In this episode of AUM, we interview Alex Fitch, the Director of US Research at Harris | Oakmark.
Alex discusses the complexities of investing, the importance of balancing ego and clear thinking, and the intrinsic challenges of admitting mistakes. Alex shares his journey into investing, his disciplined approach to value investing, and how he targeted working at Harris | Oakmark.
Alex delves into Harris' unique team-based research process, their approach to evaluating management, and the crucial role of understanding the reasons behind a company's valuation. He also discusses his strategies for dealing with cyclicals, the significance of mid-cycle earnings, and the process of selecting and managing investments.
Alex highlights specific companies such as Alphabet, Salesforce, and Lithia Motors.
02:09 Alex Fitch's Journey into Investing
04:03 Joining Harris Oakmark: The Path to Success
06:01 Evolution as an Investor
09:11 Harris Oakmark's Unique Research Process
14:51 Characteristics of a Potential Portfolio Company
17:25 Valuation and Mid-Cycle Earnings
21:48 Sell Discipline and Mistake Management
26:39 Evaluating Management Teams
29:29 Understanding Company Undervaluation
31:03 Researching Cyclical Companies
36:07 Valuing Software Businesses
40:14 Alphabet's Capital Expenditure
44:30 Lithia Motors' Acquisition Strategy
51:34 Biggest Investing Mistake
53:39 Advice for Aspiring Investors
To learn more about Harris | Oakmark checkout: https://oakmark.com/
