Invest Like the Best with Patrick O'Shaughnessy

Welcome to the first episode of Hash Power, an audio documentary that explores the world of blockchain and cryptocurrencies with leaders in the field like Naval Ravikant, Olaf Carlson-Wee, Fred Ehrsam, & Ari Paul. Hash Power is meant to be an introduction, but really, it is an invitation to explore this emerging world on your own. In the coming weeks, we will cover the technology, the power of decentralization, bitcoin, Ethereum, ICOs, cryptography and hashing. We will spend time with the leading active hedge fund managers in the field, and with outside investors who are both optimistic and skeptical. Episode one covers the big picture, and answers the question: what is blockchain and why might it significantly affect our world?If you enjoy what follows, you’ll still be very early in understanding this field. Most don’t. So help me spread it like wildfire, because the more people that understand blockchain, the better its impact might become. Please enjoy episode one, and stay tuned next week for episode 2, which explores investing in cryptocurrencies.Hash Power is presented by Fidelity Investments For comprehensive show notes on this episode go to http://investorfieldguide.com/hashpowerFor more episodes go to InvestorFieldGuide.com/podcast.To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier.Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.Follow Patrick on Twitter at @patrick_oshag Books Referenced The Sovereign Individual: Mastering the Transition to the Information Age Nostalgia for the Absolute Links ReferencedBitcoin: A Peer-to-Peer Electronic Cash SystemReddit User jav_rddtSHA-256 Calculator The BitCoin Model for CrowdfundingFat Protocols#cryptotwitter Show NotesCHAPTER 1 – Understanding the Concept of Blockchain (3:25)4:30 – Jeremiah Lowin explains how blockchain is like a database5:14 – Bitcoin: A Peer-to-Peer Electronic Cash System5:46 – Owning a digital asset7:14 – Naval Ravikant, CEO of Angelist on how blockchains can help to create personal networks and organize humans13:33 – New coins popping up around data storage and utility needs like solar panels14:57 – Permission vs permissionless networks18:13 – Keeping track of scarcity and the introduction of tokens18:51 – The Sovereign Individual: Mastering the Transition to the Information Age21:55 – The role of blockchains in the informational age and the rise of more individual sovereignty23:29 - Fred Ehrsam, co-founder of Coinbase, on the increasing shift to digital worlds led by incentive structures CHAPTER 2 – Blockchain Technology (27:48)29:09 - Reddit User jav_rddt30:43 - SHA-256 Calculator31:53 - Charlie Noyes, Pantera Capital, explains how SHA-256 was developed and what make its so special35:48 – How miners create new blocks and the incentives to do so46:54 – Ethereum, the “spiritual successor” to bitcoin48:36 – How the Ether network is an ecosystem in which other tokens can sit50:51 - Naval Ravikant on alternative coins or tokens50:50 - The BitCoin Model for Crowdfunding52:35 – Fat Protocols53:22 – Blockchain as an experiment in distributed government54:47 – How cryptocurrency is more than just technology, it’s a movement54:50 – Nostalgia for the Absolute57:27 - #cryptotwitter1:00:58 - Peter Jubber, of Fidelity, on how huge institutions, like theirs, are getting into the cryptocurrency game1:05:21- Olaf Carlson-Wee, first employee at Coinbase and the founder of Polychain, on the early excitement for cryptocurrency1:06:56– Closing thoughts from PatrickLooking to work in this space - hashpowerdeveloper@gmail.com Learn MoreFor more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclubFollow Patrick on twitter at @patrick_oshag

My guest this week is David Tisch, who was instrumental in building and fostering venture capital investing in New York City. If you liked my conversation with Jerry Neumann--who, incidentally, introduced me to David--you are going to love this one.  David was a co-founder at tech stars, New York's answer to Silicon Valley’s famous tech incubator Y Combinator. He now runs the Box Group, a prominent seed stage venture capital firm, which has looked at thousands of startups and invested in more than 200.  We explore tech investing outside of Silicon Valley, the tech accelerator model, the evolution of early stage investing, and why the best companies may start coming out of non-traditional venture hubs.  David does a great job of explaining how things have changed for technology startups and why certain strategies--especially those for acquiring customers--won't work nearly as well in the future.  I learned a lot during this hour, and I think you will too. Please enjoy.    