Invest Like the Best with Patrick O'Shaughnessy

My guests this week are Kyle Samani and Tushar Jain, both managing partners at Multicoin Capital. I’ve taken a bit of a break from crypto because I hadn’t sensed many new angles to explore in this forum, from an investor’s point of view. I felt that while things keep evolving, the major investment theses have been established and explored. Kyle and Tushar are interesting because of their often divergent views. For example, Kyle has been an outspoken supporter of Ethereum relative to bitcoin. This conversation, which is meant for those still curious about crypto, offers lots of new food for thought. We discuss smart contract platforms, network effects, the coming platform wars, and why blockchains may not matter in ten years. Please enjoy my conversation with the partners of Multicoin Capital.

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

Links Referenced

Paths to Tens of Trillions

An (Institutional) Investor’s Take on Cryptoassets

On the Network Effects of Store Value

If SaaS Products Sell Themselves, Why Do We Need Sales?

Money, blockchains, and social scalability

Nakamoto Institute

Token Economy

Multicoin.capital

Crypto Cannon           

Show Notes

2:11 - (First Question) – What would get the entire cryptocurrencies ecosphere to 5-10 trillion dollars

            2:53 – Paths to Tens of Trillions

4:37 – What will be the effective uses for crypto currencies, store value vs utility value

            4:38 – An (Institutional) Investor’s Take on Cryptoassets

8:48 – Why they are negative on bitcoin and more positive on Ethereum

10:07 – Where will start to see widespread adaption of the utility value of cryptocurrencies

14:44 – What is the major breakthrough that cryptocurrencies create

21:21 – How do we gain confidence that a utility token will become a sound investment

25:16 – The different type of network effects

            25:47 – On the Network Effects of Store Value

31:18 – How do you convince institutional investors to consider the crypto space

34:21 – Factors that they care about when first evaluating a crypto currency

39:21 – How does technological development and marketing factor into their decision when picking a crypto currency

            40:31 – If SaaS Products Sell Themselves, Why Do We Need Sales?

41:42 – Where these two men disagree the most right now

44:07 – Why there’s a chance blockchain technology as we know it today could be irrelevant

            44:25 – Money, blockchains, and social scalability

47:56 – Most compelling trends in this world today

51:51 – A favorite resource or person people can look into if they want to learn more

            52:22 – Nakamoto Institute

            52:57 – Token Economy

            53:24 – Multicoin.capital

            53:30 – Crypto Cannon         

54:14 – Kindest thing anyone has done for them

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

My guest this week is Michael Recce, the chief data scientist for Neuberger Berman. The topic of our conversation is the use of data in the investment process, to help cultivate what is commonly referred to as an information edge.

I call the episode “Tim Cook’s Dashboard” because of an interesting question that Michael poses: if you armed the best apple analyst in the world with Tim Cook’s private business dashboard, what might that be worth? Effectively Michael’s goal is to recreate the equivalent of a company dashboard for many businesses, helping analysts understand the fundamental health and direction of companies a bit better than the market does, and in so doing create an actionable edge.

This is a daunting task, and you will hear why. It requires both a fundamental understanding of business and of data, statistics, and methods like machine learning. In our own work, we’ve found machine learning to be useless for predicting future stock prices, but extremely useful for other things, like extracting and classifying data.

This conversation can get wonky at times, but as listeners know that is the best kind of conversation, even if it requires a second, slower listen. I hope you enjoy this talk with Michael Reece. Afterwards, I highly recommend you invest the time to read a series of posts called Machine Learning for Humans, which I will link to in the show notes. It helps demystify the buzz words and explain how these new technologies are being used.

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

Crossing the Chasm

One Two Three Infinity

Links Referenced

Sam Hinkie Podcast Episode

Show Notes

2:44 - (First Question) –  Changes in data science through the lens of Michael’s career

5:17 – The basic overview of using data and machine learning to create an edge

6:58 – How the state of business is more than just a single data point

7:53 – How you know when you’ve pulled a real signal from the noise of data

10:49 – The advantages that data provides

13:01 – Is there still an edge in decaying data

15:34 – Building data that would predict stock prices

19:43 – Prospectors vs miners in data mining

22:18 – Knowing when your prospectors are on to truth

27:09 – Understanding machine learning

30:10 – Defining partition

32:17 – Applying the parameters of selection process to stocks

36:05 – What’s the first step people could take to use data and machine learning to improve their investment process

38:54 – Building a sustainable advantage within data science

41:35 – Predicting the uncapped positive vs what’s seemingly easier, eliminating the negative

43:58 – How do we know to stop using a signal

46:22 – The importance of asking the right question

47:09 – Categories of objective functions that are interesting to measure data against

            47:42- Crossing the Chasm

48:37 – Most exciting things he’s found with data

51:17 – What investors, individual or firms, has impressed him most with their use of data

52:17 – Will everyone eventually shift to being data informed or data driven

55:33 – Wall Street’s use of data vs other industries

            55:36 – Sam Hinkie Podcast Episode

57:48 – Why everyone should know how to code

58:52 – Kindest thing anyone has done for Michael

            59:22 – One Two Three Infinity

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

My guest this week is Ash Fontana, a managing partner at venture capital firm Zetta, who invests in companies which build software that uses artificial intelligence methods like machine learning to predict and prescribe outcomes. Ash’s combined experience as a founder, entrepreneur, and investor give him the perfect background to discuss with us one of the hottest topics in business and investing.

This conversation is useful for anyone trying to evolve their own way of dealing with data. Of particular interest are the ways that Ash and his team evaluate data sets and how they think about competitive advantage in this new world—where he advocates a new term to replace the concept of moat: loops. 

If we can use data to do things better than humans, or if we can supercharge our intuitions with predictive models, we can harness the power of this new technology. What Ash has taught me is that data itself is dumb. But great data sets can represent the fuel for incredible companies. Let’s dive into how that may be. Please enjoy this conversation on how AI is changing business, and how we might profit from that change.

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

The Most Important Thing: Uncommon Sense for The Thoughtful Investor

Links Referenced

Jerry Neumann Podcast Episode

Ali Hamed Podcast Episode

Show Notes

2:25 - (First Question) – A look at their very specific investment strategy

3:35 – Future of competitive advantage in the SaaS industry

6:45 – How startups and new companies can compete against software giants that are pretty well entrenched in the market

8:38 – How do copies with narrow focuses attract VC money which is looking for massive returns

12:28 – The stages in which AI will be enabled

15:55 – Framework of an AI company

18:49 – Importance of the feedback in the AI company framework

20:56 – Examples of AI companies

23:50 – Why companies that are AI from the start will have a significant advantage in the space

26:21 – How do companies change their thinking about compiling useful data

32:18 – Regulation of AI

35:03 – Preventing other companies from leap frogging you in the AI space

37:57 – Some of his favorite AI companies

40:43 – How much has he seen in the finance world

            41:07 – Jerry Neumann Podcast Episode

43:10 – Why the focus on B2B AI companies

45:34 – Major components of the enterprise stack that he focuses on for AI

49:30 – What impact will all of this AI have the daily lives of people

51:38 – Biggest problems that he is excited to see AI tacklet

53:04 – How do you value the intangible asset of an AI model

57:13 – How Ash thinks about getting other investors into firms they seeded

1::00:27 – Other investors that Ash really respects

            1:01:15 – The Most Important Thing: Uncommon Sense for The Thoughtful Investor

            1:03:29 – Ali Hamed Podcast Episode

1:04:04 – Where would Ash invest outside of AI

1:07:11 – More about his family nut business

1:11:18 – Favorite macadamia nut story

1:12:05 – Kindest thing anyone has done for Ash

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

My guest this week is remarkable. He now applies his talents on Wall Street, searching for smaller cap companies trading at huge discounts in an effort to compound wealth for his investors. He is classically trained, having earned his graduate degree from Colombia, a school known for producing value investors. But his method also reflects what he learned across more than a decade of active duty in the U.S. military.

Mike Zapata served us all as a Navy SEAL in the aftermath of 9/11 and ultimately as a member of the SEAL’s “Development Group,” commonly known as SEAL team 6. I think everyone listening strives for excellence in what they do. This week we get to hear from someone who has pursued excellence on our behalf.

I’ll let him explain the meaning of his firm’s name, Sententia, but for now suffice to say we are lucky to have quiet professionals like Mike. If you are interested in supporting the families of soldiers who fought with Mike and lost their lives, I encourage you to check out the Tip of the Spear foundation and make a donation along with me, small or large.

Please enjoy my conversation with Mike Zapata.

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

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

Fearless: The Undaunted Courage and Ultimate Sacrifice of Navy SEAL Team SIX Operator Adam Brown

Boyd: The Fighter Pilot Who Changed the Art of War

Show Notes

2:23

2:23 – (First Question) – A quick overview of Mike’s career leading up to his time at Columbia

3:43 – What led him down the path of value investing at Columbia 

            3:51 – The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

5:57 – The focus and goal of the firm

7:12 – Where the name of the firm, Sententia comes from

8:04 – His experience in the Basic Underwater Demolition/SEAL (BUD/S) program and lessons learned from it

13:14 – How much grit is innate vs can be learned

14:59 – What the actual job was in BUD/S

17:33 – Difference between the broader SEAL community and being part of the more exclusive development group

19:03 – The team dynamic within the SEALS

20:26 – Fearless: The Undaunted Courage and Ultimate Sacrifice of Navy SEAL Team SIX Operator Adam Brown

21:18 – The sacrifice that SEALs make with the story of Adam Brown as an example

24:35 – Waiting for darkness before deployment

27:23 – How do you know when to violate your best practices for a risk

29:26 – A look at three pictures in his office and why they are meaningful

31:36 – Lessons that would be useful to other people

            33:10 – Boyd: The Fighter Pilot Who Changed the Art of War

33:17 – How is Mike’s skillset applied to the investing world

39:24 – Factors that would be seen as good alignment in businesses

40:18 – How the view the profiles of other investors in these small businesses

41:46 – Examples of “smoke and fire”, markers of an attractive investment

43:42 – Other investors that he has learned the most from and what those lessons were

44:54 – Importance of balance sheets in value investing

47:33 – Is value investment oversaturated

50:28 – Market blind spots that are attractive to Mike

52:03 – What point in Mike’s career has he felt the most alive

53:14 – Any other lessons Mike would want to share

55:12 – Kindest thing anyone has done for Mike

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

I came across this week’s guest thanks to the overlap of three passions of mine: data informed investing, value creation, and basketball. Sam Hinkie worked for more than a decade in the NBA with the Houston Rockets, and then most recently as the President and GM of the Philadelphia 76ers. He helped launch basketball's analytics movement when he joined the Houston Rockets in 2005, and is known for unique trade structuring and a keen focus on acquiring undervalued players. Today, he is also an investor and advisor to a limited number of young companies in which he feels his experience can improve outcomes. 

Please enjoy this unique episode with Sam Hinkie. 

Show Notes

3:24 – (First Question) Advantages of having a long view and how to structurally harness one

6:08 – Using technology to foster an innovative culture

           6:18– Empire of the Summer Moon: Quanah Parker and the Rise and Fall of the Comanches, the Most Powerful Indian Tribe in American History

10:16 – Favorite example of applied innovation from Sam’s career

11:34 - Most fun aspect of doing data analytics early on the Houston Rockets

13:38 - Is there anything more important than courage in asymmetric outcomes

14:29 – How does Sam know when to let the art of decision making finish where the data started

16:29 - Pros and cons of a contrarian mindset

17:26 – Where he wanted to apply his knowledge in sports when first getting out of school and how his thinking is best applied in the current sports landscape

21:39 – How does he think about trying to find the equivalent of mispriced assets in the NBA

23:12 – Where tradition can be an impediment to innovation

25:07 – What did the team and workflow of the team look like in the front office

27:03 - The measure of truth in a sports complex

29:10 – What were the early factors coming out of the data that helped to shape NBA teams

30:42 – Best tactics for hiring

33:59 – Process of recruiting spectacular people

35:39 – Thoughts on fostering a good marriage

37:57 – Picking your kids traits in your spouse

           38:02 – Selfish Reasons to Have More Kids: Why Being a Great Parent is Less Work and More Fun Than You Think

40:45 – What kind of markers does he look for when evaluating long term investment ideas

42:44 – His interest in machine learning

45:55 – What’s more exciting, the actual advances in machine learning or the applications that can be imagined as a result

           47:15– International Justice Mission

48:11 – How he got started teaching negotiations and some of the points he makes in that class

49:16 – Effective techniques for negotiating

50:03 – Is negotiating contentious, do you need empathy

50:41 – A Rorschach test of Sam based on his reading of Lessons of History (book)

53:01 – Biggest risk Sam took in his career

54:37 – Biggest risks Sam took while with the 76ers

58:09 – Do people undervalue asymmetric outcomes in the NBA 1:00:11 – The players Sam has enjoyed watching over the years

1:02:45 – Why Robert Caro is a favorite author of his

1:04:30 – Kindest thing anyone has done for Sam

My guest this week is a bundle of curiosity, and that is one of the nicest things I could say about someone. For several years, Tren Griffin has been writing a weekly blog post that highlights things he has learned from various investors, businesspeople, musicians, comedians, and more. Lately, he has also been tackling individual businesses, and broad topics like scaling, competitive forces, and product market fit.

Tren’s full time job is serving as a director at Microsoft. He’s also worked with or for several well know businesspeople and investors like Craig McCaw, and written several books including one on lessons for entrepreneurs, one on Charlie Munger, and another on negotiation.  

We discuss value creation vs. value capture, alpha in investing, sales, hip hop, and why he’d teach high school students about convexity through a drunk driving analogy. I could have talked to Tren for much longer than I did, but sadly, we both had flights to catch. 

If you take anything away from this, I hope its just how much fun it is to just be curious about business, and how you can learn a tremendous amount if you just keep reading about the things that interest you and talking to others. Please enjoy my conversation with Tren Griffin.

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

2:26 – (First question) – key levers of the universal business model

4:26 – How do you know when you’ve achieved real value creation

6:24 – Importance of value capture and how they enhance value creation 

6:31 – Zero to One: Notes on Startups, or How to Build the Future

9:08 – Price power

10:28 – Are discussions of moats more useful to businesses than to investors

13:12 - What Tren learned during his early years working with Craig McCaw

16:28 – The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

16:36 – The skill of capital allocation

18:37 – How would Buffett and Munger bet on tech if they were starting out today and their philosophy of betting against change

21:57 – How Tren became so fascinated with Charlie and what he’s learned from him

22:32 – The Alchemy of Finance

23:17 – Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger

23:19 – Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger

25:21 – Most memorable moment or lesson from Charlie

19:20 – How he thinks about factor investing

31:25 – What are the scalability features that make a business attractive

31:28 – A Dozen Attributes of a Scalable Business

35:37 – Exploring some of the other important levers of businesses, such as subscriptions, customer acquisition cost, and more.

36:20 – Getting to Yes: Negotiating Agreement Without Giving In

37:11 – Wholesale transfer pricing

39:18 – Pros and cons of subscription business models

43:14 – Magic of getting products distributed

44:58 – Best sale Tren’s ever made

46:46 – Most important lesson for young people

50:16 – Tren’s interest in hip-hop and how it helps him reach more people

53:49 – A look at some interesting quotes from Jim Barksdale

58:22 – Learning by doing

1:00:48 – Seeing like a State: How Certain Schemes to Improve the Human Condition Have Failed

1:01:06 – Period of his career that he felt most alive

1:03:03 – Advice for young people thinking about business and entrepreneurship

1:04:56 – Why are so few people passionate about what they do for a living

1:10:44 – Kindest thing anyone has done for Tren

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

I believe that any investment strategy that will deliver strong returns in the future must evolve. Any strategy should rest on rock solid foundational principles, which change rarely if ever—things like price discipline, or business growth. But the features of the strategy must keep getting better, because the marketplace is incredibly competitive.

