We Study Billionaires - The Investor’s Podcast Network

TIP565: Why Buffett is Doubling Down on Japan w/ Dan Rasmussen

Jul 16, 2023

54:33

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Podcast summary created with Snipd AI

Quick takeaways

Allocating heavily to private markets without understanding risks can lead to potential pain in portfolios.

Investors should consider international markets like Japan, which offer rich opportunities and cheap valuations.

Value stocks offer a better long-term investment profile compared to expensive glamour stocks.

Deep dives

Contrarian Views on Private Markets

The podcast discusses the host's skepticism towards private markets, particularly private equity, considering it an overdone and risky asset. He believes that many investors are heavily allocating their assets to private markets without fully understanding the associated risks, leading to potential pain in their portfolios.

The Potential of Japanese Small Caps and Cash Return

00:34

The Relationship Between Interest Rates and Real GDP

02:35

Are pension funds and big endowments heavily weighted towards US investments?

02:56

The Effect of Higher Interest Rates on Company Earnings

02:23

Introduction

2min

The Different Perspectives of Max Consensus

3min

The US Versus International Debate

3min

The Persistence and Predictability of Growth

4min

The Dynamics of Japan as an Investor

4min

The Future of the Japanese Market

2min

NetSuite: The Number One Cloud Financial System for Your Business

4min

The Fear of Japan

3min

The Importance of Long Term Investments

3min

10.

The Financial Accelerator and the Banking Crisis

5min

11.

The Effect of a Fed Pause on the Equity Markets

3min

12.

The Fed's Stop Raising Rates

4min

13.

NetSuite: The Number One Cloud Financial System for Business Owners

5min

14.

The Effect of Higher Interest Rates on Company Earnings

2min

15.

The Chaos Kings: A Strategy for Investing in a Crisis

5min

16.

The Chaos King's Strategy for Investing in Japan

2min

17.

The Importance of Currency to Basement in the US

2min

18.

The Pros and Cons of Technology

4min

Clay Finck chats with Dan Rasmussen about why Japanese equities offer some of the most attractive valuations in the market today, how stretched growth stock valuations are relative to value and much more.

Dan is the Founder and Portfolio Manager of Verdad, which is a global asset management firm that strives to achieve the highest risk-adjusted returns possible through rigorous research and its practical application.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

01:45 - Contrarian views of the market Dan holds relative to the rest of the market.

05:14 - Why the US is overvalued relative to international stocks.

09:19 - Historically how undervalued value indices are.

13:27 - Why Dan is bullish on Japan.

13:44 - The value mandate that Japan put in place to try and juice stock market valuations.

24:11 - Dan’s views on Japan’s policy of yield curve control.

24:42 - What’s keeping investors away from Japan’s stock market.

30:57 - What the financial accelerator is and how it relates to the 2023 banking crisis.

36:12 - How equity markets tend to behave after a Fed pause.

36:30 - How high-interest rates are affecting corporate earnings.

51:21 - Dan’s views on the Chaos Kings and their strategy of Crisis Investing.

60:40 - How Verdad’s portfolios are positioned today.

72:21 - What technologies excite Dan in creating a better society for the future.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Check out of our review of Microcap Investing with Ian Cassel, or watch the video here.
Follow Dan on Twitter.
Follow Clay on Twitter.

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We Study Billionaires - The Investor’s Podcast Network

TIP565: Why Buffett is Doubling Down on Japan w/ Dan Rasmussen

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Contrarian Views on Private Markets

US First International Investment Bias

Growth versus Value Analysis

Japanese Equity Market and Foreign Investment

Attractive Valuation Levels in Developed Non-US Markets

The Potential of Japanese Small Caps and Cash Return

The Relationship Between Interest Rates and Real GDP

Are pension funds and big endowments heavily weighted towards US investments?

The Effect of Higher Interest Rates on Company Earnings

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

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AI-powered
podcast player

Discover
highlights

We Study Billionaires - The Investor’s Podcast Network

TIP565: Why Buffett is Doubling Down on Japan w/ Dan Rasmussen

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Contrarian Views on Private Markets

US First International Investment Bias

Growth versus Value Analysis

Japanese Equity Market and Foreign Investment

Attractive Valuation Levels in Developed Non-US Markets

The Potential of Japanese Small Caps and Cash Return

The Relationship Between Interest Rates and Real GDP

Are pension funds and big endowments heavily weighted towards US investments?

The Effect of Higher Interest Rates on Company Earnings

Get the Snipdpodcast app

AI-poweredpodcast player

Discoverhighlights

Save anymoment

Share& Export

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Discoverhighlights

Get the Snipd
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moment

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