We Study Billionaires - The Investor’s Podcast Network TIP674: Outperforming the Market, Managing Risk, & Market Inefficiencies w/ Andrew Brenton
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Nov 8, 2024 In this conversation, Andrew Brenton, CEO of Turtle Creek Asset Management, shares wisdom from his 25 years of beating the market. He emphasizes the drawbacks of a buy-and-hold strategy and discusses how US markets are becoming less efficient. Andrew gives insights into allocating investments in AI and software, and reveals Turtle Creek's approach to risk management. He also highlights their recent addition of Kinsale Capital to the portfolio, showcasing how exceptional management plays a pivotal role in navigating market dynamics.
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Buy and Optimize, Not Buy and Hold
- Rebalance your portfolio by selling winners and buying losers.
- Don't blindly hold; optimize your holdings based on changing valuations.
Intrinsic Value vs. Share Price
- Share price fluctuations don't always reflect changes in intrinsic value.
- Reset intrinsic value calculations when fundamental improvements occur.
Increasing Market Inefficiencies
- Market inefficiencies increase due to factors like short-termism, social media, and quant strategies.
- These create opportunities, but the market remains a weighing machine in the long run.