A.U.M.
Alex Fitch - Eliminating Ego and Finding Value
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!
55:19
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Quick takeaways
- Balancing ego with clear decision-making is essential for investors to achieve long-term success and overcome the fear of mistakes.
- A team-based research process fosters intellectual honesty and diverse perspectives at Harris | Oakmark, enhancing investment decision-making.
Deep dives
Understanding Investor Psychology
Achieving a successful track record in investing requires accepting that being right only 65% of the time can still lead to remarkable results, but it also means facing rejection 35% of the time. New investors often struggle with this reality, transitioning from a background where high grades are the norm to a field where mistakes are inevitable. Balancing ego protection with clear decision-making benefits clients, as many individuals subconsciously let ego influence their choices. It is essential for investors to cultivate self-awareness and recognize when they might be deceiving themselves, a skill that is crucial in building long-term success.
