The Business Brew

Scott Reardon, Portfolio Manager at Dakota Value Funds, Author of The Dark Continent series and Bonfire of the Beasts, stops by The Business Brew to chat about what he learned by studying the greatest investors of all time.  Scott's work led him to focus on very favorable risk/reward scenarios.  While that might sound trite, it's hard in practice. You can read Scott's work at: Greatest investors: https://www.dakotavalue.com/stewart-s-bridge-paper Cyclicality of markets and life: https://www.dakotavalue.com/draper-s-carousel We hope you enjoy the conversation! Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! Detailed Show Notes: 6:45 - Scott’s background 9:00 – Scott’s strategy 11:45 – How Scott developed his strategy by studying the greats 15:30 – Could we have stuck with Charlie Munger as a young investor? 18:20 – Within value investors there tends to be two camps 19:45 – Scott’s favorite investors 25:45 – Does value need a catalyst? 28:00 – Microcaps vs Mid Caps 34:00 – Scale advantages and scale economics 44:00 – Scott and Bill discuss learning they may not know anything General Discussion 1:03:00 – Thoughts on where to fish for investment ideas 1:08:00 – A nonacademic conversation on dividends vs buybacks 1:13:30 – Incentives matter 1:20:00 – Analyzing a wide distribution of outcomes

Just a quick message to let you know Bill is on vacation with his family, but episodes of the Business Brew will return in a few weeks.

Chadd Garcia hosted the The Business Brew for this conversation.   Chadd runs the Ave Maria Focused Fund, which is a non-diversified mutual fund (ticker: AVEAX).  His portfolio holding are eclectic.  Some themes you will see in there are quality and compounders.  However, several of the companies are undergoing business transformations or have advantaged business models. Chadd has an interesting background.  He grew up on a family farm in Arizona.  He worked in management at a multi-national agribusiness, where he helped turnaround of a business.  He caught the investing bug and headed to Harvard Business School to get into finance.  He spent time in investment banking and private equity before moving over to public markets.  I think these experiences give him an interesting perspective and thought process that he brings to investing.  He’s a natural teacher and I am excited for this episode. Chadd is lead portfolio of the Ave Maria Focused Fund and co-portfolio manager of the Ave Maria Growth Fund.  He is also responsible for equity research functions for the firm. Previously, Chadd analyzed public equities as a Managing Director at SQ Advisors.  Prior thereto Chadd worked in private equity as a Managing Director at Gulf Coast Capital Partners and as Vice President at Comvest Partners.  Before his work in private equity, Chadd was an Associate in the mergers and acquisitions group at CIBC World Markets. Chadd has a Bachelor of Science degree in Agricultural Resource and Economics from The University of Arizona and a Master of Business Administration degree from Harvard University.  He is a board member and CFO of The Rising Farmworker Dream Fund and is a Knight in the Sovereign Military Order of Malta. He is a CFA® charterholder. Contact Chadd at CMG@schwartzinvest.com Ave Maria Funds Page:  https://www.avemariafunds.com/fund-family/aveax.html Fund Commentary Found Here:  https://www.avemariafunds.com/financial-insight/fund-commentaries.html Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! Detailed Show Notes: 2:40 - What Chadd learned from studying HEICO 12:10 - An accounting lesson worth listening to 19:45 - Chadd's thesis on eDreams 29:40 - What Chadd looks for to premortum businesses 33:00 - A discussion about Green Plains and business transformation 39:10 - A discussion about GFL (a waste management company) 42:40 - How Chadd thinks about position sizing 44:50 - The moral component of what Chadd does 53:55 - How Chadd analyzed the short report behind GFL

