Patrick O'Shaughnessy's Blog, page 13
July 31, 2018
Cathie Wood – Investing in Innovation – [Invest Like the Best, EP.97]
My guest this week is Cathie Wood, the founder of ARK invest. Cathie and her team believe that disruptive innovation is the key to long-term growth and, therefore, alpha in the public markets.
Because their style of investing is entirely contingent on what will happen and change in the future, it is about as different a style as exists from the quantitative approach to investing, which relies on what is currently knowable about stocks and businesses.
The future is notoriously hard to predict, so I am always interested to hear about investing approaches which try to model or handicap the future and build portfolios against that work.
In this conversation, we explore all the most interesting and exciting technology trends at play in the world today—and how those trends may play out for investors. We discuss genome sequencing, blockchain, software 2.0, mobility as a service, automation, and more.
We also discuss Cathie’s take on building a bridge between the worlds of finance and Silicon Valley, and why starting with a benchmark is anathema to their process.
It is hard to deny Cathie’s passion and enthusiasm, and I credit her for building a unique firm culture that emphasizes openness and collaboration. Please enjoy our conversation on investing in innovation.
Show Notes
2:30 – (First Question) – Cathie’s idea of bringing open source to Wall Street
4:47 – Deep dive into the platform
6:09 – White Paper on Bitcoin – Could Bitoin serve as the role of money
7:43 – Why disruptive innovation is so inefficiently priced
10:04 – How well does the market discount cash flow of disruptive businesses
14:09 – A look at their investing strategies, starting with top-down.
16:10 – How they picked their 5 categories of technological change, starting with foundational
19:42 – Changes in energy
21:53 – Robotics
24:17 – Excitement over deep learning
28:03 – How they express their top-down ideas from the bottom up
36:06 – Mobility as a service as a key area of focus
45:25 – The power of public mistakes
46:39 – What she looks for when hiring
51:14 – her philosophy on building and maintain a portfolio
56:38 – Behind the growth of the company
1:04:01 – Most exciting area for her right now
1:07:52 – Kindest thing anyone has done for Cathie
July 24, 2018
Bethany McLean – Business Gone Bad and the Art of Persistence – [Invest Like the Best, EP.96]
I’ve often heard that good investors are a bit like journalists: doggedly collecting evidence and building an understanding of how all the pieces of a company or investment fit together. My guest this week is one of my favorite writers and journalists, Bethany McLean. Across her career, Bethany has covered many of the most interesting stories in business and investing, including Enron (which became the famous book and documentary, the Smartest Guys in the Room), Valeant, Wells Fargo, SAC Capital, Fannie Mae and Freddie Mac, the great financial crisis, and most recently, fracking and the energy revolution.
Given how deeply she has investigated all of these topics– and thought about the common threads across them all–this was an amazing conversation. When talking to her, you can feel how much she cares and how diligent and fair she is when analyzing a topic. In addition to all of the great stories already listed, we discuss the art of persistence and other lessons she has learned about businesses and people gone bad. I especially loved her evolving take on housing in America.
Please enjoy my conversation with Bethany McLean
Links Referenced
Mindsets: Optimism vs. Complacency vs. Pessimism
Disgraced ex-BofA exec raises uncomfortable questions about #MeToo
Books Referenced
The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron”
Free Radicals: The Secret Anarchy of Science
Shaky Ground: The Strange Saga of the U.S. Mortgage Giants
Saudi America: The Truth About Fracking and How It’s Changing the World
Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy
All the Devils Are Here: The Hidden History of the Financial Crisis
Show Notes
2:22 – (First Question) – Differences and similarities between investors and journalists
3:19 – What has more of an impact on business practices, exposing negatives or reporting positive
4:57 – first story that got Bethany intrigued with finding bad behaviors
6:19 – The process of getting to know the people who know more than the market
7:43 – Mindsets: Optimism vs. Complacency vs. Pessimism
8:18 – First short seller that garnered her interest
8:57 – The process that led to The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron
10:36 – How to ask questions
12:18 – Importance of preparation
12:49 – Commonalities among the motivations for people who do bad things
14:20 – Difference between a visionary and a fraud
15:42 – Free Radicals: The Secret Anarchy of Science