That evolution is the topic of today’s conversation with Jason Karp. Jason is the founder and CIO of Tourbillon Capital Partners, a multi-billion dollar asset manager based in New York City.

We cover a ton of interesting ground. We start with what has happened in public and private markets, discussing the role of quants, passive indexes, and value vs. deep value investing. We compare the relative merits of investing in private equities, and where and how opportunities arise.

We then focus in on two interesting private investing trends: the health and wellness sector and the cannabis industry. First, we discuss Hu kitchen and Hu Products, the food business that Jason started with his family several years ago in response to personal health challenges. Second, we discuss his evolved views on Cannabis as an investment space and why it may also represent a massive growth opportunity.

You all know I value transparency, so it is important to note that since I recorded the conversation, my family became an investor in Hu Products. It has been a fascinating means to learn about the food, health, and wellness industry which has grown rapidly in recent years. We were customers of Hu in New York City long before I even knew Jason, which made that part of the conversation especially interesting for me.

This episode re-enforced my believe in pushing one’s investing strategy to adapt to change market conditions and competitive pressures. If we have any hope of beating Vanguard, we can’t ever rest on our laurels.

This was an especially eclectic and fun conversation, I hope you enjoy my chat with Jason Karp.

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

3:06 – (First question) –  Jason’s view on private markets vs public markets and how his view has evolved

6:02 – Phase of the private markets where companies can achieve huge size and scale without going public

10:31 – Framework of Jason’s value-based investing strategy

13:47 – Reverse discounted cash flow

16:27 – Are there areas of the market that are easier to predict using Jason’s models

20:29 – Tech dominance the longer they are around

            21:01 – Jerry Neumann Podcast Episode

22:08 – How markets have changed over Jason’s career

25:58 – Types of edge that you can have in the market

30:00 – Broad examples of sectors that are high-quality, but momentum is hurting them

31:32 – Backstory of Hu Kitchen

38:33 – Investment research into health and wellness

42:56 – State of acquisitions, particularly in consumer product goods

47:13 – Jason’s research into Cannabis

50:43 – The misperceptions of Cannabis

56:30 – Why cannabis is a more important sector to consider than crypto

57:51 – What are the most important levers to growing a business

1:02:24 – Biggest lessons learned in hiring good people

1:06:10 – Investing lessons

1:09:27 – Kindest thing anyone has done for Jason

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

My guest this week is Chris Douvos, a managing partner at Venture Investment Associates, which allocates 1.6B in behalf of investors. 

Chris is the first professional allocator I’ve spoken with who focuses specifically on venture capital funds, so I had a ton of questions for him on how to build a portfolio in an asset class known for uncertain, but often enormous, outcomes.

We discuss the major recent changes in the asset class and where things might be going.

I sought Chris out because while this is an investment style that is full of creativity and hope, I’ve always felt it could use a healthy dose of skepticism and a value investor’s mindset. He delivers in spades as we try to separate the real from the ideal. 

We didn’t record it, but Chris’s tour of Palo Alto was one of the most interesting and entertaining hours I’ve spent. He is a student of history and markets, and I look forward to learning more from him in the future. 

Please enjoy our conversation

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

Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment

Links Referenced

Domino Rally Business Models

All About the Benjamins

Speak Like the Locals

David Salem podcast episode

Curveball

Show Notes

2:18 – (First question) – Four factors that Chris thinks are important for future success of venture firms; portfolio concentration; repeatability; being early; size discipline

7:40 – What the venture landscape looks like today from Chris’s viewpoint

            8:32 – Pioneering Portfolio Management: An Unconventional Approach to Institutional Investment

14:07 – Is there a glut of startups making it difficult for investors

17:33 – How does Chris think about the investments that are a bit different from what everyone else is investing in in Silicon Valley

19:17 – Why he focuses on college campuses for innovation

20:54 – The role that geography plays in venture

25:06 – The Four M’s; money, momentum, mentorship, entrepreneurial management

27:13 – Chris’s perspective on crypto currency as a threat to venture capital

31:44 – The idea of venture capitalists as service providers to the companies they are investing in

35:15 -  Views on investing in hyper focused VC’s vs those that are generalists and just go after the best opportunities in any sector

39:00 – What hot button areas are of most interest to Chris and why, from an investment standpoint

            39:38 – Domino Rally Business Models

42:22 -  What can a public market investor learn from a value venture investor who mostly has to rely on qualitative metrics

            43:08 – All About the Benjamins

44:38 – Portfolio construction in the world of venture

            46:40 – Speak Like the Locals

48:00 -  What are the characteristics that Chris looks for in managers, as an allocator

53:52 – What type of investors should and should not be in venture

59:15 – What type of allocator would Chris give all of his money to

            59:47 – David Salem podcast episode

            1:01:06 – Curveball

1:01:40 – Kindest thing anyone has done for Chris

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

My guest today is Arianna Simpson, who has spent her career in an around the world of technology working at startups, Facebook, and now in venture capital as an investor focused on the world of cryptocurrencies.

I met Arianna when I hosted a panel at a big investing conference in New York City and she was one of the panelists. On the panel, I found her style to be very straightforward and compelling. It is clear that she loves to learn and that the best manifestation of her style of learning is investing in technology.

In our conversation we discuss broad trends in crypto that we haven’t spent much time on before: decentralized versus centralized exchanges, privacy coins, and evaluating a found or early team. We build a framework for learning about this new asset class, discuss the importance of travel, and the value of pushing oneself outside of comfort zones.

Hash Power is presented by Fidelity Investments

Please enjoy our conversation

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

2:12 – (First question) – How to teach someone else to build an investing philosophy around crypto

4:00 – The major risk factors to investing in crypto

6:28 – best practices for mitigating risk

7:39 – What factors to think about when it comes to whether a token will lose all value or not

8:39 -  Taking a pulse of the investment community on crypto

11:36 – How she heard about and became interested in crypto currencies

12:34 – Are people really using crypto currency as a hedge against rampant inflation

13:52 – Investing thesis in the space

14:07 – Arianna’s systems for learning about cryptocurrencies and staying up to date on them

15:19 – Arianna’s take on the issue of increasing transactional through put

16:49 – Layer 1 solutions and making it all scalable on a blockchain

17:56 – her take on the fat protocol thesis

20:32 – Defining utility vs security tokens

21:54 – evaluating different coins

21:02 – Why cross currency swaps are important and how they work

26:17 – What are the chances of a scenario where there’s just one token and everything is built off of that one

28:02 -  Comparing centralized and decentralized exchanges

29:47 – How the traditional investing world is going to regulate transaction involving cryptocurrencies and view security around those transactions

31:54– Impact this will have on capital formation

33:44 – Evaluating teams behind crypto companies

35:48 – The importance of gut when evaluating people

38:47 – How Arianna’s global upbringing impacts her thinking on the technology

39:51 – What countries or regions have had the largest impact on Arianna’s investing philosophy

42:41 – Doing things you’re not qualified for

43:59 – Gender imbalance in crypto and what can be done to shift that

45:28 – Most recent thing that has gotten Arianna excited in the crypto space

46:15 – Explaining Zero X

47:33 – How her views on reading have evolved

48:54 - Kindest thing anyone has done for Arianna

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

We’ve always found that even in public equities, you learn more once you have a live portfolio. One of the best ways to learn is to put some capital at risk. For this episode, I asked two VCs to sit down with me and Brett and treat the conversation as they would a normal pitch meeting, so that we, the audience, can get a peek into their world and the types of questions they ask. The venture capitalists in question are Thatcher Bell, of CoVenture, and Taylor Greene, of Collaborative Fund. The first voice that you’ll hear is Thatcher, and the next person asking questions is Taylor. I began by asking Thatcher to give us a bit of background on how he approaches young companies before diving in with questions of his own.

Show Notes

3:12 – (First Question) – getting a flywheel business going

4:49 – Brett’s background and how that led to the formation of Ladder

7:58 – Breakdown of the product

9:29 – The sign-up process

10:29 – Key problem for each party of the ladder transaction

12:34 – Diving deeper into the problem of being a health coach

14:29 – How does Ladder differentiate itself from other apps that help people locate a trainer

17:01 – A deeper dive into the consumer using this product

20:28 – The accountability factor being the moat for Ladder

24:12 - How successful is the product right now in terms of recruiting new customers and trainers

28:38 – Their pre-launch interview and research process

31:49 – Going from hypothesis to product development

35:25 – What should founders think about when doing customer discovery, even after they have a product in the market

39:22 – Optimizing in the early stage of a business

43:24 – The defensive moat of a startup

46:20 – Their take on their ability to corner the coaches in this market

49:57 – Is there a side of the producer/consumer side of the equation that is more important.

55:42 – Getting and giving value to your supply, in this case the coaches

58:22 – How to view different phases of a business

1:00:43 – Growing the supply and demand so that neither side gets aggravated

1:02:28 – Market opportunity for Ladder

1:10:55 – Top 2 or 3 goals that Ladder has over the next 12-18 months

1:13:00 – Looking at Ladder, what are the strengths and weaknesses as a potential investment

1:20:40 – Pros and cons of a startup seeking institutional VC money

1:25:11 – Reviewing the pitch

My guest this week helps me complete the first trilogy of guests on the podcast. His name is Nikhil Kalghatgi. Along with past guests Ali Hamed and Savneet Singh, Nikhil is a partner at the asset management firm CoVenture. If you liked those two conversations, you will love this one—it is somehow even more wide-ranging than the first two. Nikhil is the CEO of CoVenture Crypto, but he ended up there because of an overarching investing style that he calls moonshot investing, which we explore right from the start and in great detail. He is obsessed with productivity and happiness, and we spend a long time on those topics. One of the most interesting experiments I’ve heard about on the podcast is his Happiness project, for which he interviewed more than 100 of the wealthiest people in the world. The lessons he gleaned from those conversations are very helpful, and I won’t soon forget the lesson related to sacrifice. We also discuss asteroid mining, networking, shared experience, and philosophy. Oh and crypto currencies. Nikhil’s take on crypto has always been refreshing to me. In fact the first time I met him he was throwing cold water on a room full of enthusiastic crypto investors. Within crypto we discuss business opportunities, mining, and how new retail and institutional capital will affect the asset class. 

Hash Power is presented by Fidelity Investments.

Please enjoy this sparkling conversation with Nikhil Kalghatgi.

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

2:42 – (First Question) –  What moonshot investing is

4:41 – Creating sustainable differential investment advantage

9:30 – Assessing the market for moonshots

12:15 – Types of people suited for moonshots 

13:42 – The Happiness Project

17:45 – Commonalities among successful people

25:15 – The importance of humor in life

17:16 – Recipe for a good joke

28:00 – The night Patrick and Nikhil met

29:17 – His perspective on the world of venture capital

33:26 – What did Nikhil learn from his time at SoftBank

34:52 – Craziest thing Nikhil has done

40:27 – What he took away from his time in military intelligence

46:10 – The idea of manufactured serendipity

47:13 – Nikhil’s approach to investing in cryptocurrency and what he finds interesting about it

53:23 – How Nikhil reconciles the excitement of crypto with the lack of tangible asset

58:10– The timeline of retail and institutional investors becoming more involved in crypto

1:02:43– Exploring their liquidity strategy

1:04:10 – What happens if regulators shut down the cryptomarkets

1:09:48– The role of miners in crypto and how that might change moving forward

1:10:43 – What is the frontier of crypto mining

1:12:31 – What’s the most compelling rabbit hole in crypto

1:16:23 – How would the original creators of crypto currency feel about the current state of the market

1:20:01 – What Nikhil sees as the value proposition for the whole ecosystem.

1:21:00 – Kindest thing anyone has done for Nikhil

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

This week’s episode was the first one that I’ve recorded live. It was the second dinner in what I expect to be a long series where I bring together 30 people from a variety of backgrounds to discuss an interesting and emerging topic, whether that be cryptocurrencies, health, cannabis investing, or some other compelling, emergent thing. 

My guest, for the second time on the podcast, is Peter Attia, who has lead one of the more interesting careers I’ve ever come across and who is focused on understanding longevity, health span, and quality of life. We dive into many dimensions of health, scientific research, what we can and cannot learn from evolution and our ancestors, and the 7 primary modalities we should focus on when it comes to our health and well-being. 

Excuse the lack of clear audio quality on some of the audience questions—the ones that are a little difficult to hear are fairly short and I felt it was better to include them for some context. 

As have all of my conversations with Peter, this one has sparked countless subsequent conversations with my wife, my friends, and my colleagues on what is important and how we can change out behavior to improve our quality of life. My partner and sponsor at these events is Peter Tiboris of Strongpoint Wealth Advisors, who with me loves exploring these topics and understanding how they might affect our lives and out portfolios. Thanks to Peter for helping me realize this series in New York City. Now, please enjoy my live conversation with Peter 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

Links Referenced

Marvin HAGLER vs Tommy HEARNS: FULL FIGHT

longevity chart

Senescence

Skin in the Game: Hidden Asymmetries in Daily Life 

Show Notes

2:07 – (First Question) –  Peter’s career journey that led him to where he is today 

            2:31 – Marvin HAGLER vs Tommy HEARNS: FULL FIGHT 

3:46 – How he thinks about longevity 

4:37 – Peter’s longevity chart 

6:31 – Four things most likely to kill you 

7:47 – The quality of your life in the later part of your life 

9:03 – Four ways he defines health span; cognition, physical dimension, sense of purpose and social support, capacity to cope with distress or distress tolerance. 

10:56 – The problem with clinical studies in analyzing longevity and his mission to get from medicine 1.0 to 2.0 to 3.0

12:15 – Medicine 1.0 and major leaps in longevity

13:01 – Medicine 2.0 and clinical trials

14:52 – Medicine 3.0 and personalized medicine 

16:22 – The playbook for living longer 

19:26 - Senescence, the cells that are programmed to do bad things 

22:17 – Understanding our evolutionary needs to learn what as individuals do to increase lifespan and quality of life as it pertains to food, sleep, and movement. 

30:32 – Where evolution doesn’t offer insight into living a better life; mindfulness 

33:27 – What are the changes that Peter has made that he’s been doing the longest and most recently

            33:35 – Skin in the Game: Hidden Asymmetries in Daily Life 

37:54 – Peter’s philosophy on mastery 

40:13 – Audience Question: How does something who seemingly doesn’t take care of themselves seem to be in such good health?

38:38 - Audience Question: Peter’s favorite car to race and how it effects his health 

51:19 – Audience Question: Is the key to life a minimalist lifestyle 

53:54 – Audience Question: the role of the microbiome 

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

[After talking to the brilliant string of guests the past several weeks, Patrick’s brain needed a rest—oh and a concussion didn’t help matters. To hold you over until next week, here is one of the most interesting but less well known conversations from the invest like the best archives.]

This week’s episode is the most unique to date. My guest is Boyd Varty, who grew up in the South African Bush, living among and tracking wild leopards. The main theme of our conversation is tracking, and how the same strategy for pursuing animals in the wild can be applied to all aspects of our lives. Boyd’s family has been tracking animals for four generations, and he is bringing what they have learned to a larger audience around the world.

