The strategy behind a 250x return - with Swen Lorenz

Great.

So let's talk a bit about his investment philosophy.

I think one of the things that Michael is very keen on is this idea of being unconstrained when he invests.

So just explain to us why this concept is so central to Michael's investing approach.

So when we say that his investment strategy is unconstrained, that means he can invest in for example, stocks from around the world.

There's no geographical boundary that says he can only invest in the United States or only in Europe or only in Asia.

And what most investors and private investors and people who are saving money are not aware of is how many restrictions fund managers are generally under nowadays.

And that eats into their returns or into the potential returns that they may generate in the future.

And to give some concrete examples, first of all, There are many limitations that most portfolio managers have in terms of the industries they can invest in.

And I mean, to give you the most obvious example, until five years ago, most fund managers were not allowed to invest into defense.

And boy, have defense stocks done well in the last five years.

And suddenly it is almost fashionable again and a good thing to invest in defense.

So the zeitgeist, the spirit of the ages really changes over time.

And if you are part of a large corporation that places all these restrictions on fund managers, then you probably miss out on things.

And in more technical terms, there are also restrictions such as the portfolio weighting.

So anyone who invests into a so-called usage fund, which are the sort of funds that are generally available to retail investors in the European Union, usage funds are these Luxembourg-based fund structures.

There are restrictions such as the portfolio manager can only have 10% of the entire portfolio in a specific stock.

That does make sense most of the time, but sometimes there are exceptions to this.

And for example, if some...

If a portfolio manager invests in a company that does extremely well and where the stock doubles, triples, quintuples or goes up tenfold and the portfolio manager thinks, actually, this is a winner that I should just allow to run and I should hold as much of that stock for longer as I can, then being limited to 10% is really not very helpful because then he will constantly be selling down his position and Not having that restriction is not so much about making huge bets and placing, I don't know, 20% of your portfolio in a single stock.

It's more about allowing your winners to run and to fully harvest the potential of when you strike that exceptional home run of an investment.

Michael's strategy is basically is based on not having these constraints.

And of course, there are some guardrails, goes without saying.

But we have taken away the unnecessary and as I call them, you know, sometimes even a bit silly guardrails.

And that makes him someone who has a strategy that is what we call unconstrained.