Joys of Compounding
Andre Perold - Lessons from an Investor-Teacher Legend - [Art of Investing, EP.10]
Jan 15, 2024
Andre Perold, Harvard Business School legend, discusses the concept of compounding and its impact, changes in institutional investing and the rise of greed, unlocking the joys of compounding through partnerships and specialization, being an academic and an investor, understanding job market trends and economic changes, and the qualities High Vista values in employees.
59:26
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Quick takeaways
- Investing in smaller buyouts can provide opportunities for smaller investors to generate returns by capitalizing on market inefficiencies.
- The biotech sector offers significant opportunities for investors who can navigate the space and understand the potential success of drug development.
Deep dives
Investing in Smaller Buyouts: Finding Opportunities in Inefficiency
In the podcast episode, the concept of investing in smaller buyouts is explored. Smaller buyouts refer to family-owned companies with profits around $10 million and firm values around $80-90 million, where the family is looking to sell. These types of companies are not typically put on the auction block and require relationships to find buyers who align with family values. This creates an opportunity for smaller smart money to invest where larger, more traditional buyout firms cannot. By partnering with these smaller players and creating portfolios that capitalize on these inefficiencies, investors can take advantage of the market and generate returns.
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