About the FPA Queens Road Small Cap Value Fund
What criterial he looks for when investing in a business
Portfolio management philosophy and cash position
Being a generalist
Avoiding making macro predictions
The research process and industries he tends to avoid
His four-pillar investing framework and research process
Valuation and DCF modeling
What he looks for in management and corporate culture
The concept of Mittelstand and how he incorporates it into his process
His thoughts on current small-cap valuations and free cash flow yields
Discussion on MSC Industrial Direct (NYSE: MSM)
What he’s reading
The investors he admires
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Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
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FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
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About Miller Value Partners
Investing strategy and philosophy
Why being too dogmatic about the definition of value may not work in your favor
Portfolio management philosophy
Risk Management
On why he doesn’t short or use options
His thesis on bitcoin and why he considers himself to be a massive bitcoin bull
Thesis on Microstrategy as the largest corporate owner of bitcoin
Team structure and research process at Miller Value Partners
Insider buying
Idea generation
Stock screens
Technical and momentum investing
Incorporating macro
Valuation
Selling vs trimming
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Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
**********************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
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About Vela Investment Management
Vela investment philosophy
Vela portfolio management philosophy
Why he offers a long/short strategy and uses options
Vela’s iterative research process
Idea generation
Ric’s macro views
Vela’s valuation methodology
Selling vs trimming
What’s next for Vela Investment Management
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Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
**********************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
**********************************************************
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Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
**********************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
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Business description
Business Model
Problems solving and value proposition
Market share
Pricing power and pricing strategy
Balance Sheet
Income statement and biggest costs/expenses
Future growth opportunities
Market penetration
Ryan's history at XPEL
Margins and returns on invested capital
Asset turnover, inventory turnover, and cash conversion cycle
Operating cash flow conversion
Asset light and variable cost business model and the possibility of vertically integrating in the future
Acquisition strategy, history, and capital allocation philosophy
Incentive compensation metrics
Business risks
Competitive advantages
Xpel's culture
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Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
**********************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
**********************************************************
Diamond Hill is a philosophically pure intrinsic value investing firm
Living in Columbus, The Austin of Ohio
What makes a great equity analyst vs an average analyst
How to determine investing team size (using math)
Analyst productivity and how that leads to a better opportunity set and ultimately better client outcomes
Generalist vs specialist analyst team structure
How Diamond Hill is slowly, at the margin, transitioning from a strict sector specialist team structure to a more hybrid model
What is expected of an analyst when it comes to pitching a new idea and maintaining coverage
New idea production vs maintenance coverage
How the best analysts get the most stocks into the port, which leads to the largest coverage list, which leads to the least time to find new ideas
What types of deliverables analysts should provide and why a shorter writeup is superior to a longer writeup
Table stakes skills of accounting, numerical literacy, and mathematical common sense
Interviewing candidates, identifying talent, and bring hyper aware of the barriers to exit when hiring people
The hurdle he uses for hiring talent
The two types of people that produce great work, but why one type may not be the right cultural fit
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Public.com just launched options trading, and they’re doing something no other brokerage has done before: sharing 50% of their options revenue directly with you. That means instead of paying to place options trades, you get something back on every single trade.
-Earn $0.18 rebate per contract traded
-No commission fees
-No per-contract fees
By sharing 50% of their options revenue, Public has created a more transparent options trading experience. You’ll know exactly how much they make from each trade because they literally give you half of it. Activate options trading at https://public.com/jro by March 31 to lock in your lifetime rebate. Paid for by Public Investing. Must activate Options Account by March 31 for revenue share. Options not suitable for all investors and carry significant risk. Full rebate terms here (https://public.com/disclosures/rebate-terms). US members only.
Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
**********************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
**********************************************************
Polen Capital's culture: radical candor, autonomy, mastery, purpose
Investing philosophy: competitive advantages, concentrated portfolios (20-25 stocks), position sizing
Large Company Focus Growth Strategy: 132 stocks in 35 years, largest position in Amazon
Risk management: eliminate risky businesses
Analysis of Visa, MasterCard, cyclicals
Team structure: meetings twice weekly, Polen One-Pagers
Learning from mistakes: conservative margin modeling
Investing spectrum: seek double-digit annualized returns
Selling criteria: valuation, trimming stocks
*********************************************************************
Public.com just launched options trading, and they’re doing something no other brokerage has done before: sharing 50% of their options revenue directly with you. That means instead of paying to place options trades, you get something back on every single trade.
-Earn $0.18 rebate per contract traded
-No commission fees
-No per-contract fees
By sharing 50% of their options revenue, Public has created a more transparent options trading experience. You’ll know exactly how much they make from each trade because they literally give you half of it. Activate options trading at https://public.com/jro by March 31 to lock in your lifetime rebate. Paid for by Public Investing. Must activate Options Account by March 31 for revenue share. Options not suitable for all investors and carry significant risk. Full rebate terms here (https://public.com/disclosures/rebate-terms). US members only.
Options are not suitable for all investors and carry significant risk. Certain complex options strategies carry additional risk. Options can be risky and are not suitable for all investors. See the Characteristics and Risks of Standardized Options to learn more.
For each options transaction, Public Investing shares 50% of their order flow revenue as a rebate to help reduce your trading costs. This rebate will be displayed as a negative number in the “Additional Fees” column of your Trade Confirmation Statement and will be immediately reflected in the total dollars paid or received for the transaction. Order flow rebates are only issued for options trades and not for transactions involving other assets, including equities. For more information, refer to the Fee Schedule.
