The Business Brew

Mike Alkin of Sachem Cove Partners stops by The Business Brew to share his journey in uncovering the uranium investment thesis. Bill found out about Mike when he began listening to Mike's podcast in 2018/19. At that time, Mike was telling everyone that would listen about how asymmetric the opportunity was. Mike interviewed industry insiders, other investors, and laid out his thesis in public. Bill found it inspiring.

This conversation dives deep into the complexities of the uranium market. The discussion includes a detailed analysis of nuclear power, supply-demand dynamics, and the industry’s challenges. Mike also provides valuable advice for young analysts and highlights the significance of contrarian investing. Additionally, they explore recent advancements in nuclear energy and the evolving markets of EVs, wind, and solar energy.

As always, this episode is for educational and entertainment purposes only, not financial advice. 

00:00 Welcome to the Business Brew 

00:08 Introducing Mike Alkin and the Uranium Thesis 

00:48 The Inspiration Behind the Podcast 

01:21 Disclaimer and Acknowledgements 

02:32 Deep Dive into the Uranium Market 

05:26 Challenges and Insights in the Uranium Industry 

09:13 Understanding Market Dynamics and Investor Behavior 

12:50 The Journey to Conviction in Uranium Investment 

17:40 The Role of Nuclear Power in the Energy Market 

42:39 The Impact of Geopolitical Risks on Uranium Supply 

44:32 The Fuel Cycle and U.S. Fuel Buyers 

45:23 Challenges with Industry Forecasts 

46:11 Presenting at the NEI Conference 

47:09 Confrontations and Convictions 

48:56 Expert Networks and Market Misconceptions 

52:10 Global Nuclear Power Dynamics 

01:01:24 Kazakhstan's Uranium Production 

01:10:42 The Future of Nuclear and Renewables 

01:18:01 Investment Strategies and Advice 

01:22:26 Conclusion and Final Thoughts 

Dylan is a former attorney turned private investor focused on small/microcap stocks and overlooked pockets of the market. He publishes a free newsletter on Substack called Raging Bull Investments, which provides deep-dive investment write-ups and occasional market commentary, and is active on Twitter as raging bull cap/Jake LaMotta.

Richard Cook, Co-Founder of Cook and Bynum, stops by The Business Brew to discuss his approach to global investing. Richard discusses his concentrated investment strategies, focusing on emerging markets, government dynamics, consumer behavior, and intrinsic value.

Highlighting key investments in markets like Mexico, Turkey, Pakistan, and Bangladesh, Richard discusses operational execution, investor relations, and long-term strategic planning. The episode also covers strategic investments during the Greek financial crisis, the role of conservative management, and the importance of understanding market dynamics.

With reflections on experiences in South Africa, Costa Rica, and Turkey, this conversation offers invaluable insights into global investment strategies and the essential qualities of successful business leaders.

Tune in to gain expert knowledge on navigating global investments and building a successful investment firm. 

00:00 Welcome to The Business Brew 

00:07 Introducing Richard Cook 

00:45 Investment Philosophy and Strategy 

01:09 Shoutout to the Editing Team 

02:30 Starting the Interview with Richard Cook 

03:02 Emerging Markets and Government Influence 

04:15 Investment Holdings and Long-Term Strategy 

07:47 The Power of Buybacks and Controlling

Shareholders 

14:44 Avoiding Bias in Investment Decisions 

19:08 Lessons from Past Investments 

24:54 Navigating Market Cycles 

34:18 Insights on Bottling Businesses 

46:58 Premiumization in the Beverage Industry 

48:15 Global Consumption Patterns 

49:53 Investment Strategies and Intrinsic Value 

51:29 Challenges in Forecasting Business Durability 

53:32 Insights on Company Valuation 

55:15 Case Study: Kraft and Mondelez 

59:01 AB InBev and Craft Beer Market 

01:09:59 Investment in Jumbo During Greek Crisis 

01:20:39 Evaluating Emerging Markets 

01:25:55 Building an Investment Firm 

01:28:34 Conclusion and Final Thoughts 

In this episode of the Business Brew, host Bill Brewster sits down with the esteemed investor Bruce Berkowitz. They delve deep into Berkowitz's illustrious career, from his strategies during the financial crisis to his current outlook on various investment opportunities, including midstream energy and Florida real estate.

