oin us as we demystify tech investing with special guest Eric Flaningam from Generative Value. Learn how to apply value investing principles to find long-term winners in this exciting sector.
(0:00-1:00) Introduction of guest Eric, a tech-focused value investor. (
1:00-2:00) Why stocks? Eric finds intellectual challenge and future-predicting aspects exciting.
(2:00-3:00) Eric's journey: From small-town Indiana to Microsoft to venture capital.
(3:00-4:00) Early Buffett influence, learning from the greats, and the importance of managing downside risk. (
4:00-5:00) Tech's allure: World-changing potential, intellectual complexity, and historical outperformance.
(5:00-7:00) Applying Buffett's circle of competence to tech, focusing on understanding competitive advantages.
(7:00-9:00) Overcoming tech intimidation: Start with industry research, read extensively, and focus on buyer decisions.
(9:00-12:00) Understanding tech vs. business, the importance of industry primers, and the challenge of competitive landscapes.
(12:00-16:00) Semiconductors and cloud as long-term tech bets, the role of disruption, and learning from history.
(16:00-19:00) How companies view competition, the importance of solving customer problems, and the risk of disruption.
(19:00-22:00) The Innovator's Dilemma: Business model innovation often trumps pure technological disruption.
(22:00-25:00) Investing in the face of disruption, the importance of paranoia and humility, and embracing volatility.
(25:00-29:00) Finding Eric's "quintessential" stock: Amazon as an example of deep competitive advantages.
(29:00-32:00) Why some monopolies fly under the radar: ASML vs. Microsoft and Google.
(32:00-36:00) The case for tech investing: High-quality businesses, long-term growth, and opportunities for outperformance.
(36:00-39:00) Eric's investment process: Focus on identifying wonderful businesses, then wait for the right price. (
39:00-42:00) The long-term advantage: Patience allows capitalizing on market drops and buying great companies on sale.
(42:00-46:00) The AI adoption curve: It's early days, be patient, and expect the unexpected.
To learn more from Eric:
Generative Value
X: @EricFlaningam
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