Sheldon Stone - Liquidity, Covenants, and Capital Availability
Release Date: 10/27/2023
Ricky Sandler - Investing Through Perception Shifts and Market Cycles
Value Investing with Legends
Ricky Sandler, founder, CEO, and CIO of Eminence Capital, joins hosts Michael Mauboussin and Tano Santos to explore a dynamic career spanning over three decades in long-short investing. Starting with stories from his upbringing and early career, Ricky unpacks the foundations of his investment philosophy centered around "change in perception" — a framework shaped by evolving market structures and investor behavior. He shares insights from navigating the 1998 crisis, outlines the value of rigorous risk management, and explains how quality businesses combined with contrarian thinking create...
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Robert Robotti - From Pink Sheets to Portfolio Management: Bob Robotti’s Value Investing Journey
Value Investing with Legends
Robert Robotti, President and CIO of Robotti & Company Advisors, joins host Michael Mauboussin to explore a lifetime shaped by value investing. With deep roots in accounting and formative experiences auditing firms like Tweedy, Browne, Bob shares how those early exposures led him to a career buying underfollowed, undervalued companies. In this episode, Bob discusses how his contrarian approach has thrived amid market inefficiencies, especially in cyclical industries and under-the-radar public firms. He breaks down key investments, including Builders FirstSource and Tidewater, and explains...
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Richard Brekka - From Venture to Secondaries: Richard Brekka on Illiquid Market Advantages
Value Investing with Legends
In this episode, host Tano Santos sits down with Richard Brekka, founder and managing partner of Second Alpha, to examine the lesser-known world of secondary investing in private technology companies. With decades of experience—from venture capital to secondary transactions—Richard shares his journey through private equity at Chase and CIBC, his role in building and reviving companies like Gomez Inc., and how that led him to identify a unique investment niche. He explains the mechanics of sourcing deals in illiquid markets, using data and AI to surface hidden gems, and the psychology of...
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Amit Wadhwaney - From Montreal to Moerus: Amit Wadhwaney’s Deep Value Discipline
Value Investing with Legends
Amit Wadhwaney, founding partner and portfolio manager at Moerus Capital Management, joins hosts Tano Santos and Michael Mauboussin to trace his unorthodox journey from Bombay to Concordia to founding a value investing firm focused on the balance sheet. Along the way, he discusses his early exposure to Marty Whitman, lessons from Third Avenue’s international expansion, and what led him to start Moerus. Amit outlines the core of his investment approach—asset-based valuation, downside protection, and long-term holding periods—and explains why macro factors are typically...
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Bill Ackman - Evolving Investment Playbook, From MBIA to Moats
Value Investing with Legends
Bill Ackman, founder and CEO of Pershing Square Capital Management, joins hosts Michael Mauboussin and Tano Santos to trace the arc of his investing journey—from his early days in real estate finance to founding Gotham Partners and eventually building Pershing Square into a $30 billion firm. Bill discusses formative moments that shaped his thinking, including his controversial early short of MBIA, the painful lessons of the Valeant episode, and the transformation brought about by adopting a permanent capital structure. He also unpacks his investment philosophy, the importance of durability...
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Kristin Gilbertson - Risk, Resilience, and Returns
Value Investing with Legends
In this episode, hosts Tano Santos and Michael Mauboussin speak with Kristin Gilbertson, CIO of Access Industries and former CIO of the University of Pennsylvania Endowment. Kristin shares her early interest in economic development and her unique journey through the World Bank, Stanford Management Company, and into managing a major university endowment. She outlines how risk awareness and preparation helped her successfully lead through the 2008 financial crisis and gives detailed insights into asset allocation, manager selection, and the nuances of family office investing. Kristin also...
