Loading...

Follow Investor Field Guide | Invest Like the Best Pod.. on Feedspot

Continue with Google
Continue with Facebook
or

Valid

My guest today is Bryan Krug, who manages the Artisan Partners Credit Team and overseas more than $3B in high yield credit investments for the firm. This was my first conversation on high yield, so I took it as an opportunity to get an overview on the investment universe and home in on the tools used for analysis and security selection. As an equity investor, I think one of the most fruitful areas of research is into ways that companies fail or go wrong, and credit investors focus almost entirely on this potential for impairment. My guess is that all equity investors will learn something useful from this conversation. Please enjoy.

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

 

Show Notes

2:11 – Overview of the high yield debt markets

5:05 – Why should investors consider this investment class

7:11 – How analyzing a company’s debt is different from what equity analysts look for

8:42 – Primary factors when exploring a company’s ability to de-lever

9:43 – What is their alpha vs others in the space

12:02 – Deep dive into the quantitative factors for them to look into a deal

14:25 – Benchmarks he uses

16:08 – Portfolio construction

17:15 – Their preference for broadband providers over cable tv networks

20:01 – What piques his interest about spreads

21:50 – The ratings of debt

25:40 – A recent example of an opportunity and how the mispricing was identified

29:17 – Most valuable data sets in this world

31:51 – Favorite part of this process

32:26 – Most surprising new learning

33:01 Maintaining your advantage

34:49 – The biggest pools of error in this industry

48:00 – What industries interest Bryan

40:50 – Dedication to this market

41:45 – Evolution of his healthy skepticism

42:38 – Can things in the debt market help to project what will happen in the equity markets

44:56 – Current view of the world based on what is happening in the credit markets

45:51 – Categories of convenience that he cares about

49:15 – Anything that has him worried in high yield markets

50:38 – Kindest thing anyone has done for Bryan

 

Learn More

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

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

My guest this week is Maureen Chiquet, the former longtime CEO of Chanel. Maureen also spent much of her career at the Gap, growing Old Navy from scratch, and serving as the president of Banana Republic. The topic of discussion is her experience running large businesses and of finding one’s way in a career and as a leader of others. I hope you enjoy this unique conversation and that it encourages you to, among other things, travel somewhere new and interesting in the coming year.

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

 

Show Notes

1:15 - (First Question) – The importance of being able to put yourself in other people’s shoes

            3:05 – Scott Norton Podcast Episode

4:36 – Most memorable sale from her early career

5:03 – The intersection of facts and emotions in sales

6:40 – Most important emotions in business

7:30 – The importance of identity as part of the selling/marketing of sales and products

9:10 – Difference in strategy for luxury brands vs others

            9:21 – The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands

10:55 – Striking a balance between tradition and innovation

13:46 – Advice for new brand company related to rarity

14:59 – Importance of being organic with your brand purpose

            15:01 – Wild Company: The Untold Story of Banana Republic

16:26 – Maureen’s purpose over the years

18:44 – How to harness your purpose for your job

20:53 – Her process for writing and desire to do TV

24:01 – Her time with Micky Drexler

27:40 – As a leader, guiding people to succeed.

32:33 – Strategy for shifting culture at a company

37:54 – The importance of courageous conversations we should all be having

43:45 – Markers of courageous conversations

46:43 – How she thinks about introspection

50:12 – What draws here to certain locations

55:15 – Advice for younger people starting out their career

57:11 – Kindest thing anyone has done for Maureen

 

Learn More

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

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

[REPLAY]

Modern Monopolies: What It Takes to Dominate the 21st Century Economy, which explores the platform business model (Uber, Airbnb, Github).  Alex is also the founder and CEO of Applico, a company that he started in his dorm room that is since grown into a huge enterprise that helps startups and Fortune 500 innovate with platforms.  Alex and I talk about history and future of businesses and different types of business models.  There’s a lot in here for investors, entrepreneurs, and historians.  Please enjoy!

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

Books Referenced

Modern Monopolies: What It Takes to Dominate the 21st Century Economy

The Systems Bible: The Beginner's Guide to Systems Large and Small

The Master Switch: The Rise and Fall of Information Empires

Zero to One: Notes on Startups, or How to Build the Future

 

Links Referenced

Failed Color App

Applico

 

Show Notes

2:39  – (first question) – Exploring the history of business models from linear to platform.

