May 04, 2021

The Value Perspective with David Holland

57 minutes

This week on the TVP pod, Juan and Kondi welcome David Holland of Fractual Value Advisors and the

author of “Beyond Earnings”. We discuss David’s musical background, the intersection of finance and

strategy including valuation, and the importance of language when discussing probabilities.

MINUTES:

1:06 Intro

2:04 David’s background - From engineering to an MBA in South Africa to valuation guru

7:08 Music - what role can non-fungible tokens have in the music industry?

12:13 Strategic decision making - what can be taught about decision making that can have real world

applications?

16:23 What is more difficult to correct: over-precision or over-estimation biases?

19:38 Can probabilistic thinking be introduced through non-technical language?

23:08 How can you make a decision when the range of possibilities is too large?

25:52 Integrating good decision making in a workplace culture

30:57 How do these type of MBA lessons apply outside of business?

33:51 The purpose of averages rather than more precise figures in large scale decisions

38:30 “Growth is the most misunderstood word in the investment community”

43:01 When does the pursuit of growth come at the cost of value to a company?

45:35 ESG and Sustainability frameworks in valuation - What’s their role in emerging markets?

48:13 Book Recommendation and a bad process decision example

Book recommendations:

• Beyond Earnings by David Holland and Bryant Matthews

• Calling Bullsh*t: the Art of Scepticism in a Data-Driven World by Carl Bergstrom and Jevin D. West

• Stoked! By Chris Bertish

• Supernatural Strategies for Making a Rock ‘n’ Roll Group by Ian F. Svenonius

• Thinking Fast and Slow by Daniel Kahneman

• Decision Analysis for the Professional by Peter McNamee

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By Schroders

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