The Synopsis Interview. Investment Management in Practice with Baskin Wealth Management
Jan 29, 2025
In this engaging discussion, Barry Schwartz and Ernest Wong, co-founders of Baskin Wealth Management, share insights on long-term investing in high-quality businesses. They delve into the challenges of quality investing in the energy sector and how terminal valuations can impact high multiple stocks. Comparing Costco and Transdigm, they highlight effective business strategies and consumer goodwill. Additionally, they reflect on investment mistakes, stressing the importance of fundamentals and emotional control in navigating today's complex market.
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Baskin Wealth's Long-Term Investing
- Baskin Wealth Management has been active since 1992, managing money for high net worth clients.
- Barry Schwartz and Ernest Wong emphasize buying top businesses and holding them for the long run.
Quality Over Valuation Metrics
- Many investors say they seek the best companies but focus more on valuation metrics like low P/E or dividends.
- Baskin prioritizes business quality and leadership over cheap valuations.
High ROIC Drives Long-Term Returns
- Companies that reinvest cash flows at high rates of return tend to outperform over the long term.
- A portfolio of such businesses can consistently deliver above-average returns.