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/