Vitaliy Katsenelson stops by The Business Brew to discuss investing and his new book; Soul In The Game (see https://soulinthegame.net/).  Vitaliy is an amazing writer who discusses investing and life.  You can find his writings at https://contrarianedge.com/.  We hope you enjoy this discussion.   No detailed show notes on this one.  This episode is brought to you by Bastiat Partners, a a new breed of investment and merchant bank that specializes primaries, secondaries, and co-investment opportunities in the private markets.  Bastiat caters to a unique coverage universe of 250+ family offices, VCs, and crossover hedge funds. While sector generalists, the Firm specializes in fast-growing technology and technology-enabled businesses, advising companies on primary capital raises and creating liquidity events for founders and early investors via secondary transactions. The Firm also advises fundless sponsors and GPs on co-investment opportunities. Bastiat Partners was founded nearly a decade ago by Nader Afshar, a former senior investment banker at J.P. Morgan, and is headquartered in Los Angeles. See https://bastiatpartners.com/. Securities offered by Hollister Associates, LLC, Member FINRA/SIPC.  Bastiat Partners and Hollister Associates, LLC are not affiliated companies. Please leave us a rating in your favorite podcast player. Album art photo taken by Mike Ando. Please see https://www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production.

Tom Morgan stops by The Business Brew for a wide-ranging conversation.  Tom is the Director of Content and Communications at The KCP Group.  His writings can be found at https://thekcpgroup.com/insights.  Tom describes himself as a curious sherpa.  He's always looking to find interesting people and ideas.  You can find Tom at @tom_morganKCP on Twitter. No detailed show notes on this one.  Just listen. This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Please leave us a rating in your favorite podcast player. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! This episode is brought to you by Bastiat Partners, a new breed of investment and merchant bank that specializes in primaries, secondaries, and co-investment opportunities in the private markets.  Bastiat caters to a unique coverage universe of 250+ family offices, VCs, and crossover hedge funds. While sector generalists, the Firm specializes in fast-growing technology and technology-enabled businesses, advising companies on primary capital raises and creating liquidity events for founders and early investors via secondary transactions. The Firm also advises fundless sponsors and GPs on co-investment opportunities. Bastiat Partners was founded nearly a decade ago by Nader Afshar, a former senior investment banker at J.P. Morgan, and is headquartered in Los Angeles. Securities offered by Hollister Associates, LLC, Member FINRA/SIPC.  Bastiat Partners and Hollister Associates, LLC are not affiliated companies. See https://bastiatpartners.com/.

William Green, best-selling author and podcast host extraordinaire, comes back to The Business Brew to have a very real conversation about life.  William's first appearance was part of the launch of Richer, Wiser, Happier, which you can find at https://www.amazon.com/s?k=richer+wiser+happier+william+green&i=audible&sprefix=richer%2Caudible%2C84&ref=nb_sb_ss_ts-doa-p_1_6.  This conversation is more focused on William's career and lessons he has learned. This was a conversation that really put a smile on Bill's face and it is one The Business Brew is very proud to feature.  Hopefully this conversation shows a unique side to William Green; the side Bill got to see when they first met. We hope you enjoy the conversation as much as Bill enjoyed recording it. This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! Detailed Show Notes: Beginning – Where William and Bill “are” right now 9:30 – Structuring a portfolio to support your personality and advice from Peter Lynch 13:40 – What can come from the sense of being lost 17:40 – The difference between how investing is covered and reality for most people 22:10 – Bill and William talking about identity 24:20 – William’s career background 32:10 – The gifts from hard times 34:10 – Try to flood the body with good emotions 40:25 – Dealing with the feeling of unworthiness 48:10 – Accepting your beautiful monsters 53:40 – Munger’s insight about Richer, Wiser, Happier 1:03:40 – The power of looking to help others 1:09:40 – One of William’s takeaways from the Berkshire meeting 1:15:40 – Going strong vs. going weak 1:20:40 – Internal vs. external scorecards 1:22:30 – William’s experience with audio interviews 1:26:10 – Picking up on body language 1:30:40 – How Richer, Wiser, Happier is doing Books mentioned: Richer, Wiser, Happier (BUY IT!) https://www.amazon.com/s?k=richer+wiser+happier+william+green&i=audible&sprefix=richer%2Caudible%2C84&ref=nb_sb_ss_ts-doa-p_1_6 Power vs. Force https://www.amazon.com/Power-vs-Force-Dr-David-R-Hawkins-audiobook/dp/B000KZRMCO/ref=sr_1_1?gclid=CjwKCAjw-8qVBhANEiwAfjXLrrQaA5rWgk4cxmKB0DXcwEZ7Pzzm2qwPAXcEfK93MJdhuzhebTDEtxoCxzsQAvD_BwE&hvadid=548152874877&hvdev=c&hvlocphy=90