16:23 – Any standout frauds that told a really compelling story
17:33 – Looking into Valient
19:32 –Writing about the #MeToo movement
19:34 – Disgraced ex-BofA exec raises uncomfortable questions about #MeToo
21:49 – Thoughts on the spectrum of chasing this story
23:26 – Ways journalist can fairly impact this movement
24:14 – The romance of owning a home in America and what it has meant for the market
24:34 – Shaky Ground: The Strange Saga of the U.S. Mortgage Giants
28:27 – What has changed on her thinking about housing
30:24 – What role does Fannie and Freddie have in the market today
31:13 – Her desire to look into energy
32:26 – Saudi America: The Truth About Fracking and How It’s Changing the World
35:05 – What have been the changes in energy market in the US
34:40 – Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy
37:01 – Where are we in the life cycle of energy production
38:27 – The more boring things that are actually the drivers of our economy
38:29 – Technologies that shaped industrial revolution in America
39:42 – Where can people learn more about how our energy independence will impact other markets
41:10 – Why is Peter Elkin the best investigative journalist
42:24 – Most relentless she has ever been
43:58 – Who is doing it right
44:38 – All the Devils Are Here: The Hidden History of the Financial Crisis
45:36 – Her take on reporting the The Hunt for Steve Cohen story
49:01 – How her views have evolved over her career and lessons learned
50:40 – Are there ways to prevent success from leading people down a bad path
53:48 – The role of empathy in her career
55:13 – Kindest thing anyone has done for Bethany’s career
July 17, 2018
Value is Dead, Long Live Value, with Modest Proposal – [Invest Like the Best, EP.95]
A very short introduction today because my guest is anonymous. Suffice it to say he manages a large pool of private capital.
He goes by the pseudonym “modest proposal” and his Twitter presence is one of the reasons I first got on and now stay on the platform.
He is level-headed, smart, and skeptical by nature, all of which made for a great conversation. We discuss how difficult the market has become for active investors, thematic investment opportunities, and the potential sources of market mispricings.
Please enjoy our conversation, and let me know which other anonymous accounts you’d like to hear from.
Links Referenced
Factors from Scratch: A look back, and forward, at how, when, and why factors work
Michael Mauboussin Podcast Episode
Show Notes
1:55 – (First Question) – How value investing has changed
5:45 – How does he apply the lens of market over-reaction to the current market today
5:47 – Factors from Scratch: A look back, and forward, at how, when, and why factors work
7:06 – Josh Wolf Podcast Episode
8:35 – Areas where he prepares most
8:36 – Mike Zapata Podcast Episode
12:18 – Where markets may be over reacting in media
20:10 – How does he invest on this thinking
20:44 – Michael Mauboussin Podcast Episode
22:35 – Other parts of media that he finds interesting
27:35 – Aggregation theory and how it plays into his investment philosophy
31:06 – Structuring a long-short portfolio in today’s media market
35:59 – Customer acquisition costs and how it’s impacting retailers
40:51 – The role of physical locations in a world that was upended by virtual retailers
49:41 – Consumer Internet Story thesis and what he’s seen during his career
58:11 – Why the FANG stocks can’t win in the niches
1:02:25 – The distrusted 50
1:05:00 – How he thinks about Capital Allocation and buybacks
1:11:08 – His view on international equity markets
1:13:58 – His take on the asset management business
1:19:38 – Allocation of a portfolio in between periods of conviction
1:21:08 – People that he has learned the most from
1:23:54 – How do you identify people who are capable of evolving after a rough spot
1:26:53 – How does he force himself to adapt to new conditions and evolve
1:30:31 – Thoughts in investing in cannabis industry
1:32:31 – Conditions where he would get interested in crypto currency
1:36:20 – Kindest thing anyone has done for him
July 3, 2018
The Future of Media, with Niel Roberson – [Invest Like the Best, EP.94]
This week’s episode covers a new set of topics. The conversation, with Niel Robertson, covers media, e-sports, content distribution, marketing, and a lot more. Niel started a software company out of his bedroom when he was 14, and sold his first company in 1999 for $280 million, when he was 24 years old. He has started and sold other companies to Twitter and Cisco. He started another large business that ultimately failed. He’s been an investor, venture partner, and serial entrepreneur. You can find more in the shownotes.
As I often do, I cut the long background section from the interview so we can get right to the meat of things, but Niel concluded that section saying: “I think it could all summed up by saying I just liked building things and I can’t stop doing it.”
