Steve Hou

Charlie Munger said, “Buy great companies at a fair price.” An earnings inflection strategy flips that idea — finding companies still losing money but rapidly improving. The payoff? A $100 investment in the Bloomberg earnings inflection strategy in 2015 would be worth $600 today. This presentation shows why the “less bad” beats the “already good,” how it systematically catches names like Uber, Robinhood, and Palantir early, and finally why the approach delivers asymmetric returns that complement market beta.