David Marcus is a US investor with decades of experience working for legends like Michael Price and Jan Stenbeck. We discuss Brad Jacob’s book How to Make a Few Billion Dollars and David’s fascinating journey as an investor and operator.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on March 19, 2025.

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Books Mentioned

• How to Make a Few Billion Dollars – Brad Jacobs
• Reminiscences of a Stock Operator – Edwin Lefèvre
• Jesse Livermore - Boy Plunger – Tom Rubython
• The Warren Buffett CEO – Robert P. Miles

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Companies Mentioned

• Getinge
• Kinnevik
• Lifco
• Röko
• XPO Logistics
• United Waste Systems
• United Rentals

—————————————

More on David Marcus

• LinkedIn: https://www.linkedin.com/in/evermoreglobal
• Keynote speech at Redeye Serial Acquirers 2025: https://www.redeye.se/video/event-presentation/1089658/keynote-speaker-david-marcus-co-founder-of-evermore-global-advisors-at-redeye-serial-acquirers-conference-2025

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Phil Rosenzweig has been a professor at IMD Business School in Lausanne, Switzerland, for about 30 years. We discuss Phil’s legendary book “The Halo Effect”, which debunks much of the classic management literature and explains how we tend to think that when a company performs well, the CEO is fantastic, the company has operational excellence, and the employees love to work there. We set a halo on the good performers.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on February 3, 2025.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:46) Welcoming Phil

(02:51) The Halo Effect

(06:55) ABB

(12:17) Why Phil chose the companies he did

(14:11) The halo effect today

(19:11) The halo effect in other areas of life

(23:39) Criticism against management literature

(26:39) Other common errors in thinking

(30:45) Has Phil been influenced by Warren Buffett?

(33:45) Discussion on strategy versus execution

(46:52) Connecting the momentum/value dichotomy to Phil’s writing

(50:14) How Phil invests his own money

(52:33) An incredible Microsoft anecdote

(54:06) Phil’s time at Hewlett Packard and his pivot to academia

(58:37) Book discussions

(01:09:45) Concluding remarks

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Books Mentioned

• The Halo Effect - Phil Rosenzweig
• Moneyball - Michael Lewis
• What is strategy? - Michael Porter (article)
• Left Brain, Right Stuff - Phil Rosenzweig
• A Random Walk Down Wall Street - Burton Malkiel
• Influence - Robert Cialdini
• The Signal and the Noise - Nate Silver
• Only the Paranoid Survive - Andy Grove
• Lights Out - Thomas Gryta
• Power Failure - William D. Cohan

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Companies Mentioned

• ABB
• Lego
• General Electric
• Cisco
• British Petroleum
• Apple
• Marks & Spencer
• Nvidia
• Intel
• Logitech
• Microsoft
• Hewlett Packard

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More on Phil

• IMD: https://www.imd.org/faculty/professors/phil-rosenzweig/
• Email: [email protected]

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Jaime Lester is a hedge fund industry veteran who has worked at firms such as Steinhardt Partners and David Einhorn’s Greenlight Capital. He is also an adjunct professor at Columbia Business School and has managed his own investment fund for nine years. We discuss his book “Pause to Think,” which is a compilation of thirty-two mental models. Jaime also applies these models to various frameworks, such as how to make better decisions and how to become happier.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on January 22, 2025.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:40) Welcoming Jaime

(03:09) Pause to Think

(07:51) Investing and science (focus on checklists)

(12:06) Cognitive biases

(19:30) Why learn about mental models?

(23:20) Inversion and investing

(29:54) Jaime’s experience from Greenlight Capital

(32:55) Cerrano Capital

(34:55) How Jaime is allocating his time today

(37:05) Current investment strategy

(39:22) Balancing personal life with work

(45:26) What can investors do to improve the world?

(48:07) Book discussions and recommendations

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Books Mentioned

• Pause to Think - Jaime Lester
• Same as Ever - Morgan Housel
• King: A Life - Jonathan Eig
• Creation Lake - Rachel Kushner

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More on Jaime

• Pause to Think (Amazon)
• Pause to Think (Columbia University Press)

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Will Barnes is the co-founder of the primary research firm In Practise and joins us to discuss their new book “In Practise”. The book has eleven chapters, each featuring an in-depth interview with an experienced operator helping us to better understand successful companies like Spotify, Danaher, and Constellation Software. In Practise is the first volume in a series of books that will be published over the coming years.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on December 9, 2024.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:25) Welcoming Will and hearing about his background

(04:07) Connection between sports and investing

(06:03) Background and introduction to In Practise

(13:58) Who are In Practise speaking to?

