This episode is brought to you by:
Tegus Converge — the first virtual event centered on the world of investor research. When twin brothers Tom and Mike Elnick realized that the research process for investors was broken, they founded Tegus to fix it. Now the people behind the most trusted research platform are bringing institutional investors together to investigate the state — and the future — of fundamental research. On November 8th, join industry luminaries like IGSB Founder Reece Duca and Daniel Gross, AI Expert, Entrepreneur and Investor, to dig into the latest research trends and breakthrough technologies shaping the investment landscape. Register today at tegus.com/register.

Show Notes

(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