Valley Investors Podcast with Nathan Erickson

Managing Generational Wealth: Inside DFE Capital with Terence Thompson, CFA

In this episode, Terence Thompson shares his path from Air Force officer to investment leader at a multi-billion-dollar single family office in Arizona. He opens up about lessons learned across institutional and family office investing, his personal motivations, and the balance between wealth creation, preservation, and purpose. A must-listen for anyone curious about private capital management, career development, or the role of investing in community impact. Key Discussions in This Episode: 00:00 – Intro & Terence's Background 03:54 – Discovering Investing Through ROTC & the 2008 Crisis 05:42 – Military Service & Transition to Finance 09:03 – Blue Cross Blue Shield & Early Investment Lessons 12:23 – CFA Program & Curriculum Evolution 17:39 – Joining DFE Capital Management 19:14 – Institutional vs. Family Office Investing 22:06 – Portfolio Strategy & Real Estate Exposure 26:58 – Digital Infrastructure & AI Themes 28:25 – Manager Selection, Structure, & Alignment 33:15 – Engaging the Family in Investment Decisions 35:51 – Career Advice & Lessons from the Field 46:20 – Why Arizona? Personal Reflections 50:13 – Closing Thoughts & Legacy Investing Links: Terence Thompson on Linkedin: https://www.linkedin.com/in/terencemthompson [https://www.linkedin.com/in/terencemthompson] Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/ [https://www.linkedin.com/in/nathanferickson/]

Building Value, Giving Back: Don Opatrny on Wall Street Wisdom and Community Impact

In this episode of the Valley Investors Podcast, Don Opatrny shares his path from Cleveland to Cornell, through Wall Street and eventually to philanthropic leadership in Arizona. Don reflects on a dynamic career at Goldman Sachs that spanned corporate finance, international restructuring, and asset management. Now based in Phoenix, he's channeling his expertise into nonprofit investment strategy—especially through his work at the Arizona Community Foundation. From practical insights on endowment management to stories about building impactful cultural and educational institutions, Don offers a masterclass on financial stewardship and civic engagement. Key Discussions in This Episode: 00:00 – Intro & Background 03:07 – Career Journey Begins 05:56 – A Global Career at Goldman Sachs 10:22 – A Return to Roots with Endowment Work 14:51 – Arizona Connection 15:22 – Arizona Community Foundation (ACF) 19:31 – Inside the ACF Portfolio 28:55 – Private Equity in Endowments 36:58 – Market Views & Risk Management 44:38 – Broader Economic Shifts 47:02 – Beyond Finance: Arts, Environment, Education 51:28 – Why Arizona? Links: Arizona Community Foundation: https://www.azfoundation.org/ [https://www.azfoundation.org/] Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/ [https://www.linkedin.com/in/nathanferickson/] Don Opatrny on LinkedIn: https://www.linkedin.com/in/don-opatrny-544069268/ [https://www.linkedin.com/in/don-opatrny-544069268/]

Value Investing in a Modern Market: Insights from Bill Nygren of Harris Associates

In this episode of the Valley Investors Podcast, host Nathan Erickson welcomes Bill Nygren, Partner, and Chief Investment Officer at Harris Associates and Vice President of Oakmark Funds. Bill shares his journey from a working-class high school in St. Paul, Minnesota, to becoming a distinguished value investor managing the Oakmark Fund. He discusses his investment philosophy, lessons from his early career, and insights into the current market environment. Bill reflects on the evolution of value investing over four decades, why value still matters, and how he identifies opportunities in an increasingly intangible-driven economy. The conversation also explores the challenges investors face today with the abundance of information, the role of AI in transforming industries, and the persistence of value investing in an era dominated by mega-cap growth stocks. Key Discussions in This Episode: [00:00:00] - Intro to the Podcast and Guest [00:01:26] - Bill's Early Years and Path to Investing [00:07:16] - From the University of Minnesota to Wisconsin [00:12:46] - Early Career Lessons [00:15:16] - The Evolution of Value Investing [00:24:18] - AI's Impact on Businesses [00:26:05] - Interest Rates and Their Implications [00:31:46] - GM as a Prime Example of Value Investing [00:39:16] - Challenges for Modern Investors [00:42:16] - Arizona and Cubs Spring Training [00:43:46] - Closing Remarks Links: Oakmark Funds: https://oakmark.com/ [https://oakmark.com/] Bill Nygren: https://harrisassoc.com/ [https://harrisassoc.com/] Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/ [https://www.linkedin.com/in/nathanferickson/]

