Invest Like The Best
Episode 308 Sharpening Investor & Executive Toolkits
Invest Like The Best

Episode 308: Sharpening Investor & Executive Toolkits

Invest Like The Best

Episode 308

Sharpening Investor & Executive Toolkits

Michael Mauboussin is the Head of Consilient Research at Counterpoint Global. We discuss his research on market share and capital allocation, examples of the relationship between value creation and market power, and which recent market phenomena have provided the biggest surprises.

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[00:03:46] - [First question] - Overview of Michael’s recent research on market share

[00:05:48] - Market share dynamics in modern history

[00:08:43] - How market share data is useful for investors

[00:12:30] - Investing in early breakout companies from low-concentration markets

[00:14:34] - Surprises from his recent research project

[00:15:29] - Using the value stick for stakeholder satisfaction

[00:19:12] - Examples of value creation using the value stick

[00:23:33] - Market power in relation to markups and willingness to pay

[00:32:00] - Identifying a company’s real ROIC numbers

[00:44:00] - How important absolute ROIC is when picking investments

[00:47:07] - Research on capital generation and allocation trends

[00:54:25] - Characteristics of great capital allocation strategies

[00:59:26] - Surprises in the market since his deep-dive research

[01:02:54] - Artificial intelligence and other sources of disruptive innovation

Sharpening Investor & Executive Toolkits

Introduction

Patrick
My guest this week is Michael Mauboussin. Many of you will know Michael and his work well. He's the head of consilient research at Counterpoint Global and one of the sharpest investment minds I know and a frequent guest on the show. In this discussion, we go deep into his recent work on market share, returns on capital and capital allocation, all of which are coming under increasing scrutiny for different reasons.

Before we transition to the episode, I want to highlight the Founders podcast, which is part of our Colossus network. David Senra, who hosts Founders has devoted his life to learning from history's greatest entrepreneurs. And every week, he distills the lessons of a different founder. If you want an entry point, I highly recommend starting with Episode 136 on Estee Lauder.

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