(17:10) Controversial situations

(18:33) Why create a book?

(19:54) Spotify

(25:11) Constellation Software

(35:39) Danaher

(41:46) Employee longevity

(43:11) Vision for In Practise

(44:35) How Will has improved from running In Practise

(48:44) The process for conducting primary research

(51:09) The process for making investment decisions

(53:46) Thoughts on portfolio management

(58:53) Book discussions

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Books Mentioned

• In Practise
• The Reckoning - David Halberstam
• Draft No. 4: On the Writing Process - John McPhee

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Conference Mentioned

• Redeye Serial Acquirers 2025

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Companies Mentioned

• Spotify
• Constellation Software
• TransDigm
• Danaher
• Costco
• Amazon
• LVMH

—————————————

More on In Practise

In Practise website

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Asif Suria is an entrepreneur and investor in the US who focuses on a specific investing strategy that we haven’t talked about much in the podcast: event-driven investing or special situations. The title for this conversation is Asif’s book The Event-Driven Edge in Investing, in which he explains six different event-driven strategies, such as merger arbitrage and stock buybacks.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on November 6, 2024.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:26) Welcoming Asif

(02:50) The Event-Driven Edge in Investing

(07:28) How to know when a specific strategy is “in-season”

(08:59) The six event-driven strategies in the book

(09:41) How to interpret insider buying

(16:19) Asif’s work on the weekends

(18:27) General talk about the strategies

(22:04) Coping with the risks

(24:32) Spin-offs

(29:23) Management changes

(33:29) Interesting combinations of events

(34:29) InsideArbitrage.com and Asif’s work

(39:50) Book discussions

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Books Mentioned

• The Event-Driven Edge in Investing - Asif Suria
• You Can Be a Stock Market Genius - Joel Greenblatt
• Special Situations Investing - Brian Stark

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Companies Mentioned

• Vertex Pharmaceuticals
• Pebblebrook Retail Trust
• Silicon Valley Bank
• Pfizer/Biohaven
• Activision Blizzard
• Microsoft
• Twitter
• Jetblue
• Western Digital
• Chipotle
• Ferrari
• Danaher
• Nike
• GE
• Disney

—————————————

More on Asif

Twitter/X

LinkedIn

InsideArbitrage.com

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Brett Gardner is an investment analyst at the US-based investment partnership Discerene Group and, since about a week, a published author with his book Buffett’s Early Investments. The focus of our conversation is Brett's book, where he has uncovered a few of Buffett’s investments in the 1950s and 1960s that until now have been rather unknown.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on October 9, 2024. The video was unfortunately not recorded due to technical issues.

—————————————

Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:34) Introduction to Brett

(04:21) Buffett’s Early Investments

(08:47) How the investments were selected

(15:30) Marshall-Wells: The first investment

(20:52) Philadelphia and Reading

(27:36) Walt Disney Productions

(36:10) Can Buffett compound $1 million at 50% per year?

(39:18) Brett’s current role at Discerene Group

(40:53) Two lesser-known book recommendations

(45:37) Final remarks

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Books Mentioned

• A Random Walk Down Wall Street - Burton Malkiel
• The Making of an American Capitalist - Roger Lowenstein
• The Intelligent Investor - Benjamin Graham
• Security Analysis - Benjamin Graham
• Snowball - Alice Schroeder
• Buffett’s Early Investments - Brett Gardner
• Poor Charlie’s Almanack - Peter Kaufman
• Damn Right! - Janet Lowe
• The Halo Effect - Phil Rosenzweig
• Good Strategy Bad Strategy - Richard Rumelt
• The Crux - Richard Rumelt
• Titan: The Life of John D. Rockefeller, Sr - Ron Chernow

—————————————

Companies Mentioned

• AT&T
• Coca Cola
• British Columbia Power
• Marshall-Wells
• Philadelphia and Reading
• Walt Disney Productions
• American Express
• Berkshire Hathaway

