Jeremy Deal - Searching For Unrecognized Earnings Potential

Alex Fitch - Eliminating Ego and Finding Value

In this episode of AUM, we interview Alex Fitch, the Director of US Research at Harris | Oakmark. Alex discusses the complexities of investing, the importance of balancing ego and clear thinking, and the intrinsic challenges of admitting mistakes. Alex shares his journey into investing, his disciplined approach to value investing, and how he targeted working at Harris | Oakmark. Alex delves into Harris' unique team-based research process, their approach to evaluating management, and the crucial role of understanding the reasons behind a company's valuation. He also discusses his strategies for dealing with cyclicals, the significance of mid-cycle earnings, and the process of selecting and managing investments. Alex highlights specific companies such as Alphabet, Salesforce, and Lithia Motors. 02:09 Alex Fitch's Journey into Investing 04:03 Joining Harris Oakmark: The Path to Success 06:01 Evolution as an Investor 09:11 Harris Oakmark's Unique Research Process 14:51 Characteristics of a Potential Portfolio Company 17:25 Valuation and Mid-Cycle Earnings 21:48 Sell Discipline and Mistake Management 26:39 Evaluating Management Teams 29:29 Understanding Company Undervaluation 31:03 Researching Cyclical Companies 36:07 Valuing Software Businesses 40:14 Alphabet's Capital Expenditure 44:30 Lithia Motors' Acquisition Strategy 51:34 Biggest Investing Mistake 53:39 Advice for Aspiring Investors To learn more about Harris | Oakmark checkout: https://oakmark.com/ [https://oakmark.com/]

Barry Schwartz - What It Takes to Manage Other People's Money

In this episode of AUM, we interview Barry Schwartz, the Executive Vice President and Chief Investment Officer of Baskin Wealth Management. Barry shares insights from his 2+ decades of experience in the investment industry, discussing the evolution of markets from the dot-com bubble to today's AI and technology-driven environment. The conversation covers Baskin's investment philosophy, which centers on owning quality companies with strong management and sustainable growth. Barry elaborates on their decision-making process, how they manage client portfolios through separately managed accounts, and why they avoid certain industries. He also touches on some of Baskin's notable holdings, including Apple, Netflix, and Amazon, explaining the rationale behind these investments. 04:12 Barry Schwartz's Career Journey 06:23 Investment Philosophy and Strategy 08:38 Research and Portfolio Management 15:41 Focus on Quality Investments 21:18 Decision-Making in Selling Investments 22:57 Management Changes and Long-Term Ownership 24:32 Investment Rules and Business Models 26:45 Platform Businesses and Technology Investments 31:58 Apple: A Deep Dive 36:53 Netflix and the Streaming Wars 43:13 Advice for Aspiring Investors 46:09 Conclusion and Final Thoughts To see more of Barry's work check out: https://baskinwealth.com/ [https://baskinwealth.com/]

Todd Ahlsten - Durable Moats & Increasing Relevance

In this episode of AUM, host Ryan Henderson sits down with Todd Ahlsten, Chief Investment Officer of Parnassus Investments. Todd shares his journey from a 22-year-old intern to leading a firm managing $46 billion in assets, reflecting on key experiences that shaped his investment philosophy. The conversation delves into the dynamics of the semiconductor industry, the importance of wide business moats and durable competitive advantages, and the evolving relevance of companies like John Deere and Waste Management. Todd also offers insights into the impact of AI on various sectors and highlights the critical traits for successful long-term investing. 02:13 Todd's Early Interest in Investing 04:35 Joining Parnassus Investments 05:38 Skills and Evolution in Investing 08:32 Navigating Market Noise 12:40 The Parnassus Investment Process 16:42 Idea Generation and Stock Selection 20:34 Traits of Innovative Companies 27:13 Management Traits and Avoiding Complacency 29:17 Deep Dive: John Deere 29:25 Agriculture Industry Overview 29:53 Deere's Cyclical Recovery and Secular Rerate 31:46 Technological Advancements in Agriculture 33:14 Investment Strategies During Economic Cycles 36:45 Waste Management's Competitive Edge 39:46 AI and Semiconductor Investment Trends 48:20 Evolution of Investment Strategies 53:18 Advice for Aspiring Investors Learn more about Parnassus Investments: https://www.parnassus.com/ [https://www.parnassus.com/]

Shreekkanth Viswanathan - A Concentrated, Quality Investor

In this podcast, we interview Shreekkanth Viswanathan, founder and portfolio manager of SVN Capital. Shree shares his investment journey, from studying in India and moving to the US, to founding SVN Capital in 2018 after extensive experience in portfolio management at various firms. Shree discusses the importance of making independent investment decisions instead of relying on borrowed conviction and the conversation highlights his investment philosophy, including thoughts on a concentrated portfolio strategy, long-term investment outlook, and focus on quality businesses with strong management. The episode also delves into specific investments like Dino Polska and Kinsale Capital, offering insights into what makes a business worth investing in. 02:28 The Journey to Founding SVN Capital 07:23 Portfolio Strategy and Concentration 13:43 Investment Philosophy: Fully Invested Approach 18:39 The Importance of Independent Decision Making 24:30 Evaluating Potential Investments 27:12 Defining a Good Business 35:43 Understanding the Outsider's Perspective in Public Investments 37:30 Case Study: Hermes - A Legacy of Culture and Success 40:35 Valuation Work: Balancing History and Future Predictions 44:49 Company Spotlight: Dino Polska - A Unique Grocery Chain 54:09 Company Spotlight: Kinsale - A Unique Player in Insurance 01:05:18 Insights from Successful Investors To see more of Shree's work, check out: https://www.svncapital.com/ [https://www.svncapital.com/]

Jeremy Deal - Searching For Unrecognized Earnings Potential

In this episode of AUM, we are joined by Jeremy Deal, the founder and portfolio manager of JDP Capital Management. Jeremy shares insights from his non-traditional background in asset management and elaborates on his investment philosophy, which focuses on identifying companies with significant unrecognized earnings potential. Jeremy discusses the importance of understanding a company's competitive advantage and maintaining a long-term investment perspective. Jeremy also recounts his successful investment in Spotify, detailing his initial thesis and the journey through its ups and downs. Lastly, Jeremy emphasizes the value of letting winners run and learning from past mistakes to achieve exceptional investment outcomes. 01:30 Meet Jeremy Deal: Founder of JDP Capital Management 02:50 Early Career and Founding JDP Capital 05:49 Investment Philosophy and Strategy 08:33 Understanding Market Inefficiencies 12:15 The Importance of Competitive Advantage 18:19 Consumer Relationships as a Margin of Safety 22:41 Research Process and Discovering New Businesses 32:23 Building a Position: Patience and Strategy 33:28 Managing Portfolio Valuation and Drawdowns 38:55 Identifying Exciting Business Opportunities 44:18 The Spotify Investment Thesis 52:38 Learning from Investment Mistakes 59:06 Advice for Aspiring Investors To see more of Jeremy's work check out: https://jdpcap.com/ [https://jdpcap.com/]