The episode includes the best answer I’ve ever heard (which comes when I ask Boyd to describe his most memorable experience). We also discuss the dangers of an achievement or goal oriented mindset, and what he learned from spending time with Nelson Mandela as a boy.

This episode is one I hope you share with those you love, because I think Boyd’s ideas will have a profound impact on many who are thinking about what to do with their lives—whether they are young or old.

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

0:00 – Exploring Boyd’s childhood through a story about a black mamba

3:13 – Looking at the early history of Boyd’s family and their foundation in the bush of South Africa

7:00 – The launch of their safari business

8:06 – How they connected with an ecologist that encouraged them to “partner” with the land and how that led to the leopards of Londolozi 

14:25 – Expanding their model to other areas and creating an economy of wildlife. 

15:12 – How Boyd discovered what he wanted to do with his life in healing 

15:20 – Cathedral of the Wild: An African Journey Home by Boyd Varty   

20:49 – The concept of Ubuntu, the African value “I am, because of you.”

25:18 – How Patrick got to meet Boyd

26:15 – Exploring the idea of building your villages and some of the forces that combat that in our daily lives. 

31:23 – The difficulty in following your inner compass  

32:06 – Mr. Money Mustache

36:55 – Looking at Boyd’s early experiences in tracking and how he applies those principles in his current life. 

42:23 – Exploring the two different types of confidence and why there’s a benefit to throwing yourself into difficult situations, especially as a tracker. 

47:13 – Identifying the places where you can be relentless in life 

49:56 – The single most memorable tracking experience for Boyd, which is an incredible tale of tracking lions.   (Also one of the best answers to a question yet) 

1:01:49 – What can people do to get the holistic experience of the African bush  

1:02:20 – The PResencing Institute

1:04:15 – Ways that people can learn more about Boyd.  

1:04:31 – Ted Talk 

1:04:43 – The book 

1:04:48 – Workshops/Tracking Retreats 

1:05:05 – Seminar in Deer Valley  

1:05:13 – Martha Beck’s work 

1:05:15 – Finding Your Way in a Wild New World: Reclaim Your True Nature to Create the Life You Want  

1:05:36 – Website 

1:06:56 – When Nelson Mandela stayed with his family after getting out of prison

1:13:34 – Kindest thing anyone has ever done for Boyd

1:15:15 – A story of how his friend Sully saved his life from a crocodile  

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

My guest this week is Albert Wenger, a managing partner at Union Square Ventures and the author of the book World After Capital.

Albert studied economics at Harvard and earned a PhD in information from technology, but if you’d asked me to guess before looking those up, I’d have guessed that he studied philosophy because of how widely he has thought about the world and the impact of technology.

Our conversation is about how technology is changing the world from an Industrial Age to a knowledge age. We explore how cryptocurrencies, low cost computing, and regulation will impact our future and why the transition may require delicate care.

I loved this conversation because of my obsession with the concept of scarcity. We explore what has been scarce through time and what may be scarce in the future. Albert is one of the most interesting thinkers I’ve come across and was a pleasure to speak with. I hope you 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

Links Referenced

World After Capital

Show Notes

2:16 – (First Question) –  Defining what it means to be human

            2:58 – World After Capital

3:56 – Trans-humans vs neo-humans

4:37 – The concept of Qualia

5:25 – Albert’s investment philosophy=

8:27 – How Albert began his exploration into cryptocurrencies

12:59 – Most exciting things blockchains could enable

14:27 – How does Albert view blockchain technology from the view of an venture capital investor

17:00 -  Why Albert thinks that the dominate cryptocurrency of our time may not exist just yet and what he is looking for in protocols that will become the leader in the space

20:16 – What are the central functions that will be important in cryptocurrencies

21:22 -   The state of regulation in the cryptocurrency space

27:37 – What has Albert most excited for the future of blockchain

29:10 – The idea of universal basic income

32:26 – How do you solve the problem of giving money value in a world of universal basic income

35:00 – How scarcity has changed over time

39:01 – Role of financial capital in the last 200 years of civilization

42:39 – Are we as a society only capable of solving problems once they become an immediate threat

44:15 – Explaining the idea of attention as a scarce resource

47:56 – The two key drivers of change; zero marginal cost distribution and universality of computational power

53:13 -  What should we as investors and inventors be focusing on as the new objective function

57:24 – Scariest aspect of this transition into the knowledge age

59:45 – Three basic freedoms we all seek; informational, economic, psychological

1:02:13 – Fermi’s paradox and the scarcity of attention

1:02:56 – How Albert thinks about his own day and wellbeing given all of this information

1:05:01 – Kindest thing anyone has done for Albert

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

My guest this week is another in a recent series of people that makes me want to work harder, learn more, and do more for others. His name is Savneet Singh, and he has already accomplished a remarkable amount in the worlds of business and investing. He’s preferred to keep a bit of a low profile, but I’m hoping, for everyone’s sake, to change that a little bit.

Savneet has invested in unique things like Spanish real estate, famous startups like Uber, cryptocurrencies before they were cool, and even websites. He founded and built a fintech company. And now, he both a partner at the wide-ranging investment firm CoVenture, with my previous guest Ali Hamed, and the co-founder of Tera Holdings, which is trying to become the Berkshire Hathaway of software companies.

To say this conversation is wide-ranging is an understatement. What’s neat is that my favorite parts aren’t even on investing, but are instead on principles for living.                                                                                                    

Savneet is one of the best people I’ve met in this journey. I’ve had several other conversations with him with shockingly low overlap with the one you are about to hear—a testament to his active and curious mind. I hope you enjoy learning from him as much as I have.

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

Links Referenced

Ali Hamed podcast episolde

The VERY simple bear case for bitcoin

Owl Mountain

Books Referenced

Buffett: The Making of an American Capitalist

The Gorilla Game: Picking Winners in High Technology

Show Notes

2:30 – (First Question) – How Savneet started thinking about Spanish real estate.

4:29 – Why Airbnb could be the most impactful and interesting of the companies like this

5:25 – Savneet’s early entrepreneurial ventures

6:42 – His big investing influences    

7:02 – Buffett: The Making of an American Capitalist 

7:40 – What did Savneet learn in his two years on the sell-side of Wall Street 

8:50 – How the financial crisis impacted Savneet 

10:11 – The entrepreneurial journey and GBI 

11:40 – Savneet’s observations on the FinTech space and investing in it 

16:22 – His thoughts on venture capital style investing 

18:36 – Transition out of GBI into his partnership with Ali Hamed 

22:13 – The impactful things that his parents did for him 

23:23 – How Savneet thinks about justice in his life 

26:19 – Why value investing struck a chord with Savneet  

28:14 – Defining the proper long-term mindset when starting a company 

31:21 – Knowing what he knows now, what does he think about Berkshire today 

33:22 – The strategy behind Terra and how it came together

35:00 – His checklist for deciding to invest in a firm

41:38 – Why does Savneet think this is the space he wants to remain in for the long-term

44:39 – How they are thinking about pricing a company they invest in

47:03 – Lessons learned in sales and marketing that he can and will bring to the software world

52:05 – What Savneet has learned from Constellation

59:08 – What lessons has Savneet learned about taxes in their company structure

1:02:13 – How they think about capital sourcing

1:05:08 – His balanced view on crypto as an asset class

1:05:18 – The VERY simple bear case for bitcoin

1:09:45 – Savneet shares the Sikh philosophy with Patrick

1:13:21 – A look at Owl Mountain

1:15:59 – The Gorilla Game: Picking Winners in High Technology

1:16:42 – Any other areas that people are underestimating

1:17:22 – Kindest thing anyone has done for Savneet

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

It has been a while since we discussed private equity on the show, so I was excited for this week’s conversation. My guest is Dan Rasmussen, the founder of Verdad advisers. Dan worked in private equity and has spent years studying the entire field.

Dan identified several key drivers of private equity’s outsized returns: size, value, and leverage. His firm uses these factors as a starting point to build a portfolio of public equities that behave like their private brethren.

We cover a ton of ground, discussing the prospective returns for equities, forecasting, and tons of investing strategies.

Please enjoy this conversation with Dan Rasmussen.

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

Links Referenced

Subscribe to Dan

The Gospel According to Michael Porter

Tobias Carlisle

Steven Pinker

E.O. Wilson

Books Referenced

What Works on Wall Street, Fourth Edition: The Classic Guide to the Best-Performing Investment Strategies of All Time

Quantitative Value, + Web Site: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors

Expert Political Judgment: How Good Is It? How Can We Know?

Superforecasting: The Art and Science of Prediction

Show Notes

2:03 – (First Question) – The current state of private equity investing       

4:09 – The three myths of private equity 

6:51 – Taking a deeper dive into the myth of growth through operational improvements

9:29 – What Works on Wall Street, Fourth Edition: The Classic Guide to the Best-Performing Investment Strategies of All Time 

11:25 – Valuations for private market investment and where they’re going 

14:03 – Private equity companies that have a higher chance of delivering results that exceed expectation 

16:39 – Other observations on the private equity space that would be interesting to investors considering the asset class 

19:33 – Importance of being very purposeful in picking your reference classes

19:42 – Subscribe to Dan 

22:03 – How do the lessons Dan has learned in private equity translate to his investment strategies 

25:21 – How do you apply purely technical, systematic thinking into public market investing 

29:23 – Analyzing leveraged stocks and the value they could create 

30:06 – How Dan thinks about the direction of debt vs just the level 

33:11 – Predicting a firms ability to deleverage 

35:20 – How Dan’s company whittle down a company and are able to see value beyond their quantitative screens 

41:29 – How does Dan think about the global vs US opportunity set 

44:22 – What originally drew Dan to the Japan market 

47:03 – How do rising rates impact Dan’s strategy in investing in highly leveraged companies

55:03 – Porter’s five forces

55:25 - The Gospel According to Michael Porter

1:00:51 – How Dan thinks about competitive advantage

1:04:41 – Exploring Dan’s personal process in pursuit of his ideal strategy

1:05:19 – Quantitative Value, + Web Site: A Practitioner's Guide to Automating Intelligent Investment and Eliminating Behavioral Errors

1:05:20 – Tobias Carlisle

1:06:27 – Steven Pinker

1:06:28 – E.O. Wilson

1:07:11 – What other markets pique Dan’s interest

1:09:39 – Why there is such a focus on small for Dan

1:11:24 – Expert Political Judgment: How Good Is It? How Can We Know?

1:11:28– Superforecasting: The Art and Science of Prediction

1:12:54– What was it like writing the book

1:17:19 – If Dan was going to write another book today, what would it be about

1:19:08– Kindest thing anyone has done for Dan

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

My guest this week, back for a second conversation, is Pat Dorsey. Pat ran equity research at Morningstar before leaving to start his own asset management company: Dorsey Asset Management. His areas of deep interest are competitive advantage and capital allocation. He believes that capital allocation should be in service of competitive advantage and invests in a concentrated portfolio that he and his team feel embody these ideas. 

If you have not already, I strongly recommend listening to our first conversation, which is a sort of crash course on moats. In this conversation, we cover different ground. We spend much more time on individual stocks like Facebook, Google, and Chegg, using them as examples to explore Pat’s investment philosophy and strategy. 

Across a few conversations with Pat, I can tell he is in love with this stuff, and I always enjoy talking to investors like him who so passionately pursue and edge. Please enjoy round two with Pat Dorsey.  

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

Links Referenced

Pat Dorsey's first appearance on the podcast

HQ - Live Trivia Game Show

Books Referenced

World After Capital

Principles: Life and Work

Show Notes

2:15 – (First Question) – Pat’s methods for valuing a business 

4:17 – Is this process done after they would first identify potential targets for investment 

5:11 – Pat’s take on how the market classifies stocks as growth vs value 

6:40 – Qualitative insights and why the market can’t price them very accurately 

9:57 – The business model behind zero marginal cost distribution business model 

12:00 – Network effects and the potential downside to them down the road 

13:54 – Valuing Facebook as a business heavily reliant on network effects

16:45 – What would have to change for Pat’s position on Facebook to radically change 

18:58 – Most important lessons that a smaller/private business could learn from Facebook or Google’s business models 

19:48 – Where is Amazon in Pat’s portfolio 

22:06 – An example of where primary research led to a big surprise about a company 

24:05 – The value of travel in this business, starting with recent travel to India 

26:05 – Why are they targeting India and Japan 

27:24 – How does he think about the risk of investing in foreign markets 

29:52 – His thinking on relative vs absolute market share 

31:26 – Exploring the SaaS business model 

34:35 – The application of moats and pricing power with SaaS businesses

34:36 – Pat Dorsey's first appearance on the podcast 

40:07 – Other models that Pat explores and how to screen for them 

41:37 – How does he parse the difference between attention and demand 

43:19 – How would Pat monetize something like HQ - Live Trivia Game Show that has aggregated massive amount of attention 

45:19 – How does Pat react to the idea that attention is scarce and human capital is so crucial

45:14 – World After Capital 

47:04 – How does Pat evaluate human capital in a business 

48:09 – Experience in starting an asset management business 

50:20 – What are the levers that are biggest value drivers in the asset management business 

53:57 – Pat’s view on the strength of the relationship between risk and return       

57:06 – The most risk Pat has taken in the face of uncertainty 

59:23 – Favorite recent learning resource

59:43 – Principles: Life and Work

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

Long-time listeners will have heard me joke before that this podcast should really be called “this is who are you up against.” I’ve been waiting for the right episode to deploy the joke as a title, and this week we have it. 

The joke is meant to convey how incredibly impressive these people are who we get to hear from every week. My guest this week is Josh Wolfe, a founding and managing partner at Lux Capital in New York City. Lux is a venture capital firm, but a highly unique one. They’ve spent more time in hard sciences and interesting nooks and crannies of the market than the typical VC firm.

Some of investing is zero sum: my outperformance is someone else’s underperformance. Sometimes, though, investing is positive sum. The combination of capital, ideas, people, drive, and raw energy leads to amazing new things. 

I think the best investing and best investors of the future will be more collaborative than competitive. After finishing with Josh, I couldn’t stop thinking “god, do I want to be involved with whatever he’s doing, if only just to learn.” 

This conversation made me rethink my joke “this is who are you up against.” Now I won’t think of it as a zero-sum joke, but instead as a reminder: this is the kind of person who is out there. You better find your niche, and still be the absolute best you can within that niche.  

Please enjoy this killer conversation with Josh Wolfe. We cover just about everything. 

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

Links Referenced

Investing in Biofuels or Biofools?

Ali Hamed podcast

Alex Moazed podcast

Andy Rachleff podcast

Popplet

@wolfejosh

Books Referenced

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

World After Capital

Show Notes

2:35 – (First Question) – Lux Capital and the kind of investments they have made over the years 

5:42 – The formation of the investment philosophy for Lux 

9:52 – Investment philosophy 100-0-100 (ambition, arrogance, intellectual humility) 

10:40 – How Josh manages his time and attention

12:53 – Investing in Biofuels or Biofools? 

