Risk of Ruin Value Traps
May 27, 2024
Former poker player turned fund manager, David Orr, discusses evolving his investment strategy from value bias to shorting value traps. Topics include transitioning from poker to stocks, meme stock phenomenon, navigating stock investing complexity, successful long bets, adaptive investment approaches, using Twitter for market insights, and the path to success in investing.
AI Snips
Chapters
Transcript
Episode notes
Bangkok Poker Game
- David Orr recounts a poker game in Bangkok with wealthy Thai businessmen and their mistresses.
- He humorously describes the scene and how one of the players compared him to Mr. Incredible.
Beating Non-Pros
- Don't boast about your poker skills when playing against recreational players.
- Create a pleasant atmosphere and let them enjoy themselves; their goal is entertainment.
Learning from Tailored Brands
- David Orr initially focused on P/E ratios, leading to a bad investment in Tailored Brands (Men's Wearhouse).
- This experience taught him to short companies with negative earnings trends and high debt, even with low P/E ratios.