Seth Brennan is co-founder of Lincoln Peak Capital, which owns minority stakes in several asset management companies, including Troy. We discuss Lincoln Peak's long-term partnership model and the importance of autonomy and a strong alignment of interests as foundations for success.

Show notes:

[01:15] Seth discusses how he got into the industry

[02:49] Joining Affiliated Managers Group

[03:43] Lessons from AMG

[06:37] Setting up Lincoln Peak

[07:51] Starting a business in 2008

[10:01] The importance of having long-term capital

[14:10] Lincoln Peak’s long-term ambitions

[16:20] Exits

[18:51] The due diligence process and reasons for a transaction

[22:53] Importance of autonomy and alignment

[25:01] Adding value to partner firms

[28:26] Avoiding the temptation to intervene

[31:52] Continuing relevance of active management

[34:44] Catalyst for Troy transaction

[35:35] Why Lincoln Peak is a good partner for Troy

[37:14] Sebastian’s strengths as an investor

[38:35] Be curious and ask questions

Matthew McLennan is co-head of First Eagle’s Global Value team and one of the portfolio managers of Global Value, a strategy that has delivered strong long-term compound returns.  We discuss the importance of humility and patience, why resilience is emphasised throughout the portfolio, and how Global Value has survived and thrived across a broad range of market environments.

 Show notes:

[01:24] How an unusual childhood informed Matt’s approach to investing
[03:52] Succeeding Jean-Marie Eveillard
[05:46] Continuous refinement of the investment kernel
[07:04] Successful succession planning
[09:45] Sustaining success over different market cycles
[12:15] Important character traits and attributes
[17:01] Impact of passive investing
[19:20] The benefits of having a Senior Advisor Board
[22:09] What value investing means to First Eagle
[26:38] Endogenous integrity with the capacity to suffer
[28:40] Discerning between secular change and noise
[33:44] Approach to asset allocation
[35:46] Benefits of owning gold
[37:45] Role of cash in the portfolio
[40:11] High valuations and prospective returns
[42:51] Gold miners vs bullion
[44:41] Understanding the process of growth and the role of endogenous confidence cycles

Gabrielle Boyle and George Viney co-manage Troy’s Global Equity strategy.  We discuss why the market persistently underestimates the compounding power of rare and exceptional companies, the importance of recognising one’s biases and striving to learn and improve as investors, and why Gabrielle and George work so well together as a team.

 Show notes: 

[01:26] Why the market persistently underestimates the compounding power of rare and exceptional businesses
[02:41] Companies don’t compound in a linear way
[05:09] Having the right environment to sustain success
[08:55] How Gabrielle and George complement each other
[10:35] The importance of having an inner critic
[12:45] Continuous improvement
[14:24] Combining resilience with reinvestment potential
[16:10] Characteristics of special businesses
[18:35] Sell discipline
[20:41] Minimising biases and ensuring accountability
[24:39] Balancing strong operational performance with fair valuations
[27:32] A concentrated portfolio with broadly diversified businesses
[29:17] Troy’s broader team
[30:57] Cognitive diversity with shared values
[33:04] Confidence in the future
[34:29] Back your conviction

Dan Davidowitz is lead portfolio manager of Polen Capital’s Focus Growth strategy.  We discuss Dan’s evolution as an investor, Polen’s investment guardrails, and other factors that have helped the strategy deliver exceptional returns over the last 35 years.

Show notes:

[01:16] Dan discusses how he pivoted from public health to investing
[02:56] Thoughts on healthcare investing
[04:30] Shifting from a deep value shop to Polen Capital
[07:44] Keep things simple
[10:01] Time arbitrage with businesses that are the best-of-the-best
[12:12] Creating a high performance investment team
[14:23] The importance of being both optimistic and open-minded to change
[16:34] Getting better each day to remain competitive
[17:59] Polen Capital’s evolution
[20:40] Polen’s investment guardrails
[22:14] Vigilance and conservatism for continuous compounding of earnings growth
[24:35] Making sure companies are investing adequately for their future
[26:34] Acquisition-driven companies
[28:45] Investing across the growth spectrum
[31:17] Having a broad mix of competitively-advantaged businesses
[33:51] Valuation discipline
[36:45] Lessons from the last few years
[38:30] Impact of GenAI
[41:03] Why Amazon is a large holding
[45:35] Building any experience is good experience

In this episode we speak to Robbie Robertson.  Robbie is on the Board of Personal Assets Trust and spent a nearly 40-year career in the investment trust industry.  We discuss the evolution of the investment trust industry, the advantages of a closed-end structure and the role Personal Assets Trust can play in a portfolio.
 
