A.U.M. Jeremy Deal - Searching For Unrecognized Earnings Potential
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Apr 8, 2025 Join Jeremy Deal, founder of JDP Capital Management, as he shares his non-traditional journey in asset management. He highlights his investment philosophy centered on uncovering companies with unrecognized earnings potential. Fascinating insights emerge about the importance of understanding a company's competitive advantage and the power of consumer relationships. Jeremy's successful Spotify investment reveals key strategies for navigating market volatility, while his reflections on learning from past mistakes underscore the value of patience and long-term thinking in investing.
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Market Inefficiency and Long-Term Advantage
- Markets efficiently price short-term outcomes, making long-term views advantageous.
- Focus on big changes and transitions that the market struggles to price.
Competitive Advantage and Moats
- Competitive advantage, not margins or growth, drives long-term success.
- A company's moat, including leadership and culture, allows it to maintain high returns on capital.
Consumer Relationships as Margin of Safety
- Strong consumer relationships provide a margin of safety, allowing businesses to recover from mistakes.
- This consumer stickiness offers more flexibility than traditional valuation metrics.