5:46 – A look at the share of overall business platform companies have taken over

            7:06 - Modern Monopolies: What It Takes to Dominate the 21st Century Economy

7:48 – The potential for platform businesses over the next 20 years

9:18 – Detailing the difference between a linear and a platform business

12:08 – Exploring transaction costs and core transactions across different business models

19:49 – Is the platform business model good for investors and VC’s since so many can get crushed when there’s a sole victor, or is it just for the founders and entrepreneurs.

 24:35 – How the self-driving car is going to deliver more opportunity for consumer consumption

27:15 – Untapped supplies as the opportunity for new platforms and where we could see new openings

30:24 – How consolidated will things become across all platforms

33:16 – How do platform companies create a moat to keep others from replicating their business strategy

37:03 – Are there platform strategies that specifically don’t work

            37:40 - Failed Color App

38:45 – Why complex systems typically don’t scale up and you should think small and easy to get started

            38:47 – The Systems Bible: The Beginner's Guide to Systems Large and Small

40:02 – How the origin of so many larger companies started out small and localized, and why it makes investors more comfortable

41:37 – How Alibaba had to tweak their business model to accommodate the Chinese market

44:07 – Why are the modern monopolies better for consumers

47:52 – Exploring platforms that are asset heavy

49:00 – What do you look for as a VC to determine

52:05 – Alex’s take on whether a platform based company like Uber should be more asset heavy

54:31 – Exploring some lesser known platform businesses that Alex finds interesting

56:18 – If there is a demand in the secondary markets for a product, why don’t the primary suppliers simply raise their prices

57:03 – What Alex’s portfolio of platform-based businesses would look like

58:48 – A couple of most influential books Alex has read

            59:12 – The Master Switch: The Rise and Fall of Information Empires

            59:38 – Zero to One: Notes on Startups, or How to Build the Future and other Peter Thiel books

59:53 – Looking at Applico, how it started and how it become so focused on the platform business model

1:03:56 - Most memorable day for Alex 

1:05:13 – Kindest person to Alex in his life

1:06:10 – What platform opportunities could exist in the financial world

Learn More

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

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

[REPLAY]

My guest this week is Peter Attia, M.D., whose mission is to understand and improve human lifespan and healthspan (or quality of life).  Reading Peter’s research, you find that there are many similarities between health and investing—ideas like compounding—which we explore in detail.

We spend a lot of time on mind, body, spirit and performance as it relates to living a better life. Of particular interest is the strategic problem that we face when studying longevity. As Peter puts it in our conversation: we are the species of interest, but we can’t conduct the kinds of experiments on humans—randomized trials, with control groups—that we apply to solve other big problems. So we have to back our way into a better understanding of longevity and quality of life.

To that end, we discuss what we can learn from studying centenarians, the problem of progress in science, a drug called Rapamycin (which Peter believes could be revolutionary), eating, the importance of muscle mass, and the idea of distressed tolerance.  We emerge with a framework for thinking about health and well-being which can hopefully help us all live longer, better lives. Please enjoy!

For comprehensive show notes on this episode go to http://investorfieldguide.com/attia

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

Posts From Peter Attia That You Should Read

Do Calories Matter

How You Move Defines How You Live

2016 Update

Long List of Questions Answered: Part 1 and Part 2

Links Referenced

The Scientific Method-Richard Feynman

Knowing Versus Understanding-Feynman again

Books Referenced

Barbarians at the Gate: The Fall of RJR Nabisco

Diffusion of Innovations

Good Calories, Bad Calories

Show Notes

2:31  – (first question) – Getting Peter to define the concept of wealth and how it might have changed in his life

5:01 – How do you increase the number of really good people in your life.

6:50 – Looking at the relationship between healthspan and lifespan and a chart that Peter created on this specific topic.

11:11 – Drilling down into the different dimensions and aspects of this chart that could be most important for people, especially how compounding plays into our health.

16:57 – The difference between strategies and tactics that will help you extend lifespan

17:54 – The Scientific Method-Richard Feynman

21:41 – Different types of intermittent fasting

28:59 – What role does repair play in health

34:17 – Barbarians at the Gate: The Fall of RJR Nabisco

36:01 – Looking back, what health trends today will look absurd

36:19 – Diffusion of Innovations

39:24 – What are the primary benefits of weight lifting

40:21 – The importance of glucose disposal

45:07 – Good Calories, Bad Calories

46:31 – What is the state of progress in the scientific community

52:14 – Peter is asked about how he guards against getting too attached to old beliefs

1:01:51 – A look at how performance relates to healthspan

1:03:34 –Peter’s first great auto-racing experience

1:09:17 – Looking into Peter’s medical practice and understanding his thinking that goes into helping people

1:18:11 – The most memorable day in Peter’s career

1:22:31 – The kindest thing anyone has done for Peter

Learn More

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

 

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

My guest this week is Saifedean Ammous, author of the book the Bitcoin Standard. This was one of the more interesting conversations I’ve had in the world of cryptocurrency, primarily because we don’t talk about Bitcoin or Crypto until 25 minutes into the talk. Instead, we focus on history, economics, sound money, low time preference, and gold—all interesting topics.

