Chris Davis - A Multifaceted Perspective on Financial Services
Release Date: 10/01/2021
Phil Ruvinsky - Sustainable Competitive Advantages in Technology
Value Investing with Legends
In this episode, Michael Mauboussin, adjunct professor at Columbia Business School, hosts Phil Ruvinsky, Managing Director and Head of the Fundamental U.S. Growth Team at BlackRock. With extensive experience in the investment industry, Phil shares his journey from law to finance, discusses his investment philosophy, and explains the importance of sustainable competitive advantages. The conversation explores the evaluation of management, the impact of AI on the competitive landscape, and the nuances of portfolio construction. Phil also highlights the role of macroeconomic factors and regulatory...
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Anu Bradford - EU Influence, Big Tech Challenges, and the Future of Digital Governance
Value Investing with Legends
In this episode, hosts Tano Santos and Michael Mauboussin speak with Anu Bradford, the Henry L. Moses Professor of Law and International Organization at Columbia Law School, to discuss the intricate dynamics of global technology regulation. Anu is recognized for her deep expertise in international economic law. Her pivotal books "The Brussels Effect" and "Digital Empires" explore how significant regions like the US, EU, and China shape technological standards worldwide. The conversation probes the complexities of regulating big tech companies across different legal and political landscapes,...
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Jonathan Knee - The Platform Delusion and the Intricacies of Digital and Analog Platforms
Value Investing with Legends
In today's discussion, Jonathan Knee, a distinguished advisor at Evercore Partners and Professor of Professional Practice of Media and Technology at Columbia Business School, explores the themes of his influential work, "The Platform Delusion." Jonathan's insights stem from a rich career in both the banking and academic sectors, bringing a nuanced perspective on digital versus analog platforms, competitive strategies, and the evolving landscape of technological advancements. The conversation uncovers the myths surrounding platform businesses and their impact on the economic principles that...
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James Bessen - Understanding the Tech Paradigm
Value Investing with Legends
In the third episode of Season 10, hosts Tano Santos and Michael Mauboussin speak with James Bessen, Executive Director of the Technology and Policy Research Initiative at Boston University. Delving into the intricacies of technological advancement and market dynamics, Bessen shares his insights on the evolving landscape of competition and innovation. The discussion highlights the impact of proprietary software on industry disruption, exploring the significant shift from mass production to mass customization facilitated by technology. This episode not only provides a deep dive into the...
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Jan Hummel - Deep Diligence at Paradigm Capital
Value Investing with Legends
In this episode, Tano Santos sits down with Jan Hummel, CIO of Paradigm Capital, revisiting his investment strategies and exploring the nuanced dimensions of risk management in the evolving European asset landscape. Jan discusses the foundational investment philosophy of Paradigm Capital, emphasizing risk minimization and the strategic deployment of assets across Europe. Key discussions pivot around the firm's selective investment criteria, focusing on companies in the small to mid-cap space and the significance of geographical and cultural nuances in their investment decisions. This...
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Todd Combs - Charlie Munger's Legacy
Value Investing with Legends
In this heartfelt episode, we pay tribute to Charlie Munger, the visionary vice chairman of Berkshire Hathaway who recently passed away. Joining us is Todd Combs, an investment officer at Berkshire Hathaway and a close acquaintance of Munger. Todd shares personal anecdotes and insights into Munger's profound influence on the investment world and his unique approach to life and business. From his early meetings with Munger to the invaluable lessons on value investing and rational thinking, Todd provides an intimate look into the wisdom of one of the greatest investors of our time. ...
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Kim Lew - The Dynamics of Risk Management and Asset Allocation
Value Investing with Legends
Today's discussion with Kim Lew, President and CEO of the Columbia Investment Management Company, traverses her unique journey from her roots in the Bronx to managing a prominent Ivy League endowment. Kim shares her insights on navigating the intricate world of investment management, particularly in risk management and asset allocation. With a career marked by pivotal roles at entities like the Ford Foundation and Carnegie Corporation, her expertise brings a nuanced understanding of the interplay between market dynamics and organizational strategy. This episode explores how adaptability,...
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John Armitage - Navigating Macroeconomic Shifts
Value Investing with Legends
In the complex world of financial markets and economic fluctuations, John Armitage, a seasoned investment maestro, sits down with us today. As the chief strategist behind the success of Egerton Capital, Armitage brings his profound insights into navigating the complexities of portfolio management and the subtle art of risk-taking in fluctuating markets. His expertise, honed through years of experience, sheds light on the critical impact of macroeconomic shifts and the pitfalls that stock pickers often encounter amidst outdated corporate data. This episode delves into passive investing,...
