The Intrinsic Value Podcast - The Investor’s Podcast Network

MI304: Evolving The Value Investing Mold w/ Adam Seessel

Nov 7, 2023

Adam Seessel, an expert in value investing, discusses the importance of R&D spend, buying quality businesses over cheap ones, and the significance of studying network effects in the digital age. He also introduces his BMP method and applies it to Texas Instruments. The podcast explores the evolving value investing mold, embracing tech for value creation, and questioning the strict adherence to Benjamin Graham's principles.

53:46

Episode guests

Adam Seessel

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Tech companies are the future and embracing them is important for value investors.

The BMP methodology focuses on evaluating the quality of the business, management competence, and stock price.

Traditional accounting principles may not accurately capture the long-term value and potential of tech companies.

Deep dives

The Importance of Tech in Value Investing

Tech is where the future is, and most of the growth in the economy will come from tech companies. Value investors should consider embracing tech as a massive creator of value and adjust their mindset accordingly.

Introduction

3min

The BMP Framework and Considering the Quality of the Business

11min

Management Thinking and Acting Like Owners

5min

Innovation and Value in Capital Allocation

16min

Evolving Value Investing for the Digital Age

5min

Understanding the Significance of Earnings Yield in Value Investing

3min

Analyzing the Growing Prevalence of Network Effects

13min

Predicting Long-Term Growth in Various Industries and Sectors with Technology Advancements

3min

Kyle Grieve chats with Adam Seessel about the importance of R&D spend to a business's competitive advantage, why value investors should embrace tech as a massive creator of value, how following Benjamin Graham to the letter is causing some investors to hold onto outdated ways of thinking, why studying network effects is so important in the digital age, the importance of buying quality businesses over cheap businesses, using Adam’s BMP method on one of his newest acquisition Texas Instruments, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

03:54 - Why we should prioritize quality businesses over cheap ones.

02:51 - The basics of the BMP method.

10:38 - The importance of R&D spend for competitive advantage.

29:44 - Why value investors should embrace tech for value creation.

31:43 - Questioning the strict adherence to Benjamin Graham's principles.

42:46 - The significance of studying network effects in the digital age.

46:50 - Applying the BMP method to Texas Instruments.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

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Read Adam’s book Where The Money Is.

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