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The Acquirers Podcast

Value After Hours S05 E40: Broyhill's Chris Pavese on Nintendo, and Ant Mills

Nov 6, 2023
Chris Pavese from Broyhill discusses Nintendo and Ant Mills. They delve into investing in mid-cap equity stocks, discuss the gaming industry, and explore the self-serving bias. The speakers analyze return decomposition and share issuances, and discuss prospects for the distress market and challenges for small cap companies.
01:01:03

Podcast summary created with Snipd AI

Quick takeaways

  • The self-serving bias and ant mills highlight the human tendency to protect our self-image and perpetuate unproductive behaviors.
  • The analysis of S&P 500 returns reveals interesting dynamics between value and growth stocks, suggesting potential opportunities amid ongoing market trends.

Deep dives

The Self-Serving Bias and Ant Mills

The self-serving bias is a tendency for individuals to evaluate things in ways that protect their own self-image. This bias leads us to attribute success to our own abilities and efforts, but blame failures on external factors. It often prevents us from acknowledging when our ideas or assumptions are wrong. Similarly, ant mills, or death spirals, occur in army ants when they get separated from the main foraging party and start following each other in a continuous rotating circle. This behavior is driven by the ants' limited neural functionality and a failure to adjust their path. This phenomenon parallels our own tendencies to get stuck in repetitive behaviors without questioning or adjusting our thinking. To break free from these patterns, we need to make our thinking visible and be willing to challenge our assumptions and beliefs.

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