On the inaugural episode of AUM, we are joined by John Rotonti, the Portfolio Manager of the Industrial and Infrastructure strategy at Islamorada Investment Management.

John shares his experience from his early days at The Motley Fool and how personal circumstances led him into the world of finance. He discusses his investment process, role models, and the importance of thorough research and quality management in stock selection.

John also talks about the sectors he's focused on, key investment lessons, and the types of businesses he avoids. He highlights two of his high-quality holdings, Amphenol and Trane Technologies, discussing their valuation and growth potential.

00:00 Introduction and Guest Welcome

01:45 John Rotonti's Investment Journey

03:26 Influential Investing Role Models

10:37 Launching the Industrial and Infrastructure Portfolio

12:34 Research and Investment Process

18:14 Idea Generation and Screening

22:31 Long-Term Investment Trends

30:54 The BlackBerry Investment Lesson

32:55 Surprising Upside Investments

40:43 Valuation Insights and Strategies

44:40 High-Quality Businesses at High Multiples

54:26 Advice for Aspiring Investors

57:17 Conclusion and Final Thoughts

Find more of John's work here: https://lastbastion.com/author/jro/

Welcome to AUM, the podcast that takes you behind the scenes with the world's premier asset managers. Each episode dives deep into the processes, strategies, methods, and hard-won lessons from investing masters who have achieved exceptional results in today's complex and adaptive markets.

AUM is proudly produced by FinChat, an AI-powered equity research platform delivering complete financial data on global stocks. Many of our distinguished guests are active FinChat users. If you're looking to elevate your team's research capabilities, we invite you to explore what FinChat has to offer.

Join us as we uncover the insights and approaches that drive outstanding investment performance in modern markets.

On this episode of AUM, we are joined by Bill Nygren, a renowned portfolio manager at Harris | Oakmark.

Bill details Harris | Oakmark's rigorous investment process, including the pivotal Tuesday meetings, devil's advocate reviews, and the importance of intellectual tension.

Bill also dives into some notable investments including General Motors and Delta Air Lines, the significance of management alignment, and the lessons learned from major investment mistakes like under-investing in Apple.

Timestamps:

00:00 Introduction to the Show and Guest

01:31 Bill Nygren's Early Passion for Investing

03:58 College and Early Career Experiences

07:56 Joining Harris Associates

16:26 The Harris | Oakmark Investment Process

18:58 Tuesday Meetings and Analyst Expectations

28:23 Mistake Management Protocol

32:18 Intellectual Honesty at Harris | Oakmark

33:07 The Organized Chaos of Harris | Oakmark

34:18 The Intensity of Portfolio Discussions

35:39 Macro View and Portfolio Decisions

38:13 Industries and Investment Criteria

41:21 Case Studies: Delta and General Motors

48:40 Understanding Management Teams

54:42 Biggest Investing Mistakes and Lessons Learned

58:18 Advice for Aspiring Investors

Find out more about the funds Bill manages here: oakmark.com

On this episode of AUM, we are joined by Tobias Carlisle, the Founder and Managing Director of Acquirers Funds. The discussion delves deep into Tobias' journey from corporate law in Australia to becoming a prominent figure in value investing.

Tobias explains his investment strategy, including the development of the Acquirer's Multiple, and explores concepts such as mean reversion, value traps, and the challenges faced by management teams of undervalued companies.

The conversation also touches on the historical performance of growth vs. value stocks and the potential catalysts for a shift in market trends.

01:44 Tobias Carlisle's Career Journey

08:57 The Acquirer's Multiple Explained

14:42 Mean Reversion in Deep Value Investing

17:49 Identifying and Avoiding Value Traps

21:01 Management Missteps in Undervalued Companies

26:23 Tobias'a Investment Process

29:34 Economic Sensitivity of Small Companies

32:04 Valuation and Market Sentiment

37:24 Concentration vs. Diversification in Portfolios

43:08 Historical Performance of Growth vs. Value

47:36 The Magnificent Seven and Market Trends

54:21 Advice for Aspiring Investors

If you enjoyed this interview with Tobias, you can find more of his work at https://acquirersfunds.com/

In this episode of AUM, we are joined by Bob Robotti, President and Chief Investment Officer of Robotti & Co.

Bob delves into his career in value investing that spans over five decades. Bob shares insights on the cyclical nature of finance versus the cumulative nature of science and engineering. He recounts his early auditing experiences with Tweedy Brown and Gabelli, highlighting how they shaped his investment approach.