Jordan Noone stops by The Business Brew to discuss his experience founding Embedded Ventures and Relativity Space.  At the age of just 22 years old Jordan co-founded Relativity Space, which 3D prints rockets!  Yes, rockets.  See https://www.relativityspace.com/. Following his time at Relativity Space, Jordan co-founded Embedded Ventures, a venture capital firm. Embedded has an interesting goal of using "clean capital" to enhance the security of the US while generating investor returns.  See below for the official bios on both of Jordan's companies. We hope you enjoy the conversation! ABOUT EMBEDDED VENTURES - See https://www.embedded.ventures/ -  Launched in 2020, Embedded Ventures is a next generation venture capital firm investing in dual-use space startups beyond launch. Best described as “the skunkworks of Venture Capital” because of their unique investment approach and backgrounds, Embedded has a first-of-its-kind partnership with the United States Space Force. Co-Founders Jenna Bryant and Jordan Noone both have atypical industry experiences and strong passions for the communities they represent. The firm invests in the pre-seed and seed stage startups focused on space operations, digital engineering, and advanced manufacturing. To date, Embedded Ventures has announced investments in Chromatic 3D Materials, Inversion, KittyCAD, Slingshot Aerospace and Skyryse. ABOUT JORDAN NOONE Jordan Noone is the Co-Founder, CTO, and General Partner at Embedded Ventures, the skunkworks of deep tech venture capital. Launched with his Co-Founder Jenna Bryant. Jordan is Relativity’s Co-Founder and founding CTO - as of 2020, Relativity is the world’s second most valuable private space company. As Relativity's CTO, Jordan focused on technical direction and engineering design, including: developing printing technology, launch vehicle design, propulsion design, software development, infrastructure development, and government affairs. Jordan also led many Relativity initiatives including: expansion of Relativity’s Stargate Factory into the rest of aerospace manufacturing, Relativity’s strategy for expanding printing technology off-planet; and the ability of Relativity’s factory flexibly scale to a wide range of rocket sizes. Jordan has had a lifelong interest in aerospace, including the design and build of spaceflight hardware at the age of 18 while at the University of Southern California, and becoming the first student and youngest individual in the world to get Federal Aviation Administration clearance to fly a rocket to space (150 kilometer altitude) while leading USC’s Rocket Propulsion Lab. In 2015 he started Relativity when 22 years old. He has been chosen for “30 Under 30” by Forbes, Business Insider, and Inc. Magazine. He received a BS in Aerospace Engineering, and dropped out of a BS in Biophysics, both from University of Southern California. Outside of Relativity, Jordan is active in promoting STEM education worldwide with the US Department of State. This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! Detailed Show Notes: Open – Jordan’s background 7:25 – What down rounds do to everyone 9:20 - What it was like to start Relativity at 22 years old 17:00 - How to prove students can launch rockets without killing anyone 24:00 - The benefits of 3D printing for manufacturing 30:30 - How VCs, specifically Mark Cuban, helped Relativity 33:00 - What Embedded Ventures is doing, and why

