The Best Investors Hold for 8 Years While The market average is less than one.
A study of Legendary Investor Sir Chris Hohn
Dear Investor.
Zee here. In this 2-part series we will study little known legendry investors. Today, we will discuss Sir Chris Hohn, founder and managing partner of The Children’s Investment Fund Management (TCI), a prominent investment firm, who manages $50 billion. Hohn is known for his concentrated, high-conviction investing style.
In 2025, TCI generated a ~27% net return after fees, producing about $18.9 billion in profits for investors, the largest single-year dollar gain ever recorded for a hedge fund according to industry rankings. Since its founding in 2003, TCI has generated about $68 billion in total gains after fees, placing it among the most profitable hedge funds historically.
Hohn’s secret? He holds investments for an average of 8 years. Most investors hold for less than one. That difference explains why most people underperform the market.
Lets unpack more..
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Start with Risk, Not Returns
While most investors chase the next big winner, Hohn does the opposite, he starts by avoiding mistakes. His definition of risk, borrowed from legendary investor George Soros, is simple: not knowing what you’re doing.
This might sound basic, but it changes everything. Instead of constantly hunting for new opportunities, Hohn focuses on truly understanding a few great businesses.
Good Companies Stay Good
Hohn believes in what he calls “the persistence of quality.” It’s straightforward: great companies tend to stay great, and struggling companies tend to stay struggling.
The problem? Most investors don’t act like they believe this.
They’re always searching for the next hot stock instead of recognizing that exceptional businesses are rare—so rare that when you find one, you shouldn’t let it go.
What Makes a Company “Great”?
Hohn looks for businesses with multiple barriers to entry stacked together:
Strong intellectual property
Powerful brands
Hard assets (like infrastructure)
Long-term contracts
Network effects
Think Spanish airports or toll roads with 100-year concessions. These are businesses where the competitive advantage is so clear it doesn’t need a complicated explanation.
Why Chase “New”?
When asked what excites him in today’s market, Hohn gave a telling response: “Do you want to invest in what’s new? Do you need to change your wife every year?”
His point: if it’s that difficult to find the right investment in the first place, why would you immediately want to replace it?
The Voting Machine vs. The Weighing Machine
Benjamin Graham famously said the stock market is a voting machine in the short term and a weighing machine in the long term.
In the short term, prices reflect popularity and hype. In the long term, they reflect actual business quality and results.
Hohn simply extends his “weighing period” to 20-30 years. This puts him in a completely different game than investors who trade constantly.
The Takeaway for Investors
You don’t need to be a genius to invest well. You need:
Patience - Great returns take time
Focus - Understand what you own
Quality - Buy businesses with real competitive advantages
Conviction - Hold on when you’ve found something special
The market rewards those who can wait.
While everyone else is churning their portfolio, the best investors are simply letting great businesses compound.
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Disclaimer: All information here is for educational purposes only. This is not financial advice. Please do your own research and speak with a licensed advisor before making any investment decisions. Past performance is not indicative of future returns. How we invest may not suit your investment goals and risk management profile.