We Study Billionaires - The Investor’s Podcast Network TIP465: Value Investing in the Digital Age w/ Adam Seessel
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Jul 22, 2022 Adam Seessel, author of "Where the Money Is: Value Investing in the Digital Age," shares his insights on modern investing. He discusses why value investors must rethink high-growth tech investments and critiques GAAP's approach to tech companies, arguing it fails to capture their true potential. Adam introduces his BMP checklist for assessing businesses and emphasizes the significance of 'Earnings Power.' He highlights managerial quality and innovative metrics that redefine how we evaluate investments in today's digital landscape.
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Focus on Strong Businesses
- Focus on strong businesses with a strong customer value proposition and a moat.
- Economic cycles, macro trends, and external events will fluctuate, but strong businesses ultimately win.
Profiting from Technological Change
- Technological change is a significant macro trend, similar to the rise of the automobile.
- Profiting from this trend requires focusing on individual digital businesses with competitive advantages.
Investing During Inflation
- Look for companies with pricing power and capital-light business models to combat inflation.
- Tech companies often fit this criteria due to their inherent pricing power and minimal capital expenditures.
