Alex Fitch

Bill Nygren and Alex Fitch, experienced investors at Oakmark, delve into the fascinating world of First Citizens Bank. They discuss the bank's unorthodox acquisition of Silicon Valley Bank and its distinctive approach compared to larger Wall Street firms. The duo highlights First Citizens' conservative risk management and customer-first philosophy. They also analyze bank valuations, explore the challenges of FDIC auctions, and examine how interest rate fluctuations impact the banking sector. Their insights showcase the resilience and unique strategies that set First Citizens apart.

Estimating mid-cycle, normalized earnings for value investing, discussions on CBRE and SCHW examples, adjustments for software companies like Salesforce, Amazon and Alphabet examples, P/E ratio determinations, Masco and American Express examples, dealing with stocks with wider range of outcomes, picking required rate of return, idea generation and research process at Harris Oakmark, qualities needed in an analyst, fostering a culture of humility and debate

In this conversation, Alex Fitch, Director of US Research at Harris Oakmark and Portfolio Manager, shares his expertise in value investing. He reveals the psychological challenges of overcoming ego in investing and the necessity of recognizing mistakes. Alex discusses the unique team-based research process at Harris, emphasizing the evaluation of management teams and the importance of mid-cycle earnings. He dives into specific companies like Alphabet and Lithia Motors, showcasing their strategic approaches and how market shifts present new opportunities. A must-listen for aspiring investors!