Value Hive Podcast

Today’s episode we had a conversation with the anonymous twitter account @the10thman1 about his exceptional Carvana’s bull thesis. We covered everything that an investor needs to know about Carvana, whether it is Carvana’s history, the used car industry, Carvana’s Competitive advantages, what Carvana needs to improve in order to succeed, the bear thesis against Carvana and @the10thman1’s fair value for Carvana. [0:00] Who is @the10thman1? [8:30] Expectation Investing [12:00] From Energy to Carvana ($CVNA ) [15:30] CVNA’s History [19:40] The Used Car Industry   [26:00] A Better Way to Present Inventory Online [28:00] Exceptional Quality Control  [30:00] Test Driving an used card with CVNA  [31:30] Seamless, Easy and Fast with CVNA  [36:00] CVNA’s Competitive Advantages   [36:10] Market Network Effects  [40:00] Economies of Scale [44:00] Increasing Retail GPU  [55:00] Customer Financing  [58:00] Carvana Will Issue Equity  [1:00:00] CVNA’s Bear Thesis  [1:01:00] Insiders are Selling  [1:04:00] Trusting Management with a Rocky Past  [1:06:00] Competition  [1:08:00] Carvana’s Fair Value [1:15:00] @the10thman1’s watchlist [1:17:00] Closing Questions If you liked what you heard, PLEASE go follow @the10thman1 on Twitter and subscribe to his website. He writes excellent content that's always worth a read. 

This week I'm thrilled to be joined by Utako Kojima and Aya Weissman. Both women work at Horizon Kinetics and help run the Japan Special Opportunity Strategy.  Aya is a Co-Portfolio Manager and Director of Asia Strategy at Horizon. With over 30 years of investment experience, Aya was previously a founder and Chief Investment Officer of AS Hirota Capital Management, LLC.  Prior to that, her experiences included acting as a portfolio manager specializing in Japanese securities for Kingdon Capital Management, LLC, a New York–based hedge fund; two years as a partner and Portfolio Manager of Feirstein Hirota Japan Partners, a Japanese long/short hedge fund; and 12 years at Salomon Smith Barney Asset Management, as a Managing Director and Senior Portfolio manager in the US value equity group where she was a founding member of the large cap value equity group, with responsibility for approximately $2 billion in assets Utako joined the Firm in 2010 as a Portfolio Analyst, primarily focusing on the Firm’s Asia Strategy. Prior to this, Utako was an equity analyst at AS Hirota Capital Management, LLC. Her experience includes consulting in the Valuation Division at Shin-Nihon Ernst & Young Transaction Advisory Services, Tokyo, Japan. Aya and Utako join the podcast to discuss a unique investment opportunity in Japan called the Parent-Subsidiary Relationship. In short, there's tremendous alpha to be had investing in smaller subsidiaries of larger companies at the point of inflection when the larger company buys back its smaller subsidiary.  The near hour-long conversation dives deep into the strategy, how they filter the 3,800 Japanese equity universe, The Mother's Index, and the changing cultural dynamics in Japanese business. 

This week we have another returning guest, Thomas Bachrach! Thomas Bachrach is PFH Capital’s Principal and an OG Value Hive guest! He focuses on esoteric, off-the-beaten-path micro-cap companies, and on this episode, he shares two of his latest investments: Kaspi ($KSPI), a Kazakhstan fin-tech business, and Allegiance Coal ($AHQ.ASX), an Australian Coal Company. He also shares how he finds, researches, and manages companies located in different countries, and the investment mistakes he made in 2020, and what he learned from those mistakes. [0:00] Who is Thomas Bachrach? [4:00] What is PFH Capital’s Strategy? [5:30] 2020 Mistakes [13:00] Managing Investments in Different Countries During Covid.  [17:00] Why not invest in China? [23:00] How to Find Companies in Different Countries? [26:00] Investments in Malaysia: $MYEG [32:00] Investment Thesis: Kaspien ($KSPI) [43:00] Kazakhstan: The Asian Geneva  [50:00] Why Kaspien is so cheap? [1:01:00] Investment Thesis: Allegiance Coal ($AHQ) [1:23:00] Closing Questions If you want to learn more about Thomas or his strategy at PFH Capital, check out these links:  Thomas Bachrach Twitter PFH Capital Website