In addition to the overall media landscape, we discuss the role that the biggest media platforms will play, and where other opportunities may exist. We cover digital collectibles stored on blockchain, and what type of digital assets may be leased to others. We close with a discussion of leadership, company structure, content creation, and something you should do each year.
As a recent New York transplant, Niel is always interested in connecting with founders, investors, angels and crypto experts in the New York community. You can reach him at nielr@influence.co
Books Referenced
The Start-up of You: Adapt to the Future, Invest in Yourself, and Transform Your Career
Show Notes
0:00 – (First Question) – Overview of the media landscape as it relates to influencer marketing
4:12 – How does he think about this space as an investor
9:51 – What is the future of distribution of products
14:31 – An overview of the e-sports ecosystem
15:50 – The shift of people watching others play video games
17:36 – Will we see power shift from the platform to the influencer
24:33 – Why Amazon is the sleeper in this game
27:08 – Reviewing some of the other platforms, starting with Snapchat
28:24 – Twitter
29:36 – Other platforms that should be focused on…Pinterest
31:08 – His interest in blockchain and digital collectibles
34:04 – Who will be disrupted by digital collectibles
35:25 – Why does the decentralization of these assets matter
37:19 – The tokenization of assets
39:41 – What companies have the largest hurdles to innovate in these spaces
42:27 – His thoughts on leadership
44:14 – The Start-up of You: Adapt to the Future, Invest in Yourself, and Transform Your Career
45:22 – Advice for content creators and content aggregators
47:40 – His thoughts on companies that aggregate top content creators
50:47 – His experience owning restaurants
53:16 – His experience in motocross
55:01 – Kindest thing anyone has done for Neil
June 26, 2018
The Past, Present & Future of ETFs with Eric Balchunas – [Invest Like the Best, EP.93]
My guest this week is Eric Balchunas, the senior ETF analyst for Bloomberg and the author of the Institutional ETF toolbox. This episode is intended for those in the asset or wealth management industry who have considered using ETFs in their portfolios, or for the individual investor who likes to stay up to date on trends in the market for asset management products. We cover all aspects of ETFs in some detail, and luckily in ways that have little overlap with a few other recent ETF-centric episodes on two of my favorite podcasts: the Meb Faber Show and Capital Allocators with Ted Seides with Matt Hougan and Tom Lydon respectively.
We open with Eric’s favorite ETF tickers, discuss the pros and cons of ETFs versus other investment vehicles, and explore the largest areas of opportunities for new ETFs coming to market in the years to come. ETFs have become the vehicle of choice for many investors, so it was about time we covered them in depth in this forum. As you’ll hear, Eric is the right person to teach the world about ETFs, thanks to deep domain knowledge and unflagging enthusiasm. Please enjoy my conversation with Eric Balchunas on the past, present, and future of ETFs.
Books Referenced
Quantitative Momentum: A Practitioner’s Guide to Building a Momentum-Based Stock Selection System
Links Referenced
Chart – There Are Now More Indexes Than Stocks
Show Notes
2:32 – (First Question) – Eric’s favorite ETF tickers
4:07 – How Eric got started into his career and how it led him into the ETF world
8:04 – An overview of the ETF landscape
10:10 – Active managed ETFs
12:17 – Chart – There Are Now More Indexes Than Stocks
13:32 – Key variables he thinks about when assessing a new ETF
15:18 – Evaluating shiny object ETFs
17:30 – The appeal of ETFs
20:18 – Future regulatory concern of the tax treatments of ETFs
22:10 – The liquidity advantage of ETFs and why that can actually be bad for investors
24:19 – What would Eric do to build the perfect ETF
26:03 – What are the future trends for new ETF’s launched
29:40 – Categories that work well in the ALT world of ETFs
31:32 – Most effective marketing strategy for ETFs
35:50 – Quantitative Momentum: A Practitioner’s Guide to Building a Momentum-Based Stock Selection System
36:28 – How will the winning asset managers have done differently in this space
41:56 – How the next downturn could impact ETFs
46:17 – Do ETF’s create pricing distortions
50:33 – What trend is Eric most interested in right now
53:21 – Alpha through Beta
55:51 – Kindest thing anyone has done for Eric
June 19, 2018
New Angles on Crypto, with Kyle Samani and Tushar Jain – [Invest Like the Best, EP.92]
My guests this week are Kyle Samani and Tushar Jain, both managing partners at Multicoin Capital.
