A.U.M. Alex Fitch - Eliminating Ego and Finding Value
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May 6, 2025 In this conversation, Alex Fitch, Director of US Research at Harris Oakmark and Portfolio Manager, shares his expertise in value investing. He reveals the psychological challenges of overcoming ego in investing and the necessity of recognizing mistakes. Alex discusses the unique team-based research process at Harris, emphasizing the evaluation of management teams and the importance of mid-cycle earnings. He dives into specific companies like Alphabet and Lithia Motors, showcasing their strategic approaches and how market shifts present new opportunities. A must-listen for aspiring investors!
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Ego's Role In Investing Success
- Successful investing means being right about 65% of the time, which is difficult but can build a great track record.
- Investors must overcome ego to admit mistakes and prioritize clear thinking for clients' best interest.
Early Passion Turns To Value Investing
- Alex's early interest in investing included sports card collecting linked to value investing.
- Reading "Margin of Safety" by Seth Klarman was a turning point, inspiring him to pursue value investing professionally.
Evolving Investor Judgment
- Early investors rely too much on models and narratives that may seem plausible but aren't truly meaningful.
- Experienced investors use judgment to question assumptions, management targets, and company narratives.