Welcome back Harris Kupperman! This is the second time Kuppy is on the Value Hive Podcast. This time around we talked about different event-driven strategies found on his Kuppy’s Event Driven Monitor (KEDM) such as investing in post-bankruptcy stocks and IPO unlocks ($AFRM), what is like managing an event-driven portfolio and at the end of the episode, he answered some of the questions from the Twitter community! This episode is brought to you by BullpenCareers.com. BullpenCareers.com is a job board exclusively for finance jobs. If you or someone you know is looking for a job in finance, check out BullpenCareers.com today! Here is the time stamp: [0:00] Intro [1:30] What is the IPO Unlocks Arbitrage Trade. [5:40] IPO Unlocks: $AFRM [11:00] Kuppy’s Event Driven Monitor (KEDM) [16:00] Event Driven Strategies: Post-Bankruptcy [23:00] Managing an Event Driven Portfolios [33:00] $POWW [35:00] Bitcoin [43:00] Michael Burry’s Portfolio [46:00] Tankers Bull Thesis ($STNG) [50:00] Inflection Point Investing [52:00] Twitter Q&A [52:00] How to use the KEDM as a noob investor? [54:00] Uranium Equities? [1:00:00] Playboy [1:03:00] Why is $JOE not moving? [1:04:00] Kuppy’s Future If you liked what you heard and want to learn more about Kuppy, follow him on Twitter here. You can also check out his website AdventuresInCapitalism.com, and for qualified investors, his fund Praetorian Capital.

Let’s talk about the 4.2% elephant in the room, that’s right! This week is all about inflation and luckily we had the privilege to talk to James Davolos, Portfolio Manager at Horizon Kinetics, to help us understand inflation at a deep level.  We talked about what is the CPI and how it is measured, the effect that inflation has on risk assets, what is duration on risk assets, how not to hedge against inflation, but most importantly he shared how we can effectively hedge against inflation by investing in companies that are Direct Beneficiaries, Indirect Beneficiaries or Opportunistic Beneficiaries of Inflation, which are exactly the types of companies that you can find on Horizon Kinetics’ Inflation Beneficiary ETF ($INFL). This episode is brought to you by BullpenCareers.com. BullpenCareers.com is a job board exclusively for finance jobs. If you or someone you know is looking for a job in finance, check out BullpenCareers.com today! [0:00] Who is James Davolos?  [3:44] What is the CPI and How is it Measured?  [8:15] Fiat Currencies Always Go to Zero  [10:30] Modern Monetary Theory [14:20] What Inflation Means to Risk Assets [15:00] What is Duration on a Risk Assets? [20:00] The Inflationary Beneficiary ETF [21:00] What are Hard Assets?  [23:00] Direct Beneficiaries, Indirect Beneficiaries, Opportunistic Beneficiaries of Inflation   [32:00] TIPS: The Biggest Misconception Regarding Inflation Hedging. [35:00] Cryptocurrency  [37:00] Western Ideology vs Eastern Ideology for Gold [40:00] Texas Pacific Land Corp ($TPL ) [42:00] Exchanges The Ultimate Indirect Beneficiaries of Inflation: London Stock Exchange ($LSEG), Honk Kong Stock Exchange ($388), Singapore Exchange ($SGXR) [50:00] How not to Hedge Against Inflation [53:00] Closing Questions and More from James Davolos If you want to learn more about Horizon Kinetics, check them out on Twitter and their website. 

Michael Fritzell is a Swedish Investor based in Singapore and the owner of the Asian Century Stocks Newsletter.  During our talk Fritz shares the path that took him to live in Beijing, the cultural differences that he noticed while living there, the geopolitical issues between China and Taiwan, and of course his investing experience as a Swedish investor in the Asian equities market, including:  Diligence for Asian companies The role of the Chinese Government inside companies Some misconceptions that investors have about investing in China Why he is bullish on Delfi ($P34), China Unicom ($762) and Sanrio Company ($8126). Here is the time-stamp:  [0:00] Who is Fritz? [4:00] Learning Chinese in Beijing [7:00] Major differences between living in Sweden and China. [11:00] Being a Buy Side Analyst Based in Shanghai  [13:00] The Chinese Government’s Role Inside Companies  [21:00] Chinese State Owned Enterprises [24:00] The Chinese Invasion Threat [25:00] The CCP wants to invade Taiwan before 2049 [34:00] Delfi ($P34) [44:00] China Unicom ($762) [52:00] Sanrio Company ($8136)  [1:01:00] Misconceptions about investing in China. [1:08:00] Closing Questions and More from Fritz If you want to learn more about Fritz, shoot him a follow on Twitter and subscribe to his Substack Newsletter!