13:29 – Obsession with nuclear 

18:28 – Focus on autonomous vehicles 

21:02 – How all of these gambles are viewed by Josh’s investors 

22:56 – Tattoo technology

24:20 – Ali Hamed podcast 

24:36 – How Josh evaluates people when considering early stage investments

24:45 – Alex Moazed podcast

24:49 – Modern Monopolies: What It Takes to Dominate the 21st Century Economy 

29:50 – Memorable experience investing in a founder 

30:44 – The idea of thesis driven approach to private investment   

30:56 – Andy Rachleff podcast  

32:38 – Crazy thesis – understanding the emotional needs of our pets 

38:03 – Josh’s learning process through these theses

38:34 – Popplet

45:49 – Investors that Josh has learned the most from

47:37 – Josh’s comfort investing outside of his usual asset class

49:03 – @wolfejosh

50:56 – What is the thinking with the short strategy at Lux

52:31 – SpaceX vs Tesla, good business vs bad business

53:42 – How Josh approaches the quality of a business

54:15 – World After Capital

55:16 – How does Josh evaluate competitive advantage

56:45 – Where are we in the venture capital landscape

1:01:42 – How does his outlook on venture capital affect the way Lux is run

1:02:48 – Thoughts on cryptocurrency

1:07:22 – What is the most memorable conversation Josh has ever had

1:09:34 – What is Josh’s objective function in life

1:12:43 – Are there people that Josh disagrees with but deeply respects

1:13:32 – Kindest thing anyone has ever done for Josh 

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

My guest this week is Harvey Sawikin, a co-founder and lead portfolio manager at Firebird Management, which manages funds dedicated to investing in emerging market equities. Emerging markets are often a blind spot for investors of all types: most of us have never traveled to the far east or eastern Europe, where many of the thousands of emerging market public equities operate.

I’ve been very lucky to travel quite a bit in Asia and the Middle East, but never to eastern Europe, which where Firebird focuses its investments. Harvey and I discuss his 24 years of experience evaluating emerging and frontier market countries, industries, and individual stocks. We discuss his experience buying privatization vouchers in Russia, banks in the Baltics, and how today’s emerging market opportunity set compares to the past. 

Like so many of these conversations with investors who have earned significant excess returns, its clear investing opportunities in emerging markets are often disguised. Finding them requires risk, hard work, discipline, and a dose of luck and timing. Please enjoy my conversation with Harvey on Emerging Market Opportunities. 

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

Links Referenced

Via

Books Referenced

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

Education of Rick Green, Esquire

Show Notes

2:26 – (First Question) – Most memorable travel experience since the beginning of Firebird

5:41 - How Harvey got interested in emerging markets investing, specifically, Eastern Europe and Russia

10:00 – How does the landscape for emerging markets today compare to when he first started

12:30 – What are the factors of an emerging market to look at and why do some not pan out

15:04 – Do countries have to meet minimum criteria before Harvey and his team will even start to do work on an emerging market

17:33 – How does Harvey distinguish between frontier and emerging markets

18:37 – Thoughts on the access points that regular investors have into emerging markets, such as ETF’s and Mutual Funds

23:48 – How does Harvey think about risk exposure when constructing a portfolio

25:56 – Looking at the bottom up part of the equation, what factors within a company or sector are considered as part of the investing decision

31:05 – Dividends in emerging markets

33:09 – How do US equities stack up as an investment against fixed income

         34:53 - The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

36:52 - How do US equities stack up as an investment against emerging markets

39:38 – What type of investor allocate funds to emerging markets

42:37 – The value of travel in understanding emerging markets

50:19 – Biggest mistakes that emerging market investors make

54:49 – What in today’s markets has the smell of opportunity

55:53 – Harvey’s interest in Via

56:58 – Interest in buying gold coins

1:00:05 – If Harvey could only choose one country to visit, business or pleasure, where would he go

1:01:09 – Kindest thing anyone has done for Harvey

            1:01:38 – Education of Rick Green, Esquire

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

My guest this week is Anthony Pompliano. Pomp began his career in the military, and has since been a successful entrepreneur, worked as a head of growth at Facebook, and started Full Tilt Capital, an early stage investing firm in North Carolina.

This conversation has three memorable sections. Early on, we discuss the four traits Pomp looks for in founders, which we cover in detail. These double as traits that are important when hiring anyone. Next, we discuss his unique take on cryptocurrencies, where he is excited about the prospects for tokenized securities. Finally, we explore a unique media company, Bar Stool Sports, and what makes it such a powerful brand.

Please enjoy our somewhat abbreviated discussion and know we will continue the conversation soon.

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

Links Referenced

Dave Portnoy and Barstool Sports’ Secret Billion Dollar Plan

Books Referenced

Win Bigly: Persuasion in a World Where Facts Don't Matter

Show Notes

2:06 - (First Question) – Recap of Anthony’s military career

4:07 – Most memorable experience while deployed

5:27 – Transition out of the military and how it shaped his investing philosophy

11:19 – investing philosophy of Full Tilt, starting with deal economics

10:00 – Attributes of an ideal founder

13:50 -  Where you actual learn the attributes that make you a good founder

14:40 – Time that Anthony has taken the biggest risk in life

16:45 – What is the viewpoint that Full Tilt has today that gives it Alpha in the market

18:47 – Why tokenized securities could be advantageous for investors in a company

19:51 – Anthony’s explanation of a tokenized security and what needs to happen for this idea to be fully realized in the market

22:22 – What could be the impact on the markets of making liquidity in venture so readily available

24:39 – What are tokenized securities actually invested in in the real world

27:42 – What does Anthony think about the commodity risk

29:04 – Describing Standard American Mining, a company they incubated

29:58 – Exploring the shift from a CPU world to a GPU world

31:49 – Getting involved in places where we haven’t caught up with the rest of the world

33:05 – Anthony’s interest in Barstool Sports

            33:11 – Dave Portnoy and Barstool Sports’ Secret Billion Dollar Plan

            37:09 – Win Bigly: Persuasion in a World Where Facts Don't Matter

39:02 – What lessons from Full Tilt world would Anthony share with others in the more traditional business world

40:35 – Kindest thing anyone has done for Anthony

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

My guest this week is Dr. Ben Hunt, the chief investment strategist at Salient and the author of the extremely popular epsilon theory. I’ve always enjoyed Ben’s writing style, particularly his use of farm and animal based analogies to describe market phenomenon. In this conversation, we discuss his recent post the three body problem, why growth has been beating value, and why a strategy that he calls profound agnosticism—a take on risk parity—may be the most appropriate investing strategy in what he views as a very uncertain world. We also discuss some of his favorite lessons from the farm.  Please enjoy our conversation!

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

Links Referenced

The Three-Body Problem

Show Notes

1:54 - (First Question) – Applying the three-body problem to investing 

7:24 – Fundamental view of investing, Profound Agnosticism 

8:24 – Why has value done so poorly relative to growth in this framework 

11:01 -  Ben’s thoughts on why value has been underperforming for so long 

13:52 – Investors should be able to adapt 

17:49 – Thoughts on the risk parity approach 

23:23 – Ben’s strategy for working with several teams 

26:48 – What’s the best way to gain an edge, top down factors vs company/bond individual analysis 

28:29 – How do you measure risk amid the large amount of uncertainty that exists in markets 

32:40 – How does Ben personally think about investing 

34:41 – Ben’s farm and the investing lessons learned by some of the animals 

39:55 – How bees can plan out their entire work structure by the angle of the sun 

42:58 – Defining basis risk 

44:59 – Personal risk vs portfolio risk 

49:30 – The concept of fingernail clean and our perception of what eggs are 

53:57 – How ETFs are like mass produced eggs 

54:56 – Exploring the idea of quality vs scaling 

58:39 – What is the current challenge/puzzle that Ben is focused on right now 

1:01:59 – What is Ben looking for when looking into game theory and applying it to the words that are published and spoken about investing 

1:03:57 – Most memorable day on Ben’s farm 

1:05:04 – Kindest thing anyone has done for Ben

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

My guest this week is Preston Byrne. Preston is vocal critic of crazy prices and projects in the world cryptocurrencies. His background is in the legal world and also as a founder and former COO of Monax, which made the first open-source permissioned blockchain client.

As Preston says, he is a “blockchain without bitcoin” guy, who believes that this crypto mania will end in some sort of apocalypse for token holders and ICO issuers .

We tackle several issues, from his broad skepticism of crypto assets, to the potential regulatory reaction from major governments, to types of coins like stable coins, which Preston views as analogous to perpetual motion machines. 

Please enjoy our conversation and for any crypto investors out there, let me know if this conversation affects your opinion of the investing prospects for cryptocurrencies. 

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

Links Referenced

Bitcoin white paper

The Bear Case for Crypto

Hash Power series

Zero Hedge

Preston tweet on Reverse network effect

Show Notes

2:12 - (First Question) –Ponzi scheme vs pyramid scheme vs Nakimoto scheme 

5:29 – Why there are regulatory challenges to cryptocurrency

            5:33 – The Bear Case for Crypto 

9:59 – Who are the most influential people supporting this and how are they swaying the regulatory minefield on this issue

            10:28 – Hash Power series 

13:23 – Looking into the idea of a digital asset and the difference between blockchain and the token itself 

16:09 – What about the idea that cryptocurrency’s only feature is that it’s censorship resistant 

18:39 – Why cryptocurrencies become less usable the more successful they are

            18:59 – Zero Hedge 

21:04 – Why can’t we rely on offchain solutions to solve the scaling issue 

22:29 – The idea of bubbles and what happens next in this one           

25:41 – What are the incentives to build technology to support cryptocurrencies 

29:23 – Explaining Ripple 

31:21 – What would precipitate a massive reversal in the inflated valuations of cryptocurrencies 

34:52 – Understanding reverse network effects

            34:36 – Preston tweet on Reverse network effect

37:45 – The principles behind Stablecoin

42:20 – What has been the greatest lesson that Preston has learned about blockchain he wish he knew when he first got started

44:05 – How embedded will blockchain be by 2024/2025

45:12 – ICO’s, why Preston is not a fan and if there are any positives to them

50:20 – What are the conditions under which these things will be viewed legally.

54:00 – Preston’s history owning cryptocurrencies

55:35 – What has Preston most excited in the space

59:02 – Utility settlement coin

1:00:36 – Why the fascination with marmots

1:02:10 – What to reference before getting started with cryptocurrencies

1:04:03 – Understanding supply chains in block chain

1:07:14 – Some smart people on block chain to follow

1:08:24 – Kindest thing anyone has done for Preston

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

I have a special request this week: share this episode with every curious person in your life. 

The conversation, with a 26-year old investor named Ali Hamed, serves as an example of what’s possible when you think creatively. 

Ali views the world with a fresh set of eyes, and has already become an expert at identifying new investment opportunities where others have not. As the second prodigy 26 year old in as many weeks on the podcast, these young guns are making me feel like an ancient 32 year old. 

We talk a lot about “alpha” in our world, earning returns better than the market. But the key word in that last sentence isn’t alpha, it’s earning. Hopefully you, like me, will use this conversation as a reminder of what it takes to earn differentiated returns. It’s not just the hard work, but also the mindset. We explore many examples of how to create new investment opportunities, from rolling up Instagram accounts, to financing perishable fruit like watermelons, to heavy machinery software. 

Please enjoy this special conversation with Ali Hamed. Follow him and his partners. And then go figure out how to earn success yourself in whatever it is you do by helping other people solve problems with empathy. 

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

The Big Short: Inside the Doomsday Machine

Links Referenced

Sheel Tyle Podcast

Seed Investing is a B2C Business, While Growth Stage investing is a B2B Business

Ira Judelson podcast

Free Content and Digital Media Are Increasing Socio-Economic Disparity 

Show Notes

2:24 - (First Question) Ali’s investment philosophy 

3:33 – History of Coventure and its unique structure 

6:30 – The story of how Coventure was seeded 

12:29 – What makes cost of capital such an interesting topic for Ali 

14:13 – Exploring fee structures and the expectations for return in the current environment 

17:02 – The current state of the VC world 

21:42 – Ali’s investment process on the VC side 

25:32 – What other requirements are there for Ali to make a VC investment 

28:00 – Understanding the difference between judgement and empathy in founders

            28:20 – The Big Short: Inside the Doomsday Machine

29:47 – Dealing with LP’s

            32:47 – Sheel Tyle Podcast

33:39 – At one point did Ali feel the most personally at risk in his career

37:55 – Why did they get involved in cryptocurrency 

43:30 – What excites Ali most about crypto

46:09 – Lending as an alternative way to invest in businesses

48:09 – An overview of their lending business

50:21 – How does deal flow and sourcing work in these arrangements

52:54 – How much encroachment will Ali face from competitors

54:28 – Exploring the idea of valuing and buying digital accounts

59:36 – How Ali thinks about marketing for his own firm and the ones he invests in

1:00:06 – Seed Investing is a B2C Business, While Growth Stage investing is a B2B Business

1:03:59 – Longer term aspirations for Ali and industries that he would avoid

            1:04:25 – Ira Judelson podcast

1:08:05 – Ali’s view on the potential negative impact of free content

            1:08:19 - Free Content and Digital Media Are Increasing Socio-Economic Disparity

1:12:48 – Kindest thing anyone has done for Ali

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

My guest this week is Sheel Tyle, who at just 26 years old has already had a successful career in venture capital. His most recent stint was as the co-head of the seed investing business at NEA, the largest venture capital firm in the world, where Sheel was also a partner. Now, Sheel has set off on his own, setting up his own firm called Amplo and having recently raised a $100M venture fund where he is the sole general partner. He aims to invest with young, mission driven entrepreneurs with a global focus. As you can tell from this resume, which also includes a degree from Stanford and a law degree from Harvard, this is one ambitious guy. 

There are several aspects of this conversation that will really stick with me, specifically his points on networking and the smartest decision that he’s seen entrepreneurs make. I also loved our discussion of some of the same trends we explored last week with Chris Dixon—topics like drones, automated cars, and blockchain, where Sheel often has a different take than the consensus. 

Please enjoy my conversation on Africa, entrepreneurship, venture capital trends, technology, and more with Sheel Tyle.

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

Originals: How Non-Conformists Move the World

Links Referenced

Andela

OneConcern

Andy Rachleff Podcast Episode

Mark43

TechCrunch

VentureBeat

Bill Draper (author)

Show Notes

2:20 - (First Question) Sheel’s upbringing and how it shaped his interest in Africa

4:43 – The outlook for Africa

6:10 – Primary differences in valuations and momentum in Africa vs opportunities in other places which Sheel conveys through the story of Andela

10:45 – The perspective returns of venture capital investments

15:16 – Does the hyperfroth in ICO’s serve as a threat to traditional venture capital

17:53 – Where Sheel falls on the importance of networking in terms of his venture capital interests

20:38 – The stronger impact of a smaller, more tight-knit network

22:46 – Sheel’s feelings on driverless cars and the timeline for this sector

27:17 – What are the positive side effects of driverless cars taking over

29:01 – What is the best way to invest in driverless cars from a venture capital standpoint

31:30 – Sheel’s overrated/underrated take on different technology spaces

            31:30 – VR/AR

            32:21 – Blockchain

            32:54 – Machine learning/AI

33:41 – Drones

34:53 – Other categories that we should be thinking about

            36:54 – OneConcern

38:21 – Should entrepreneurs be raising more money over future liquidity concerns of the venture capital markets

39:40 – What are the places that Sheel can help a founder in the early stage formation of the company

            40:02 – Andy Rachleff Podcast Episode

42:53 – What does the breakdown of domestic vs international investments potentially look like in fund 1 for Sheel

44:53 – Sheel’s most memorable travel experience

47:34 – what is the best decision Sheel saw a founder make

            48:10 – Mark43

50:31 – Resources for people interested in venture capital

            51:06 – TechCrunch

            51:07 – VentureBeat

            51:17 – Bill Draper (author)

            51:25 – Originals: How Non-Conformists Move the 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

My guest this week is Chris Dixon, who has written some of my favorite essays on technology and venture investing. Chris is a prolific investor and thinker, having been an entrepreneur, angel investor, and now partner at the well-known venture capital firm Andreessen Horowitz. Our conversation focuses on major trends in technology, including cryptocurrencies and the future of autonomous vehicles and drones. Chris has a rule of thumb for technology trends: find out what smart people are working on during the weekend, and you’ll know what other will be doing years in the future. After surveying his old essays, it’s clear you use Chris’s writings as a similar litmus test.

