Strategic Positioning in Investment Portfolios

Guest: Ardal Loh-Gronager - Founder and Managing Partner of Loh-Gronager Partners Investment Partnership

Background: Over 10 years of financial industry experience at Goldman Sachs, Morgan Stanley, and Credit Suisse. Half Danish, born in UK with a global upbringing across Europe, Asia, and Australia.

Key Moments:

[3:00] Ardal discusses how his childhood shaped him - living in 11 different homes and attending 8 schools in 6 countries before turning 18, with entrepreneurial parents.

[4:30] Shares a powerful childhood memory of his parents being unable to pay school fees, teaching him about financial independence.

[5:10] Critical insights on business reality versus financial models.

[7:30] Discusses how investing is the broadest intellectual pursuit, encompassing everything around us.

[10:45] Recounts winning Guy Spear's charity auction lunch, modeled after Buffett's charity lunches.

[12:20] The spirit of giving back and learning from those who came before you: "All success is built on the shoulders of giants."

[14:00] Explores the concept of teaching as a way to deepen understanding.

[15:30] Shares how writing his book helped him clarify his own investment philosophy.

[19:00] Explains the inspiration behind his book's title "The Perceptive Investor" through Magritte's painting La Clairvoyance.

[21:10] The distinction between art and science in investing: qualitative versus quantitative analysis.

[24:00] Uses Amazon as a case study of perception in investing.

[28:00] Discusses circle of competence and margin of safety.

[36:15] Reveals his 250-question investment checklist, including the unique "centering exercise" to check emotional state before making decisions.

[42:00] Parallels between investing and piloting aircraft - the importance of checklists.

[46:25] The willingness to be lonely as a contrarian investor: "You cannot outperform the market unless you're a contrarian."

[48:50] The stock market paradox: "The stock market is the only market in the world that when it goes on sale, everyone runs away."

[52:30] Investment as an infinite game - focusing on process rather than outcomes.

[55:45] Discusses ergodicity - making decisions that keep you in the game.

[1:01:45] The misconception of risk: "High quality assets can be risky and low quality assets can be safe. What matters is the price you pay."

[1:04:30] Distinguishing between risk and uncertainty: "We define risk as the probability of permanent loss of capital, distinct from price volatility."

[1:07:20] The importance of patience..

[1:13:30] Understanding business moats.

[1:15:30] Culture as a key component of business longevity.

[1:18:30] Lessons from Ben Graham's investment journey.

[1:24:15] The paradox of "best ideas" portfolios - often the investments we have least conviction in outperform our highest conviction picks.

[1:33:00] Ardal defines success.

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.