Capital Allocators – Inside the Institutional Investment Industry Paul Black and Mike Trigg – How to Build a $100B Money Manager (Capital Allocators, EP.227)
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Dec 20, 2021 Paul Black and Mike Trigg from WCM Investment Management share their journey of transforming a struggling firm into a $100 billion giant. They discuss the importance of fostering a positive culture and innovative hiring practices, emphasizing passion and humility over credentials. The duo highlights the significance of truth-telling and adaptability in leadership, along with lessons on perseverance derived from personal experiences. They also critique the heavy reliance on traditional investment models, advocating for a focus on business fundamentals and team dynamics.
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Unconventional Success
- WCM's success story began unconventionally after underperforming for five years and losing almost all assets.
- An operations person with no investment experience suggested launching an international growth strategy, leading to an unexpected turnaround.
Thinking Differently
- Conventional wisdom in investing, like buying cheap wide-moat businesses, leads to average returns.
- Thinking differently is crucial for differentiation, and focusing on moat trajectory is key.
Core Values
- WCM's core values, "think different and get better," combat industry groupthink and fear of failure.
- Embracing change and continuous improvement are vital, especially in a risk-averse industry.