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Nicolai Tangen - Decision-Making and Intuition in Investing
Value Investing with Legends
In the intricate dance of market movements and economic trends, it takes a discerning eye to discern patterns and make strategic decisions. Enter Nicolai Tangen, the astute CEO of Norges Bank Investment Management, who joins hosts Michael Mauboussin and Tano Santos on Value Investing with Legends. A connoisseur of art history and asset management, Nicolai offers a rare blend of expertise, drawing parallels between the seemingly disparate worlds of art and investment. His approach, marked by a blend of rigorous analysis and intuitive pattern recognition, reveals the underpinnings of a global...
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John Rogers - The Power of Patience
Value Investing with Legends
John Rogers isn't just a successful investor; he's an industry titan. As the founder of a reputable investment firm, he's made a name for himself with his contrarian value investing strategies. But he's not just a practitioner; he's an educator, avidly reading and contributing to seminal works in investment literature. John’s journey began with an early fascination for finance from his youthful days. A Princeton alumnus, he entered the turbulent waters of the stock market and turned a calamity—the infamous crash of 1987—into a career-defining opportunity. In today's episode, John joins...
info_outlineA year and a half into the pandemic, a lot has changed in the investment landscape.
Individual investors have been empowered, economies reacted in unpredictable ways, and we still have no clear idea of what is to come. At the same time, when we take a retrospective look, we can find parallels between the trends, behaviors, and reactions of today and events in the past. Today we’re joined by one of the great conversationalists in the community, Chris Davis, to share his perspective on investing in a time of COVID and his outlook for the future.
Chris Davis is the Chairman of Davis Advisors, where he oversees approximately $30 billion of client assets for both individuals and institutions worldwide. Chris joined Davis Advisors in 1989 as a financial analyst and has been a portfolio manager of the firm's flagship fund, the Davis New York Venture Fund since 1995. That fund has a very long history, having been founded more than a half-century ago. An investment of $10,000 at the fund’s inception would be worth $3.6 million as of June 30, 2021, versus 1.9 million for the S&P 500. Chris studied Moral Philosophy and Practical Theology at the University of St. Andrews in Scotland and is on the board of directors at the Coca Cola Company and Graham Holdings.
In this episode, Chris, Tano, and I discuss how the pandemic compares to past crises, Davis Advisors’ approach to triage as we entered the pandemic, why the banking industry offers more certainty to investors than other financials, the impact of low interest rates, the advantages US companies hold have over European companies, and so much more!
Key Topics:
- The two types of crises Chris has seen over his career (1:53)
- COVID in the context of past crises (3:48)
- Davis Advisors’ approach to analyzing the long-term impact of COVID (7:48)
- How Davis assessed key companies and industries as we entered the pandemic (9:38)
- Structural changes in the banking industry in the past decade (13:39)
- Why investments in banking come with a higher degree of certainty (15:18)
- The inherent uncertainty associated with insurers (17:21)
- Long-term dangers of the aggressive consumer bailout (19:36)
- How Chris saw history repeating itself in the past year (21:30)
- The biggest change in market structure (23:13)
- What active managers need to understand about dispersion (26:05)
- Factors that feed dispersion between Europe and the US (30:10)
- How Chris views his European investments (33:31)
- Two components of valuing a business (37:04)
- Amazon as a modern-day Standard Oil (39:14)
- Why successor CEOs should focus on preservation and protection (43:04)
- The impact of low interest rates (46:24)
- How banks have performed in the face of a significant headwind (49:03)
- The high adaptability shown by banks (50:36)
- Key differences between US and international banks (53:11)
- The numerous disruptors that the banking system has absorbed (56:16)
- How inertia and regulation protect banks from disruption (58:41)
- Chris’ thoughts on the growth of the payments industry (1:00:27)
- Viewing Bitcoin as a digital version of gold (1:04:29)
- Why Chris’ opinion on Bitcoin has shifted (1:07:35)
- Chris’ big takeaway from 2020/2021 (1:10:08)
- The impact of China becoming the largest consumer economy (1:11:15)
- Why state and federal government finances keep Chris up at night (1:13:16)
- Chris’ top book recommendations (1:15:10)
- And much more!
Mentioned in this Episode:
- Davis Advisors
- Davis New York Venture Fund
- Walter Isaacson’s Book | The Code Breaker: Jennifer Doudna, Gene Editing, and the Future of the Human Race
- Morgan Housel’s Book | The Psychology of Money
- John Tierney & Roy F. Baumeister’s Book | The Power of Bad: How the Negativity Effect Rules Us and How We Can Rule It
- Benjamin Labatut’s Book | When We Cease to Understand the World
Thanks for Listening!
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