James Harries has a wealth of experience as a global income investor and manages the Trojan Global Income Fund and Securities Trust of Scotland.  James talks about his journey from Royal Military Academy Sandhurst to a career in investing, how he has evolved as an investor and why income investing remains highly relevant in today's world.Show notes:[1:05] James talks about the start of his career and the lessons learnt at Sandhurst[5:23] Being disciplined and allowing good habits to compound[6:41] The importance of income investing[9:47] Focusing on generating good returns whilst limiting drawdowns and volatility[11:08] The income discipline [13:08] Balancing quality, income and growth[15:16] The progression to a more concentrated, lower turnover and higher quality-focused portfolio[16:14] Emphasising quality above dividend yield[18:11] Insulating the portfolio and benefiting from technological change[21:37] How the deployment of technology is benefiting a broad range of companies in the portfolio.[24:14] The tobacco industry's evolution[27:58] Incorporating ESG considerations[29:04] Focusing on deeper and longer-term issues to gain an edge[31:53] Domino's Pizza[34:49] Structuring the portfolio for resilience[38:29] The macro backdrop[42:28] Do something you enjoy, concentrate on what matters and be happy

Sanjay Ayer is a portfolio manager at WCM Investment Management, a California-based asset manager investing in good quality companies with strong cultures and improving competitive moats.  Sanjay talks about his evolution as an investor, how a good culture can reinforce a company's competitive advantage, and why it is so important for investors to learn from mistakes and compound knowledge to sustain success.Show notes:[1:15] Sanjay talks about his early career and moving from Morningstar to WCM[4:10] Why one should focus on companies that are expanding their competitive moat[6:46] Testing the trajectory of a moat[9:11] Amazon and Shopify[10:55] Compounding knowledge to sustain success[14:27] Learning from mistakes[16:26] Niche industrial and influencer typologies[20:00] The importance of culture[21:13] Cultural optionality and culture as a durable competitive advantage[25:23] Balancing centralisation and decentralisation in regulated industries[27:21] Cultural trajectory[29:12] Portfolio construction as a foundation for rational decision-making[32:19] The role of valuation[34:42] R&D to sustain an investors' competitive advantages[38:41] Persistent inefficiencies in the investment profession[42:30] Using growth and scale to advance culture[44:51] Embrace cognitive dissonance and consider return on time  

Brinton Johns is a co-founder of NZS Capital, a US-based investment boutique applying lessons from nature to invest in companies with the capacity to thrive in a complex adaptive world.  As the future is inherently unpredictable, Brinton and his colleagues believe it is best to focus on adaptable and innovative businesses that create more value than they take, whilst structuring the portfolio to exhibit both resilience and optionality.Those interested in learning more about NZS's Complexity investing framework should read their whitepaper (https://www.nzscapital.com/news/complexity).Show notes:[1:20] Brinton talks about how he got into the investing industry and his career at Janus Capital[5:32] The benefits of focus, a defined investment philosophy and a flat team structure[8:05] The genesis of NZS' Complexity Investing framework[9:51] The key tenets of Complexity Investing and the importance of being adaptable and creating more value than you take[13:37] Structuring the portfolio for resilience and optionality[18:01] Psychological safety and empowering creativity by being allowed to make mistakes[20:27] Texas Instruments as an example of an adaptable and resilient business providing oxygen in a digital age[22:44] Testing for adaptability and resilience at Texas Instruments[25:08] Assessing the quality of people, culture, the nature of a company's growth and valuation[28:47] Great allocators versus great operators[30:48] Understanding the asymmetry of optional investments[32:57] The power of vertical integration in disrupting horizontal incumbents[35:06] Spreading bets in the tail of the portfolio[36:15] A culture of candour for limiting biases and recognising mistakes[39:04] Companies that graduate from being optional to resilient and vice versa[41:02] Investing in optional businesses allows for greater mental plasticity[42:31] Web3.0[44:00] Be curious and open-minded