 Show notes:
 [01:28] A different world
 [03:17] Observations from a career in the investment trust industry
 [06:42] Characteristics of successful investors
 [08:03] How Robbie got involved with Personal Assets Trust
 [09:03] Advantages of the investment trust structure
 [11:39] Evolution of the investment trust industry
 [15:05] Impact of higher interest rates and a changing cycle
 [16:48] Are they investment trusts or operating companies?
 [20:54] Valuing assets in newer parts of the market
 [22:24] Appropriateness of the investment structure for alternative assets
 [23:57] Is there demand for general equity investment trusts?
 [25:51]  Why some investment trusts scale and others fail
 [27:25] Common pitfalls to avoid
 [28:57] Trading discounts
 [30:50] What makes a great investment trust Board?
 [32:58] The role Personal Assets Trust plays in a portfolio
 [37:56] Advantages of a discount control mechanism
 [39:36] Why most Boards do not commit to a discount control mechanism
 [40:47] Enjoy yourself

In this episode we speak to Jim Strang, Chairman of HGCapital Trust.  The Trust has an outstanding track record investing in business-to-business software companies.  We discuss the evolution in private markets over Jim’s career, the benefits of specialisation and the reasons behind Hg Capital’s success.

Show notes:

[01:15] Jim discusses his early career
[02:12] HgCapital Trust’s history
[03:41] The benefits of specialisation
[05:56] The importance of controlling the capital structure
[08:02] Characteristics of typical Hg investments
[10:07] The growth model
[11:29] End market fragmentation
[13:29] Being highly selective
[16:25] Having the flexibility to own the best businesses over the long run
[18:07] Replicating Hg’s success in the US
[19:58] Why Hg is an attractive owner for entrepreneurs
[22:35] Sustaining Hg’s culture and using greater scale to drive operational improvement.
[25:25] Objectively assessing each company’s potential
[27:03] Low loss rates and a few major successes
[27:57] Why things typically go wrong
[30:22] Leverage and the capital structure
[33:33] Valuing private companies
[38:43] M&A in a higher interest rate environment
[40:54] Trust your gut

Stuart Widdowson founded Odyssean Capital, is co-manager of the Odyssean Investment Trust, and has a wealth of experience investing in UK-listed smaller companies.  We discuss the lessons Stuart has applied to public equity investing from his days in private equity, the rewards derived from investing in good quality companies that can be improved, and the overall state of the UK market.

 Show notes:
[01:28] Stuart discusses his early career
[04:12] Swapping private equity for public equity investing
[06:11] The market imperfections in small cap investing
[07:44] A focus on global niche market leaders
[09:35] Stuart’s ambitions for Odyssean Capital and its cultural values
[11:51] The meaning behind the Odyssean name
[12:49] The benefits of concentration
[14:25] Managing risk and avoiding bad businesses
[16:41] The quality attributes Stuart looks for
[19:38] Pattern recognition in TMT, healthcare, specialist industrials and services
[22:18] Being cycle aware rather than trying to time cycles
[24:18] The role of static and dynamic valuation
[28:20] Managing for liquidity
[31:27] Identifying companies with the potential for self-help
[34:15] Backing people and focusing on what is fixable
[36:05] Being credible when engaging with companies
[39:37] The structural headwinds facing UK equities and the valuation opportunity
[43:16] Contrarians come in first
[44:18] Navigating a higher cost of capital
[47:20] Find out what you enjoy and are good at and get a good mentor

In this episode we speak to Oddbjørn Dybvad, co-founder of REQ Capital, an Oslo-based investment firm.  Oddbjørn manages REQ’s Global Compounders and Nordic Compounders funds, which focus on acquisition-driven businesses.  We discuss the entrepreneurial energy within these companies, why they are able to reinvest capital at attractive rates for a long period of time and how their diversified and decentralised nature makes them both resilient and adaptable.