For comprehensive show notes on this episode go to http://investorfieldguide.com/tisch For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Show Notes 2:16 – (First question) – Looking at David’s motivation and role in building up the venture capital tech investment scene in New York 6:14 – What David did to further the mission of fostering tech startups in New York, namely his work with TechStars 10:11 – What is Y Combinator and how does that differ from Tech Stars 13:02 – What is the procedure for getting into a startup incubator   17:08 – Most memorable applications 19:12 – What is the boot camp/incubator experience like 20:34 – What should future incubators be focused on to help develop the right ideas 23:46 – What aspects of the business should a start up be focused on in the beginning 26:46 – What got David interested in investing 28:47 – The challenges of launching new tech today and the colonization of identity 32:04 – Exploring David’s investing strategy 35:45 – Finding the consumer facing companies that can scale and provide a return for venture capitalists 38:03 – The problem of scaling up for start ups 39:20 – What business models does David prefer when making venture investments 40:53 – What’s important to look at when investing in other sectors, starting with Fintech 44:41 – Where does David think we are in the venture capital cycle 49:37 – How much does the exit strategy play into the initial seed investment 50:18 – David’s thinking on the portfolio of companies when picking an investment 52:48 – David’s biggest sin of omission 53:56 – Common personality traits among potential founders 55:24 – Is storytelling relevant for startups focused on the enterprise side of the business 56:07 – David’s story to convince founders to work with him 57:51 – biggest mistakes that David has seen 1:01:47 – What does it mean for our health that are time has become completely consumed by technology 1:03:58 – What trend has David most excited looking forward 1:06:44 – Kindest thing anyone has done for David   Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

In this lively discussion, David Gardner, co-founder of The Motley Fool and a passionate investor, shares his exhilarating approach to finding 'rule-breaking' companies. He highlights the importance of visionary leadership and the transformative power of innovation, using examples like Tesla and Netflix. Gardner also discusses the 'snap test' for evaluating company durability, the balancing act of venture and public market investing, and his philosophy of long-term holding. His vibrant energy and unique insights will inspire any investor!

My guest this week is Meb Faber, who started a podcast similar to this one right before mine and was a big reason I was open to the idea in the first place. Meb is a quantitative researcher whose firm Cambria has been behind many interesting investment strategies that break the Wall Street mold. We talk investing factors, dividends, angel investing, podcasts and more. This was a fun catch up with a close friend in the industry who has been in a leader in using data to explore the best active strategies in a variety of asset classes. Please enjoy our conversation, which begins with a factor draft.   For comprehensive show notes on this episode go to http://investorfieldguide.com/meb For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Books Referenced Dr. Tatiana's Sex Advice to All Creation: The Definitive Guide to the Evolutionary Biology of Sex   Links Referenced Update on the Valuation Metric Horserace: 2011-2015 Jason Calacanis on Meb Faber Show Brent BeShore episode of Invest Like the Best Team Ritholtz episode of Invest Like the Best   Show Notes 1:55 – (First question) – Drafting quant factors             4:10 – Update on the Valuation Metric Horserace: 2011-2015 10:25 – Most interesting thing Meb’s learned over the past year                    14:05 – Jason Calacanis on Meb Faber Show             14:49 – Brent BeShore episode of Invest Like the Best 16:10 – What is Meb’s process for investing in private companies 18:35 – What part of the fintech landscape would Meb be most excited about 26:50 – What has been working well on the business front for Meb 30:34 – Looking at investor behavior and changing fee structures 35:54 – What has Meb enjoyed most about doing a podcast             36:26 – Team Ritholtz episode of Invest Like the Best 40:55 – A list of guests that meb would like to have on             41:27 – Dr. Tatiana's Sex Advice to All Creation: The Definitive Guide to the Evolutionary Biology of Sex 43:19 – If Meb couldn’t work in this business, what would he do 45:02 – Same question for Patrick 47:28 – Kindest thing anyone has done for Meb    Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

