Lesson 1: “Gaining and losing in the investment in the market is a physical thing.”– Andrew Stotz Lesson 2: “It's important to discuss the concept of how a portfolio is exposed. The first exposure I'll call global drivers, and global drivers are things like oil price.  The second thing is the concept of exposure to factors. The most common factors are value and momentum and also, size exposure. I wouldn't necessarily call it a factor, but I'd call it a size exposure because you can implement a factor strategy in a mid-cap space.”– Andrew Stotz Lesson 3: “If you're investing in a certain type of exposure, whether that's to size to global factors or other factors such as valuation and momentum, remember those factors.  The reason why factor investing can be very difficult is it sometimes you could even create a fund or a strategy around a factor that had worked and then it may not work for the next five years. That doesn't mean that factor doesn't work or that exposure doesn't work such as a small cap or mid-cap stocks. It just means that it's out of favor. When you build only a narrow factor exposure, try to understand when that factor will be in and out of favor. And that is a very, very hard thing to do, but that's the message that you have to communicate when you're doing that type of fund.”– Andrew Stotz Lesson 4: “What I took away from what you've talked about is the concept of liquidity. And particularly because your story is about mid and smaller stocks, these stocks tend to have a higher risk of not being able to be liquid when you need to sell them at a reasonable price you can't. And that's the concept of illiquidity.”– Andrew Stotz Resources from Andrew Stotz: Andrew Stotz book 9 Valuation Mistakes and How to Avoid Them