Hash Power is presented by Fidelity Investments Please enjoy this great conversation with Chris Dixon on the future of tech.

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

Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages

Who Controls the Internet?: Illusions of a Borderless World

Links Referenced

Douglas Hofstadter

Daniel Dennett

How Aristotle Created the Computer

New Yorker Cover on automation

The World of Numbers website

Jerry Neumann podcast episode

David Tisch podcast

ERC-20 Token Standard

Eleven Reasons To Be Excited About The Future of Technology

Show Notes

2:04 (First Question) – Why did Chris choose to study philosophy

2:23 – Douglas Hofstadter

2:24 – Daniel Dennett

3:20 – How Aristotle Created the Computer 

3:35 – Where has his thinking and viewpoints changed the most having been in the real world 

4:42 – What is the real driving force behind all of the technology that we are creating and will automation kill all of the jobs

6:16 – New Yorker Cover on automation

6:57 – The World of Numbers website

8:36 – A look at his history in networks and network design

11:03 – Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages

11:07 – Jerry Neumann podcast episode

12:32 – Who Controls the Internet?: Illusions of a Borderless World

13:06 – What are the market and technological forces that make it difficult to regulate software hardware companies

14:39 – The best features of proprietary centralized networks and open networks

16:40 – What things are better centralized vs decentralized

22:30 – David Tisch podcast

23:03 – When it comes to cryptocurrencies, what are the concerns that the protocols themselves hold value and could this lead to centralization of the system problems

24:02 – Block size debate (topic)

26:40 – ERC-20 Token Standard

27:23 – Is the blockchain the answer to the stagnation of the big tech players 

34:39 - How does Chris think about the dichotomy of investing in people vs technologies

34:59 – Eleven Reasons To Be Excited About The Future of Technology 

37:45 – What organizational structures of companies are most compelling 

41:50 – Any major trends in technology a cause for concern for Chris 

44:09 – What major trends is Chris passionately pursuing 

51:15 – If everyone agrees on a future trend of technology, can you still make money investing in them 

52:20 – How do you encourage younger people to approach the world and a career differently in this ever-changing world 

57:39 – Kindest thing anyone has done for Chris

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

So far I’ve spent no time in the podcast discussing real estate, so I was excited to get the chance to talk to the team at Sorin Capital, a billion dollar hedge fund which specializes in commercial real estate, REITs, and commercial mortgage backed securities. Sorin is lead by Jim Higgins, who founded the firm, and Tom Digan, who coincidentally was a college classmate of mine at Notre Dame. You’ve probably heard me joke that this podcast should be called “This is who you are up against,” and this episode is a good example. I always enjoy exploring a niche part of the market, and this conversation on real estate is a perfect example of the type of work that firms do on behalf of their clients. Please enjoy my conversation with the team from Sorin Capital.

Show Notes

2:43 - (First Question) –Outline the Real Estate Investment Trust world and what the assets and total value look like

6:10 – What does the profile of investors in the space look like compared to investors in the broader debt markets

9:43 – What are the characteristics of a liquid real estate portfolio that make them so attractive to investors

10:54 – Looking at the history of Sorin Capital and how the business has evolved to where it is today

12:35 – Understanding the idea of securitization of commercial mortgages

17:01 – What really led to the formation of Sorin after working for Bear Stearns

20:19 – Looking at the retail sector in real estate in the scope of actual trades that are being made

25:08 – From an investing standpoint, how do you craft a portfolio that takes advantage of the real estate space as retail appears to be suffering on the surface

30:09 – The different type of real estate investments in the retail sectors and what piece of the pie do they make up

32:43 – How does the business model of the mall work and why is it so connected to the department stores

34:08 – What is the future of malls itself with the big changes happening to the legacy stores that helped them proliferate

37:44 – Why won’t the same thing that has happened to apparel stretched to all sectors of the retail industry

39:09 – How do they search for inefficiencies in the market

41:20 – One of the craziest things they saw on the road that outlined real world craziness in real estate investment

42:23 – What is the duration involved in these types of investments

44:41 – How the portfolio is positioned across these different real estate types

47:49 – Why haven’t others come in and taken advantage of the investments that Sorin is able to

49:03 – Reaction to the idea that the growth of passive ETF’s and investing styles has lengthened the time over which certain inefficiencies would be corrected and are distorting things

51:27 – How much does momentum play into their thinking

54:19 – How evenly distributed are the vintages of these ten year cycles

57:15 – Explaining the idea of deep value bottom up work in the real estate investment world that they have done a deep dive on

59:31 – Best stories from boots on the ground visits

1:04:04 – The origin story for the original Sorin partnership

           1:04:42 – Ugly Americans: The True Story of the Ivy League Cowboys Who Raided the Asian Markets for Millions

           1:04:43 - Liars Poker

           1:04:44 – Barbarians at the Gate: The Fall of RJR Nabisco

1:07:51 – What was it like for Tom getting started and the lessons he learned after an incredible hard time for the market

1:09:24 – What was it like for Jim coming through the crisis

1:11:18 – What is the trend for funds to craft investments specific to investors vs having them buying products that they produce

1:18:29 = Are other hedge fund firms moving to a client demand or solutions-based model? Or are we still very early in the transition

1:22:50 – What would the generalists miss in this space vs someone like Sorin that is a specialist

My guest this week is Franklin Foer, the author the recently published book “World Without Mind.” The topic of our conversation is one that I’ve been thinking through often this past year: the impact that large technology companies have on our minds and behavior. This conversation is only indirectly related to markets, but given that the companies we discuss are now several of the largest by market cap in the global stock market, what happens to them likely impacts all of our portfolios whether we own them or not. Given that these companies compete for our attention and dollars, they also affect our businesses.

As an example, My friend Brent Beshore and his team at Adventures wrote a long and incredibly thoughtful piece on how they think about Amazon as a force in the market, and how they plan on navigating around such a fierce competitor.

Franklin’s book, especially the early history, is very thought-provoking, so it was no surprise that our conversation was too. Please enjoy our talk on the tech giants.

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

Links Referenced

Free PDF of The Whole Earth Catalog

Amazon Must Be Stopped (New Republic)

Hannah Arendt Philosophy

Time Well Spent

Books Referenced

World Without Mind: The Existential Threat of Big Tech

The Whole Earth Catalog

The Lessons of History

Show Notes

1:40 - (First Question) – As part of Jonathan’s new book, World Without Mind: The Existential Threat of Big Tech, exploring the idea of the whole earth catalogue.

            4:09 – The Whole Earth Catalog

            4:36 – Free PDF of The Whole Earth Catalog

4:49 – What happened next for Brand and how he laid the early groundwork for today’s modern Silicon Valley

7:43 – Franklin’s personal journey into writing this book

            10:00 – Amazon Must Be Stopped (New Republic)

11:48 – Thoughts on the advancement of technology in our world

15:52 -  Filling the gap into Brand’s influence on Silicon Valley from the early 80’s to today

18:57 – How does the current state of the free internet without gatekeepers hold up for the next generation

20:53 – Is there a chance that technology’s unlimited mining of our attention is not the horrible thing we often make it out to be

24:47 – What are the ways we can have a free internet and other technologies, but not let them get perverted

28:09 – How will people respond to our tech monopolies

31:54 – The Lessons of History and the rise and fall of centrist powers

33:02 -  A look at Franklin’s work and how its impacted by the reliant on a few large tech companies

35:28 – The dangers that tech giants like Facebook, Amazon, etc, have created for us

40:45 – Is there a technology, company, or trend that Franklin is really excited for

42:19 – Will there be movements that emphasis detachment from technology

44:05 – Why most innovations have happened to people thinking in a very separated or contemplative mode

45:58 – What’s the most exciting thing that Franklin is thinking about now

49:30 – What was the most memorable content in researching this book that Franklin would suggest other check out

            49:59 – Hannah Arendt Philosophy

52:37 – Are there specific things that Franklin does to be more contemplative

            53:26 – Time Well Spent

54:47 – Kindest thing anyone has done for Franklin

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

My guest this week is Adam Ludwin, the founder and CEO of Chain, a blockchain technology company targeted at large enterprises. Before shifting his career to focus solely on crypto, Adam was a venture capitalist focused on FinTech, which is how he came across the Bitcoin whitepaper earlier than most. I called this episode “a Sober View on Crypto” because Adam’s take is so balanced. He is certainly long crypto, both in his portfolio and career, but he is very skeptical of much of what is happening in the ecosystem today. For example, he offers the best reason I’ve heard for not launching an ICO or investing in them. 

If you haven’t read Adam’s widely shared open letter to Jamie Dimon, it has become a must-read piece for crypto-enthusiasts. Read it as soon as you can.

I edited out an earlier chunk of our conversation as it was largely introductory. If you need a broader introduction to cryptocurrencies, I suggest starting with episode one of Hash Power and working your way forward. One key insight from Adam in our offline discussion what how cryptocurrencies function very much like equities or bonds. Just as equity financing enables the activity of joint stock corporations, cryptocurrencies enable activity in decentralized applications. We pick up our discussion with Adam discussing whether anyone really uses these decentralized apps today.

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

2:35 - (First Question) – Will anyone use cryptocurrency in the real world at a large scale

3:43 – The idea of censorship resistance

12:29 – Will society be accepting of this technology

14:39 – Why decentralized apps can’t be acquired

18:24 – The idea of exponential vs linear improvements on a trend and if there are limits to the growth of decentralized technologies

23:26 – The struggle with early adaption of blockchain

25:41 – Best application for bitcoin, storing value

29:52 – Adam’s introduction to cryptoassets and how his thinking has evolved in the space

36:44 – In this hyper frothy market, is there a situation that makes an ICO exciting to Adam

43:51 – Even though it appears to be easy money, Adam explains why you shouldn’t just create an ICO

50:59 – A look at what Chain is doing and what Adam is excited about

53:23 – How does what Adam is working on help to improve the ledger of his clients

1:02:00 – Why you can easily be an early investor in crypto currency

1:04:27 – Kindest thing anyone has done for Adam

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

My guest today is Joanne Wilson, a New York City based angel investor, writer, podcaster, trend spotter, and self-described “woman around town.” Joanne has had a multifaceted and winding career, and began angel investing a decade ago when she put money into NYC-based media company Curbed media which we discuss in detail. Since then, she’s invested in more than 90 companies and been pitched by countless more. She is an instantly likeable person, you can literally tell in 10 seconds you are going to have a great conversation, so it’s no surprise that part of what makes her unique among angels is a very close relationship with many of the founders she backs.

We cover a lot of ground. We talk about the personality traits of entrepreneurs, Joanne’s evolving investment style, her focus on female founders, fashion, business models, restaurants and a lot more. Please my conversation with the Gotham Gal, Joanne Wilson.

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

2:12 - (First Question) – How does Joanne orient herself towards what’s new, in the context of food in New York city

4:10 – Can that mindset of forward thinking be cultivated

5:18 – Latest thing that got Joanne excited before everyone else

6:57 – Why the new frontier is going niche and local

10:23 – Joanne’s first investment

11:48 – Why do VC’s typically stay away from media

12:55 – How Joanne got into her first investment as a customer

14:11 – What is the skillset of making money that Joanne as

14:45 – Can you sense if a founder has that innate ability to just make money

17:04 – Are there common traits in founders

18:07 – Joanne’s progression into angel investing after her first investment

19:58 – Red flags when looking at investments

20:40 – Impression on growth without goals

23:30 – Trends among Joanne’s investments

25:56 – How much knowledge is transferrable between different industries that Joanne invests in

27:06 – The dichotomy and unique challenges between raising capital with female founders vs male founders

29:07 – How does Joanne balance her time and stay engaged with all of her investments

30:50 – Time when Joanne has helped a founder side step a pothole

31:35 – Most memorable first impression Joanne experienced

35:05 – How often does someone not have the right idea but is still worth investing in

37:19 – Why Joanne won’t start a fund

38:22 – Data on female founders returns and time

40:38 – Criteria for identifying emerging trends, especially in the more creative/artistic fields 

43:29 – The changing costs of launching a brand, in the contest of fashion

47:11 – What has Joanne most excited right now

      48:11 – Interesting facts about the fashion business 

52:01 – Kindest thing anyone has done for Joanne

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

This week’s conversation is an ode to old school, fundamental public market investing. My conversation is with IMC’s Connor Leonard, who spends most waking hours thinking and reading about markets. His mandate is to invest purely as if it was his own money, with no pressure to hug a benchmark, and no pressure to do much of anything other than earn strong long-term returns.

The portfolio that results from this approach is highly concentrated and unique. Connor’s strategy is to sort companies into four categories based on their type of sustainable competitive advantage. As you’ll hear, the vast majority fall into the first category, which means they don’t have such an advantage and therefore should be largely set aside.

We spend the majority of our conversation talking about the other three categories: 1) companies with a legacy moat, 2) companies with a re-investment moat, and 3) an interesting category Connor calls “capital light compounders,” which we explore in detail.

When you step back and think about public markets, you realize how amazing it is that we can, from afar, buy an interest in so many companies around the world. A select few go on to deliver outstanding returns. This conversation highlights how hard that can be, but also how fun and ultimately rewarding. Please enjoy my talk with Connor Leonard.

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success     

Links Referenced

Pat Dorsey Podcast Episode

David Tisch podcast   

Will Thorndike Podcast episode

Show Notes

2:31 - (First Question) –   Trends in value investing

            2:52 – Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

4:43 – A look at Connor’s backstory and the history of IMC, parent company of Golden Corral

8:01 – Why Connor loves the public markets so much  

9:21 – The concept of intrinsic value when looking at companies

12:36 – How Connor categorizes MOATS

            13:21 – Pat Dorsey Podcast Episode

14:27 – Legacy MOATS

16:11 – Reinvestment MOATS

17:58 – Capital light compounder MOAT

20:00 – Why classifieds are an interesting business model

25:12 – Looking at platform businesses

26:56 – Looking at companies in the 500 million to 5 billion range and what makes it so enticing

30:34 – What is the process that gets Connor to find investment opportunities

            35:53 – David Tisch podcast  

36:15 – How Connor looks at industry classifications

41:30 – Connor’s strategy for running his portfolio

46:36 – The circumstances in which Conno would buy a legacy MOAT company

            46:49 – Will Thorndike Podcast episode

            46:51 – The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success    

49:21 – How do you pick managers that will beat the markets

52:21 – Second reason to buy a legacy MOAT

54:48 – Comparing the reinvestment MOAT and Capital A compounder in Connor’s portfolio

58:16 – Connor’s Mt Rushmore of Capital Allocators

1:00:03 – Impactful mentorships for Connor

1:01:52 – kindest thing anyone has done for Connor

103:04 – What in the discussion with founder of IMC got him the job

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

My guest this week is unique. As you will hear early and often, he is programmed to go his own way, to, as he says, go one way when everyone else is going another. His name is Dhani Jones, a name I knew as a Notre Dame football fan, because he won a championship with our arch-rivals, the University of Michigan, in the late 90’s. Dhani went on to a long and successful career in the NFL, but even more interesting has been his many pursuits in business and investing outside of football. Like my conversation with Tim Urban, I’ll remember this conversation as a reminder to use a first principles mindset. Dhani seems to have this fresh mindset baked into his character, and as you’ll hear this has led to many a great adventure. Please enjoy my conversation with athlete, businessman, investor, philanthropist, movie buff, and bowtie wearer, Dhani Jones.