—————————————

More on Brett

Twitter/X - @brettgardner_10

LinkedIn - Brett Gardner

E-mail - [email protected]

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Simon Kold is the founder of the Denmark-based investment firm Kold Investments and was previously at Novo Holdings, one of the world’s largest investment organizations. Our conversation focuses on Simon’s upcoming book, On the Hunt for Great Companies, which details how to determine business quality. We cover the aspects we find the most interesting and encourage everyone to buy the book and read it in full. The book will be released on 29 October 2024.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on September 11, 2024.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:38) Welcoming Simon

(05:35) On the Hunt for Great Companies and inspirations

(12:58) Thoughts on the book’s structure

(15:54) How to evaluate passion among management

(20:20) Evaluating communication

(28:46) Focusing on disadvantages to evaluate moats

(36:28) Tapeworms vs Honeybees

(43:08) Predicting demand

(47:05) Views on cyclical companies

(52:32) Is Simon focusing on large or small companies

(54:11) Kold Investments - Simon’s investment company

(01:00:14) Position sizing

(01:04:28) What differentiates Simon’s fund

(01:05:45) Future writings?

(01:07:46) Book discussions

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Books Mentioned

• On the Hunt for Great Companies - Simon Kold (to be released on 29 October 2024)
• The Little Book that Builds Wealth - Pat Dorsey
• The Five Rules for Successful Stock Investing - Pat Dorsey
• 7 Powers: The Foundations of Business Strategy - Hamilton Helmer
• Poor Charlie’s Almanack - Charlie Munger, John Collison
• The Outsiders - Will Thorndike
• Michael O'Leary: Turbulent Times for the Man Who Made Ryanair - Matt Cooper
• Factfulness - Hans Rosling
• Superforecasting - Philip Tetlock
• The Checklist Manifesto - Atul Gawande
• Deep Survival - Laurence Gonzales
• The Quest of the Simple Life - William J Dawson
• Parnassus on Wheels - Christopher Morley
• The Clock of the Long Now - Stewart Brand

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Companies Mentioned

• Alibaba
• Arm
• TSMC
• ASML
• Ryanair
• John Deere

—————————————

More on Simon

• Personal website: https://www.simonkold.com/
• LinkedIn - Simon Kold
• Koldinvestments.dk

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Moritz Sitte is the investor at Antheia AB, a private investment firm founded by Daniel Ek. Moritz has previously worked as an investment manager at Baillie Gifford in Edinburgh for twelve years. We speak about The Clock of the Long Now and discuss topics such as investment philosophy, reframing one’s state of mind, and balancing the long with the short term.

For more info about the podcast, go to the episode page and make sure to follow us on Twitter/X. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on August 14, 2024.

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Episode Chapters

(00:00) Introduction by Eddie & Niklas

(01:20) Welcoming Moritz

(04:56) The Clock of the Long Now

(15:54) Connecting the book’s guidelines to investing

(18:59) Handling the daily noise while keeping a long-term view

(22:26) What’s a long-term view in investing?

(28:38) Balancing the long and short term

(33:03) Scenarios vs forecasts

(35:52) Final lessons from the book

(37:20) The investment philosophy at Antheia

(45:45) The Goldberg principle

(48:44) Going lower down in the organisation to understand the culture

(52:48) Limitations in Antheia’s investment approach

(54:21) How is Moritz evaluated

(58:38) Moritz’s biases

(01:03:08) Book discussions

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Books Mentioned

• The Clock of the Long Now: Time and Responsibility - Stewart Brand
• The Great Depression: A Diary - Benjamin Roth
• The Creative Act: A Way of Being - Rick Rubin

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Companies Mentioned

• Unilever
• Costco
• Adyen
• JP Morgan

—————————————

More on Moritz

LinkedIn

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Stephen (Steve) Clapham is the founder of Behind the Balance Sheet, an investment research and investor training consultancy. He has 25 years of experience as an investment analyst and has been a partner and head of research at two multi-billion dollar hedge funds. We discuss his book, the Smart Money Method, how he trains finance professionals, and his investment philosophy.

For more info about the podcast, go to the episode page and make sure to follow us on Twitter/X. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on July 17, 2024.

