Making Sense of the Market

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[00:02:43] - [First question] - How he thinks about inflation as a now dominant force

[00:04:33] - Why inflation is so important across the spectrum

[00:09:02] - Big lessons from other periods of historically high inflation writ large

[00:10:45] - Reasons why equities as an asset class struggle in high inflation environments

[00:15:21] - The relationship betweens goods versus services in times of high inflation

[00:16:59] - Broader economic implications especially for income inequality

[00:19:03] - The Fed taking inflation seriously now when they didn’t and thoughts on the policy response to today’s situation

[00:21:05] - How smart companies are defensively adjusting to inflation

[00:24:38] - Thoughts on returns on invested capital with emphasis on invested capital 

[00:27:46] - The importance of a capital allocation skill-set for executive team members

[00:29:32] - Further historic lessons and how he’s being defensive against inflation

[00:33:09] - Lessons learned about Amazon valuing them every year since their inception

[00:37:50] - How to figure out a new company’s narrative and the story they’re telling

[00:42:25] - Whenever he sees Thanos in the Avengers he thinks of Amazon

[00:44:51] - Thoughts on Facebook, Apple and Microsoft

[00:48:26] - The evolution of edge and the search for alpha

[00:54:37] - Whether or not there’s utility in studying other investors 

[00:57:16] - Skill versus luck and the most common valuation mistakes he’s made

[00:59:09] - Assuming long-term growth rates and changing company life cycles

[01:02:02] - Momentum and Value investing in today’s market

[01:07:24] - Differences between interest rates and discount rates in regards to inflation

[01:10:29] - Thoughts on equity risk premium in a market like this

[01:12:00] - How today’s market affects early stage equity investment

[01:14:36] - The growing popularity of ESG and his seemingly contrarian view on it

[01:24:03] - Nature of disruption as a force and companies that are protected from it

[01:28:24] - Assigning a disruption risk premium when valuing companies

[01:31:17] - Characteristics that will define the most successful leaders over the next decade

[01:32:52] - What he makes of Elon Musk buying Twitter

[01:34:24] - Other major topics he has a divergent view on 

[01:38:37] - The kindest thing anyone has ever done for him

[01:38:55] - Teaching with a goal of changing mindsets