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

1:30 - (First Question) –  A introduction into Dhani Jones and everything he’s done

5:35 – How did Dhani change throughout his football career

9:55 – The power of your mind in every aspect of life

10:34 – Most memorable experience in the NFL

13:10 – Making the transition from the NFL to the business world

18:20 – Looking at Bowtie Cause

22:40 – The role of creative agencies in Dhani’s ventures and why story telling is so important for him

26:48 – Looking at some of the TV stuff that Dhani has done, particularly around travel

28:21 – Dhani’s favorite movie

30:35 – Back to the joy of travel and “Dhani Tackles the Globe.”

36:54 – How does Dhani think about risk

38:56 – Some of the other sports and activities Dhani did while filming his show

41:45 – The psychological benefit of travel in your personal and business life

44:41 – Looking into the business part of Dhani’s career

51:19 – How to expand diversity in the financial world

54:56 – Kindest thing anyone has done for Dhani

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

This episode is a continuation of the Hash Power series. It is the first of what we will call a Hash Power single—a series of conversations each with a single guest on a specific topic. In this case my guest is Chris Burniske, and the topic is cryptoasset valuation. This conversation is loaded with information, I think you are going to love it.

Chris recently released book called Cryptoassets, which is a must read for those interested in this field. Chris was at one point the only tradintional buy side analyst covering bitcoin, and is now a partner at a new crypto firm called Placeholder. Chris has developed new frameworks for evaluating and valuing cryptocurrencies, marrying techniques and ways of thinking for several different asset classes to assess the newest asset class. Chris prefers the term cryptoassets because as you’ll hear, several of these tokens aren’t really currencies at all. We discuss the differences between cryptocurrencies, cryptocommodities, and cryptotokens. We begin our conversation with a deep dive into the equation of exchange, which Chris has been using as a starting point for understanding utility value. 

You can see all crypto related conversations at investorfieldguide.com/Hashpower. Please enjoy this conversation with Chris Burniske.

Hash Power is presented by Fidelity Investments

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond

Links Referenced

Hash Power Podcast Documentary

Nic Carter (twitter)

Cryptoasset Valuations (Medium)

Show Notes

4:58 - (First Question) – Chris’s overall method for evaluating cryptocurrencies

            5:14– Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond

6:47 – The equation exchange

11:19 – Bonding

12:35 – How bonding may represent a more efficient way of representing consensus over proof of work

14:29 – Why the amount being bonded and held should be taken out of the float

16:58 – Using bitcoin as an example to figure out remittances in the PQ side

18:31 – Looking at the velocity of various crypto-assets

21:04 – Chris’s impression of the different way of categorizing various crypto assets

24:37 – Explaining Auger as an example of a cryptotoken

25:38 – How could these networks be impacted by not having any censorship

27:57 – Exploring the gap between expectation vs reality in the value of crypto currency

30:43 – Other ways of valuing these crypto assets

            30:50 – Hash Power Podcast Documentary

33:32 – Explaining the idea of billion dollar a day onchain transactions

36:05 – How to measure the value of the underlying network

            36:37 – Nic Carter (twitter)

37:13 – What are the variables that matter when investing in cryptocurrency on a long-term horizon

39:24 – Determining when it’s better for a network to be centralized vs decentralized

42:03 – Networks that Chris is most excited about

44:06 – Understanding the consumption side of the steam marketplace

46:01 – Deep dive into the Aragon network

47:27 – How does Chris evaluate existential risk of networks

51:09 – Could these assets really ever go to zero?

54:07 – Is there a scenario in which velocity gets so high that it negatively effects the price

56:10 – What are the unknowns of cryptocurrency that Chris is most interested in

            56:24 – Cryptoasset Valuations (Medium)

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

My guest this week is Brad Katsuyama, the founder of the IEX exchange and protagonist of Michael Lewis’s famous book Flash Boys, which chronicled the role of high frequency trading in markets.

This conversation was yet another reminder of how complicated markets can be, and that very few participants know all aspects of the process well. Brad and I get deep into the history behind his company, and the ways in which markets and exchanges have evolved, better or worse. 

One of my favorite parts of this conversation was our exploration of entrepreneurship. Brad’s whole story is one that entrepreneurs will appreciate, and is full of lessons for those aspiring to start their own business.

Please enjoy my conversation with Brad Katsuyama

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Flash Boys: A Wall Street Revolt

Show Notes

2:10 – (First Question) Brad’s original discovery of a latency problem in trading stocks

12:51 – how the business model of the NASDAQ and exchanges and how it may surprise people 

14:16 – The edge that exchanges are now monetizing 

16:46 – How Brad went from finding a solution to his current firm 

20:18 – Types of high frequency traders that there are 

24:33 – The formation of IEX 

27:56 – Funding IEX

30:48 – What happens to the initial funding

32:30 – Describe what IEX is as it was sold to early buy side investors 

34:31 – Explaining the concept of a speedbump 

38:18 – Pitching companies so they will be listed on their index 

40:37 – Explains maker-taker fees 

44:47 – The sources of revenue for IEX vs traditional exchanges 

46:53 – Most memorable meeting Brad has had in establishing IEX 

49:39 – How did he do this with young kids?

52:38 – Has the pool of potential profits that high-frequency trading firms can earn gone down

53:53 – What has Brad most excited about the future in terms of helping the buyside

55:17 – What was it like to see Brad’s venture get turned into a best-selling book. (Flash Boys: A Wall Street Revolt)

59:00 – Biggest thing that Brad has learned

1:00:56 – What would Brad do if he couldn’t work in the investing world.

1:02:25 - Kindest thing anyone has done for Brad       

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

This week’s episode is part of an experiment and so requires a longer than normal introduction. I’ve come to view this podcast as a learning tool, a means to understand a new topic in a short window of time. One of those areas is venture capital and startups—an area that one year ago was completely foreign to me. I think the best way to learn is aggressive immersion in a topic along with some consequences, what we often call some skin in the game. Accordingly, this is a conversation with the founder of a startup in which I am an investor.

The founder is Brett Maloley and his company is called Ladder. Ladder represents an overlap of many topics we’ve explore together over the last year. We’ve talked about venture capital, health and wellbeing, the difficultly of fundraising and power law outcomes in startups. We also spent an entire episode, with Alex Moazed, talking about the business model that Ladder is pursing: what Alex calls platform business model and what my favorite technology writer Ben Thompson calls the Aggregator model.

I hope you enjoy this collective experiment, which is largely the result of what I’ve learned from past guests and from all of your support which helps me meet those great people in the first place. Let’s dive in to my conversation with the founder of Ladder, Brett Maloley, who starts by describing how he got his start in the fitness world.

Show Notes

5:25 – (First question) – Brett describes his history in the fitness industry

10:04 – Realized he could fix the commercial fitness industry by changing it

12:46 – Explain how Ladder works

14:14 – What does the ratio of digital to in-person coaching need to be in order to be effective coaching

17:12 – Explaining the platform business model as a whole and how to scale these types of business

22:15 – Origin of health clubs

24:01 – Current state of the health fitness space through some key stats

26:44 – What happened where gyms were able to start charging a lot less for memberships

30:20 – How Ladder is going to attract customers in the beginning

36:10 – How to drive engagement

37:46 – The opportunity for coaches on the platform

40:28 – How will ladder ensure the quality of coaches on the platform remains high

42:41 – Exploring the value of the data

45:32 – How will Ladder work with gyms in the scope of how a new business can take advantage of existing businesses

48:58 – Comparing Ladder to crossfit and what is not sustainable about 

53:14 – Difference between a franchise model vs a license model

55:12 – Strategy for building an audience

59:56 – Competitors to this business

1:03:39 – Brett’s thoughts on brand broadly speaking and how he’s worked to shape Ladder’s brand

1:05:00 – Best individual experience of the platform so far 

This week’s conversation is about artificial intelligence and interplanetary travel. Its about content creation, thinking from first principles, and death progress units. Its about brain machine interfaces and why it is crucial that you be a chef and not a cook. 

My guest is Tim Urban, along with his business partner Andrew Finn. Tim is the most entertaining writer I’ve come across in years, who explains complicated and interesting topics to his millions of dedicated readers on the website “Wait, But Why.” As an example, Tim’s last post on Elon Musk’s neurlink venture is 40,000 words long, roughly the length of a short book. It explains almost all of human progress and our potential future using drawings and cartoons. Its impossible to stop reading.

While this conversation is wildly entertaining, it is also chock full of metaphors and lessons that will be useful to anyone doing creative work or building a company. I hope this leaves you as energized as it left me. I called this episode Grand Theft Life because that is the name that Tim and Andrew give to their worldview, which I think will change the way you behave, too. Please enjoy my conversation with Tim Urban.

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Superintelligence: Paths, Dangers, Strategies

Links Referenced

The Cook and the Chef: Musk’s Secret Sauce

Wait But Why

Neuralink and the Brain’s Magical Future

Wait But Hi

YouTube Channel  Kurzgesagt – In a Nutshell

Show Notes

1:50 – (First question) –  Explaining his concept of planets 1, 2, 3 and 4 and understanding the human colossus

5:46 – Tim’s favorite idea of the human knowledge compounding

7:52 – Die Progress Units (DPU)

9:45 – Different stages of AI and the positives and negatives of each stage

14;04 – What happens when AI gains breadth and general intelligence

16:23 – The idea of a cook vs a chef and how Tim had the chance to interview Elon Musk

17:48 – Why you should reason from first principles instead of reasoning by analogies

25:19 – Why it’s possible to turn a cook into a chef

30:08 – Why being a chef is the safer route in a world with AI and what Tim has changed in himself as to why.

31:22 – Looking at the discovery process

            34:39 – Superintelligence: Paths, Dangers, Strategies\

40:01 – Being the person who creates the metaphor vs being the people who simply using them

            43:41 – YouTube Channel  Kurzgesagt – In a Nutshell

44:54 – Most fun that Tim has had researching a topic

46:08 – Musk model for attaining your goals

53:43 – Why not caring what people think is one of the world’s best superpowers, grand theft life

56:50 – Neuralink – what is it and how did Tim come to research it

1:02:38 – Elon Musk’s concerns about AI

1:14:28 – What then if the Neuralink concept works out

1:18:02 – Kindest thing anyone has done for Tim

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

In episodes one and two of Hash Power, we explored blockchain technology and cryptocurrency investing. In this episode, we discuss the current and potential future states of the crypto world. We cover new forms of cooperation, regulation, security and storage, and why blockchains allow systems to evolve at such a rapid pace. 

Be sure to listen until the end, where we close with some advice about conducting ourselves in a new world where creativity reigns and repetitive jobs disappear—a trend that may only accelerate thanks to blockchain technology and cryptocurrencies.

Hash Power is presented by Fidelity Investments

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

0:05 – Intro to episode 3 and what to expect 

4:00 - Olaf Carlson-Wee, founder of Polychain, on how the funding and investing in cryptocurrencies could easily get out of hand 

5:00 – How people are creating holding companies to fund cryptocurrencies protocols 

6:45 – Decentralized Autonomous Organization (DAO) and how they will replace the aforementioned holding companies 

8:32 – Could fully decentralized organizations replace other more traditional organizational structures, even outside of crypto currency 

9:59 – How can DAO’s impact everyday lives 

12:39 – Why your skills and accomplishments will become more important than who you are or where you are from

            15:38 – Ready Player One: A Novel 

16:09 - Naval Ravikant, CEO of Angellist, on the way humans cooperate and build new entities 

17:51 – When people will demand oversight and regulation over crypto currency 

20:42 - Peter Van Valkenburg, Director of Research at Coincenter on the current state of regulation 

26:06 - Jameson Lopp on security needed to protect your cryptocurrency

            26:22 - Glacierprotocol.org 

27:51 - Ari Paul, co-founder of Blocktower, on how nail polish is used to protect their crypto wallet 

30:03 – Juan Benet explains the Filecoin Protocol 

35:52 - Muneeb Ali, co-founder of Blockstack, on how his team is plans to provide basic tools that will allow the broader developer community to build apps that the cryptocurrency population will use. 

38:01 - Comparing blockstack to the analogy of creating a city 

40:17 – How the blockstack token fits into everything 

43:15 – Fred Ehrsam, co-founder of Coinbase, on forking in blockchains 

47:52 – Naval Ravikant on how the idea of work will change in the future, and how that change helped to produce the idea of a blockchain in the first place. 

49:31 – Why curiosity should govern what you do in life

53:22 - Naval’s framework for making money

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

In episode 1 of Hash Power, we explored blockchains as a technology—how they work, why tokens (also known as cryptocurrencies) are an integral part of any blockchain, and how these new networks might change the world. In episode two, we spend time with the leading investors in the field. Like any frenzied asset class, there are countless cryptocurrency hedge funds popping up everywhere. But founders from three of the original firms—Polychain, Metastable, and Blocktower Capital—are our primary guides this week.

As I speak, the total market cap of cryptocurrencies is $136B. There are hundreds of tokens currently available, but bitcoin and Ethereum represent 75% of the total market cap. $136B sounds like a big number, but its tiny relative to any other asset class—and I use that term with hesitation. To put it in perspective, that’s exactly the same size as the market cap of IBM. But IBM had more than $10B of earnings in 2016. Tokens have none. As you will hear, valuing tokens is a very hard exercise.

In such a nascent world, we are seeing investing strategies take hold. Olaf Carlson-Wee, Josh Seims, and Ari Paul walk us through different takes on cryptocurrency investing, be it early stage, long term buy and hold, or more hedge fund style strategies.

Hash Power is presented by Fidelity Investments

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Links Referenced

Fat Protocols (Joel Monegro)

Show Notes

0:05 – Recap of part 1 and introduction to part 2 of Hash Power

2:58 – Ari Paul, CIO of Blocktower explains how he got involved in cryptocurrencies

5:23 – Why do we need bitcoin

7:23 – Polychain Capital founder Olaf Carlson-Wee on why the value of tokens accrue

9:23 – How main stream money is getting into this space

12:26- Useful comparisons when talking about ICOs when compared to IPOs

15:01 - Naval Ravikant, CEO of Angellist, is asked to explain the protocols of cryptocurrencies to platform businesses like Uber or Airbnb

17:43 – Naval’s interest in investing in cryptocurrencies

23:07 - Olaf Carlson Wee on the lifecycle of a token

24:02 – SAFT note, Simple Agreement for Future Tokens

25:31 – What is the earliest stage that edge is most present for investors in cryptocurrency protocols

28:12 – How do you mitigate the volatility that is present in blockchain

31:18 - Jeremiah Lowin, a risk and statistics expert, who runs risk management for a large private family office, talks about why he no longer owns cryptocurrencies

 34:19 - Jordan Cooper, a venture capital investor, is optimistic about blockchains in general, but thinks there may be some overvaluations in current currencies

37:02 – How Jordan would value a single cryptocurrency

42:10 – Fat Protocols (Joel Monegro)

43:52 - Josh Seims, of Metastable, the value investor in blockchain?

