Evan Tindell (Bireme Capital): The Psychology of Value Investing (Plus poker and tennis)
Jul 12, 2024
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Guest Evan Tindell from Bireme Capital discusses investor psychology, shorting Costco, lessons from poker, position sizing, betting big on META, SOTP valuation stories, Japanese value stocks, and time allocation in a wide-ranging conversation.
Investor psychology and cognitive biases play a crucial role in value investing decisions.
Effective position sizing is essential for balancing risks and maximizing gains in investment portfolios.
Understanding market dynamics and trends is crucial for identifying undervalued assets and executing successful shorting strategies.
Deep dives
MacroOps Aim and Services
MacroOps aims to consistently earn high risk-adjusted returns while offering differentiated research and educational resources. They boast high retention rates among their members, providing access to a diverse community of passionate investors.
Emerging Managers and MIT Investment Management Company
MacroOps highlights the role of MIT Investment Management Company (Matimco) in supporting emerging managers and providing resources through emergingmanagers.org. Matimco's focus on exceptional managers and its investment team hiring practices reflect a commitment to long-term returns and supporting innovators.
Evan's Investing Journey and Philosophy
The podcast delves into Evan's path into investing, influenced by experiences in poker and value investing. Evan emphasizes the importance of logic and math in decision-making, drawing parallels between investing and poker strategies. He discusses the significance of understanding cognitive biases and unique investment opportunities, advocating for a strategy that incorporates deep research and unconventional thinking.
Position Sizing Strategy and Investment Decisions
The discussion delves into the intricate details of position sizing and investment decisions. It highlights the importance of evaluating the size of investment positions, considering factors like stock movements, potential for growth, and the risks involved. The episode emphasizes the need for strategic portfolio management to balance position sizes effectively and manage potential gains or losses. It also explores the dilemma of increasing position sizes based on stock performance, striking a balance between maximizing gains and minimizing risks.
Insights on Shorting Stocks and Evolving Investment Strategies
The conversation shifts towards shorting stocks and evolving investment strategies, focusing on identifying undervalued assets and potential shorts. It brings attention to the evolving market dynamics where investors are looking for mispriced opportunities in undervalued stocks. The discussion emphasizes the importance of understanding market trends, valuations, and corporate governance shifts to make informed investment decisions. It also touches on the complexities of position sizing, managing risks, and navigating challenges in shorting strategies in response to market changes.
Evan Tindell runs Bireme Capital, a long/short value investment fund.
I loved this episode. We spent over an hour discussing:
Investor psychology
Shorting Costco
Lessons from being a professional poker player
Position sizing
Betting big on META during its Hate Day
SOTP valuation stories (Bollore & Vivendi)
Japanese value stocks
Allocating time
And more!
This was one of the most wide-ranging conversations I've had in a while, and I loved it.
If you like what you heard, follow Evan on Twitter @evantindell.
Finally, a big thanks to our sponsors for making this episode happen.
Mitimco
This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns in support of MIT's mission. To help the emerging manager community more broadly, they created emergingmanagers.org, a website for emerging manager stockpickers.
I highly recommend the site for those looking to start a stock-picking fund or just learning about how others have done it. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers, and more!
TIKR
TIKR is THE BEST resource for all stock market data, I use TIKR every day in my process, and I know you will too. Make sure to check them out at TIKR.com/hive.
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