We Study Billionaires - The Investor’s Podcast Network

TIP686: Big Tech Stocks w/ Adam Seessel

Dec 27, 2024

In a lively discussion, Adam Seessel, founder of Gravity Capital Management and author, shares insights from his extensive investment career. He delves into intrinsic value's role in evaluating Big Tech, providing updated perspectives on Alphabet and Amazon post his 2022 book. Adam also reveals how to navigate the AI wave while avoiding inflated valuations. He highlights Progressive Insurance's successful strategies in the auto market, emphasizing the importance of adapting traditional principles to current tech-driven dynamics.

01:03:43

Episode guests

Adam Seessel

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Podcast summary created with Snipd AI

Quick takeaways

Adam Ziesel emphasizes a strategic shift from traditional value investing to 'Value 3.0' to adapt to the digital economy.

The concept of intrinsic value remains crucial in investments, though investors should balance it with market dynamics to avoid significant losses.

Ziesel highlights the dominance of technology companies in the market, advocating for investments in established giants like Alphabet and Amazon to exploit emerging trends.

Deep dives

The Transition to Value 3.0

Adam Ziesel discusses his evolution in investment strategy from traditional value investing to what he terms 'Value 3.0'. After a decade of successful investing using classic value methods, he faced diminishing returns as market dynamics shifted. Realizing that old-school methods were ill-suited for a digital economy, he adapted by focusing on high-quality businesses with growth potential, particularly in technology. This strategic pivot, detailed in his book 'Where the Money Is', allowed him to outperform the S&P 500 by aligning with the realities of a changing market landscape.

Amazon vs Alphabet

04:54

Intro

2min

Modern Investment Strategies in a Tech-Driven World

11min

Valuation Insights: Strategies and Market Trends

13min

Alphabet vs. Amazon: A Tech Showdown

13min

Investment Insights and Big Tech Comparisons

5min

Tech Investments and Market Dynamics

13min

The Importance of Early Investment in Technology

2min

On today’s episode, Clay is joined by Adam Seessel to discuss the developments of Big Tech over the past couple of years. Adam is an investor in Alphabet and Amazon, and in this discussion, he shares his updated thoughts on the two since he published his book, Where the Money Is, back in 2022.

Adam began his investing career doing research for Sanford C. Bernstein, Baron Capital, and Davis Selected Advisors. After these stints, he started his own firm, Gravity Capital Management. Since beginning a track record in the mid-2000’s he’s beaten the S&P 500. He’s been a contributor for financial writing in Barron’s and Fortune.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro

01:47 - Adam’s key realizations as a value investor over the past 20+ years.

13:36 - How the concept of intrinsic value can help anchor us in reality even though it’s just a mental model we use to evaluate businesses.

27:37 - Adam’s updated views on Alphabet and Amazon since he published his book in 2022.

47:40 - Adam’s approach to taking advantage of the AI wave without paying hefty valuations.

54:01 - Why Progressive Insurance is dominating the auto insurance space.

And so much more!

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, Kyle, and the other community members.
Adam’s Book: Where the Money Is.
Follow Adam on LinkedIn.
Related Episode: Listen to TIP465: Value Investing in the Digital Age w/ Adam Seessel.
Email Shawn at shawn@theinvestorspodcast.com to attend our free events in Omaha or visit this page.
Follow Clay on Twitter.
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We Study Billionaires - The Investor’s Podcast Network

TIP686: Big Tech Stocks w/ Adam Seessel

Episode guests