In this episode of Far From The Finishing Post we speak to Gabrielle Boyle.  Gabrielle heads up Troy's investment research and manages the Trojan Global Equity Fund and Electric & General Investment Fund.  Gabrielle discusses her evolution as an investor and how being an outsider has helped her recognise and adapt to change to deliver strong compound returns. Show notes:[1:09] Gabrielle talks about how she got into the industry[3:23] The wild west of Europe[5:50]Learning at Lazard[7:54] Gender diversity and being an outsider[11:49] Girls Are INvestors (GAIN)[12:41] Working at a boutique with a clear sense of identity[15:36] Troy's evolution[19:00] Adapting to change[20:20] The fundamental importance of ESG[21:39] ESG and stock selection[25:16] Technological disruption and extraordinary 'tech staples'[28:16] Discipline through concentration[31:35] Intangible quality[32:43] Being a long-term owner[33:39] The surprising durability of great businesses[35:59] Trust your instincts and enjoy yourself

In this episode of Far From The Finishing Post we speak to Gary Channon. Gary founded Phoenix Asset Management in 1998 and is one of the UK's leading value investors. Gary discusses his early career as an investor and the development of Phoenix’s distinct investment philosophy and approach. He emphasises the importance of instilling a culture of continuous learning and improvement, as well as more recent initiatives to apply digital tools in the transformation of analogue businesses.Show notes:[1:23] Gary discusses how he caught the investment bug[4:59] Thinking probabilistically [6:23] Going deep and being focused[9:33] What makes a great company[13:00] Putting a high value on stability and predictability, whilst mining mistakes to continuously learn and improve[15:52] Observing competitive dynamics through deep due diligence and monitoring[18:38] Withstanding and exploiting volatility[22:12] Psychological safety through process and structure[24:44] Learning from mistakes and using checklists[28:46] Investing in companies that are not being disrupted by technology[30:03] Backing people[32:43] The Castelnau Group and applying digital tools to improve analogue businesses[38:23] Using technology to accelerate trial & error and to find customers[43:22] Cultural transformation and winning hearts and minds at Dignity[45:56] Experimenting at the beginning of your career and leading your own life

In this episode of Far From The Finishing Post we speak to Nick Martin.  Nick manages Polar Capital's Global Insurance strategy and has been investing in the insurance industry for 20 years.  Nick does a great job of demystifying a complex industry and explaining why the best property & casualty insurers are strong and durable compounding machines.  Show notes:[ 1:30] Nick talks about becoming an investor and joining Hiscox[4:08] Thinking about the downside and not taking excessive risk[5:34] Mapping out the non-life insurance industry[6:56] Focusing on underwriting rather than macroeconomic conditions[8:05] The importance of diversification for managing cycles and risks[10:17] Knowing when to be aggressive and when to be patient and defensive[12:11] Greater pricing discipline in specialty commercial versus personal lines[13:58] The ingredients of a good insurer[14:58] Will underwriters be replaced by machines[16:32] Being outward-facing and open-minded to change [18:27] How technology is changing the industry[20:34] Success in insurance is cultural[21:44] Berkshire Hathaway and decentralised models based on trust[24:16] The importance of an owner mentality[25:28] Incentivisation structures that encourage a long-term perspective[27:07] Leveraging innovation to create competitive advantage in personal lines[28:06] Network effects and pricing advantage[29:58] Price-to-book as a key valuation metric for insurers[31:52] The critical role insurers play in addressing climate change[35:31] Assessing risk in a world where climate change is making historic data sets less relevant[37:05] Encouraging risk mitigation rather than simply just putting up prices[38:48] Low valuations and rising premiums[40:44] The power of compounding in all aspects of life

In this episode of Far From The Finishing Post we speak to Anthony Kingsley.  Anthony is Chief Investment Officer at Findlay Park and has a wealth of experience investing in the US.  Anthony discusses a range of topics; his career as an investor, Findlay Park's evolved approach of investing in higher quality businesses, and an investment philosophy that emphasises the avoidance of steep losses in the generation of strong long-term compound returns. Show notes:[1:10] Anthony talks about his early career at Foreign & Colonial as an analyst on the American desk[2:48] The genesis of Findlay Park's investment philosophy[5:43] American capitalism and dynamism. Why it is such a great place to invest[8:57] Quality compounders across industries[10:02] The difference between knowledge and understanding[11:07] Findlay Park's competitive advantages[13:08] Findlay Park's evolution and a culture of continuous learning[16:10] An openness to new ideas and encouraging discussion and debate[17:48] Shifting up the quality spectrum[19:26] Focusing on returns on capital rather than capital intensity[21:21] Digital intensity and its role in creating sustainable competitive advantages[23:27] Finding companies with strong cores and embedded optionality[25:20] Focusing on companies with a strong and purposeful culture[27:10] Assessing culture throughout an organisation[30:27] Sustaining culture in more acquisitive companies[33:23] The mistake of not owning great companies for longer[35:26] Requiring more asymmetric risk/reward for companies with lower checklist scores [37:14] Focusing on downside risk has been an unnecessary discipline for the last decade but will become more important[39:28] The character traits of great investors[41:05] Be passionate and keep learning 