 Show notes:

[01:22] Oddbjørn discusses his career
[02:26] The risk and return characteristics of acquisition-driven compounders
[04:25] The influence of geography
[07:01] Defining the different types of serial acquirer
[09:12] Focusing on small/mid-caps with a long runway for redeploying capital
[10:41] The diversification benefits of acquisition-driven companies
[12:11] A preference for insider ownership, decentralisation and acquisitions funded by cash
[13:29] Communicating with investors in a different way
[14:53] Key person risk and the sustainability of culture
[16:28] Change at Diploma
[18:07] Harnessing entrepreneurial energy through decentralisation
[20:43] Decentralisation and adaptability
[21:59] Motivating behaviour through simple incentivisation structures
[24:52] Focusing on track record and management
[25:56] Constellation Software and the decentralisation of capital allocation
[28:07] The valuation differential between public and private markets
[30:51] The attractions of selling to acquisition-driven compounders
[33:06] Looking for the dual engine of organic and inorganic growth
[35:04] The underlying characteristics of REQ Global Compounders
[37:13] Becoming more conscious about evaluating risk and management
[39:07] Finding people who are process-oriented and have a long-term mind-set
[39:55] Learn from your mistakes

Kiril Sokoloff founded 13D Research in 1983 and is a leading global investment strategist who has presciently called a number of major paradigm shifts over the last 40 years.  We discuss Kiril’s career, why the current investment backdrop is so challenging and how the geopolitical landscape is evolving.

Show notes:

[01:23] Kiril talks about the start of his career
[04:18] Getting the big picture right
[07:48] The impact of algorithmic trading and passive investing on price discovery 
[09:57] Timing is everything
[10:48] Risk control and being willing to change your mind
[12:39] The common traits of successful investors
[14:44] Reading widely to connect the dots
[15:41] Why the investment environment is so challenging
[19:18] The lag effect giving the illusion that everything’s fine
[21:14] The role gold plays in a portfolio
[24:19] The cycle of wealth distribution
[25:54] Cycles  go from one extreme to the other
[26:45] Focusing on cash flow and low free cash flow multiples
[28:23] Supply and demand imbalances in the energy and mining industries
[30:47] Resource nationalism
[32:21] A changing market regime
[33:35] Drivers of higher inflation
[37:33] Geopolitics and the shift to a multipolar world
[40:21] Investing in China
[42:15] Accepting fate whilst being flexible and patient

Prashant Khemka has a strong track record managing capital in India and global emerging markets. He established Goldman Sachs Asset Management’s India franchise in 2006, was lead portfolio manager of Goldman’s India Equity and Global Emerging Market Equity strategies, and in 2017 founded White Oak Capital Management, where he has continued to deliver impressive returns.  We discuss Prashant’s investment philosophy, how to build a high performing team, why investing is similar to elite sport, and the attractions of investing in India.

Show notes:

[01:27] Catching the investment bug
[04:04] Prashant’s early career
[06:16] Learning from a mentor
[08:10] Building a strong investment culture
[10:25] Having an elite performance mentality
[13:02] The key attributes of good stock pickers
[14:39] India is an alpha rich market
[15:46] The importance of good governance and a strong rule of law
[17:55] India’s equity market is becoming more efficient but it takes time
[20:26] India’s economic strength provides a solid foundation
[22:24] Growth is a function of change
[25:04] Investing in great businesses at attractive valuations
[29:10] Emerging market private sector banks offer more profitable opportunities with lower risk
[32:44] Indian equity valuations relative to history
[36:41] Growth is a critical component of the value equation
[38:47] Spend more time with family and focus on learning what you love

Paul Major co-manages the Bellevue Healthcare Trust and has a wealth of experience of the healthcare industry.  We discuss how healthcare has evolved, why existing healthcare systems are fundamentally challenged, and the approach Paul takes to investing in the industry as a result.

Show notes:
[01:15] Paul discusses how he got into finance
[03:15] Bellevue
[04:31] General lessons for healthcare investing
[06:01] Delivering innovation and why R&D doesn’t scale
[10:07] Focusing on the key problems society faces
[13:48] Keeping healthcare investing simple
[16:47] Why the healthcare system is broken
[19:53] Finding productivity gains
[22:07] Preventative medicine
[24:12] Fixing a problem that didn’t previously exist
[29:02] The US healthcare system
[32:03] Transition to value-based care
[33:45] Constructing a portfolio of innovative companies
[36:59] The fast moving pace of healthcare innovation
[39:13] Understanding what innovation looks like
[39:37] The importance of educating physicians
[40:56] Valuing young, innovative companies
[45:47] Corporate finance provides an excellent education

Blake Hutchins manages the Trojan Income Fund and is co-manager of the Troy Income & Growth Trust.  We discuss the changing investment environment, why it could be good for high-quality, dividend-paying companies, and where Blake is finding value in the UK market today.