All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Open to the Public Investing, Inc., member FINRA & SIPC. See public.com/#disclosures-main for more information.
*********************************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
*********************************************************************
How Harris Oakmark thinks about and defines value investing
Mid-cycle earnings and why they are important (using the coin flip analogy)
CBRE example of mid-cycle earnings
Banks and SCHW example of mid-cycle earnings
Additional common adjustments they make to get to true normalized economic earnings power
Estimating normalized earnings for software and faster-growing tech companies (and Salesforce example)
Amazon and Alphabet examples
Even more adjustments for SBC, amortization, and non-recurring items
Lithia Motors example
First Citizens example
Quick discussion on modeling share repurchases and benchmarking capital allocation decisions on buying back stock at a discount
How Harris Associates determines the appropriate P/E ratio for different businesses
Masco example and choosing an appropriate peer comp group
Thoughts around P/E multiple expansion
American Express example for choosing a fair P/E multiple
Dealing with stocks with a wider range of outcomes
How they pick a required rate of return
Idea generation and research process at Harris Oakmark
What Harris looks for in hiring an analyst
Humility and willingness to accept constructive feedback
The primary responsibilities of the Director of Research at Harris Associates
Unique cultural attributes of working at Harris Associates
*****************************************************
Public.com just launched options trading, and they’re doing something no other brokerage has done before: sharing 50% of their options revenue directly with you. That means instead of paying to place options trades, you get something back on every single trade.
-Earn $0.18 rebate per contract traded
-No commission fees
-No per-contract fees
By sharing 50% of their options revenue, Public has created a more transparent options trading experience. You’ll know exactly how much they make from each trade because they literally give you half of it. Activate options trading at https://public.com/jro by March 31 to lock in your lifetime rebate. Paid for by Public Investing. Must activate Options Account by March 31 for revenue share. Options not suitable for all investors and carry significant risk. Full rebate terms here (https://public.com/disclosures/rebate-terms). US members only.
*****************************************************************
FinChat.io is The Complete Stock Research Platform for fundamental investors.
With its beautiful design and institutional-quality data, FinChat is incredibly powerful and easy to use.
Use our LINK and get 25% off any premium plan: http://finchat.io/jro
*****************************************************************
Todd Ahlsten is the Chief Investment Officer and Portfolio Manager of Parnassus Investments. Todd is also a panelist on the prestigious Barron's Roundtable. In this episode, we discuss Todd's background, investment process, and what he sees in the market today. Listen in for topics like:
- How did Todd become CIO of Parnassus?
- What makes a successful investor?
- How does Parnassus operate?
- What is "short shelf-life information"?
- How does Todd look at the macro economy?
- What kind of valuations does Todd look for?
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This show is brought to you by Public.com*. Sign up for a high-yield cash account today: https://public.com/jro
*A High-Yield Cash Account is a secondary brokerage account with Public Investing. Funds from this account are automatically deposited into partner banks where they earn a variable interest and are eligible for FDIC insurance. Neither Public Investing nor any of its affiliates is a bank. US only. Learn more at https://public.com/disclosures/high-yield-account
2:00 On Semper Augustus investing philosophy and process
4:00 On what it means to be an “opportunistic” value investor
12:00 What the Semper Augustus portfolio-level metrics look like relative to the S&P 500
20:00 Why he thinks stocks are attractively valued today
24:00 On how he thinks about valuation
37:00 Chris shares his lessons from studying high price-to-sales stocks
45:00 How Chris spends his day, what he reads, and what podcasts he listens to, and how long he spends doing so
1:00:00 Why he finds ValueLine so valuable
1:07:00 – On the private investing social event he hosts every year
1:12:00 – starts deep discussion on Warren Buffett and Berkshire Hathaway
2:00 – Quoc’s concentrated investing philosophy and portfolio-level metrics
5:00 – Three different categories of stocks Quoc typically invests in
6:00 – Portfolio management philosophy
7:00 – Different layers of risk management
11:00 – On using data to make process improvements such as a moat trajectory review and ESG research
21:00 – Quoc dives deeper into his team’s step-by-step three-stage research process
38:00 – Incorporating a macro view into fundamental analysis
40:00 – Quoc on valuation process
42:00 – Quoc on when to sell
48:00 – Quoc on a final lesson for investors
3:00 – Definition of value investing according to Dan
10:00 – Dan’s risk management and portfolio management philosophy
17:00 – when to sell a stock
22:00 – On how he incorporates a macro outlook into fundamental bottom-up stock picking on a global basis
32:00 – Dan describes his team’s equity research process including the reason for nurturing an absolute mindset, not a relative mindset
57:00 – How Dan spends his quiet time.
1:01:00 – How to be a global investor
1:07:00 – Dan thoughts on passively investing in the S&P 500
1:13:00 – the contradictory psychological profile needed to be a good investor.
Bill Nygren, Chief Investment Officer at Harris Associates, joins The JRo Show to discuss his team's research process. If you’ve ever wanted to know what it’s like to work at Harris Associates, this is the podcast for you!
2 min 15 seconds – Bill’s background and career.
9 min 20 seconds – Advice for new analysts
19 min 50 seconds – The research process at Harris Associates
26 min 20 seconds – The stock pitching process at Harris
47 min – What it takes to be a good portfolio manager.
59 min 50 seconds – Bill’s personal life and expectations for the rest of his career.
1 hour 12 min - How he talks with management teams.
1 hour 16 min – Why he reads ValueLine every week
1 hour 23 min, 49 seconds – Lessons from his career
