John H. Burbank III believes that betting on short-term movements is a crapshoot; serious investing requires a long term perspective and lots of homework and patience.

That lesson was reinforced over the next three years when Burbank worked as a researcher for the firm ValueVest, a small, roll-up-the-sleeves hedge fund which was one of the first to specialize in emerging markets. Scraping up $800,000 from friends, and office space from a former boss, he established Passport in 2000–just when the technology market was cracking. Burbank went long energy and shorted technology, ending 2000 up 36% during five months while the s&p 500 was down 7%.

John H. Burbank III invested his early profits in hiring his first researcher, who now manages Passport’s energy investments. His professional staff includes Ph.D.s in mining, geology and biotech. The firm spends months sifting through markets before committing any money.

Similar to value investing giants Warren Buffett and Sir John Templeton, whom Burbank has studied closely, he believes that diversification is for those who don’t know what they’re doing. Instead, he has consistently taken big positions based on the opinion that his long-term worldview is correct. These investments have included owning gold, basic materials and emerging markets since he founded Passport.

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