Le Insight Finance Café

My guest today is Mr Fui Gbedemah:

From the company's website:

« He stands out for his deep understanding of Value Investing. He has worked in recent years for two major Canadian fund manufacturers. He is a Concordia University graduate (B.Comm). He has passed all three levels of the CFA Program, and may be awarded the charter upon completion of the required work experience. »

Here is an overview of what we will be discussing:

Part 1: Early value investing: Graham & a focus on hard assets

- How did Ben Graham value companies?

- What was the context of the time he lived in?

Part 2: Buffett & Munger: Focusing on earning power & intangibles (Sees, Coca Cola, etc)

- How did Buffett buy Sees and what did he see in it?

- How then did he scale this idea into a bigger position into Coca Cola?

Part 3: Where are we now? Business models that require less capital. The concept of zero marginal costs (Facebook, Uber, etc).

- Explain the concept of Zero Marginal Costs?

- A public company example of the idea: Facebook

- Another example (Google)?

- What are the societal implications of these business models?

- Is Buffett adapting?

In conclusion, is value investing truly dead or still alive & well?

As promised, here are the links to all the article I refer to in this podcast:

1) "If I had been a woman..." : https://www.cnbc.com/2018/10/16/warren-buffett-says-being-a-white-man-helped-him-succeed.html

2) Interest rates : https://www.cnbc.com/2018/10/11/warren-buffett-on-why-interest-rates-matter-so-much-for-investing.html

3) Charlie Munger : https://www.forbes.com/sites/bryancollinseurope/2018/10/11/warren-buffetts-right-hand-man-charlie-munger-on-avoiding-painful-failures/#6e4a0f06510e

The link to the article that inspired me that podcast, as promised: https://www.marketwatch.com/story/amazon-vs-apple-which-should-you-own-if-you-can-only-own-one-2018-10-02?siteid=yhoof2&yptr=yahoo

The Dow Jones is now trending north of 26,000 in September 2018.

My phone is ringing.

Investors, consultants, financial planners are nervous: should they sell now? Should they protect their clients? Is the market going to crash in the coming months?

Same ol', same ol'.

I decided to revisit my old friend, Ben G.

He wrote that book 70 years ago.

I't like it was yesterday... :)

Charles Lemay is the Vice President of Business Development and CFO at Landry Investment Management. In this role, he is responsible for the execution and implementation of Landry's business development strategy as well as managing the company's financial stability.

Prior to joining Landry, Charles was the Head of US Business Development at Addenda Capital where he built an extensive institutional network across consultants, pension plans and asset management platforms. During his first 2 years back in Montreal, Charles worked in the hedge fund start-up world where he focused on fundraising and marketing as well as firm strategy and risk management.

Charles spent the first 10 years of his career in Sales and in Operations at top tier investment banks on Wall Street. At Goldman Sachs, which he joined in 2006, he attained the post of Vice President while working in Emerging Markets Cross-Asset Sales.

For more information about Barrage Capital, please visit: https://barragecapital.com/en/

About the company: «Barrage Capital is a Canadian investment management firm. It was established by four investors sharing the same investment philosophy. Commonly labeled "Value Investing", this approach was first taught at Columbia University in New York in the late 1920s. The success and reputation of former students helped to popularize this approach. Surprisingly, few managers in Canada are interested in applying these concepts. Barrage Capital offers its clients an alternative to conventional asset management.»

The very first episode of Le Insight Finance Café!