Show notes:
[1:16] Being deliberate and patient during tough times
[3:30] Equity income investing in a different environment
[6:50] Striking the right balance between yield and dividend growth
[9:38] Why Blake doesn’t invest in banks and commodity businesses
[13:31] The power of incumbency
[16:27] The impact of higher inflation
[18:33] UK equity valuations
[21:30] UK domestic exposure
[23:58] How the portfolio has evolved
[25:39] The attractiveness of UK-listed consumer staples companies
[27:34] Dividends are on a more stable footing following the pandemic
[30:31] Growing the dividend in a resilient and consistent way

Swetha Ramachandran manages GAM's luxury brand strategy and knows the luxury industry inside out. We discuss Swetha's definition of luxury, the pre-eminence of European brands, the rise of China and how the industry is evolving.
 
 [01:05] Swetha discusses her early career
 [03:01] Luxury is changing and widening
 [06:13] Defining luxury
 [07:53] Sizing the luxury market
 [09:10] Characteristics of a luxury shopper
 [10:59] The role of gaming and online in attracting younger consumers
 [13:37] Why European companies dominate the luxury industry
 [16:28] Chinese consumption
 [20:16] Trend of buying less but buying better
 [22:10] Importance of supply chain transparency
 [23:24] How the rules of the game differ to the broader consumer goods sector
 [25:30] Luxury companies can't simply rest on their laurels
 [28:21] US brands typically haven't built as much brand equity
 [29:29] How big can luxury brands become before they fail to deliver promise of exclusivity
 [30:42] Gaining confidence in the brand permanence of younger companies
 [33:19] Family ownership and the benefits of taking a long-term view
 [34:47] Online has supported rather than disrupted luxury brands
 [36:31] Luxury resale hurts aspirational luxury brands but helps top tier brands
 [37:42] Have luxury companies been too aggressive with pricing?
 [39:50] Valuations and the opportunity set today
 [42:28] Are luxury goods companies now more sensitive to recession?
 [43:50] There's no such thing as a stupid question

Ben Rogoff is co-head of Polar Capital's Global Technology team.  Having joined the industry just before the technology bubble of the late 1990's and early 2000's, Ben has a wealth of experience navigating different market cycles.  We discuss the environment today, the similarities and differences with the TMT bubble and what it takes to be a successful tech investor.  We also dive into Ben's investment themes, the benefits of being diversified and the importance of not missing out on big winners.

Show notes:
[1:33] Ben discusses his early career
[4:12] Surviving the bursting of the tech bubble
[5:21] Lessons from the tech bubble
[7:44] Joining Polar Capital
[9:01] Guardrails for tech investing
[12:43] There is often no mean reversion in tech
[14:23] Companies should behave differently at different stages of maturity
[17:11] Reinvestment risk is high in tech
[18:13] The importance of not missing out on the big winners
[20:22] The benefits of being diversified
[21:20] Sell discipline
[23:36] False sell signals in the current environment
[25:00] Investment themes and why tech as an enabler of new industries
[28:25] Is AI a general purpose technology?
[30:45] The semiconductor cycle and geopolitical risk
[33:33] Similarities and differences with the tech bubble
[36:53] Adapting to a different capital market environment
[40:00] The scale advantages of Apple, Microsoft, Alphabet et al
[43:42] Recording how you feel in the moment and getting to where you want to be as quickly as possible

Gerard Minack has a wealth of experience as a macro strategist and founded Minack Advisors in 2013.  Gerard has been particularly prescient over the last 18 months, highlighting the probability of rising inflation and higher interest rates well before many others.  We discuss how the pandemic changed Gerard's macro views, why he believes secular stagnation has come to an end and what implications that has for investors in the years ahead.  Gerard also talks about why he believes a recession in the US next year is more likely than not.

