Richard Lawrence – Avoid the Stock That’s the Hype of the Day

<p><strong>BIO: </strong>Richard H. Lawrence, Jr., is the Founder and Executive Chairman of Overlook Investments Group, an independent fund management company established in Hong Kong in 1991.</p><p><strong>STORY:</strong> Richard invested heavily in a successful Korean company that brought him great returns until the founder died. The son took over and brought the stock to its demise.</p><p><strong>LEARNING:</strong> If it’s not working, get out. Invest in a company with no or minimal debt. Operating return is the purest way to measure profitability.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“I’m a big believer in modest self-financed growth.”</strong></blockquote><blockquote class="ql-align-center">Richard Lawrence</blockquote><p>&nbsp;</p><h2>Guest profile</h2><p><a href="https://www.linkedin.com/in/richard-h-lawrence-jr-74480013/" rel="noopener noreferrer" target="_blank"><strong>Richard H. Lawrence, Jr.</strong></a>, is the Founder and Executive Chairman of <a href="https://overlookinv.com/" rel="noopener noreferrer" target="_blank">Overlook Investments Group</a>, an independent fund management company established in Hong Kong in 1991. Overlook invests US$6 billion in a concentrated portfolio of public equities throughout Asia, excluding Japan.</p><p>Richard and his wife, Dee, have founded several non-profit organizations; he’s a philanthropist who is devoted to climate change. He has two grown kids and lives in San Francisco, California.</p><h2>Worst investment ever</h2><p>In 1992, Richard discovered that stocks in Korea were incredibly cheap. He owned everything at 2-4x earnings. Richard owned a hair dye company and all kinds of oddball companies. Within that mix, there was one company that stood out. Korea, at the time, had massive debt. But this one company didn’t have any debt, so Richard was immediately attracted to it.</p><p>Richard purchased shares in the company initially in 1992. At the time, the company was the largest synthetic fiber producer in South Korea, making spandex. It w