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In this episode, William Green chats with famed investor Bruce Berkowitz, whose Fairholme Fund has beaten the S&P 500 by 529 percentage points over 23 years. Bruce, who was named Morningstar’s Domestic Stock-Fund Manager of the Decade in 2009, talks here about the ups & downs of his volatile career, how he changed his investment strategy after three costly losses, why he likes cash as a kind of “financial valium,” & why 80% of his fund is riding on one stock.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
04:44 - What Bruce Berkowitz learned about odds by working as a bookmaker.
06:26 - What his stint as a broker taught him about how not to invest.
34:18 - Why he makes huge bets on a tiny number of stocks.
41:53 - How he’s riding a multi-decade wave of migration to Florida.
48:57 - How he justifies betting 80% of his fund on one stock.
54:59 - How he’s playing long-term trends in the energy sector.
56:56 - Why he’s changed the way he invests.
59:08 - Why he’s acutely wary of bank stocks.
59:20 - What he learned from losing big on Sears, Fannie Mae, & Freddie Mac.
1:17:53 - Why he views cash as a valuable form of “financial valium.”
1:28:51 - How he assesses the investment threat of global warming.
1:33:50 - Why he operates as a lone wolf, not part of a team.
1:39:53 - What he’s tried to teach his three children.
1:45:31 - How he handles setbacks.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
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On today’s episode, Clay chats with Chris Mayer about long-term compounding and a few of his holdings, including Constellation Software. Chris is well-known for his book, 100 Baggers, and has inspired thousands of readers to become better investors. If you’re interested in investing in multi-baggers, then this episode is a must-listen.
Chris is the author of 100 Baggers and the co-founder and portfolio manager of Woodlock House Family Capital.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
03:27 - A review of how Chris’s fund performed in 2023.
06:37 - Where Chris focuses much of his attention in managing a fund.
12:39 - How Chris discovered Constellation Software.
18:02 - How the competitive landscape for Constellation Software has developed over the years.
24:58 - The potential drawbacks of Constellation Software’s decentralized business model.
28:09 - Chris’s thoughts on Constellation Software’s ~60% increase in their share price over the past year.
28:53 - How Constellation 2.0 has developed in recent years.
33:04 - Why Constellation Software has started performing spinoffs.
39:42 - Whether Constellation will continue to do more spinoffs in the future or not.
37:05 - Why Chris decided to invest in the Constellation Software spinoffs in his fund (Topicus & Lumine).
39:32 - Why Topicus is targeting higher organic growth in their subsidiaries.
55:12 - Chris’s thoughts on the valuation of Constellation Software, Topicus, and Lumine.
61:56 - How Chris would consider allocating fresh capital today in his fund.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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Alex Gladstein discusses Bitcoin's impact on Africa, leveraging natural resources for mining to provide electricity and financial stability. Highlighting cases in Malawi and Kenya, he shows how Bitcoin offers a stable currency and supports renewable energy, transforming economic landscapes and promoting sustainable development. This narrative illustrates Bitcoin's potential as a catalyst for empowerment and progress across the continent.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
00:57 - The potential of Bitcoin to drive sustainable development in Africa.
00:57 - How Africa's natural resources can be utilized for Bitcoin mining.
11:07 - The role of Bitcoin mining in providing access to electricity and reducing energy costs.
16:25 - Examples of successful Bitcoin mining projects in Malawi and Kenya and their socio-economic benefits.
25:09 - Strategies for leveraging stranded energy resources for economic empowerment and environmental conservation.
26:17 - Ways in which Bitcoin acts as a stable, decentralized currency for regions facing inflation.
44:37 - The impact of micro-hydroelectric and geothermal energy projects on local communities.
45:57 - The importance of local entrepreneurship and community initiatives in the adoption of Bitcoin mining.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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Kyle talks to Paul Andreola about how he evaluates smallcap stocks, why flipping over as many rocks as possible is such a strong strategy, why to put all your focus on profitable growing businesses, why the PEG ratio is so important for finding great opportunities, the importance of understanding the capital raising process, why value will always succeed in the long term, the current state of microcaps and much, much more!