Show notes:
[1:19] Gerard talks about joining the industry on Black Monday in 1987
[2:17] Founding Minack Advisors after a successful career in big investment banks
[6:49] The end of secular stagnation 
[11:34] The implications of such a change
[14:06] Most investors still underestimate the possibility of secular change
[15:52] The risk of recession isn't adequately priced by markets
[17:25] Why Gerard believes this will be a two part bear market with a recession hitting earnings next year
[20:35] Equities usually trough a few months before the end of a recession
[25:00] Labour inflation and why the Federal Reserve's job is so hard
[27:08] The winners of the next decade
[33:11] Private assets and why it is becoming harder to generate alpha
[35:27] Why Gerard thinks US government bonds may now be a good place to hide
[37:28] The credit cycle
[40:20] Do a job that you enjoy

Andrew Brenton co-founded Turtle Creek, a Toronto-based asset manager, in the late 1990s.  Since its inception, Turtle Creek has delivered outstanding returns by investing in mid-sized companies in the US and Canada.  We discuss Andrew's formative experiences and evolution from private to public market investor, as well as the team's focus on unique companies and exceptional operators.  We also talk about the emphasis Turtle Creek place on continuous portfolio optimisation, and other aspects of their process that make them a different kind of value investor.

Show notes:
[1:24] Andrew discusses his career and taking inspiration from John Maynard Keynes
[4:35] The benefits of public market vs private market investing
[7:59] Appreciating complexity in an uncertain world
[11:54] Competitive advantages
[15:01] The benefits of fragmented industries
[17:01] Focusing on unique companies
[19:49] Trusting great operators
[20:46] Getting the future right in a balanced way rather than being overly conservative
[23:38] Behavioural biases and collectively making intelligent decisions
[27:03] Valuing acquisitive companies
[29:27] Focusing on episodic rather than programmatic acquirers
[31:08] Portfolio construction and optimisation
[34:21] Appreciating qualitative factors and a human touch
[38:19] Turnover
[38:52] Have confidence in your views and act more quickly

Richard de Lisle, founder of De Lisle Partners, has significantly outperformed US equity markets over the last 27 years by investing in US small-cap value stocks.  We discuss what value investing means to Richard, his focus on themes and the advantages of taking a sociological perspective.  We also explore the current environment, Richard’s investments in primary producers and why investing is the greatest game.

Show notes:
[1:05] Richard talks about how his father’s misfortune inspired him to start investing
[3:09] Don’t follow others as experts can be self-serving
[4:00] Richard’s career on the sell-side
[7:01] Equities were an unloved asset class in the 1970’s and early eighties
[8:18] Getting hooked on the American market’s intricacies
[9:13] Transitioning from the sell-side to the buy-side
[12:12] Why Richard focuses on US small cap value
[13:26] Small cap value’s outperformance between 1975 and 1983
[14:38] Ducking and weaving in difficult environments
[16:25] Taking a top down approach
[17:48] There is value in the least worst
[18:40] Looking backwards not forwards
[20:18] Identifying investment themes
[23:05] People often underestimate that value stocks can become growth stocks
[24:02] Reading broadly and taking a sociological perspective
[24:39] The advantage of being detached
[25:39] Investing is the greatest game
[26:51] Investing in primary producers in an inflationary environment
[29:46] Complacency around wage inflation
[31:21] Short duration stocks
[33:05] Work out what you want and set a plan to achieve it

Katie Potts founded Herald Investment Management and has managed the Herald Investment Trust since 1994, generating strong returns by investing in smaller companies across the telecom, multimedia and technology sectors.  We discuss Katie's evolution as an investor, the differences between the UK and US markets, and the importance of being a patient and long-term provider of primary capital.  We also explore the benefits of meeting lots of companies and running winners in a diversified portfolio.

Show notes:
[1:13] Katie discusses founding Herald and how she came to focus on smaller companies
[2:55] The importance of having the right structure
[4:06] Katie’s evolution as an investor
[6:51] How technology has changed and the benefits of renting processing power
[10:48] Differences between the UK and US market
[12:10] A shortage of long-term capital in the UK
[15:10] The current investment environment
[18:33] Common investment pitfalls
[19:39] Risk management
[20:35] Running winners whilst spreading your bets
[22:04] The benefits of meeting a lot of companies
[24:45] Accounting for stock based compensation
[25:49] Diverging from the script and taking a long term view
[26:53] Judging the quality of people
[28:06] Being a provider of primary capital and the advantages of small cap companies over larger ones
[30:09] The importance of patience
[30:59] Avoiding the most popular IPOs
[32:33] There are always winners and losers in the tech sector
[33:06] The big trends over the next decade
[34:00]  Be interested and enjoy it

Charlotte Yonge manages the Trojan Ethical Fund and is assistant fund manager of the Trojan Fund and Personal Assets Trust.  We discuss the risks of higher inflation and ways to preserve and grow the real value of investors' capital.  We also explore ESG in a multi-asset context, and why Charlotte co-founded Girls Are INvestors (GAIN).

