In this episode of The Business Brew, host Bill Brewster interviews John Buckingham, editor of the Prudent Speculator newsletter. John shares his investing expertise, strategies for managing a diversified portfolio, and provides data-driven insights on how stock markets perform under different tax regimes, political administrations, and election cycles.
They discuss how to stay disciplined and focused on long-term investment objectives amidst market noise and uncertainty. John's commentary is complemented with historical data, illustrating that despite economic and political turbulence, sticking to a disciplined investment strategy can be rewarding.
00:00 Welcome to the Business Brew
01:52 Introducing John Buckingham
04:01 Navigating Market Uncertainty
06:32 The Value of Value Investing
11:11 The Origin of the Prudent Speculator
24:13 The Importance of Dividends
35:56 Navigating Market Volatility
36:12 Apple's Investment Strategy
37:43 The Role of Volatility in Investing
38:18 Market Reactions and Investor Behavior
39:39 Historical Market Trends and Predictions
46:39 Investment Strategies and Stock Selection
51:28 Tax Rates and Market Performance
57:00 Election Impact on Markets
01:04:04 Long-Term Investment Philosophy
01:07:31 Concluding Thoughts
Mike Alkin of Sachem Cove Partners stops by The Business Brew to share his journey in uncovering the uranium investment thesis. Bill found out about Mike when he began listening to Mike's podcast in 2018/19. At that time, Mike was telling everyone that would listen about how asymmetric the opportunity was. Mike interviewed industry insiders, other investors, and laid out his thesis in public. Bill found it inspiring.
This conversation dives deep into the complexities of the uranium market. The discussion includes a detailed analysis of nuclear power, supply-demand dynamics, and the industry’s challenges. Mike also provides valuable advice for young analysts and highlights the significance of contrarian investing. Additionally, they explore recent advancements in nuclear energy and the evolving markets of EVs, wind, and solar energy.
As always, this episode is for educational and entertainment purposes only, not financial advice.
Michael (Mike) Alkin is a principal of Sachem Cove Partners, LLC, the general partner of Sachem Cove Special Opportunities Fund, LP. He is also the Chief Investment Officer of Public Equities of Lloyd Harbor Capital Management, LLC, the investment manager of the Fund, and in that role is responsible for the Fund’s investment process. He has nearly 30 years of hedge fund experience with extensive investing experience across many cyclical industries. Prior to Sachem Cove and Lloyd Harbor, he was an analyst and partner for 7 years at Knott Partners. Prior to Knott, amongst the firms where held similar roles were Walker Smith Capital, Zweig-DiMenna, and Windsor Partners. Detailed Show Notes
00:00 Welcome to the Business Brew
00:08 Introducing Mike Alkin and the Uranium Thesis
00:48 The Inspiration Behind the Podcast
01:21 Disclaimer and Acknowledgements
02:32 Deep Dive into the Uranium Market
05:26 Challenges and Insights in the Uranium Industry
09:13 Understanding Market Dynamics and Investor Behavior
12:50 The Journey to Conviction in Uranium Investment
17:40 The Role of Nuclear Power in the Energy Market
42:39 The Impact of Geopolitical Risks on Uranium Supply
44:32 The Fuel Cycle and U.S. Fuel Buyers
45:23 Challenges with Industry Forecasts
46:11 Presenting at the NEI Conference
47:09 Confrontations and Convictions
48:56 Expert Networks and Market Misconceptions
52:10 Global Nuclear Power Dynamics
01:01:24 Kazakhstan's Uranium Production
01:10:42 The Future of Nuclear and Renewables
01:18:01 Investment Strategies and Advice
01:22:26 Conclusion and Final Thoughts
Dylan is a former attorney turned private investor focused on small/microcap stocks and overlooked pockets of the market. He publishes a free newsletter on Substack called Raging Bull Investments, which provides deep-dive investment write-ups and occasional market commentary, and is active on Twitter as raging bull cap/Jake LaMotta.
Richard Cook, Co-Founder of Cook and Bynum, stops by The Business Brew to discuss his approach to global investing. Richard discusses his concentrated investment strategies, focusing on emerging markets, government dynamics, consumer behavior, and intrinsic value.
Highlighting key investments in markets like Mexico, Turkey, Pakistan, and Bangladesh, Richard discusses operational execution, investor relations, and long-term strategic planning. The episode also covers strategic investments during the Greek financial crisis, the role of conservative management, and the importance of understanding market dynamics.