My guests this week don't need to be introduced. In celebration of the one year anniversary of invest like the best, I asked Josh Brown, Mike Batnick, and Barry Ritholtz to join me for a hour, during which I spent more time laughing than asking questions. I chose this team because they are the pioneers of mold breaking honesty and personality in our industry. They all figured out that just being themselves yields incredible results. This is a strategy that everyone should try, but very few do. Honesty and transparency require vulnerability, which is hard for most of us. I still struggle with it. But the evidence is in. The Ritholtz team has grown as fast as almost any RIA. Listen to this and tell me you wouldn't want to spend your career working with people this friendly, funny and open. Hell, I want to give them some money just so I have an excuse to drop by more often.  Thanks to everyone who has listened in the past year. We are past 1.25mm listens, and growing fast. You own this thing as much as I do, because the size helps me penetrate deeper and get the best people, which begets more listeners. This podcast is one hell of a discovery machine, and the first year was our warm up. We have a ton of new angles, formats, and events coming in year two. Stay tuned. But first, time to laugh in celebration of year one. Please enjoy my conversation with team Ritholtz For comprehensive show notes on this episode go to http://investorfieldguide.com/ritholtz For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Links Referenced Barry @ritholtz on twitter a16z Podcast Scott Galloway and Aswath Damodaran on Bitcoin vs Gold Latest 'These Are the Goods' post   Show Notes 2:35 – (First question) – What stock best represents you  5:09 – How was this team assembled at Ritholtz  8:50 – Why larger asset management firms are slow to pivot on new technology  10:00 – The humor of Barry @ritholtz on twitter  11:48 – What technology channels are working best 13:08 – What would happen in a Ritholtz stock picking contest 15:19 – How do you keep investors from wanting to move money into or out of buzzworthy trades 20:23 – Pricing out the news and the value premium 23:41 – Why people want complexity and activity in their portfolios 29:51 – People always want to be a part of the next frontier, example bitcoin             31:08 – a16z Podcast 33:13 – Exploring research in action and living the investments 39:35 – Biggest argument against bitcoin could be the underlying utility and what will make it successful 45:13 – The Hindenburg Omen             46:34 - Scott Galloway and Aswath Damodaran on Bitcoin vs Gold 47:38 – How the relationship with clients has evolved 49:50 – Mike’s new book project that he is working on 51:41 – Why the Mark Twain chapter is the most interesting in his book thus far 53:32 – How a business should balance sales and marketing 58:09 – Who would they draft to the Ritholtz team             58:22 – Latest These Are the Goods post 1:05:18 – Kindest thing anyone has done   Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

My guest this week is Pat Dorsey, who was the longtime director of equity research at Morningstar, where he specialized in economic moats: sources of sustained competitive advantage that allow a few companies to deliver huge returns over time. Several years ago he left Morningstar to form his own asset management firm, Dorsey asset management, and build a portfolio of companies with wide moats like those he studied at Morningstar. And while moats are critical, equally important is how companies allocate the capital generated--or made possible--by the existence of the moat.   A special thank you to Brian Bares who introduced me to Pat, and to Will Thorndike--an earlier guest on the show. In the vast majority of conversations you hear on this show, I'm meeting the guest for the first time. I mention this to encourage you to connect me with anyone whose story or way of looking at the world might resonate. Always feel free to contact me with ideas.   Pat and I begin our discussion with the key differences between the sell side and the buy side, and then discuss all aspects of moats and capital allocation.    