Transcript
Introduction
Patrick
My guest this week is Rishi Ganti, whose resume is bonkers. I'm not sure what to do, other than laugh in amazement at his professional credentials. Ph.D. in economics, CFA, CPA, lawyer, speaks six languages, and so on. The best part is, he isn't lording these credentials over anyone. In fact, casts some shade on the whole idea of credentials in our conversation. He just did it all because he's a learning fiend. Rishi's core idea about markets is this: avoid markets at all costs. As he explains off the bat, the minute there are multiple buyers for anything, prices get efficient very quickly. Therefore, the opportunity to find alpha shrinks. Instead, he searches for what he calls esoteric assets, things without a market, orphaned assets that require high human capital and human touch. We explore several interesting examples from charter school financing to factoring receivables for the Vatican. A stark realization I had during the episode is how big the world's asset base is. Almost all of our attention goes to the most highly refined ones, stocks, and bonds, but there is a whole other world out there we explore in great detail. The closing sections of this conversation on what Rishi would do if not investing, and his answer for the kindest thing that anyone has done for him, were among the best answers that I've heard. Please enjoy this great conversation with Rishi Ganti.