The Intrinsic Value Podcast - The Investor’s Podcast Network

MI337: The Power of Alignment: Strategies From A Fund Manager w/ Jeremy Kokemor

Mar 19, 2024

Jeremy Kokemor discusses Buffett's 0/6/25 model, importance of value, growth, and quality, reinvestment rates, and shareholder-friendly regulations. He focuses on concentrated portfolios, evaluating businesses, and alignment with partners for successful investing strategies.

01:03:25

Episode guests

Jeremy Kokemor

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Episode notes

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Quick takeaways

Jeremy Kokemor implements Buffett's 0/6/25 fee model for alignment in investing partnerships.

Combine value, growth, and quality for successful investments; focus on reinvestment rates.

Prefer concentrated portfolios, evaluate businesses based on growth potential without reinvestment, mindful of shareholder-friendly regulations

Deep dives

Jeremy Kokmour's Unconventional Fee Structure and Alignment with Investors

Jeremy Kokmour, the founder of Right Tail Capital, discusses his fee structure, inspired by Buffett's 0-6-25 model. Under this structure, there is no management fee, and Right Tail earns a fee only if performance exceeds 6% annually. Kokmour emphasizes the importance of alignment beyond just the fee structure, including his personal investment in the fund and focus on maintaining the right mindset for decision-making.

Introduction

2min

Exploring Alignment in Investing Strategies and Fee Structures

4min

Innovative Fee Structure in Fund Management

12min

Investing in Quality Companies and Real Estate Market Challenges

5min

Capital Allocation Strategies and Investment Insights in Successful Companies

22min

Strategies to Boost Business and Career Growth

3min

Analyzing Investment Strategies and Evaluation Methods

17min

Connecting with the Guest and Conclusion of the Discussion on Investing Strategies

2min

Kyle Grieve chats with Jeremy Kokemor about why Jeremy has utilized Buffett’s 0/6/25 model and why he thinks it’s so powerful, why value, growth and quality are all important for successful investing, why price isn’t the only way to get a margin of safety, why investors should look at reinvestment rates to help identify wonderful investments, why you should only invest in countries that have shareholder friendly regulations, how many investments per year concentrated investors need to be successful, and a whole lot more!

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

03:09 - Why the 0/6/25 model is so powerful and how it aligns Jeremy with his partners.

03:09 - Other methods that Jeremy has used to create alignment with his partners.

15:09 - How a high-quality, low-debt business can add to their margin of safety outside of price.

17:32 - Why Jeremy views the combination of value, growth, and quality as being important for his investing process.

19:17 - The similarities and differences between O'Reilly Auto Parts and NVR in terms of capital allocation.

24:14 - How Jeremy keeps costs down to help ensure his business model is optimized.

28:33 - Why Jeremy runs a concentrated portfolio.

34:27 - The importance of reinvestment into wonderful businesses and value creation.

40:08 - Why we should evaluate a business based on its ability to grow without reinvestment.

40:08 - The strengths of using multiple evaluation methods to help you understand the value of a business.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Read Jeremy’s shareholder letters here.
Check out the books mentioned in the podcast here.

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