For comprehensive show notes on this episode go to http://investorfieldguide.com/dorsey For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Show Notes 2:23 – (First question) – Transition from the sell side to the buy side and the biggest surprise  3:40 – What is a moat  5:16 – What part of the stock market universe has a moat  6:57 – Pat’s framework for identifying moat, starting with intangibles  8:32 – The power of brands  9:44 – what chance does an upstart have to come in and usurp a well-established brand    12:24 – Switching costs as part of the framework for identifying a moat  14:55 – The third component of identifying a moat, network effects, and what businesses should do to effectively build one  17:29 – Last component, cost advantages/economies of scale  19:29 – How do you analyze these four components into an investing framework that can be built into an actual strategy  21:13 – How does Pat think about this from a mis-pricing standpoint  23:37  – How does Pat incorporate current price of a company in consideration for future returns when pricing a moat  25:39 – How should a company with a moat operate to protect that characteristic, especially when it comes to their capital allocation  26:51 – Which characteristic of a moat does Pat find most intriguing  30:35 – What makes for good and smart capital allocation  35:58 – What is Pat’s process for identifying the best investment opportunities  38:38 – What are good economics when looking at a company  41:03 – If Pat could take any business, but have to swap leadership, what would he choose.  44:13 – Back to his process of finding investment opportunities  46:05 – Kindest thing anyone has ever done for Pat   Learn More For more episodes go to InvestorFieldGuide.com/podcast.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

My guests this week are both veterans of the podcast, Jason Zweig and Morgan Housel. They are two of the best in the world at making the complicated simple, and in that spirit, I’ll keep this introduction short. Morgan shifted from public markets to the private markets a year ago when he joined the Collaborative Fund, so we begin with what he has learned about venture capital in his first year on the job.   For comprehensive show notes on this episode go to http://investorfieldguide.com/writers For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag   Books Referenced The Devil's Financial Dictionary Modern Monopolies: What It Takes to Dominate the 21st Century Economy Thinking, Fast and Slow Shoe Dog: A Memoir by the Creator of Nike Life and Fate   Online References A Rediscovered Masterpiece by Benjamin Graham Rishi Ganti podcast Small Companies Are Gone, But Should they Be Forgotten (Zweig Column)   Show Notes 1:43 – (First question) – Morgan on why he got disenchanted with the investment industry and shifted to venture capital 4:05 – Jason’s thoughts about investing in the private markets             5:19 - A Rediscovered Masterpiece by Benjamin Graham 7:57 – Morgan’s thoughts on how private market investments differ from public market investments 10:24 – Exploring valuations of businesses and what they say about broader trends in the market 13:21 – How much does Jason think about individual companies when exploring the overall market trends             18:41 – The Devil's Financial Dictionary 19:28 –What does it take to be a successful founder 23:40 – How does Jason look at activities that are work related vs just for pleasure 25:33 – If Jason had to start a business, what would he do 27:22 – What business would Morgan start 29:18 – Problems with the financial planning industry 30:56 -  The role of stress in personal and business development             31:04 – Modern Monopolies: What It Takes to Dominate the 21st Century Economy 38:17 – Are there signs that let you know when to cut and run vs when to keep slogging along with something             42:02 – Thinking, Fast and Slow             44:03 – Shoe Dog: A Memoir by the Creator of Nike 44:20 – Principals to approach learning 50:10 – The idea of keeping your identity small in a world where social media encourages one-upmanship 53:56 – Last significant thing Morgan changed his mind about 55:23 – Why Morgan chooses passive investing with stocks, but as a VC, essentially is a stock picker in private markets             1:00:44 – Rishi Ganti podcast 1:02:14 – What major thing did Jason change his mind about             1:02:30 – Small Companies Are Gone, But Should they Be Forgotten (Zweig Column) 1:06:33 – What was the most interesting idea Jason and Morgan have been tackling and what data helped to spark that interest             1:09:32 – Life and Fate

This week's conversation is about performance. More specifically, it is about the ins and outs of steady progress and growth. My guest is Brad Stulberg who coauthored the book Peak Performance, which combines research from many fields into a description of how athletes, creatives and others continue to push boundaries in their respective crafts. As someone who is intermittently lazy, the growth equation framework that Brad and I explore has impacted me often since I first read the book several months ago. I hope you enjoy this conversation, which isn't about investing, but which is, at its heart, still about the power of compounding.    