I’ve taken a bit of a break from crypto because I hadn’t sensed many new angles to explore in this forum, from an investor’s point of view. I felt that while things keep evolving, the major investment theses have been established and explored.
Kyle and Tushar are interesting because of their often divergent views. For example, Kyle has been an outspoken supporter of Ethereum relative to bitcoin.
This conversation, which is meant for those still curious about crypto, offers lots of new food for thought. We discuss smart contract platforms, network effects, the coming platform wars, and why blockchains may not matter in ten years. Please enjoy my conversation with the partners of Multicoin Capital.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
Follow Patrick on Twitter at @patrick_oshag
Links Referenced
An (Institutional) Investor’s Take on Cryptoassets
On the Network Effects of Store Value
If SaaS Products Sell Themselves, Why Do We Need Sales?
Money, blockchains, and social scalability
Show Notes
2:11 – (First Question) – What would get the entire cryptocurrencies ecosphere to 5-10 trillion dollars
2:53 – Paths to Tens of Trillions
4:37 – What will be the effective uses for crypto currencies, store value vs utility value
4:38 – An (Institutional) Investor’s Take on Cryptoassets
8:48 – Why they are negative on bitcoin and more positive on Ethereum
10:07 – Where will start to see widespread adaption of the utility value of cryptocurrencies
14:44 – What is the major breakthrough that cryptocurrencies create
21:21 – How do we gain confidence that a utility token will become a sound investment
25:16 – The different type of network effects
25:47 – On the Network Effects of Store Value
31:18 – How do you convince institutional investors to consider the crypto space
34:21 – Factors that they care about when first evaluating a crypto currency
39:21 – How does technological development and marketing factor into their decision when picking a crypto currency
40:31 – If SaaS Products Sell Themselves, Why Do We Need Sales?
41:42 – Where these two men disagree the most right now
44:07 – Why there’s a chance blockchain technology as we know it today could be irrelevant
44:25 – Money, blockchains, and social scalability
47:56 – Most compelling trends in this world today
51:51 – A favorite resource or person people can look into if they want to learn more
52:22 – Nakamoto Institute
52:57 – Token Economy
53:24 – Multicoin.capital
53:30 – Crypto Cannon
54:14 – Kindest thing anyone has done for them
June 12, 2018
Tim Cook’s Dashboard, with Michael Reece – [Invest Like the Best, EP.91]
My guest this week is Michael Reece, the chief data scientist for Neuberger Berman. The topic of our conversation is the use of data in the investment process, to help cultivate what is commonly referred to as an information edge.
I call the episode “Tim Cook’s Dashboard” because of an interesting question that Michael poses: if you armed the best apple analyst in the world with Tim Cook’s private business dashboard, what might that be worth? Effectively Michael’s goal is to recreate the equivalent of a company dashboard for many businesses, helping analysts understand the fundamental health and direction of companies a bit better than the market does, and in so doing create an actionable edge.
This is a daunting task, and you will hear why. It requires both a fundamental understanding of business and of data, statistics, and methods like machine learning. In our own work, we’ve found machine learning to be useless for predicting future stock prices, but extremely useful for other things, like extracting and classifying data.
This conversation can get wonky at times, but as listeners know that is the best kind of conversation, even if it requires a second, slower listen. I hope you enjoy this talk with Michael Reece. Afterwards, I highly recommend you invest the time to read a series of posts called Machine Learning for Humans, which I will link to in the show notes. It helps demystify the buzz words and explain how these new technologies are being used.
