Making Sense of the Market Pt.2

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(00:02:45) - (First question) - The general prevailing narrative in markets today

(00:05:00) - The biggest business implications given the current market landscape  

(00:06:45) - Why it’s bad to have risky founders with cheap capital trying experiments

(00:08:53) - The natural rate of interest and how it’s priced 

(00:09:55) - His updated view and thoughts on what’s currently driving inflation  

(00:11:05) - What it’s felt like valuing companies given rates being where they are

(00:13:35) - Macro variables that most have his attention today

(00:14:45) - The nature of the trouble that we’re all in 

(00:18:45) - Whether or not international equities will become a place of interest

(00:21:53) - The unique absolute basis of NVIDIA’s growth 

(00:23:25) - His take on the new wave of AI in a broad sense 

(00:29:15) - Trying to value AI companies without tangible business models

(00:30:15) - Ways investment firms might change given all of the new tools being developed  

(00:32:45) - The parts of his own valuation process that are beyond automation 

(00:34:20) - Thoughts on a natural end state equilibrium for active management  

(00:35:55) - Commonalities between investors who beat the benchmark 

(00:38:35) - Episodes on his own path that lead him towards his investment philosophy 

(00:42:05) - How he goes about valuing non-traditional companies like sports franchises 

(00:46:45) - The world of entertainment and how he sees it as a business today 

(00:52:40) - Whether or not streaming platforms are amazing businesses  

(00:53:45) - The best business models he’s ever seen 

(00:55:40) - What valuing Instacart taught him about online grocery shopping

(00:58:55) - The most interesting company he valued over the last year

(01:00:45) - A well known company he wouldn’t bother valuing using his typical model

(01:03:25) - How bank failures changed his thinking on our financial systems and banks as businesses writ large 

(01:06:15) - The changing attitude towards ESG investing 

(01:11:30) - Wanting a smaller scale sustainable firm to build with longevity in mind

(01:11:11) - Why there are still so many pools of capital that pursue an active strategy

(01:11:06) - Being sick and tired of the conversation always revolving around central banks

(01:14:51) - Sitting by the ocean and reflecting on issues that inform his investing 

(01:15:53) - What he’s most excited to look into over the coming year

(01:17:53) - Major differences between a financial and an accounting balance sheet