Books Referenced Outliers: The Story of Success Peak: Secrets from the New Science of Expertise   Online References Jool Health   Show Notes 1:32 – (First question) – How Vick Stretcher influenced the book, Peak Performance 4:32 – Looking at some of the preliminary research at the science of purpose 7:58 – The idea of a growth equation and the components that can lead to success 11:47 – How the introduction of stress can help in all sorts of creative and entrepreneurial pursuits. 13:39 – The ratio between physical and mental as an impact on this formula 14:56 – Just manageable challenges and the role that they play in the growth equation 18:06 – The idea of just manageable challenges through the example of an athlete 22:19 – Favorite example of a crazy feat of physical performance, stress on older athletes operating at high levels 23:30 – Thoughts about outside influences like mentors/coaches and how they help high performance individuals advance 25:51 – Describe catabolic and anabolic states and why anabolic is so important 29:13 – How the relationship of catabolic and anabolic states also helps the mind 30:47 – How does the idea of practice play into the growth equation 32:49 – Exploring the nuances of practice and why you don’t go all out             32:56 – Outliers: The Story of Success 33:00 - Peak: Secrets from the New Science of Expertise 34:24 – The idea of designing of a day 42:06 – What role can environment play on us 43:40 – How far is it healthy to run 46:25 – How does ego play into all of this 48:06 – The idea of camaraderie and study of Air Force Cadets highlighting this 49:28 – Fatigue and why it is believed to happen in the mind and not the body 54:00 – Most memorable day 55:43 - Method for finding purpose             56:29 – Jool Health 58:26 – Kindest thing anyone has ever done for Brad   Learn More For more comprehensive show notes on this episode go to http://investorfieldguide.com/brad For more episodes go to InvestorFieldGuide.com/podcast. To get involved with Project Frontier, head to InvestorFieldGuide.com/frontier. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag  

Several weeks ago my conversation with Leigh Drogen on quant investing proved timely and popular--because everyone in asset management is facing the rise of big data, and the use of data science in investing strategies. Because of the rise of quants, many are asking themselves how to survive and thrive in a changing industry. In short, how can traditional managers compete with quants? This second conversation with Leigh was set up to answer many of the questions posed in the first one. If quants are taking over, what should other investors do about it? Leigh proposes a method by which old school asset managers can restructure their thinking and their process to compete with and even beat purely quantitative competitors. The method involves pulling the best from both worlds and combining them into a hybrid structure. But it will be impossible without a wholesale change in mindset, which is where we begin. Please enjoy round two with Leigh Drogen.   Links Referenced Revenge of the Humans Part II: A New Blueprint For Discretionary Management   Show Notes 2:14 – (First question) –  What role will ego and mindset play for traditional hedge funds looking to transition into quantitative investing strategies 4:21 – Describes the traditional process that hedge funds use to make investment decisions and how the internal politics can hamper it 6:08 – What value has portfolio managers played at hedge funds traditionally as the quarterback of a fund 9:57 – A look at what Leigh has seen as he sits with teams 12:20 – A look at places that have tried to simply add quant to their firm’s strategies without “tearing it down to the studs” and properly integrating them into the process 15:00 – Leigh is asked to define the basics of a good investment firm’s strategies 16:57 – Strategies for writing down core beliefs, whether it’s for yourself or your firm 17:49 – Exploring the second step, finding a differentiating view and how to succeed with it. 21:43 – The importance of force ranking and structuring the unstructured 26:14 – Building factor models 29:42 – How the portfolio manager position should have less room for subjectivity than at the analyst level 33:44 – Is anyone integrating this kind of high level data at the portfolio manager level into the decision making the way Leigh describes 35:07 – What blind spots are created by systematizing their processes 36:18 – Why much of this applies more to shorter and structured periods 38:23 – Shifting to portfolio constructions and what Leigh would do to create the right mix 43:39 – Shifting to management structures in these firms starting with the role of the CIO 45:24 – Looking at the different quant roles that exist in a firm and what they should be responsible for; data engineers, data analysts, pure quants, and quantitative engineer 48:20 – If you are an undergrad or grad student right now interested in asset management, what are the roles you should be thinking about targeting 49:25 – Why communication skills are still so important, no matter what role you are in 50:25 – With all of the tools and skills that Leigh has at his disposal at Estimize, why not institute an active strategy 52:01 – What has Leigh observed in the dispersion of skill in the Estimized data set 53:47 – What is the relationship between specialization and accuracy among funds 55:29 – The pros and cons of the generalist 56:56 – A look at Leigh’s background into War Theory and what lessons that he still draws on today 1:00:19 – How the field of study around war and battle relates to the investing world   Learn More For more episodes go to InvestorFieldGuide.com/podcast.  For complete shownotes, go to InvestorFieldGuide.com/leigh.  Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub Follow Patrick on twitter at @patrick_oshag

My guest this week is a version of me—a funnier, cooler version who has a PhD and served as an active duty marine. Lots of you will already be familiar with Wes Gray, and those of you who are not are in for a treat. Wes is the founder of Alpha Architect, a firm which manages quantitative equity strategies for clients using factors like value and momentum. He also advocates for a more concentrated, pure approach to factor investing, which listeners know is music to my ears.While we share a lot of the same views on markets and investing, you will still find this refreshing. The conversation was easy to structure--I just took all the questions clients and prospective investors always ask of me and my firm, and turned them on Wes. These range from very specific questions on quant investing to big existential ones. I listened to this on a long drive home and laughed out loud in the car at least 5 times. You are going to love it all.I close this introduction by offering you an opportunity which is not for the faint of heart. On September 16th, I will be joining Wes and his crew on a 28-mile trek called “March for the Fallen” which is a small but important way of honoring those who have given their lives in service of our country. Wes and I invite you to join as well. If you are interested, check out the post on Wes’s site with all the details. I will link to it in the shownotes at investorfieldguide.com/wes. If you are still interested, then email me with the subject heading “March for the Fallen.” I told you Wes is a much cooler version of me, and true to form he will be doing the hike with a 40-pound rucksack. I will be doing the version without a rucksack. Either way, it will be a day of comradery and remembrance that we won’t soon forget. Join us. Books Referenced The Devil Dogs at Belleau Wood: U.S. Marines in World War I Thinking, Fast and Slow Online ReferencesThe Limits of Arbitrage Show Notes3:07 – (First question) – Exploring the mindset that is ingrained into Marines3:16 – The Devil Dogs at Belleau Wood: U.S. Marines in World War I5:27 – Most memorable experience growing up in the mountains of Colorado6:29 – What experiences in the military have transferred to what Wes sees in the public markets6:48 – Thinking, Fast and Slow7:51 – Wes’s first foray into stocks10:51 – What was the transition into the quantitative investing space12:29 – How Wes would describe quantitative investing and what the landscape looks like today17:10 – What is the nature of the strategies Wes uses, like high-frequency and market-making, and what makes them stand out in those20:57 – What about the human capital arms race in this space and how different firms are attracting the top talent23:21 – What the approach is for Wes and what his research suggests is the best predictor of performance in stocks25:36 – Wes’s approach to portfolio construction33:19 – What is the thinking behind the number of and the size of names in the QVAL ETF36:20 – Why the data suggests momentum is the better pick37:36 – Why price-to-book sucks relative to other value factors39:55 – What things worry Wes about the future of this strategy44:39 – How does Wes think about research and what to explore next.50:05 – Who would Wes have manage his money since he thinks Vanguard is not the best choice57:01 – Exploring his firm Alpha Architect, how it started and has evolved since launch57:39 – The Limits of Arbitrage1:08:15 – How the influx of people to passive investments are impacting the overall market, especially for active investment strategies1:13:13 – Wes’s most memorable day of his career both in the military and as an investor1:17:19– Kindest thing anyone has ever done for Wes  Learn MoreFor more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclubFollow Patrick on twitter at @patrick_oshag