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Going Through the 'Graveyard' with Wasatch

Jeff Cardon, manager of Analyst Pick Wasatch Small Cap Growth, discusses lessons learned from the firm's past mistakes and the importance of focusing on quality.


Karin Anderson: Obviously, you've been running the portfolio for over 20 years. You've seen downturns before. What were some of the key takeaways this time around--lessons learned?

Jeff Cardon: Well, lessons learned. I mean, there's been a lot of lessons learned over the 30 years. The thing that strikes me the most is... We have something that we call the graveyard, which are the companies that we've really goofed up on, because it's really worth going through that graveyard to see what lessons are learned in the graveyard. And the thing that's so fascinating to me is, that graveyard, the bodies kind of look all the same. For some reason, maybe, you were more focused on valuation for some reason, or somebody convinced me that this company is better than I thought it was. Or maybe we just made a mistake and it wasn't as good.

Karin Anderson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.