Show Notes
2:44 – (First Question) – Changes in data science through the lens of Michael’s career
5:17 – The basic overview of using data and machine learning to create an edge
6:58 – How the state of business is more than just a single data point
7:53 – How you know when you’ve pulled a real signal from the noise of data
10:49 – The advantages that data provides
13:01 – Is there still an edge in decaying data
15:34 – Building data that would predict stock prices
19:43 – Prospectors vs miners in data mining
22:18 – Knowing when your prospectors are on to truth
27:09 – Understanding machine learning
30:10 – Defining partition
32:17 – Applying the parameters of selection process to stocks
36:05 – What’s the first step people could take to use data and machine learning to improve their investment process
38:54 – Building a sustainable advantage within data science
41:35 – Predicting the uncapped positive vs what’s seemingly easier, eliminating the negative
43:58 – How do we know to stop using a signal
46:22 – The importance of asking the right question
47:09 – Categories of objective functions that are interesting to measure data against
47:42- Crossing the Chasm
48:37 – Most exciting things he’s found with data
51:17 – What investors, individual or firms, has impressed him most with their use of data
52:17 – Will everyone eventually shift to being data informed or data driven
55:33 – Wall Street’s use of data vs other industries
55:36 – Sam Hinkie Podcast Episode
57:48 – Why everyone should know how to code
58:52 – Kindest thing anyone has done for Michael
59:22 – One Two Three Infinity
June 5, 2018
Investing in Artificial Intelligence, with Ash Fontana – [Invest Like the Best, EP.90]
My guest this week is Ash Fontana, a managing partner at venture capital firm Zetta, who invests in companies which build software that uses artificial intelligence methods like machine learning to predict and prescribe outcomes. Ash’s combined experience as a founder, entrepreneur, and investor give him the perfect background to discuss with us one of the hottest topics in business and investing.
This conversation is useful for anyone trying to evolve their own way of dealing with data. Of particular interest are the ways that Ash and his team evaluate data sets and how they think about competitive advantage in this new world—where he advocates a new term to replace the concept of moat: loops.
If we can use data to do things better than humans, or if we can supercharge our intuitions with predictive models, we can harness the power of this new technology. What Ash has taught me is that data itself is dumb. But great data sets can represent the fuel for incredible companies. Let’s dive into how that may be. Please enjoy this conversation on how AI is changing business, and how we might profit from that change.
Books Referenced
The Most Important Thing: Uncommon Sense for The Thoughtful Investor
Links Referenced
Show Notes
2:25 – (First Question) – A look at their very specific investment strategy
3:35 – Future of competitive advantage in the SaaS industry
6:45 – How startups and new companies can compete against software giants that are pretty well entrenched in the market
8:38 – How do copies with narrow focuses attract VC money which is looking for massive returns
12:28 – The stages in which AI will be enabled
15:55 – Framework of an AI company
18:49 – Importance of the feedback in the AI company framework
20:56 – Examples of AI companies
23:50 – Why companies that are AI from the start will have a significant advantage in the space
26:21 – How do companies change their thinking about compiling useful data
32:18 – Regulation of AI
35:03 – Preventing other companies from leap frogging you in the AI space
37:57 – Some of his favorite AI companies
40:43 – How much has he seen in the finance world
41:07 – Jerry Neumann Podcast Episode
43:10 – Why the focus on B2B AI companies
45:34 – Major components of the enterprise stack that he focuses on for AI
49:30 – What impact will all of this AI have the daily lives of people
51:38 – Biggest problems that he is excited to see AI tacklet
53:04 – How do you value the intangible asset of an AI model
57:13 – How Ash thinks about getting other investors into firms they seeded
1::00:27 – Other investors that Ash really respects
1:01:15 – The Most Important Thing: Uncommon Sense for The Thoughtful Investor
1:03:29 – Ali Hamed Podcast Episode
1:04:04 – Where would Ash invest outside of AI
1:07:11 – More about his family nut business
1:11:18 – Favorite macadamia nut story
1:12:05 – Kindest thing anyone has done for Ash
My guest this week is Ash Fontana, a managing partner a...
My guest this week is Ash Fontana, a managing partner at venture capital firm Zetta, who invests in companies which build software that uses artificial intelligence methods like machine learning to predict and prescribe outcomes. Ash’s combined experience as a founder, entrepreneur, and investor give him the perfect background to discuss with us one of the hottest topics in business and investing.
This conversation is useful for anyone trying to evolve their own way of dealing with data. Of particular interest are the ways that Ash and his team evaluate data sets and how they think about competitive advantage in this new world—where he advocates a new term to replace the concept of moat: loops.
If we can use data to do things better than humans, or if we can supercharge our intuitions with predictive models, we can harness the power of this new technology. What Ash has taught me is that data itself is dumb. But great data sets can represent the fuel for incredible companies. Let’s dive into how that may be. Please enjoy this conversation on how AI is changing business, and how we might profit from that change.