—————————————

Episode Chapters

(00:00) Introduction by Eddie & Niklas

(02:07) Introduction with Steve

(07:39) Steve’s early career

(11:29) Has finance become a more boring work environment?

(15:02) Steve’s investment philosophy over time

(22:48) Capital cycle investing

(26:29) Investing with crooks can be highly profitable

(29:30) How investors and finance professionals should learn today vs yesterday

(37:50) Exploiting the gap between perception and reality

(45:25) How to determine whether companies are over or under-earning

(51:48) Retesting the hypothesis after a decline

(58:57) The biggest skill shortage that Steve sees

(01:06:18) Key takeaway for someone entering the industry

(01:14:15) Impressive people that Steve has met

(01:20:04) The plan for Steve and his business

(01:25:42) How to get in touch with Steve

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Books Mentioned

• The Smart Money Method - Stephen Clapham

—————————————

Companies Mentioned

• Diageo
• Adyen
• Hermes
• Burberry

—————————————

More on Stephen

• Behind the Balance Sheet
• Twitter/X
• LinkedIn

—————————————

About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

—————————————

What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

—————————————

What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

—————————————

Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se

Torbjörn Arenbo is the Chief Analyst and Head of Corporate Advisory Sweden at Danske Bank. He has 25 years of experience working as a corporate finance advisor, portfolio manager, and risk manager. Our conversation is centred around Torbjörn’s book Capital Allocation and Value Creation, published in 2023.

For more info about the podcast, go to the episode page and make sure to follow us on X/Twitter. We love to hear your thoughts on what you like and what we can improve, so please give us your rating and a review. You’re also very welcome to tell us about great authors, books, and investors you want to hear on the show. Thank you! /Eddie & Niklas with team

This episode was recorded on June 5, 2024.

—————————————

Episode Chapters

(00:00) Introduction by Niklas & Henrik

(02:25) Welcoming Torbjörn

(06:11) Sources of inspiration for Capital Allocation and Value Creation

(08:06) Who is the book for?

(10:10) Capital Allocation and Value Creation

(14:17) Different allocation practices based on the base rates for success

(19:58) The obsession for growth

(22:25) Capital allocation at Nibe

(25:15) Keeping managers on board after an acquisition

(26:33) The three value drivers

(29:53) Cost of capital

(32:40) Empirically, are managers good enough at capital allocation?

(36:56) Earnings quality

(41:17) Improving margins vs improving returns

(43:25) Henrik’s view on manager’s allocation capabilities

(46:47) How companies should handle challenging market situations

(51:55) Why Torbjörn quit his job as a portfolio manager

(53:47) Book discussions

—————————————

Books Mentioned

• Capital Allocation and Value Creation - Torbjörn Arenbo
• The Essays of Warren Buffett - Lawrence Cunningham
• Capital Returns - Edward Chancellor
• Expectations Investing - Michael Mauboussin
• Think Twice - Michael Mauboussin
• Competitive Advantage - Michael Porter
• CEO Excellence - Dewar et al

—————————————

Companies Mentioned

• Bergman & Beving
• Lagercrantz
• Addtech
• Nibe
• Atlas Copco
• Ericsson
• Telia
• Getinge

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More on Torbjörn

LinkedIn - Torbjörn Arenbo

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About the Podcast

Intro episode: https://www.redeye.se/podcast/investing-by-the-books/817383/0-intro-to-investing-by-the-books

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What is Investing by the Books?

Investing by the Books was founded by Henrik Andersson, Bo Börtemark, Mats Larsson and Michael Persson. It has published hundreds of book reviews in the past 10 years and operates on a non-profit basis.

Visit the website: http://www.investingbythebooks.com/

Follow on Twitter/X: https://twitter.com/Investbythebook

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What is Redeye?

Redeye is a research-centered boutique investment bank from Stockholm. Founded in 1999, Redeye cultivates investors through timeless knowledge, a humble attitude, and a strong focus on quality.

Visit the website: https://www.redeye.se/

Follow on Twitter/X: https://twitter.com/Redeye_

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Disclaimer

Notice that the content in this podcast is not, and shall not be construed as investment advice. This information is meant to be informative and for general purposes only. For full disclaimer, visit Redeye.se