51:15 - Ari Paul on the equivalent of listed stocks in the crypto currency world

52:33 – Understanding the concept of a coin in blockchain and how people are getting access to them

55:07 – The fairground analogy to understand cryptocurrencies

57:57 – What lessons from traditional markets can you apply to investing in cryptocurrencies

1:06:51 – Ari is asked to discuss some of the alternative cryptocurrencies outside of Bitcoin and Ethereum. He starts with Ripple

1:10:27 – What would help firms or traders create edge in investing in cryptocurrencies

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

Welcome to the first episode of Hash Power, an audio documentary that explores the world of blockchain and cryptocurrencies with leaders in the field like Naval Ravikant, Olaf Carlson-Wee, Fred Ehrsam, & Ari Paul. Hash Power is meant to be an introduction, but really, it is an invitation to explore this emerging world on your own. 

In the coming weeks, we will cover the technology, the power of decentralization, bitcoin, Ethereum, ICOs, cryptography and hashing. We will spend time with the leading active hedge fund managers in the field, and with outside investors who are both optimistic and skeptical. Episode one covers the big picture, and answers the question: what is blockchain and why might it significantly affect our world?

If you enjoy what follows, you’ll still be very early in understanding this field. Most don’t. So help me spread it like wildfire, because the more people that understand blockchain, the better its impact might become. Please enjoy episode one, and stay tuned next week for episode 2, which explores investing in cryptocurrencies.

Hash Power is presented by Fidelity Investments

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

The Sovereign Individual: Mastering the Transition to the Information Age

Nostalgia for the Absolute

Links Referenced

Bitcoin: A Peer-to-Peer Electronic Cash System

Reddit User jav_rddt

SHA-256 Calculator

The BitCoin Model for Crowdfunding

Fat Protocols

#cryptotwitter

Show Notes

CHAPTER 1 – Understanding the Concept of Blockchain (3:25)

4:30 – Jeremiah Lowin explains how blockchain is like a database

5:14 – Bitcoin: A Peer-to-Peer Electronic Cash System

5:46 – Owning a digital asset

7:14 – Naval Ravikant, CEO of Angelist on how blockchains can help to create personal networks and organize humans

13:33 – New coins popping up around data storage and utility needs like solar panels

14:57 – Permission vs permissionless networks

18:13 – Keeping track of scarcity and the introduction of tokens

18:51 – The Sovereign Individual: Mastering the Transition to the Information Age

21:55 – The role of blockchains in the informational age and the rise of more individual sovereignty

23:29 - Fred Ehrsam, co-founder of Coinbase, on the increasing shift to digital worlds led by incentive structures

CHAPTER 2 – Blockchain Technology (27:48)

29:09 - Reddit User jav_rddt

30:43 - SHA-256 Calculator

31:53 - Charlie Noyes, Pantera Capital, explains how SHA-256 was developed and what make its so special

35:48 – How miners create new blocks and the incentives to do so

46:54 – Ethereum, the “spiritual successor” to bitcoin

48:36 – How the Ether network is an ecosystem in which other tokens can sit

50:51 - Naval Ravikant on alternative coins or tokens

50:50 - The BitCoin Model for Crowdfunding

52:35 – Fat Protocols

53:22 – Blockchain as an experiment in distributed government

54:47 – How cryptocurrency is more than just technology, it’s a movement

54:50 – Nostalgia for the Absolute

57:27 - #cryptotwitter

1:00:58 - Peter Jubber, of Fidelity, on how huge institutions, like theirs, are getting into the cryptocurrency game

1:05:21- Olaf Carlson-Wee, first employee at Coinbase and the founder of Polychain, on the early excitement for cryptocurrency

1:06:56– Closing thoughts from Patrick

Looking to work in this space - hashpowerdeveloper@gmail.com

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

My guest this week is David Tisch, who was instrumental in building and fostering venture capital investing in New York City. If you liked my conversation with Jerry Neumann--who, incidentally, introduced me to David--you are going to love this one. 

David was a co-founder at tech stars, New York's answer to Silicon Valley’s famous tech incubator Y Combinator. He now runs the Box Group, a prominent seed stage venture capital firm, which has looked at thousands of startups and invested in more than 200. 

We explore tech investing outside of Silicon Valley, the tech accelerator model, the evolution of early stage investing, and why the best companies may start coming out of non-traditional venture hubs. 

David does a great job of explaining how things have changed for technology startups and why certain strategies--especially those for acquiring customers--won't work nearly as well in the future. 

I learned a lot during this hour, and I think you will too. Please enjoy. 

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

2:16 – (First question) – Looking at David’s motivation and role in building up the venture capital tech investment scene in New York

6:14 – What David did to further the mission of fostering tech startups in New York, namely his work with TechStars

10:11 – What is Y Combinator and how does that differ from Tech Stars

13:02 – What is the procedure for getting into a startup incubator  

17:08 – Most memorable applications

19:12 – What is the boot camp/incubator experience like

20:34 – What should future incubators be focused on to help develop the right ideas

23:46 – What aspects of the business should a start up be focused on in the beginning

26:46 – What got David interested in investing

28:47 – The challenges of launching new tech today and the colonization of identity

32:04 – Exploring David’s investing strategy

35:45 – Finding the consumer facing companies that can scale and provide a return for venture capitalists

38:03 – The problem of scaling up for start ups

39:20 – What business models does David prefer when making venture investments

40:53 – What’s important to look at when investing in other sectors, starting with Fintech

44:41 – Where does David think we are in the venture capital cycle

49:37 – How much does the exit strategy play into the initial seed investment

50:18 – David’s thinking on the portfolio of companies when picking an investment

52:48 – David’s biggest sin of omission

53:56 – Common personality traits among potential founders

55:24 – Is storytelling relevant for startups focused on the enterprise side of the business

56:07 – David’s story to convince founders to work with him

57:51 – biggest mistakes that David has seen

1:01:47 – What does it mean for our health that are time has become completely consumed by technology

1:03:58 – What trend has David most excited looking forward

1:06:44 – Kindest thing anyone has done for David

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

The investment strategy discussed in this week's episode is diametrically opposed to my own value tendencies, but it still one that has done exceptionally well.  

My guest is David Gardner, co-founder of the Motley Fool. He is unique in that he is both a pure investor--a true stock junkie--and an entrepreneur. His energy is remarkable. His positive vibes are something to behold. You'll hear it over audio, but it's ever more palpable in person. 

Our conversation is about finding companies which are breaking rules in the right way and reshaping industries. David's goal is to find these companies early in and hold them forever. 

If you love investing, you are going to love this regardless of your prior beliefs. Please enjoy my conversation with David Gardner on rule breakers.

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

The New Penguin Dictionary of Modern Quotations

Moneyball: The Art of Winning an Unfair Game

The Motley Fool Investment Guide: How The Fool Beats Wall Street's Wise Men And How You Can Too

The Wisdom of Crowds

The Motley Fools Rule Breakers Rule Makers : The Foolish Guide To Picking Stocks

Links Referenced

Totally Absorbed

FANG stocks

Henry Cloud (author)

“I had a lover’s quarrel with the world” by Robert Frost

As You Like it (Shakespeare)

Invest Like the Best episod with Morgan Housel

Don't Be a Dip: The 1 Thing You Need to Know About Buying on Dips

Board Game Agricola

Boardgamegeek.com

Show Notes

2:03 – (First question) – Among the experiments that David has run in his podcast, which one has he enjoyed the most

3:42 – A deep dive into the rule breaker mentality that David uses

4:39 -  The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)

7:22 – What helps you to not sell a rule breaker amid big drawdowns.

7:33 – Totally Absorbed

8:32 – FANG stocks

12:25 – List of criteria in picking rule breaker stocks…starting with top dogs and first movers

19:34 – Second criteria…visionary leadership and the traits David looks for in a leader

22:02 – Henry Cloud (author)

22:58 – “I had a lover’s quarrel with the world” by Robert Frost

26:16 – Third criteria – competitive advantage and moats

32:47 – The New Penguin Dictionary of Modern Quotations

32:49 – As You Like it (Shakespeare)

40:36 – Moneyball: The Art of Winning an Unfair Game

41:31 – The Motley Fool Investment Guide: How The Fool Beats Wall Street's Wise Men And How You Can Too

42:43 – Invest Like the Best episod with Morgan Housel

42:45 – The Wisdom of Crowds

43:33 – Back to criteria, the fourth one, price momentum

45:47 – Don't Be a Dip: The 1 Thing You Need to Know About Buying on Dips

50:03 – Last criteria, something being overvalued and weigh that against the idea of whether a product or service is important based on whether people would miss it

52:10 – The Motley Fools Rule Breakers Rule Makers : The Foolish Guide To Picking Stocks

1:01:21 – Looking at David’s process for finding a stock and analyzing it

1:07:38 – The importance of taking these criteria in concert and how you can see the power of overvaluation

1:10:39 - Board Game Agricola

1:10:54 – Boardgamegeek.com

1:14:38 – Kindest thing anyone has done for David

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

My guest this week is Meb Faber, who started a podcast similar to this one right before mine and was a big reason I was open to the idea in the first place. Meb is a quantitative researcher whose firm Cambria has been behind many interesting investment strategies that break the Wall Street mold. We talk investing factors, dividends, angel investing, podcasts and more. This was a fun catch up with a close friend in the industry who has been in a leader in using data to explore the best active strategies in a variety of asset classes. Please enjoy our conversation, which begins with a factor draft.

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Dr. Tatiana's Sex Advice to All Creation: The Definitive Guide to the Evolutionary Biology of Sex

Links Referenced

Update on the Valuation Metric Horserace: 2011-2015

Jason Calacanis on Meb Faber Show

Brent BeShore episode of Invest Like the Best

Team Ritholtz episode of Invest Like the Best

Show Notes

1:55 – (First question) – Drafting quant factors

            4:10 – Update on the Valuation Metric Horserace: 2011-2015

10:25 – Most interesting thing Meb’s learned over the past year       

            14:05 – Jason Calacanis on Meb Faber Show

            14:49 – Brent BeShore episode of Invest Like the Best

16:10 – What is Meb’s process for investing in private companies

18:35 – What part of the fintech landscape would Meb be most excited about

26:50 – What has been working well on the business front for Meb

30:34 – Looking at investor behavior and changing fee structures

35:54 – What has Meb enjoyed most about doing a podcast

            36:26 – Team Ritholtz episode of Invest Like the Best

40:55 – A list of guests that meb would like to have on

            41:27 – Dr. Tatiana's Sex Advice to All Creation: The Definitive Guide to the Evolutionary Biology of Sex

43:19 – If Meb couldn’t work in this business, what would he do

45:02 – Same question for Patrick

47:28 – Kindest thing anyone has done for Meb

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

My guests this week don't need to be introduced. In celebration of the one year anniversary of invest like the best, I asked Josh Brown, Mike Batnick, and Barry Ritholtz to join me for a hour, during which I spent more time laughing than asking questions.

I chose this team because they are the pioneers of mold breaking honesty and personality in our industry. They all figured out that just being themselves yields incredible results. This is a strategy that everyone should try, but very few do. Honesty and transparency require vulnerability, which is hard for most of us. I still struggle with it. But the evidence is in. The Ritholtz team has grown as fast as almost any RIA. Listen to this and tell me you wouldn't want to spend your career working with people this friendly, funny and open. Hell, I want to give them some money just so I have an excuse to drop by more often. 

Thanks to everyone who has listened in the past year. We are past 1.25mm listens, and growing fast. You own this thing as much as I do, because the size helps me penetrate deeper and get the best people, which begets more listeners. This podcast is one hell of a discovery machine, and the first year was our warm up. We have a ton of new angles, formats, and events coming in year two. Stay tuned. But first, time to laugh in celebration of year one. Please enjoy my conversation with team Ritholtz

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Links Referenced

Barry @ritholtz on twitter

a16z Podcast

Scott Galloway and Aswath Damodaran on Bitcoin vs Gold

Latest 'These Are the Goods' post

Show Notes

2:35 – (First question) – What stock best represents you 

5:09 – How was this team assembled at Ritholtz 

8:50 – Why larger asset management firms are slow to pivot on new technology 

10:00 – The humor of Barry @ritholtz on twitter 

11:48 – What technology channels are working best

13:08 – What would happen in a Ritholtz stock picking contest

15:19 – How do you keep investors from wanting to move money into or out of buzzworthy trades

20:23 – Pricing out the news and the value premium

23:41 – Why people want complexity and activity in their portfolios

29:51 – People always want to be a part of the next frontier, example bitcoin

            31:08 – a16z Podcast

33:13 – Exploring research in action and living the investments

39:35 – Biggest argument against bitcoin could be the underlying utility and what will make it successful

45:13 – The Hindenburg Omen

            46:34 - Scott Galloway and Aswath Damodaran on Bitcoin vs Gold

47:38 – How the relationship with clients has evolved

49:50 – Mike’s new book project that he is working on

51:41 – Why the Mark Twain chapter is the most interesting in his book thus far

53:32 – How a business should balance sales and marketing

58:09 – Who would they draft to the Ritholtz team

            58:22 – Latest These Are the Goods post

1:05:18 – Kindest thing anyone has done

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

My guest this week is Pat Dorsey, who was the longtime director of equity research at Morningstar, where he specialized in economic moats: sources of sustained competitive advantage that allow a few companies to deliver huge returns over time. Several years ago he left Morningstar to form his own asset management firm, Dorsey asset management, and build a portfolio of companies with wide moats like those he studied at Morningstar. And while moats are critical, equally important is how companies allocate the capital generated--or made possible--by the existence of the moat.  

A special thank you to Brian Bares who introduced me to Pat, and to Will Thorndike--an earlier guest on the show. In the vast majority of conversations you hear on this show, I'm meeting the guest for the first time. I mention this to encourage you to connect me with anyone whose story or way of looking at the world might resonate. Always feel free to contact me with ideas.  

Pat and I begin our discussion with the key differences between the sell side and the buy side, and then discuss all aspects of moats and capital allocation. 

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

2:23 – (First question) – Transition from the sell side to the buy side and the biggest surprise 

3:40 – What is a moat 

5:16 – What part of the stock market universe has a moat 

6:57 – Pat’s framework for identifying moat, starting with intangibles 

8:32 – The power of brands 

9:44 – what chance does an upstart have to come in and usurp a well-established brand   

12:24 – Switching costs as part of the framework for identifying a moat 

14:55 – The third component of identifying a moat, network effects, and what businesses should do to effectively build one 

17:29 – Last component, cost advantages/economies of scale 

19:29 – How do you analyze these four components into an investing framework that can be built into an actual strategy 

21:13 – How does Pat think about this from a mis-pricing standpoint 

23:37  – How does Pat incorporate current price of a company in consideration for future returns when pricing a moat 

25:39 – How should a company with a moat operate to protect that characteristic, especially when it comes to their capital allocation 

26:51 – Which characteristic of a moat does Pat find most intriguing 

30:35 – What makes for good and smart capital allocation 

35:58 – What is Pat’s process for identifying the best investment opportunities 

38:38 – What are good economics when looking at a company 

41:03 – If Pat could take any business, but have to swap leadership, what would he choose. 

44:13 – Back to his process of finding investment opportunities 

46:05 – Kindest thing anyone has ever done for Pat

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

My guests this week are both veterans of the podcast, Jason Zweig and Morgan Housel. They are two of the best in the world at making the complicated simple, and in that spirit, I’ll keep this introduction short. Morgan shifted from public markets to the private markets a year ago when he joined the Collaborative Fund, so we begin with what he has learned about venture capital in his first year on the job.