Saif’s thinking on cryptocurrencies other than bitcoin—which is that they are worthless—is unique and thought provoking. His reasoning around why gold shouldn’t be compared to the returns generated by assets like equities was also compelling. If you’ve followed my Hash Power episodes, this is a new a differentiated interpretation of Bitcoin as a technology for the store of value use case. Please enjoy our conversation.

Hash Power is presented by Fidelity Investments

 

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

 

Show Notes

2:10 - (First Question) – Explain Sound Money

4:25 – Examples of hard vs easy money

7:36 – the even money trap

9:36 – The benefits of hard money vs today’s standards

14:05 – Why this interests him

            14:16 – Gold Wars: The Battle Against Sound Money As Seen From A Swiss Perspective

            14:56 – Democracy – The God That Failed: The Economics and Politics of Monarchy, Democracy and Natural Order

16:17 – Correlation between time preference and people’s ability to succeed in life

19:59 – How money markets worked in the late 18th century vs today

27:57 – How he came across Bitcoin and how he thinks of it as a digital gold

35:42 – How will the world transition to a sound money standard

42:15 – The impacts of hyperinflation on crypto currencies

45:04 – The idea of a orderly upgrade of the world currency

48:20 – His thinking on alternative coins

54:05 – What it takes to compete with bitcoin

1:01:43 – How he diversifies

1:04:35 – Stalling bitcoins demand

1:06:11 – Does he apply his thinking of lower time preference elsewhere in his life

1:07:09 – Kindest thing anyone has done for him

 

Learn More

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

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

My guest this week is one of my best and oldest friends, Jeremiah Lowin. Jeremiah has had a fascinating career, starting with advanced work in statistics before moving into the risk management field in the hedge fund world. Through his career he has studied data, risk, statistics, and machine learning—the last of which is the topic of our conversation today. 

He has now left the world of finance to found a company called Prefect, which is a framework for building data infrastructure. Prefect was inspired by observing frictions between data scientists and data engineers, and solves these problems with a functional API for defining and executing data workflows. These problems, while wonky, are ones I can relate to working in quantitative investing—and others that suffer from them out there will be nodding their heads. In full and fair disclosure, both me and my family are investors in Jeremiah’s business.

You won’t have to worry about that potential conflict of interest in today’s conversation, though, because our focus is on the deployment of machine learning technologies in the realm of investing. What I love about talking to Jeremiah is that he is an optimist and a skeptic. He loves working with new statistical learning technologies, but often thinks they are overhyped or entirely unsuited to the tasks they are being used for. We get into some deep detail on how tests are set up, the importance of data, and how the minimization of error is a guiding light in machine learning and perhaps all of human learning, too. Let’s dive in.

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

Show Notes

2:06 - (First Question) – What do people need to think about when considering using machine learning tools

3:19 – Types of problems that AI is perfect for

6:09 – Walking through an actual test and understanding the terminology

11:52 – Data in training: training set, test set, validation set

13:55 – The difference between machine learning and classical academic finance modelling

16:09 – What will the future of investing look like using these technologies

19:53 – The concept of stationarity

21:31 – Why you shouldn’t take for granted label formation in tests

24:12 – Ability for a model to shrug

26:13 – Hyper parameter tuning

28:16 – Categories of types of models

30:49 – Idea of a nearest neighbor or K-Means Algorithm

34:48 – Trees as the ultimate utility player in this landscape

38:00 – Features and data sets as the driver of edge in Machine Learning

40:12 – Key considerations when working through time series

42:05 – Pitfalls he has seen when folks try to build predictive market investing models

44:36 – Getting started

46:29 – Looking back at his career, what are some of the frontier vs settled applications of machine learning he has implemented

49:49 – Does intereptability matter in all of this

52:31 – How gradient decent fits into this whole picture  

 

Learn More

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

Read Full Article
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Separate tags by commas
To access this feature, please upgrade your account.
Start your free month
Free Preview