The discussion covers the importance of timing, identifying value investments in cyclical industries, and the competitive advantages of energy-intensive businesses in North America. Bob also talks about his investment process, the significance of board involvement, and advice for new investors entering the industry.

01:49 Bob's Early Career and First Exposure to Investing

04:24 The Rise of Value Investing

07:31 Learning from Industry Giants

10:46 Investment Process at Robotti Company

16:40 Challenges and Opportunities in Value Investing

20:15 Case Study: Builders FirstSource and Industry Consolidation

23:19 The Impact of Market Cycles on Business Consolidation

24:04 Mistakes Management Teams Make in Cyclical Industries

24:49 Case Study: Atwood Oceanics and Counter-Cyclical Investment

26:36 Strategies for Success at the Bottom of the Cycle

27:39 Understanding Grassroots Macroeconomics

28:42 Navigating Information Overload in Investing

32:21 The Future of Stock Picking vs. Index Investing

36:05 Energy Intensive Businesses in North America

38:05 The Impact of Tariffs on Industrial Companies

39:58 The Role and Value of Board Membership

41:50 Advice for Aspiring Investors

To see more about Robotti & Co check out https://advisors.robotti.com/

In this episode of AUM, we are joined by Jan Van Eck, CEO of VanEck.

VanEck has been a pioneer in asset management and ETF industry since 1991. Jan delves into the intricate dynamics of recessions, inflation, and government spending. They explore VanEck's investment strategy, focusing on macro trends such as technological advancements, political shifts, and economic policies.

The discussion covers VanEck's early adoption of Bitcoin and ETFs, emerging markets like India and Vietnam, the future of blockchain technologies, and their unique approach to portfolio building.

01:26 Meet Jan Van Eck: CEO of Van Eck

01:57 Jan's Formative Years and Career Path

05:45 VanEck's Investment Philosophy and Macro Trends

07:43 Exploring India's Economic Growth

11:05 VanEck's Approach to ETFs and Emerging Markets

17:00 Bitcoin and the Future of Digital Assets

26:06 The U.S. Fiscal Reckoning

32:57 Technological and Geopolitical Themes

38:03 VanEck's Unique Portfolio Building Approach

39:35 Advice for Aspiring Investors

See more about VanEck here: https://www.vaneck.com/us/en/

In this episode of AUM, we are joined by Jeremy Deal, the founder and portfolio manager of JDP Capital Management.

Jeremy shares insights from his non-traditional background in asset management and elaborates on his investment philosophy, which focuses on identifying companies with significant unrecognized earnings potential.

Jeremy discusses the importance of understanding a company's competitive advantage and maintaining a long-term investment perspective. Jeremy also recounts his successful investment in Spotify, detailing his initial thesis and the journey through its ups and downs.

Lastly, Jeremy emphasizes the value of letting winners run and learning from past mistakes to achieve exceptional investment outcomes.

01:30 Meet Jeremy Deal: Founder of JDP Capital Management

02:50 Early Career and Founding JDP Capital

05:49 Investment Philosophy and Strategy

08:33 Understanding Market Inefficiencies

12:15 The Importance of Competitive Advantage

18:19 Consumer Relationships as a Margin of Safety

22:41 Research Process and Discovering New Businesses

32:23 Building a Position: Patience and Strategy

33:28 Managing Portfolio Valuation and Drawdowns

38:55 Identifying Exciting Business Opportunities

44:18 The Spotify Investment Thesis

52:38 Learning from Investment Mistakes

59:06 Advice for Aspiring Investors

To see more of Jeremy's work check out: https://jdpcap.com/

In this podcast, we interview Shreekkanth Viswanathan, founder and portfolio manager of SVN Capital.

Shree shares his investment journey, from studying in India and moving to the US, to founding SVN Capital in 2018 after extensive experience in portfolio management at various firms.

Shree discusses the importance of making independent investment decisions instead of relying on borrowed conviction and the conversation highlights his investment philosophy, including thoughts on a concentrated portfolio strategy, long-term investment outlook, and focus on quality businesses with strong management.

The episode also delves into specific investments like Dino Polska and Kinsale Capital, offering insights into what makes a business worth investing in.