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Seth Klarman - Contrarian Investing, Discipline, and Building Baupost
Value Investing with Legends
In this episode, host Michael Mauboussin sits down with Seth Klarman, CEO and portfolio manager of The Baupost Group. One of the most influential practitioners of value investing, Seth shares his formative stories — from arbitraging coins as a kid to launching Baupost in 1982 — and reflects on his decades-long investment philosophy. They explore timeless principles of market inefficiencies, the importance of temperament, specialization versus generalization, the role of patient capital, and the challenges and opportunities ahead for investors in today’s world. Seth also opens up about...
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Kent Daniel — From Physics to Finance: Exploring Market Inefficiencies
Value Investing with Legends
In this episode of Value Investing with Legends, Tano Santos and Michael Mauboussin sit down with Kent Daniel, Professor of Finance at Columbia Business School, to discuss his journey from physics at Caltech to leading research in behavioral finance and quantitative investing. Kent shares insights from his academic work and his years at Goldman Sachs, including his critiques of the Fama-French model, the role of intangible information in asset prices, and the implications of short selling constraints. The conversation spans decades of market evolution, empirical challenges, and the behavioral...
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Cliff Asness — Quant Origins, Value Crashes, and Market Inefficiencies
Value Investing with Legends
In this episode, Cliff Asness joins Tano Santos and Michael Mauboussin for a conversation that spans the evolution of quantitative investing, lessons from market crises, and the enduring tension between risk and behavioral explanations in finance. From his formative years at the University of Chicago under Gene Fama to building AQR into a quant powerhouse, Cliff reflects candidly on theory, performance, and how markets may have become less efficient in recent years. Key Topics: Tano and Michael return from sabbatical and reflect on recent academic and classroom experiences (0:00)...
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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...
info_outlineNavigating the investment world is an enormous task, especially when looking at company numbers and the people running them. That's why we're thrilled to have Sheldon Stone on the show. Sheldon was the first in his family to go to college, attending the highly respected Bowdoin College. He was part of a remarkable class of 225 students, an experience that shaped his unique perspective on life and career. Hailing from New Jersey, Sheldon Stone has had a fascinating career journey. His time at Bowdoin wasn't just about hitting the books; it also laid the groundwork for his expertise in bonds and financial markets. In today's episode, hosts Michael Mauboussin and Tano Santos sit down with Sheldon to dig into the nuts and bolts of investing. Sheldon shares his path from studying government in college to becoming a seasoned Chief Investment Officer. We dive deep into critical considerations like balancing liquidity and safeguarding investments, understanding the growing high-yield market, and why intangible assets like brands and patents are making financial waves. Sheldon, Michael, and Tano will explore Sheldon's unique educational background, the trade-offs in investment strategies, the rise of the high-yield market, the role intangibles play in today's financial world, and so much more!
Key Topics:
- An overview of Sheldon’s professional background (3:13)
- 40-year partnership with Howard Marks: mutual dynamics and shared intellect (8:38)
- Early high-yield bond market inefficiencies and technological limitations (11:23)
- How equity holders' approach affects creditor relations and company ease-of-work (18:57)
- Company growth via flexibility over ratings and the role of private equity (20:38)
- Operating in 300-550 basis point spreads; equity investment opportunities (24:18)
- Importance of new issues for returns; market appetite and deal quality (26:25)
- Role of equity market signals in bond investments; sector focus (28:34)
- Credit scoring matrix: eight critical factors for buy/sell decisions (31:17)
- Asset recovery rates: tangible vs intangible; market sentiment effects (39:25)
- Impact of rising rates on leveraged loans; stability measures (46:55)
- Challenges with interpreting delinquency rates; sector diversification strategies (50:30)
- Characteristics of influential investment committees: camaraderie and vital CIO (52:04)
- Teaching at Columbia; credit analysis as a career path for students (54:12)
- What keeps Sheldon up at night and excited about the future (57:14)
- Sheldon’s book and theatre recommendations (59:00)
- And much more!
Mentioned in this Episode:
- Charlie Ellis Book | Winning The Loser’s Game
- Howard Marks’ Books
Thanks for Listening!
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