Myles Danielsen joins the Hive this week to chat all things Institutional Investment Allocation. According to his firm's website, Myles is a Principal at Hall Capital Partners LLC in the Public Equity group, responsible for research, identification, due diligence, and monitoring of long-only public equity investments and long-short equity hedge funds. In addition to his core role in public equities, he is a key member of the Cross Asset Research & Strategy team. Myles spends an hour and a half dissecting the institutional investment business, giving us an inside look at where allocators invest, why they choose one firm over another, and where they see opportunities ahead.  This podcast is a MUST LISTEN for new/emerging fund managers who want to learn what it takes to get a check from an institutional allocator.  We discuss a wide range of topics, including:  Emerging market investing Why Institutional investing is a black box Personality and its role as a deal-breaker/maker Why track record isn't the only thing that matters Crypto investing  Japanese Mother's Market If you want to learn more about Myles, check him out on Twitter! You can also reach him at his firm's website, Hall Capital. 

This week I chat with Kyler Hasson, investment manager and founder of ConcentratedCapital.com. Kyler loves buying great businesses that can compound invested capital over long periods of time. In other words, he's a Compounder Bro. Kyler didn't follow the "normal" investor path, if there is one.  He started dabbling in investing at age 18 and was immediately hooked on quality investing. Hasson skipped much of the cigar-butt stage and instead spent his time learning about the best businesses possible, and trying to hold them for long periods of time.  Our conversation covered a wide breadth of topics, including:  Competitive advantages and churn rates in banking Quality and Valuation  Portfolio Allocation Psychology of managing other people's money  And more! Here is the show time-stamp:  1:00 - Intro 9:11 - TransDigm $TDG 20:44 - Portfolio Construction  28:05 - Underwriting Returns 36:59 - Banking and Competitive Advantages 43:04 - Holding Only The Best Ideas 49:58 - Managing Other People's Money  58:24 - When To Give People Their Money Back 65:51 - Where Kyler's Finding Ideas  75:06 - Closing Questions If you want to learn more about Kyler, check out these resources:  Concentrated Compounding Website Twitter

Kelvin Seetoh (aka @SlingshotCap on Twitter) joins the Hive this week to chat about all things emerging moats, $ORGS, and the importance of staying young in investing.  I recorded this episode at 9:00 PM my time (EST), so big thanks to Kelvin for showing up with his A-game at 9 AM sharp Singapore time! If you like what you heard from Kelvin, make sure to follow him on Twitter @SlingShotCap.  The Value Hive Podcast is brought to you by TIKR. Join the free beta today at TIKR.com/hive. They're constantly releasing new updates that make the platform better, including a new Business Owner Mode that hides share count, market cap, and enterprise value. I couldn't be more excited to partner with TIKR. We're also excited to announce our newest sponsor, Eight Sleep! Eight Sleep makes products that improve your sleep through personalized temperature, smarter data, and patented technology. There is truly nothing like Eight Sleep on the market. With Eight Sleep, you can see exactly how well you sleep, how often you toss and turn, resting/variable heart rate, and more! The technology is unlike anything you've seen from a mattress company. Try an Eight Sleep mattress yourself! Use the code HIVE to get $100 off your mattress purchase!

This week we chat with Rob Mahan. Rob's a part-time investor and founder of DeepValueInvestments.wordpress.com. Rob's blog is dedicated to finding massively discounted stocks from every part of the world. His findings take him through Eastern Europe, Asia, and all across the market cap spectrum.  Rob is a traditional deep value investor. He seeks businesses trading <6x earnings with double digit yields. To him, anything over 10x earnings is expensive. So far his strategy has worked. Since 2008, Rob has generated a 20% CAGR, crushing any All World Index.  We spent an hour discussing:  How Rob started investing Rob's current investment strategy  Where he finds ideas How Rob screens for companies War stories from investing in emerging markets Investing in Chinese banana company frauds Searching the world for deep value If you like what you heard, give Rob a follow @DeepValueInvestments. Make sure to subscribe to his website DeepValueInvestments.wordpress.com. The Value Hive Podcast is brought to you by TIKR. Join the free beta today at TIKR.com/hive. They're constantly releasing new updates that make the platform better, including a new Business Owner Mode that hides share count, market cap, and enterprise value. I couldn't be more excited to partner with TIKR. We're also excited to announce our newest sponsor, Eight Sleep! Eight Sleep makes products that improve your sleep through personalized temperature, smarter data, and patented technology. There is truly nothing like Eight Sleep on the market. With Eight Sleep, you can see exactly how well you sleep, how often you toss and turn, resting/variable heart rate, and more! The technology is unlike anything you've seen from a mattress company. Try an Eight Sleep mattress yourself! Use the code HIVE to get $100 off your mattress purchase!