Show notes:

[0:59] Charlotte talks about how she got into the industry
[2:39] Recognising that emotions play an important role in investing
[4:34] Catching the investing bug 
[6:01] Inflationary risks are growing
[9:13] Balancing inflationary and disinflationary forces
[11:41] Are higher prices the cure for higher prices?
[13:49] The Fed is reactive rather than proactive
[14:46] Protecting against a broad range of potential inflationary outcomes
[17:35] The role of cash in an inflationary world
[20:08] Index-linked bonds
[22:22] The importance of common values
[25:30] How the portfolio has evolved
[28:07] Spaghetti mapping with Dr Pepper
[30:28] Payment networks
[33:39] ESG in a multi-asset context
[37:52] Engaging for positive change
[40:03] Girls Are INvestors (GAIN)
[44:18] Back yourself

Nick Train founded Lindsell Train, alongside Michael Lindsell, in 2000 and has generated outstanding returns by investing in a concentrated portfolio of exceptional companies.  In a rich and varied discussion, Nick talks about the power of optimism, the rewards of being patient, and the value of semi-eternal brands in a rapidly changing world.

Show notes:
[1:13] Nick talks about how he got into the investment profession
[3:48] GT Management
[6:18] Learning from Warren Buffett and Alex Dundas
[9:17] Investing in consumer brands
[11:02] The power of being an optimist
[14:49] Avoiding losing strategies
[16:15] The benefits of being a boutique
[17:59] The importance of having the support of like-minded people
[19:06] The power of patience
[21:42] Being a hoarder of valuable things
[24:20] Hanging on to losers as well as winners
[25:52] Investors’ perception of management is influenced by share prices
[28:04] Investing in outstanding businesses when they are cheap
[29:15] The rewards for corporate success are structurally higher in the 21st century
[31:31] Investing in technology proxies
[34:23] Digital permits higher cash flow returns on capital
[36:24] The value of semi-eternal brands in a rapidly changing world
[38:57] Owning defensive and diversified staples companies
[41:37] Unilever’s adaptability
[42:44] Do yoga

Ashish Swarup is an experienced emerging market investor and the founder of Aikya, a boutique focused on high-quality and durable companies managed by competent and trustworthy people.  Ashish discusses some of the pitfalls of investing in emerging markets and why aligning oneself with trusted stewards, who have 'soul in the game', is a winning strategy for long-term investors.

Show notes:

[1:02] Ashish talks about his career so far
[5:11] Keeping things simple
[6:26] Common pitfalls for emerging market investors
[9:15] Needing a different toolkit
[10:33] The importance of having a stable temperament
[11:50] Investing with quality people 
[13:46] Having soul in the game
[15:08] Appreciating the nuances associated with family ownership
[16:41] The advantage of having a deep network of local contacts
[19:20] Building lasting relationships with local contacts
[21:22] Investing in companies with a clear purpose and good governance
[24:14] Chinese education companies
[27:00] Governance standards are not improving
[27:27] Purposefully having a narrow investment universe
[28:23] Constantly questioning your assumptions
[29:55] India and China
[33:05] Competitive intensity and investing in companies that build trust in China
[34:22] The role of valuation
[35:29] Backing predictable businesses with a strong right to win
[37:18] The rise of local consumer staples companies
[40:14] Aikya and ESG
[43:14] The investment structure matters

James Harries has a wealth of experience as a global income investor and manages the Trojan Global Income Fund and Securities Trust of Scotland.  James talks about his journey from Royal Military Academy Sandhurst to a career in investing, how he has evolved as an investor and why income investing remains highly relevant in today's world.

