I think it's a much higher probability that we're going to have inflation. That inflation we have today will persist into the future. The rate of inflation, I don't know what it's going to be. So when you are positioning a portfolio for inflation, you want to make sure that your own companies that have high fixed costs and low capital expenditures. You can argue that some of theflation we have today is temporary. And that's probably true but I would argue thatsome of that is here to stay.
Clay Finck chats with Vitaliy Katsenelson about what Vitaliy looks for in the companies he invests in, how he thinks about the discount rate in his valuation process, and more.
Vitaliy is the CEO of Investment Management Associates and is the author of the Little Book of Sideways Markets.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
03:03 - How Covid-19 has changed the game of value investing.
18:44 - How Vitaliy ensures that managements incentives are aligned with that of the shareholders.
21:22 - Why buying great companies might not be a good investing strategy.
30:53 - Whether Vitaliy believes that 100% stocks can give investors a well-balanced portfolio.
38:34 - What Vitaliy thinks about China’s rise as a global powerhouse and how it might affect the financial markets.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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