Paul Andreola is a highly successful microcap investor who has been managing his own money for over 30 years. He is a board member for Atlas Engineered Products, Total Telcom, and Departure Bay Bay Capital. He’s a big proponent of microcap investing and runs an investing community called SmallCap Discoveries where he interviews CEOs of microcap businesses and shares his ideas and strategies.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
03:28 - The importance of flipping over as many rocks as possible.
05:00 - The power of owning businesses that institutions can’t invest in.
05:08 - Why focus your efforts on profitable businesses that are growing.
05:22 - How to use the price-to-earnings-growth ratio to help you identify undervalued growth stocks.
06:22 - How to add a margin of safety using the PEG ratio.
06:22 - How to use the PEG ratio to help you determine what needs to be sold.
08:43 - How increasing fund flows can attract low-quality businesses in search of capital.
09:46 - Why owning profitable companies can de-risk your investing.
09:46 - Why you should stay away from low-growth businesses even when they are cheap.
13:23 - Why you should stay away from businesses that are likely to heavily dilute shareholders.
And so much more!
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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On today’s episode, Clay is joined by Ian Cassel to discuss multi-bagger first principles, what he’s learned from investor Tony Deden, and biases he has had to overcome to continue improving as an investor.
Ian is a full-time microcap investor and CIO of Intelligent Fanatics Capital Management. He is the founder of MicroCapClub.com and co-founder of the IntelligentFanatics.com.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
01:36 - Ian’s investment journaling and reflection process.
06:19 - What Ian has learned from managing a fund for over 5 years.
08:56 - A 2023 overview for Ian’s fund.
23:58 - What Ian learned from Anthony Deden.
27:43 - The multi-bagger first principles.
35:53 - A few case studies on multi-baggers.
53:26 - Why high insider ownership doesn’t correlate with stocks that outperform.
54:02 - How attribution bias influences investor behavior.
58:08 - Ian’s experience on the saying, “Risk is what you don’t see.”
61:03 - How Ian decides whether he should average down in a position or not.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
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Dive into Bitcoin's future with Romain Rouphael: Unpacking his journey from finance to pioneering in Bitcoin research, LN Markets, and DLC Markets. Discover how leveraging Bitcoin for payments and building on its secure infrastructure is changing trading with instant settlements, trustless derivatives, and over $2 billion traded. Learn about the innovation behind LN Markets' fast retail trading and DLC Markets' approach to revolutionizing trustless OTC derivatives.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
03:35 - The reasons behind Romain Rouphael's full-time commitment to Bitcoin and its potential for revolutionizing finance.
07:43 - Insights into the foundational stages of Bitcoin research and the establishment of a Bitcoin lab.
07:43 - The advantages of Bitcoin over other cryptocurrencies as both an asset and a financial infrastructure.
26:21 - Future developments in Bitcoin financial services, including enhancements to LN Markets and DLC Markets, and the introduction of new products like hashrate/blockspace trading.
33:20 - Introduction to LN Markets, a platform enabling instant settlement trading built on the Lightning Network.
33:20 - The significance of Discreet Log Contracts (DLCs) in enabling trustless OTC derivatives trading on Bitcoin.
40:13 - The innovative approach of DLC Markets to facilitate complex smart contracts for large-scale, trustless trading.
50:21 - Challenges and complexities faced in managing a Bitcoin fund and interacting with centralized exchanges.
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On today’s episode, Kyle talks to Dede Eyesan about investing outside of your home country and what you need to research to improve your circle of competence, why China, India, and Japan have some interesting businesses and which sectors might produce the next outperformers, the strength of monopoly type businesses when searching for outperformers, the characteristics of outperformers that are least difficult to try to identify, interesting insights into iGaming and IT consulting industries, and much, much more!