With reflections on experiences in South Africa, Costa Rica, and Turkey, this conversation offers invaluable insights into global investment strategies and the essential qualities of successful business leaders.
Tune in to gain expert knowledge on navigating global investments and building a successful investment firm.
00:00 Welcome to The Business Brew
00:07 Introducing Richard Cook
00:45 Investment Philosophy and Strategy
01:09 Shoutout to the Editing Team
02:30 Starting the Interview with Richard Cook
03:02 Emerging Markets and Government Influence
04:15 Investment Holdings and Long-Term Strategy
07:47 The Power of Buybacks and Controlling
Shareholders
14:44 Avoiding Bias in Investment Decisions
19:08 Lessons from Past Investments
24:54 Navigating Market Cycles
34:18 Insights on Bottling Businesses
46:58 Premiumization in the Beverage Industry
48:15 Global Consumption Patterns
49:53 Investment Strategies and Intrinsic Value
51:29 Challenges in Forecasting Business Durability
53:32 Insights on Company Valuation
55:15 Case Study: Kraft and Mondelez
59:01 AB InBev and Craft Beer Market
01:09:59 Investment in Jumbo During Greek Crisis
01:20:39 Evaluating Emerging Markets
01:25:55 Building an Investment Firm
01:28:34 Conclusion and Final Thoughts
In this episode of the Business Brew, host Bill Brewster sits down with the esteemed investor Bruce Berkowitz. They delve deep into Berkowitz's illustrious career, from his strategies during the financial crisis to his current outlook on various investment opportunities, including midstream energy and Florida real estate.
Berkowitz shares anecdotes, personal reflections, and valuable lessons learned over decades in finance. Additionally, Berkowitz emphasizes the importance of due diligence and remaining rational amidst market fluctuations.
Don't miss this enlightening conversation that offers unique insights into the minds of one of the most successful investors in the industry.
00:00 Welcome to The Business Brew
00:07 Introducing Bruce Berkowitz
01:12 Disclaimer and Due Diligence
02:01 Shoutout to the Editing Team
*Dope music*
03:23 Starting the Interview with Bruce Berkowitz
04:19 Bruce's Investment Philosophy
05:06 Insights on Wells Fargo
09:01 The Importance of Management and Culture
10:11 Challenges in the Banking Sector
12:46 Bruce's Focus on U.S. Investments
14:25 Research and Concentration in Investments
20:28 Fairholme's Unique Approach
27:01 Reflections on Sears and Real Estate
30:43 Lessons from St. Joe
32:38 Discussion on St. Joe's Elevated Properties
33:27 Hurricane Resilience and Modern Building Codes
35:07 Investment Strategies and Market Perspectives
35:54 Interest Rates and Duration Risk
39:14 Corporate Spreads and Reinvestment Risk
41:43 Societal Changes and Financial Perspectives
46:17 Enterprise Products and Midstream Energy
48:30 Energy Logistics and Environmental Impact
57:17 Technological Evolution in Energy
01:00:40 Mutual Funds vs. ETFs
01:02:04 Concluding Thoughts and Media Engagement
Blake Haxton, analyst at Brandywine Global Asset Management's High Yield and Corporate Strategies Group, joins the Business Brew. This discussion focuses on the companies Blake covers as well as his views on markets generally. Blake tends to focus on "old economy" industries so prepare yourself for plenty of energy discussion. Bill and Blake also discuss industrials and homebuilders. The conversation also touches on the merits of high yield as an asset class.
Blake was recently featured in Barron's. You can find the article here: https://www.barrons.com/articles/paralympian-blake-haxton-high-yield-brandywine-global-6305e6e5
We hope you enjoy the conversation.
Detailed Show Notes:
4:00 - What Blake covers
5:10 - commodities are fairly tight from a supply demand perspective
8:00 - airline discussion
13:00 - energy as an example of how Brandywine looks to take advantage of capital cycles
16:00 - the prospective outlook for high yield
19:00 - how the high yield benchmark is different from the equity benchmark
24:00 - how the improvement in counterparty risk changed the risk/reward of lending to pipeline companies
28:25 - how to think about decline curves in the US vs. Canadian oil companies
30:25 - how differentials impact Canadian energy economics
38:30 - does it make sense to have an allocation to energy?
42:10 - a discussion about how assets generally are priced
52:00 - the pitch for debt vs. equities
54:45 - where is the US housing market in the cycle?
1:06:00 - trading down in credit quality for yield
1:13:00 - how ETFs can provide opportunities when they sell
1:21:00 - how was covering energy in COVID?