Cem Karsan stops by The Business Brew to discuss the lens he views markets through.  Cem's viewpoint is unique compared to many guests on this program because he looks at how options dealers are positioned and considers what flows may result from that positioning.  Many guests on this show view equity valuation as the present value of the discounted cash flows available to equity.  While Cem would likely agree with that, he argues in this episode that an equity's valuation is really an output derived from the options market (which expresses probabilistic views of discounted cash flows).   We hope this episode gives you something to think about! Cem Karsan formed Kai Volatility Advisors after two decades of experience building industry-leading derivatives businesses.  From 1999 to 2002, he worked as a volatility trader as part of RBC Dominion Securities/ Derivatives Arbitrage Group.  From 2002 to 2005, he worked under renowned Wall St. investor John Mulheren at Bear Wagner Specialists, where Cem helped expand the firm's fledgling derivatives arbitrage business into a competitive force within the industry.  In 2005, Cem took a select group from the firm's proprietary trading arm and founded Precision Capital Management, specializing in equity index volatility arbitrage.  The firm became a significant SPX market maker reaching, at its peak, a high of ~13% of daily trading volume.*  In 2010, Cem divested his stake in Precision and fouded AEGEA Capital, the precursor to Kai Volatility Advisors. *Past performance may not be indicative of future results. Follow Cem on Twitter https://twitter.com/jam_croissant Learn more about Kai: https://www.kaivolatility.com/contact   This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! Detailed Show Notes: Open – Cem’s background 7:25 – How Cem thinks about what matters to capital markets 13:10 – Valuations have no predictive value, short term 14:10 – What happened in 2017 and why did the market seem to go up every day? 21:40 – The counterintuitive conclusion of buying and selling volatility 23:10 – Why equities are derivatives of “derivatives” 27:10 – Why options are potentially better instruments for expressing a view 32:45 – Gamma squeezes explained 38:25 – Cem’s thoughts on where we are from a macro perspective 46:10 – The wealth gap and why 49:40 – Why we may be in a fundamentally inflationary environment 54:50 – The impacts of monetary policy and which generations have been hurt and helped by policy 1:00:40 – Why some medicine today may end up better in the long run 1:02:10 – The tension between utopia and the current (efficient) system 1:06:40 – Evolution and iteration will hopefully lead to better incomes 1:10:55 – The coming risks may come from exported inflation to emerging markets 1:13:10 – The winners of tomorrow used easy money to plant seeds over the past years 1:15:10 – More background on Cem

Amanda Agati stops by The Business Brew to discuss her investment outlook going forward. Amanda is Managing Director and Chief Investment Strategist for the PNC Financial Services Group. In this role, she oversees all investment strategy-related activities for the Institutional Asset Management, Wealth Management, and Hawthorn (ultra-high-net-worth) businesses. In addition, she leads the team that establishes overall strategic and tactical asset allocation guidance of client portfolios, manages the evolution of investment processes, provides thought leadership on key investment issues, and is the author of numerous publications. She also performs research and analytics that help drive the overall investment recommendations of the firm while also managing the firm’s asset allocation models. Amanda is a self described optimist.  Her opinions are nuanced and thoughtful.  This conversation touches on a number of topics and is quite balanced.  There is even some stuff in here for dog lovers.  We hope you enjoy! Follow Amanda on Twitter: https://twitter.com/AmandaAgatiPNC Find out more about Amanda's views at: https://www.pnc.com/insights/authors/amanda-e-agati.html This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! Detailed Show Notes: Opening - General discussion 12:40 - Thoughts on the economy 14:55 - Stagflation? 16:40 - Importance of diversification 22:10 - Energy discussion 26:05 - Career path 29:30 - Quality growth for the long term 34:10 - Thinking opportunistically in this market 41:30 - Impact of supply shortages 44:25 - Investor whiplash 51:40 - The need for supply chain diversification 55:40 - Does an illiquidity premium make sense? 58:10 - Crypto winter (for now) 1:07:10 - What Amanda attributes her success to

Description -  Sean Stannard Stockton, President and CIO of Ensemble Capital Management, stops by The Business Brew for a repeat appearance. Sean discussed his process on his first appearance (see Season 1). In this episode he discusses how he is sticking to his process and managing a portfolio in an uncertain world. Please forgive the lack of time stamps in the show notes. We will follow up and update. In the meantime, enjoy the entire episode. It’s a good one. This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Please leave us a rating in your favorite podcast player. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player! This episode is brought to you by Bastiat Partners, a boutique investment banking firm.  See https://bastiatpartners.com/.  Detailed show notes below. Please leave us a rating in your favorite podcast player. Album art photo taken by Mike Ando. Please see www.mikeando.com. Thank you to @mathewpassy (on Twitter) for the show production. Please leave us a rating in your favorite podcast player!