Books Referenced
The Most Important Thing: Uncommon Sense for The Thoughtful Investor
Links Referenced
Show Notes
2:25 – (First Question) – A look at their very specific investment strategy
3:35 – Future of competitive advantage in the SaaS industry
6:45 – How startups and new companies can compete against software giants that are pretty well entrenched in the market
8:38 – How do copies with narrow focuses attract VC money which is looking for massive returns
12:28 – The stages in which AI will be enabled
15:55 – Framework of an AI company
18:49 – Importance of the feedback in the AI company framework
20:56 – Examples of AI companies
23:50 – Why companies that are AI from the start will have a significant advantage in the space
26:21 – How do companies change their thinking about compiling useful data
32:18 – Regulation of AI
35:03 – Preventing other companies from leap frogging you in the AI space
37:57 – Some of his favorite AI companies
40:43 – How much has he seen in the finance world
41:07 – Jerry Neumann Podcast Episode
43:10 – Why the focus on B2B AI companies
45:34 – Major components of the enterprise stack that he focuses on for AI
49:30 – What impact will all of this AI have the daily lives of people
51:38 – Biggest problems that he is excited to see AI tacklet
53:04 – How do you value the intangible asset of an AI model
57:13 – How Ash thinks about getting other investors into firms they seeded
1::00:27 – Other investors that Ash really respects
1:01:15 – The Most Important Thing: Uncommon Sense for The Thoughtful Investor
1:03:29 – Ali Hamed Podcast Episode
1:04:04 – Where would Ash invest outside of AI
1:07:11 – More about his family nut business
1:11:18 – Favorite macadamia nut story
1:12:05 – Kindest thing anyone has done for Ash
May 29, 2018
The Darkest Night: Lessons from Battle and Value Investing, with Mike Zapata – [Invest Like the Best, EP.89]
My guest this week is remarkable. He now applies his talents on Wall Street, searching for smaller cap companies trading at huge discounts in an effort to compound wealth for his investors. He is classically trained, having earned his graduate degree from Colombia, a school known for producing value investors. But his method also reflects what he learned across more than a decade of active duty in the U.S. military.
Mike Zapata served us all as a Navy SEAL in the aftermath of 9/11 and ultimately as a member of the SEAL’s “Development Group,” commonly known as SEAL team 6. I think everyone listening strives for excellence in what they do. This week we get to hear from someone who has pursued excellence on our behalf.
I’ll let him explain the meaning of his firm’s name, Sententia, but for now suffice to say we are lucky to have quiet professionals like Mike. If you are interested in supporting the families of soldiers who fought with Mike and lost their lives, I encourage you to check out the Tip of the Spear foundation and make a donation along with me, small or large.
Please enjoy my conversation with Mike Zapata.
Books Referenced
The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel
Fearless: The Undaunted Courage and Ultimate Sacrifice of Navy SEAL Team SIX Operator Adam Brown
Boyd: The Fighter Pilot Who Changed the Art of War
Show Notes
2:23 – (First Question) – A quick overview of Mike’s career leading up to his time at Columbia
3:43 – What led him down the path of value investing at Columbia
3:51 – The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel
5:57 – The focus and goal of the firm
7:12 – Where the name of the firm, Sententia comes from
8:04 – His experience in the Basic Underwater Demolition/SEAL (BUD/S) program and lessons learned from it
13:14 – How much grit is innate vs can be learned
14:59 – What the actual job was in BUD/S
17:33 – Difference between the broader SEAL community and being part of the more exclusive development group
19:03 – The team dynamic within the SEALS
20:26 – Fearless: The Undaunted Courage and Ultimate Sacrifice of Navy SEAL Team SIX Operator Adam Brown
21:18 – The sacrifice that SEALs make with the story of Adam Brown as an example
24:35 – Waiting for darkness before deployment
27:23 – How do you know when to violate your best practices for a risk
29:26 – A look at three pictures in his office and why they are meaningful
31:36 – Lessons that would be useful to other people
33:10 – Boyd: The Fighter Pilot Who Changed the Art of War
33:17 – How is Mike’s skillset applied to the investing world
39:24 – Factors that would be seen as good alignment in businesses
40:18 – How the view the profiles of other investors in these small businesses
41:46 – Examples of “smoke and fire”, markers of an attractive investment
43:42 – Other investors that he has learned the most from and what those lessons were
44:54 – Importance of balance sheets in value investing
47:33 – Is value investment oversaturated
50:28 – Market blind spots that are attractive to Mike
52:03 – What point in Mike’s career has he felt the most alive
53:14 – Any other lessons Mike would want to share
55:12 – Kindest thing anyone has done for Mike