1:29:00 - what’s different today with shale as a key producer
Bill Chen returns to The Business Brew to explore the current landscape of Real Estate Investment Trusts (REITs). Delve into Chen's comprehensive due diligence process, investment strategies, and the future of multifamily and office REITs. Discover key insights on market conditions, cap rates, capital allocation, and the impact of interest rates on investment returns.
The discussion also highlights strategic decisions by large-cap public REITs, dealing with distressed assets, and the potential risks and opportunities in today's real estate market.
A must-watch for anyone looking to understand the intricacies of real estate investing in uncertain times.
Note: This episode was recorded on July 9, 2024.
00:00 - Welcome to The Business Brew
00:05 - Introducing Bill Chen and REITs Discussion
00:35 - A Walk-Through Manhattan with Bill Chen
03:28 - The Future of Office Spaces
09:48 - Bank Balance Sheets and Office Exposure
19:24 - Analyzing REIT Investments
38:12 - Analyzing Cap Rates in Real Estate Investments
41:45 - The Impact of Public Company Costs on Returns
49:30 - Liquidity and Market Dynamics in Real Estate
53:11 - Challenges and Opportunities in the Current Market
1:00:10 - Grocery-Anchored Shopping Centers: A Resilient Asset Class
1:06:17 - Interest Rates and Their Influence on Real Estate Returns
1:15:02 - Understanding Real Estate Multiples and Leverage
1:15:41 - Market Fears and Multifamily Capitalization Rates
1:16:32 - Challenges in Real Estate Development
1:16:56 - Opportunities in a Down Market
1:17:20 - Connecting with the Speaker
1:18:25 - Investment Strategies and Market Timing
1:19:51 - Balancing Market Humility and Aggression
1:21:23 - Psychological Approaches to Real Estate Investment
1:23:24 - Resilience of Multifamily Assets
1:24:48 - The Future of Home Ownership and Renting
1:27:54 - Personal Experiences with Real Estate
1:30:56 - The REIT Mafia and Investment Benchmarks
1:35:16 - Long-Term Investment Perspectives
1:42:22 - Final Thoughts and Farewell
Al Goldstein, Co-Founder, CEO, and Chairman of Stoic Lane stops by The Business Brew to discuss what his firm is doing in the private markets. Stoic lane is focused on acquiring controlling positions primarily in short term rental management and back office solutions for entrepreneurs. The entity is structured as a corporation with shares rather than as a partnership. As of now, Al's long term goal is to go public.
3:00 - Background and first exit
6:00 - Entering real estate in 2008
8:00 - Al's perspective as an immigrant
10:00 - Starting a private REIT
13:50 - Al's next venture in consumer lending
18:30 - What is Stoic Lane
26:15 - Capital light model with regional brands
30:00 - Creating the right incentives
34:00 - Focusing on the long term
40:00 - Execution is the hard part
Bill drops in to give a podcast status update and let the listeners know what is going on.
Come see him at The CFA Society of New York on June 25th.
If you are interested in the golf events please send your information to [email protected].
Thank you as always for listening!
Charles Lemonides, founder and CIO of ValueWorks LLC, stops by The Business Brew to discuss his investment philosophy. Charles started his career as a high yield bond analyst. Over time, he gravitated towards equity. In this episode he says "I find the best investment opportunities are where you can find something that is a real growth opportunity but it is selling for a value price."
Today, ValueWorks LLC, tends to run portfolios with 25-30 long securities in them. Charles tries to have 15 "very, very different" bets in each portfolio.
We hope you enjoy this conversation.
John Hempton on "When do you average down?"
Detailed Show Notes:
5:15 - Best investment setups/opportunities
7:30 - Conceptual position sizing
9:40 - ValueWorks different vehicles and philosophy
17:45 - How Charles built his firm around a philosophy
20:00 - Why Rivian may be a value investment
28:20 - Comcast
31:00 - How Charles manages different types of theses?
35:00 - Where are we in a market cycle?
39:30 - What stocks do you want into a top?
44:40 - What makes Charles tick
Consuelo Mack stops by The Business Brew to discuss her career in financial media. Consuelo hosts the show WealthTrack, a show Bill has watched and/or listened to for years. This conversation will help Consuelo's fans understand more about her early career and how she developed WealthTrack.
Bill was very happy Consuelo said yes to coming on the show. His only regret is messing up Ed Hyman and Ed Yardeni in the conversation. He hopes both Eds forgive him.
We hope you enjoy the conversation!
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