In this episode of Far From The Finishing Post we speak to Peter Singlehurst. Peter heads up Baillie Gifford's private companies team and manages the Schiehallion Fund, which invests in private businesses such as Stripe and Space X. Peter discusses Baillie Gifford's development investing in private companies and how a long-term and supportive approach aligns with the ambitions of some of the world's leading entrepreneurs.Show notes:[1:21] Peter talks about his early career and the evolution of private investing at Baillie Gifford[7:03] Building an infrastructure for private investing and the importance of patience[9:56] Lessons from customer-obsessed Transferwise and learning from mistakes[13:10] Knowing when to invest additional capital in companies going through difficult times[16:24] Building and sustaining a strong reputation in private markets[19:08] The durability of Baillie Gifford's competitive advantages[22:43] The relationship with earlier stage venture investors[25:18] Access to proprietary deals versus ones that come via intermediaries[27:47] Being selective and not needing to make sacrifices[29:30] Insights into company culture are only gained over time[31:18] Assessing probabilities and finding companies that get better as they get bigger[34:44] Applying probabilities to companies creating new markets versus those disrupting existing ones[36:50] Opportunities as software broadens its reach across industries[40:40] Capital needs and Schiehallion's role as a provider of capital[43:19] Being open-minded and prepared to believe things that go against a prevailing narrative

In this episode of Far From The Finishing Post we speak to Blake Hutchins, co-portfolio manager of the Trojan Income Fund.  Blake discusses his upbringing in a family of professional tennis players, drawing analogies between sport and investing, before diving deeper into his investment philosophy of owning good quality businesses that can sustain and grow dividends over the long term.Show notes:[1:21] Blake talks about his upbringing and draws parallels between professional sport and investing[4:45] Individual responsibility within a small and focused team structure[6:44] Minimising mistakes, maximising strengths and knowing your game[8:19] Blake's investment philosophy[11:31] The mistake of simply focusing on dividend yield[13:54] Blake talks about the subsect of UK companies he favours[17:03] Combining smaller companies with larger and more predictable ones[19:37] Discussion around Fever-Tree and managing the distribution of potential outcomes[25:38] Thinking in ranges rather than having precise valuation targets[29:21] The resilience and adaptability of quality companies with good economics[32:31] The importance of good corporate culture[35:29] The benefits of thinking globally[40:01] Be deliberate and optimistic

In the inaugural episode of Far From The Finishing Post we speak to Sebastian Lyon, founder and chief investment officer of Troy Asset Management.  In our conversation, we discuss the  formative experiences Sebastian had when he first joined the industry, the founding of Troy Asset Management and how his investment philosophy and approach has evolved over the arc of his career.Show notes:[1:01] - Sebastian discusses the formative experiences early in his career[4:52] - Meeting Lord Weinstock and founding Troy Asset Management[9:05] - Learning from mistakes and having a consistent investment approach[10:22] - Investing with an absolute return mindset and a plain canvas[12:47] - Giving investors a smoother ride[16:00] - Aligning interests through clear and transparent communication[19:23] - Growing the business in a way that sustains Troy's culture[21:05] - Managing business complexity and maintaining a team driven approach[24:22] - The evolution of Troy's investment universe[27:57] - Focusing on quality and business fundamentals[31:35] - Investing in boring but predictable businesses[34:01] - Some secular growth companies deserve higher multiples[36:11] - Competitive edge from being unconstrained and investing for the long-term[38:10] - Asset allocation in a low interest rate environment[42:21] - The new blue chips[43:51] - Thinking about businesses not stock prices