Rethinking Indexing and the Future of Investing with Rob Arnott

In this episode of Valley Investors, Nathan Erickson welcomes Rob Arnott, Founder and Chairman of Research Affiliates, and a featured speaker at the upcoming CFA Society Phoenix Market Forecast Dinner. Rob discusses his pioneering work in fundamental indexing, the evolution of quantitative investing, and the importance of rebalancing in capturing returns. He shares insights into the limitations of traditional market-cap-weighted indices, behavioral investing biases, and the impact of indexing on market dynamics. Rob also explores the role of AI in finance, macroeconomic trends, and his cautious yet optimistic long-term outlook for global value stocks and emerging markets. Tune in for a deep dive into the future of asset management and market performance. Key Discussions in This Episode: [00:00:00] Introduction to the Valley Investors Podcast [00:01:00] Introduction to Rob Arnott and his achievements [00:03:15] Rob discusses his college journey and early interest in investing [00:05:00] The influence of his first stock pick at age 12 and lessons learned [00:06:15] The origin of the fundamental index concept and its development [00:09:00] Key advantages of fundamental indexing over market-cap-weighted indices [00:11:20] Behavioral biases in investing: why investors chase winners and avoid losers [00:13:00] Discussion of the "Malkiel's Monkey" paper and random portfolios outperforming active managers [00:17:00] Explanation of how rebalancing contributes to portfolio performance [00:20:20] Rob describes the structural growth tilt in cap-weighted indices [00:25:00] The rise of indexing and its implications for market dynamics [00:32:40] The creation of the NIXT strategy based on index deletions and its early success [00:40:00] Performance analysis of stocks removed from major indices [00:43:00] Rob's long-term market outlook: concerns about valuations and value stocks [00:46:50] The importance of macroeconomic trends and government spending in shaping economic growth [00:50:20] Rob's perspective on artificial intelligence and its role in investment processes [00:54:10] Rob's thoughts on the rapid pace of technological advancement [00:55:30] Rob shares his fond memories of visiting Arizona and his excitement about the CFA event Links: Research Affiliates: https://www.researchaffiliates.com/home [https://www.researchaffiliates.com/home] Rob Arnott on Linkedin: https://www.linkedin.com/in/rob-d-arnott [https://www.linkedin.com/in/rob-d-arnott] Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/ [https://www.linkedin.com/in/nathanferickson/] Cumulative Relative Wealth: https://drive.google.com/file/d/1jkOwwO_3YxiGYzwaUBTLDEZRCj-vTIWa/view?usp=sharing [https://drive.google.com/file/d/1jkOwwO_3YxiGYzwaUBTLDEZRCj-vTIWa/view?usp=sharing]

Do Stocks Outperform Treasury Bills and more with Dr. Hendrik Bessembinder

In this episode of Valley Investors, host Nathan Erickson sits down with Dr. Hendrik Bessembinder, the Francis J. and Mary B. Labriola Endowed Chair at Arizona State University. Dr. Bessembinder shares his unique path from motorcycles to academia, diving into his extensive research on market design, trading strategies, and long-term investment performance. They explore his most famous work, "Do Stocks Outperform Treasury Bills?" and discuss the implications for both passive and active investors. The conversation also covers market trends, retirement planning, and the evolving risks in today's concentrated markets. Key Discussions in This Episode: [00:00:55] Dr. Bessembinder's academic journey and love for motorcycles. [00:02:35] Transition from business school to a PhD in economics. [00:05:04] Early academic career and corporate experiences. [00:07:02] Joining Arizona State University in 1989 and the growth of the finance department. [00:09:59] Shifts in research focus from commodities to long-term stock performance. [00:12:58] Key findings from "Do Stocks Outperform Treasury Bills?" paper. [00:19:04] Concentration of wealth in a small number of stocks. [00:26:30] Risk management and portfolio rebalancing. [00:31:15] Market efficiency and skewness in stock returns. [00:36:20] Retirement planning and sustainable withdrawal rates. Links: Arizona State University: https://www.asu.edu/ Hendrik Bessembinder on Linkedin: https://www.linkedin.com/in/hendrik-bessembinder-0537a0298 Nathan Erickson on LinkedIn: https://www.linkedin.com/in/nathanferickson/