02:28 The Journey to Founding SVN Capital

07:23 Portfolio Strategy and Concentration

13:43 Investment Philosophy: Fully Invested Approach

18:39 The Importance of Independent Decision Making

24:30 Evaluating Potential Investments

27:12 Defining a Good Business

35:43 Understanding the Outsider's Perspective in Public Investments

37:30 Case Study: Hermes - A Legacy of Culture and Success

40:35 Valuation Work: Balancing History and Future Predictions

44:49 Company Spotlight: Dino Polska - A Unique Grocery Chain

54:09 Company Spotlight: Kinsale - A Unique Player in Insurance

01:05:18 Insights from Successful Investors

To see more of Shree's work, check out: https://www.svncapital.com/

In this episode of AUM, host Ryan Henderson sits down with Todd Ahlsten, Chief Investment Officer of Parnassus Investments. Todd shares his journey from a 22-year-old intern to leading a firm managing $46 billion in assets, reflecting on key experiences that shaped his investment philosophy.

The conversation delves into the dynamics of the semiconductor industry, the importance of wide business moats and durable competitive advantages, and the evolving relevance of companies like John Deere and Waste Management.

Todd also offers insights into the impact of AI on various sectors and highlights the critical traits for successful long-term investing.

02:13 Todd's Early Interest in Investing

04:35 Joining Parnassus Investments

05:38 Skills and Evolution in Investing

08:32 Navigating Market Noise

12:40 The Parnassus Investment Process

16:42 Idea Generation and Stock Selection

20:34 Traits of Innovative Companies

27:13 Management Traits and Avoiding Complacency

29:17 Deep Dive: John Deere

29:25 Agriculture Industry Overview

29:53 Deere's Cyclical Recovery and Secular Rerate

31:46 Technological Advancements in Agriculture

33:14 Investment Strategies During Economic Cycles

36:45 Waste Management's Competitive Edge

39:46 AI and Semiconductor Investment Trends

48:20 Evolution of Investment Strategies

53:18 Advice for Aspiring Investors

Learn more about Parnassus Investments: https://www.parnassus.com/

In this episode of AUM, we interview Barry Schwartz, the Executive Vice President and Chief Investment Officer of Baskin Wealth Management.

Barry shares insights from his 2+ decades of experience in the investment industry, discussing the evolution of markets from the dot-com bubble to today's AI and technology-driven environment.

The conversation covers Baskin's investment philosophy, which centers on owning quality companies with strong management and sustainable growth. Barry elaborates on their decision-making process, how they manage client portfolios through separately managed accounts, and why they avoid certain industries.

He also touches on some of Baskin's notable holdings, including Apple, Netflix, and Amazon, explaining the rationale behind these investments.

04:12 Barry Schwartz's Career Journey

06:23 Investment Philosophy and Strategy

08:38 Research and Portfolio Management

15:41 Focus on Quality Investments

21:18 Decision-Making in Selling Investments

22:57 Management Changes and Long-Term Ownership

24:32 Investment Rules and Business Models

26:45 Platform Businesses and Technology Investments

31:58 Apple: A Deep Dive

36:53 Netflix and the Streaming Wars

43:13 Advice for Aspiring Investors

46:09 Conclusion and Final Thoughts

To see more of Barry's work check out: https://baskinwealth.com/

In this episode of AUM, we interview Alex Fitch, the Director of US Research at Harris | Oakmark.

Alex discusses the complexities of investing, the importance of balancing ego and clear thinking, and the intrinsic challenges of admitting mistakes. Alex shares his journey into investing, his disciplined approach to value investing, and how he targeted working at Harris | Oakmark.

Alex delves into Harris' unique team-based research process, their approach to evaluating management, and the crucial role of understanding the reasons behind a company's valuation. He also discusses his strategies for dealing with cyclicals, the significance of mid-cycle earnings, and the process of selecting and managing investments.

Alex highlights specific companies such as Alphabet, Salesforce, and Lithia Motors.

02:09 Alex Fitch's Journey into Investing

04:03 Joining Harris Oakmark: The Path to Success

06:01 Evolution as an Investor

09:11 Harris Oakmark's Unique Research Process

14:51 Characteristics of a Potential Portfolio Company

17:25 Valuation and Mid-Cycle Earnings

21:48 Sell Discipline and Mistake Management

26:39 Evaluating Management Teams

29:29 Understanding Company Undervaluation

31:03 Researching Cyclical Companies

36:07 Valuing Software Businesses

40:14 Alphabet's Capital Expenditure

44:30 Lithia Motors' Acquisition Strategy

51:34 Biggest Investing Mistake

53:39 Advice for Aspiring Investors

To learn more about Harris | Oakmark checkout: https://oakmark.com/