Berkowitz shares anecdotes, personal reflections, and valuable lessons learned over decades in finance. Additionally, Berkowitz emphasizes the importance of due diligence and remaining rational amidst market fluctuations.

Don't miss this enlightening conversation that offers unique insights into the minds of one of the most successful investors in the industry.

00:00 Welcome to The Business Brew

00:07 Introducing Bruce Berkowitz

01:12 Disclaimer and Due Diligence

02:01 Shoutout to the Editing Team

*Dope music*

03:23 Starting the Interview with Bruce Berkowitz

04:19 Bruce's Investment Philosophy

05:06 Insights on Wells Fargo

09:01 The Importance of Management and Culture

10:11 Challenges in the Banking Sector

12:46 Bruce's Focus on U.S. Investments

14:25 Research and Concentration in Investments

20:28 Fairholme's Unique Approach

27:01 Reflections on Sears and Real Estate

30:43 Lessons from St. Joe

32:38 Discussion on St. Joe's Elevated Properties

33:27 Hurricane Resilience and Modern Building Codes

35:07 Investment Strategies and Market Perspectives

35:54 Interest Rates and Duration Risk

39:14 Corporate Spreads and Reinvestment Risk

41:43 Societal Changes and Financial Perspectives

46:17 Enterprise Products and Midstream Energy

48:30 Energy Logistics and Environmental Impact

57:17 Technological Evolution in Energy

01:00:40 Mutual Funds vs. ETFs

01:02:04 Concluding Thoughts and Media Engagement

Blake Haxton, analyst at Brandywine Global Asset Management's High Yield and Corporate Strategies Group, joins the Business Brew. This discussion focuses on the companies Blake covers as well as his views on markets generally. Blake tends to focus on "old economy" industries so prepare yourself for plenty of energy discussion. Bill and Blake also discuss industrials and homebuilders. The conversation also touches on the merits of high yield as an asset class.

Blake was recently featured in Barron's. You can find the article here: https://www.barrons.com/articles/paralympian-blake-haxton-high-yield-brandywine-global-6305e6e5

We hope you enjoy the conversation.

Detailed Show Notes:

4:00 - What Blake covers

5:10 - commodities are fairly tight from a supply demand perspective

8:00 - airline discussion

13:00 - energy as an example of how Brandywine looks to take advantage of capital cycles

16:00 - the prospective outlook for high yield

19:00 - how the high yield benchmark is different from the equity benchmark

24:00 - how the improvement in counterparty risk changed the risk/reward of lending to pipeline companies

28:25 - how to think about decline curves in the US vs. Canadian oil companies

30:25 - how differentials impact Canadian energy economics

38:30 - does it make sense to have an allocation to energy?

42:10 - a discussion about how assets generally are priced

52:00 - the pitch for debt vs. equities

54:45 - where is the US housing market in the cycle?

1:06:00 - trading down in credit quality for yield

1:13:00 - how ETFs can provide opportunities when they sell

1:21:00 - how was covering energy in COVID?

1:29:00 - what’s different today with shale as a key producer

Bill Chen returns to The Business Brew to explore the current landscape of Real Estate Investment Trusts (REITs). Delve into Chen's comprehensive due diligence process, investment strategies, and the future of multifamily and office REITs. Discover key insights on market conditions, cap rates, capital allocation, and the impact of interest rates on investment returns.

The discussion also highlights strategic decisions by large-cap public REITs, dealing with distressed assets, and the potential risks and opportunities in today's real estate market.

A must-watch for anyone looking to understand the intricacies of real estate investing in uncertain times.