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

The Devil's Financial Dictionary

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

Thinking, Fast and Slow

Shoe Dog: A Memoir by the Creator of Nike

Life and Fate

Online References

A Rediscovered Masterpiece by Benjamin Graham

Rishi Ganti podcast

Small Companies Are Gone, But Should they Be Forgotten (Zweig Column)

Show Notes

1:43 – (First question) – Morgan on why he got disenchanted with the investment industry and shifted to venture capital

4:05 – Jason’s thoughts about investing in the private markets

            5:19 - A Rediscovered Masterpiece by Benjamin Graham

7:57 – Morgan’s thoughts on how private market investments differ from public market investments

10:24 – Exploring valuations of businesses and what they say about broader trends in the market

13:21 – How much does Jason think about individual companies when exploring the overall market trends

            18:41 – The Devil's Financial Dictionary

19:28 –What does it take to be a successful founder

23:40 – How does Jason look at activities that are work related vs just for pleasure

25:33 – If Jason had to start a business, what would he do

27:22 – What business would Morgan start

29:18 – Problems with the financial planning industry

30:56 -  The role of stress in personal and business development

            31:04 – Modern Monopolies: What It Takes to Dominate the 21st Century Economy

38:17 – Are there signs that let you know when to cut and run vs when to keep slogging along with something

            42:02 – Thinking, Fast and Slow

            44:03 – Shoe Dog: A Memoir by the Creator of Nike

44:20 – Principals to approach learning

50:10 – The idea of keeping your identity small in a world where social media encourages one-upmanship

53:56 – Last significant thing Morgan changed his mind about

55:23 – Why Morgan chooses passive investing with stocks, but as a VC, essentially is a stock picker in private markets

            1:00:44 – Rishi Ganti podcast

1:02:14 – What major thing did Jason change his mind about

            1:02:30 – Small Companies Are Gone, But Should they Be Forgotten (Zweig Column)

1:06:33 – What was the most interesting idea Jason and Morgan have been tackling and what data helped to spark that interest

            1:09:32 – Life and Fate

This week's conversation is about performance. More specifically, it is about the ins and outs of steady progress and growth. My guest is Brad Stulberg who coauthored the book Peak Performance, which combines research from many fields into a description of how athletes, creatives and others continue to push boundaries in their respective crafts.

As someone who is intermittently lazy, the growth equation framework that Brad and I explore has impacted me often since I first read the book several months ago. I hope you enjoy this conversation, which isn't about investing, but which is, at its heart, still about the power of compounding. 

Books Referenced

Outliers: The Story of Success

Peak: Secrets from the New Science of Expertise

Online References

Jool Health

Show Notes

1:32 – (First question) – How Vick Stretcher influenced the book, Peak Performance

4:32 – Looking at some of the preliminary research at the science of purpose

7:58 – The idea of a growth equation and the components that can lead to success

11:47 – How the introduction of stress can help in all sorts of creative and entrepreneurial pursuits.

13:39 – The ratio between physical and mental as an impact on this formula

14:56 – Just manageable challenges and the role that they play in the growth equation

18:06 – The idea of just manageable challenges through the example of an athlete

22:19 – Favorite example of a crazy feat of physical performance, stress on older athletes operating at high levels

23:30 – Thoughts about outside influences like mentors/coaches and how they help high performance individuals advance

25:51 – Describe catabolic and anabolic states and why anabolic is so important

29:13 – How the relationship of catabolic and anabolic states also helps the mind

30:47 – How does the idea of practice play into the growth equation

32:49 – Exploring the nuances of practice and why you don’t go all out

            32:56 – Outliers: The Story of Success

33:00 - Peak: Secrets from the New Science of Expertise

34:24 – The idea of designing of a day

42:06 – What role can environment play on us

43:40 – How far is it healthy to run

46:25 – How does ego play into all of this

48:06 – The idea of camaraderie and study of Air Force Cadets highlighting this

49:28 – Fatigue and why it is believed to happen in the mind and not the body

54:00 – Most memorable day

55:43 - Method for finding purpose

            56:29 – Jool Health

58:26 – Kindest thing anyone has ever done for Brad

Learn More

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

Several weeks ago my conversation with Leigh Drogen on quant investing proved timely and popular--because everyone in asset management is facing the rise of big data, and the use of data science in investing strategies. Because of the rise of quants, many are asking themselves how to survive and thrive in a changing industry. In short, how can traditional managers compete with quants?

This second conversation with Leigh was set up to answer many of the questions posed in the first one. If quants are taking over, what should other investors do about it?

Leigh proposes a method by which old school asset managers can restructure their thinking and their process to compete with and even beat purely quantitative competitors. The method involves pulling the best from both worlds and combining them into a hybrid structure. But it will be impossible without a wholesale change in mindset, which is where we begin. Please enjoy round two with Leigh Drogen.

Links Referenced

Revenge of the Humans Part II: A New Blueprint For Discretionary Management

Show Notes

2:14 – (First question) –  What role will ego and mindset play for traditional hedge funds looking to transition into quantitative investing strategies

4:21 – Describes the traditional process that hedge funds use to make investment decisions and how the internal politics can hamper it

6:08 – What value has portfolio managers played at hedge funds traditionally as the quarterback of a fund

9:57 – A look at what Leigh has seen as he sits with teams

12:20 – A look at places that have tried to simply add quant to their firm’s strategies without “tearing it down to the studs” and properly integrating them into the process

15:00 – Leigh is asked to define the basics of a good investment firm’s strategies

16:57 – Strategies for writing down core beliefs, whether it’s for yourself or your firm

17:49 – Exploring the second step, finding a differentiating view and how to succeed with it.

21:43 – The importance of force ranking and structuring the unstructured

26:14 – Building factor models

29:42 – How the portfolio manager position should have less room for subjectivity than at the analyst level

33:44 – Is anyone integrating this kind of high level data at the portfolio manager level into the decision making the way Leigh describes

35:07 – What blind spots are created by systematizing their processes

36:18 – Why much of this applies more to shorter and structured periods

38:23 – Shifting to portfolio constructions and what Leigh would do to create the right mix

43:39 – Shifting to management structures in these firms starting with the role of the CIO

45:24 – Looking at the different quant roles that exist in a firm and what they should be responsible for; data engineers, data analysts, pure quants, and quantitative engineer

48:20 – If you are an undergrad or grad student right now interested in asset management, what are the roles you should be thinking about targeting

49:25 – Why communication skills are still so important, no matter what role you are in

50:25 – With all of the tools and skills that Leigh has at his disposal at Estimize, why not institute an active strategy

52:01 – What has Leigh observed in the dispersion of skill in the Estimized data set

53:47 – What is the relationship between specialization and accuracy among funds

55:29 – The pros and cons of the generalist

56:56 – A look at Leigh’s background into War Theory and what lessons that he still draws on today

1:00:19 – How the field of study around war and battle relates to the investing world

Learn More

For more episodes go to InvestorFieldGuide.com/podcast. 

For complete shownotes, go to InvestorFieldGuide.com/leigh. 

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

My guest this week is a version of me—a funnier, cooler version who has a PhD and served as an active duty marine. Lots of you will already be familiar with Wes Gray, and those of you who are not are in for a treat. Wes is the founder of Alpha Architect, a firm which manages quantitative equity strategies for clients using factors like value and momentum. He also advocates for a more concentrated, pure approach to factor investing, which listeners know is music to my ears.

While we share a lot of the same views on markets and investing, you will still find this refreshing. The conversation was easy to structure--I just took all the questions clients and prospective investors always ask of me and my firm, and turned them on Wes. These range from very specific questions on quant investing to big existential ones. I listened to this on a long drive home and laughed out loud in the car at least 5 times. You are going to love it all.

I close this introduction by offering you an opportunity which is not for the faint of heart. On September 16th, I will be joining Wes and his crew on a 28-mile trek called “March for the Fallen” which is a small but important way of honoring those who have given their lives in service of our country. Wes and I invite you to join as well. If you are interested, check out the post on Wes’s site with all the details. I will link to it in the shownotes at investorfieldguide.com/wes. If you are still interested, then email me with the subject heading “March for the Fallen.” I told you Wes is a much cooler version of me, and true to form he will be doing the hike with a 40-pound rucksack. I will be doing the version without a rucksack. Either way, it will be a day of comradery and remembrance that we won’t soon forget. Join us.

Books Referenced

The Devil Dogs at Belleau Wood: U.S. Marines in World War I

Thinking, Fast and Slow

Online References

The Limits of Arbitrage

Show Notes

3:07 – (First question) – Exploring the mindset that is ingrained into Marines

3:16 – The Devil Dogs at Belleau Wood: U.S. Marines in World War I

5:27 – Most memorable experience growing up in the mountains of Colorado

6:29 – What experiences in the military have transferred to what Wes sees in the public markets

6:48 – Thinking, Fast and Slow

7:51 – Wes’s first foray into stocks

10:51 – What was the transition into the quantitative investing space

12:29 – How Wes would describe quantitative investing and what the landscape looks like today

17:10 – What is the nature of the strategies Wes uses, like high-frequency and market-making, and what makes them stand out in those

20:57 – What about the human capital arms race in this space and how different firms are attracting the top talent

23:21 – What the approach is for Wes and what his research suggests is the best predictor of performance in stocks

25:36 – Wes’s approach to portfolio construction

33:19 – What is the thinking behind the number of and the size of names in the QVAL ETF

36:20 – Why the data suggests momentum is the better pick

37:36 – Why price-to-book sucks relative to other value factors

39:55 – What things worry Wes about the future of this strategy

44:39 – How does Wes think about research and what to explore next.

50:05 – Who would Wes have manage his money since he thinks Vanguard is not the best choice

57:01 – Exploring his firm Alpha Architect, how it started and has evolved since launch

57:39 – The Limits of Arbitrage

1:08:15 – How the influx of people to passive investments are impacting the overall market, especially for active investment strategies

1:13:13 – Wes’s most memorable day of his career both in the military and as an investor

1:17:19– Kindest thing anyone has ever done for Wes

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

My guest this week is Rishi Ganti, who invests in what he calls esoteric assets. I'm not sure what to do other than laugh in amazement at his professional credentials -- PhD in economics, CFA, CPA, lawyer, speaks six languages, and so on. The best part is he isn't lording those over anyone and in fact casts some shade on the whole idea of credentials in our conversation. He just did it all because he's a learning fiend.

Rishi's core idea about markets is this: avoid markets at all costs. As he explains off the bat, the minute there are multiple buyers for anything, prices get efficient very quickly and there opportunity to find alpha shrinks. Instead he searches for what esoteric assets: things without a market, orphaned assets that require high human capital and human touch. We explore several interesting examples, from charter school financing to

A stark realization I had during he episode is how big the worlds asset base is. Almost all of our attention goes to the most highly refined ones: stocks and bonds. But there is a whole other world out there.

The closing sections, on what Rishi would do if not investing, and his answer for the kindest thing anyone has done for him were among the best answers I've heard.

Show Notes

3:30 – (First question) – Rishi’s broad take on markets and whether or not he really likes them

5:30 – Defining esoteric markets

8:31 – Looking at the mountain of assets that are most impacted or made most efficient by markets and how Rishi describes each level of that pyramid

12:28 – Looking at an esoteric asset at the early part of Rishi’s career

16:23 – Why is there little competition in these types of investment opportunities

23:06 – How they created a market and turned an esoteric asset into a return opportunity, starting with the charter school funding example

31:54 – Looking at how this is done internationally

38:55 – What they consider a platform

41:08 – How they are able to provide their service and skirt the government, legally

44:18 – A simplified explanation of what Orthogon does

50:30 – What are the main reasons people don’t want to go down this road since it seems like an obvious choice

59:00 – Looking at the most memorable experiences in esoteric investing

1:01:10 – What value has Rishi found in his extensive education, credentials, and certifications

1:07:31 – Another topic that Rishi finds interesting and he’d want to lecture on if he could other than investing.

1:09:48 – What is the right formula and types of goals you should consider in planning your life

1:14:39 – Kindest thing anyone has done for Rishi

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

I am drawn to a group of investors that I call practitioner philosophers. These are people who have gotten their hands dirty in their respective fields, but despite being doers, they still often sit back and ponder the big questions in business and life.

My guest this week is one such practitioner philosopher, NYC based venture capitalist Jerry Neumann. I came across Jerry's essays a year ago, and he is on a very short list of writers whose work I read without fail and almost always more than once.

You can think about this conversation on business, investing, and venture capital as a big funnel. We start very broad, discussing where we may be in a large 70-year economic cycle. We then break down the so-called power law which seems to govern venture capital returns and business outcomes. Then we get even more specific, discussing Jerry's process for evaluating early stage companies, and the particulars of what might make a good venture capitalist. I say "might" because as Jerry explains often, nothing is certain, and luck may always play a huge role.

I just loved this conversation. It is the type that without the podcast as an excuse would be a very odd and intense one if I were just meeting someone for the first time. You'll find no small talk or even medium talk here. This is a meaty discussion with one of the smartest and most straightforward people I've come across.

Books Referenced

Carlotta’s Perez - Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages

Thomas Hughes – Networks of Power: Electrification in the Western Society, 1880 – 1930

Frank Knight – Risk, Uncertainty, and Profit

Jeffrey West - Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life in Organisms, Cities, Economies, and Companies

Links Referenced

Deployment Age

Oswald Spangler

About Men; Corporate Man

Howard Mark’s 2x2 matrix of superior investment results

Michael E. Porter - How Competitive Forces Shape Strategy

DJ Teece: Profiting from Technological Innovation

Porter’s Five Forces

Show Notes

3:27 – (First question) – Start with Jerry’s essay the Deployment Age and a look at what it means for where we sit today (looking forward as investors)?

3:40 - Deployment Age

4:26 - Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages

9:28 – What time in history can you compare our current deployment age to and what does that say about the next 10, 20, and 30 years?

9:40 – Oswald Spangler

11:09 – About Men; Corporate Man

18:06 - Networks of Power: Electrification in the Western Society, 1880 – 1930

20:40 - What lessons should venture capitalists make from these deployment age cycles

25:27 - Risk, Uncertainty, and Profit

26:50 – Howard Mark’s 2x2 matrix of superior investment results

32:56 – Nassim Taleb: Powerlaw

42:31 – Venture Follow-on and the Kelly Criterion (Jerry's Blog)

44:34 - How have you have actually done this, Jerry? What is your process like and your focuses?

54:00 – Are there any circumstances where it is wise for friends and family to make venture investments?

59:20 - What is this idea of who profits from innovations?

56:12 - DJ Teece: Profiting from Technological Innovation

1:02:57 – Understanding complimentary assets

1:05:06 - Porter’s Five Forces

1:09:24 - Are Augmented and Virtual Reality interesting areas for venture capital and why?

1:15:28– What makes a successful venture capitalist? What makes you special?

1:26:03 – Kindest thing anyone has ever done for Jerry

Learn More

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

For more episodes go to InvestorFieldGuide.com/podcast.

To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.

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

A future guest just told me, every band has a song about being in a band, so today I give you my version. I won’t do this often, and only do it this week in case listenership drops due to the holiday—I didn’t want any guest to have a smaller than normal audience. I have now been doing this for almost one year, and have learned a tremendous amount. Since the whole idea behind the show is to learn in public, I am going to share a few of the lessons I’ve learned with you today. I’ll shape it as a top ten list, which ends with a fun story about my recent dinner with Warren Buffett. You’ll notice that many of these are just good business and life lessons applied to something specific: a podcast. I hope you can pull the essence of one or more of these and change how you do things, especially if you create any sort of content as part of your job.