Dede Eyesan is the Chief Investment Officer of Jenga Investment Partners (IP). Jenga IP is a fund specializing in allocating capital to public and private companies on a global scale. They own businesses in countries such as Finland, Poland, China, Mexico, the U.S., Australia, Sweden, Kazakhstan, and France. He authored Global Outperformers: A decade study of the top performing global listed companies (1,000% in 10 years)
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
02:54 - The primary reasons for China’s lower shareholder returns.
06:12 - Potential value chains in India that Dede finds interesting.
10:20 - Insights into Indian markets, governance issues, and regulation.
14:03 - Why consumer electronics is interesting in India, but not a good business model in most other geographies.
18:04 - The importance of good economics and competitive advantage in finding outperformers.
19:51 - Why monopolies like Airports of Thailand and Texas Pacific Land Corporation made good investments.
26:14 - Insights into two South African companies that are still high quality in Karooooo and Naspers.
34:44 - Why iGaming has low barriers to entry but high barriers to success.
34:55 - Why uncertainty can punish a business’s valuation.
44:37 - Dede’s outlook on his latest acquisition, GoFore, and why he likes IT consulting.
56:59 - GoFore's competitive advantage and growth forecast.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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On today’s episode, Clay and Kyle give an overview of their best quality stock idea for Q1 2024. This quarter, they discuss Evolution AB.
Evolution AB is well-known in the world of quality investors. The stock has compounded by over 60% per year over the past 5 years and seems to have a long runway for growth ahead. Clay and Kyle give an overview of why they own the stock and why they like the company's long-term prospects.
Disclaimer: At the time of recording, Clay and Kyle both own shares in Evolution AB.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro.
06:44 - Resources Kyle found most helpful in initially researching Evolution AB.
06:48 - What Evolution’s business model is and how they make money.
17:15 - How the quantitative metrics look for Evolution.
28:40 - The massive tailwinds at play in their industry.
33:21 - The difference between a regulated and unregulated market.
38:12 - What geographies Evolution has the largest presence in.
42:45 - What the competitive landscape looks like.
46:18 - How Evolution has been able to continue growing and withstand competition despite the high returns they’ve achieved for many years.
49:24 - An overview of Evolution’s management team and recent acquisitions.
64:23 - How Kyle thinks about the valuation.
70:05 - The most important KPIs to track for Evolution.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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Dive into the world of Bitcoin mining with expert Harry Sudock. This episode unpacks the complexities of on-chain fee management and the intricacies of over-the-counter transactions on the blockchain. Sudock provides unique insights into the operational strategies of miners, revealing the unseen mechanisms that support blockchain efficiency and stability. An enlightening discussion for anyone interested in the behind-the-scenes of Bitcoin.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
08:23 - The role of miners in managing high on-chain fees in the Bitcoin network.
13:32 - The impact of on-chain fees on the overall efficiency of the blockchain.
17:44 - The operational challenges faced by miners in the current Bitcoin ecosystem.
30:36 - Insights into the unseen economic aspects of blockchain transactions.
35:18 - Strategies used by miners to handle fluctuations in transaction fees.
36:33 - How over-the-counter (OTC) transactions are integrated into the blockchain.
51:15 - The relationship between miners and the broader financial aspects of Bitcoin.
51:15 - Expert views on the future trends and developments in Bitcoin mining.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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On today’s show, Stig Brodersen talks with co-host William Green, the author of “Richer, Wiser, Happier.” With a strong focus on kindness, they discuss what has made them Richer, Wiser, or Happier in the past quarter.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:26 - What we can learn from the greatest investors about being authentic
16:40 - How to stay true to yourself
25:55 - How we change throughout the stages of our lives
43:44 - If principles are truly timeless
1:00:52 - What William learned recently about Charlie Munger’s kindness
1:11:54 - Why we want to take a simple idea and take it very seriously
1:23:59 - The challenges of the three phases in life
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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