Note: This episode was recorded on July 9, 2024.

00:00 - Welcome to The Business Brew

00:05 - Introducing Bill Chen and REITs Discussion

00:35 - A Walk-Through Manhattan with Bill Chen

03:28 - The Future of Office Spaces

09:48 - Bank Balance Sheets and Office Exposure

19:24 - Analyzing REIT Investments

38:12 - Analyzing Cap Rates in Real Estate Investments

41:45 - The Impact of Public Company Costs on Returns

49:30 - Liquidity and Market Dynamics in Real Estate

53:11 - Challenges and Opportunities in the Current Market

1:00:10 - Grocery-Anchored Shopping Centers: A Resilient Asset Class

1:06:17 - Interest Rates and Their Influence on Real Estate Returns

1:15:02 - Understanding Real Estate Multiples and Leverage

1:15:41 - Market Fears and Multifamily Capitalization Rates

1:16:32 - Challenges in Real Estate Development

1:16:56 - Opportunities in a Down Market

1:17:20 - Connecting with the Speaker

1:18:25 - Investment Strategies and Market Timing

1:19:51 - Balancing Market Humility and Aggression

1:21:23 - Psychological Approaches to Real Estate Investment

1:23:24 - Resilience of Multifamily Assets

1:24:48 - The Future of Home Ownership and Renting

1:27:54 - Personal Experiences with Real Estate

1:30:56 - The REIT Mafia and Investment Benchmarks

1:35:16 - Long-Term Investment Perspectives

1:42:22 - Final Thoughts and Farewell

Al Goldstein, Co-Founder, CEO, and Chairman of Stoic Lane stops by The Business Brew to discuss what his firm is doing in the private markets. Stoic lane is focused on acquiring controlling positions primarily in short term rental management and back office solutions for entrepreneurs. The entity is structured as a corporation with shares rather than as a partnership. As of now, Al's long term goal is to go public.

3:00 - Background and first exit

6:00 - Entering real estate in 2008

8:00 - Al's perspective as an immigrant

10:00 - Starting a private REIT

13:50 - Al's next venture in consumer lending

18:30 - What is Stoic Lane

26:15 - Capital light model with regional brands

30:00 - Creating the right incentives

34:00 - Focusing on the long term

40:00 - Execution is the hard part

Bill drops in to give a podcast status update and let the listeners know what is going on.

Come see him at The CFA Society of New York on June 25th.

If you are interested in the golf events please send your information to [email protected].

Thank you as always for listening!

Charles Lemonides, founder and CIO of ValueWorks LLC, stops by The Business Brew to discuss his investment philosophy. Charles started his career as a high yield bond analyst. Over time, he gravitated towards equity. In this episode he says "I find the best investment opportunities are where you can find something that is a real growth opportunity but it is selling for a value price."

Today, ValueWorks LLC, tends to run portfolios with 25-30 long securities in them. Charles tries to have 15 "very, very different" bets in each portfolio.

We hope you enjoy this conversation.

John Hempton on "When do you average down?"

Detailed Show Notes:

5:15 - Best investment setups/opportunities

7:30 - Conceptual position sizing

9:40 - ValueWorks different vehicles and philosophy

17:45 - How Charles built his firm around a philosophy

20:00 - Why Rivian may be a value investment

28:20 - Comcast

31:00 - How Charles manages different types of theses?

35:00 - Where are we in a market cycle?

39:30 - What stocks do you want into a top?

44:40 - What makes Charles tick

Consuelo Mack stops by The Business Brew to discuss her career in financial media. Consuelo hosts the show WealthTrack, a show Bill has watched and/or listened to for years. This conversation will help Consuelo's fans understand more about her early career and how she developed WealthTrack.

Bill was very happy Consuelo said yes to coming on the show. His only regret is messing up Ed Hyman and Ed Yardeni in the conversation. He hopes both Eds forgive him.

We hope you enjoy the conversation!