Show notes:

[1:05] James talks about the start of his career and the lessons learnt at Sandhurst
[5:23] Being disciplined and allowing good habits to compound
[6:41] The importance of income investing
[9:47] Focusing on generating good returns whilst limiting drawdowns and volatility
[11:08] The income discipline 
[13:08] Balancing quality, income and growth
[15:16] The progression to a more concentrated, lower turnover and higher quality-focused portfolio
[16:14] Emphasising quality above dividend yield
[18:11] Insulating the portfolio and benefiting from technological change
[21:37] How the deployment of technology is benefiting a broad range of companies in the portfolio.
[24:14] The tobacco industry's evolution
[27:58] Incorporating ESG considerations
[29:04] Focusing on deeper and longer-term issues to gain an edge
[31:53] Domino's Pizza
[34:49] Structuring the portfolio for resilience
[38:29] The macro backdrop
[42:28] Do something you enjoy, concentrate on what matters and be happy

Sanjay Ayer is a portfolio manager at WCM Investment Management, a California-based asset manager investing in good quality companies with strong cultures and improving competitive moats.  Sanjay talks about his evolution as an investor, how a good culture can reinforce a company's competitive advantage, and why it is so important for investors to learn from mistakes and compound knowledge to sustain success.

Show notes:

[1:15] Sanjay talks about his early career and moving from Morningstar to WCM
[4:10] Why one should focus on companies that are expanding their competitive moat
[6:46] Testing the trajectory of a moat
[9:11] Amazon and Shopify
[10:55] Compounding knowledge to sustain success
[14:27] Learning from mistakes
[16:26] Niche industrial and influencer typologies
[20:00] The importance of culture
[21:13] Cultural optionality and culture as a durable competitive advantage
[25:23] Balancing centralisation and decentralisation in regulated industries
[27:21] Cultural trajectory
[29:12] Portfolio construction as a foundation for rational decision-making
[32:19] The role of valuation
[34:42] R&D to sustain an investors' competitive advantages
[38:41] Persistent inefficiencies in the investment profession
[42:30] Using growth and scale to advance culture
[44:51] Embrace cognitive dissonance and consider return on time  

Brinton Johns is a co-founder of NZS Capital, a US-based investment boutique applying lessons from nature to invest in companies with the capacity to thrive in a complex adaptive world.  As the future is inherently unpredictable, Brinton and his colleagues believe it is best to focus on adaptable and innovative businesses that create more value than they take, whilst structuring the portfolio to exhibit both resilience and optionality.

Those interested in learning more about NZS's Complexity investing framework should read their whitepaper (https://www.nzscapital.com/news/complexity).

Show notes:

[1:20] Brinton talks about how he got into the investing industry and his career at Janus Capital
[5:32] The benefits of focus, a defined investment philosophy and a flat team structure
[8:05] The genesis of NZS' Complexity Investing framework
[9:51] The key tenets of Complexity Investing and the importance of being adaptable and creating more value than you take
[13:37] Structuring the portfolio for resilience and optionality
[18:01] Psychological safety and empowering creativity by being allowed to make mistakes
[20:27] Texas Instruments as an example of an adaptable and resilient business providing oxygen in a digital age
[22:44] Testing for adaptability and resilience at Texas Instruments
[25:08] Assessing the quality of people, culture, the nature of a company's growth and valuation
[28:47] Great allocators versus great operators
[30:48] Understanding the asymmetry of optional investments
[32:57] The power of vertical integration in disrupting horizontal incumbents
[35:06] Spreading bets in the tail of the portfolio
[36:15] A culture of candour for limiting biases and recognising mistakes
[39:04] Companies that graduate from being optional to resilient and vice versa
[41:02] Investing in optional businesses allows for greater mental plasticity
[42:31] Web3.0
[44:00] Be curious and open-minded

In this episode of Far From The Finishing Post we speak to Gabrielle Boyle.  Gabrielle heads up Troy's investment research and manages the Trojan Global Equity Fund and Electric & General Investment Fund.  Gabrielle discusses her evolution as an investor and how being an outsider has helped her recognise and adapt to change to deliver strong compound returns. 

Show notes:
[1:09] Gabrielle talks about how she got into the industry
[3:23] The wild west of Europe
[5:50]Learning at Lazard
[7:54] Gender diversity and being an outsider
[11:49] Girls Are INvestors (GAIN)
[12:41] Working at a boutique with a clear sense of identity
[15:36] Troy's evolution
[19:00] Adapting to change
[20:20] The fundamental importance of ESG
[21:39] ESG and stock selection
[25:16] Technological disruption and extraordinary 'tech staples'
[28:16] Discipline through concentration
[31:35] Intangible quality
[32:43] Being a long-term owner
[33:39] The surprising durability of great businesses
[35:59] Trust your instincts and enjoy yourself