Other[Music][Music][Music][Music][Music] professor norrie girardo leads is aprofessor norrie girardo leads is aprofessor norrie girardo leads is a senior lecturer of businesssenior lecturer of businesssenior lecturer of business administration in the financeadministration in the financeadministration in the finance entrepreneurial management unit sheentrepreneurial management unit sheentrepreneurial management unit she presently teaches real estate privatepresently teaches real estate privatepresently teaches real estate private equity and starting a private investmentequity and starting a private investmentequity and starting a private investment firm i had the great honor of havingfirm i had the great honor of havingfirm i had the great honor of having nori as a professor last fall and inori as a professor last fall and inori as a professor last fall and i would recommend her course to any rc'swould recommend her course to any rc'swould recommend her course to any rc's tuning in todaytuning in todaytuning in today prior to teaching nori had a long andprior to teaching nori had a long andprior to teaching nori had a long and successful career in private real estatesuccessful career in private real estatesuccessful career in private real estate investinginvestinginvesting until 2011until 2011until 2011 nori was a partner and chief strategistnori was a partner and chief strategistnori was a partner and chief strategist for private real estate and partnersfor private real estate and partnersfor private real estate and partners groupgroupgroup and she also founded and co-foundedand she also founded and co-foundedand she also founded and co-founded several uh firms in the pastseveral uh firms in the pastseveral uh firms in the past including pension consulting allianceincluding pension consulting allianceincluding pension consulting alliance which became the largest real estatewhich became the largest real estatewhich became the largest real estate advisory firm in the world and um moreadvisory firm in the world and um moreadvisory firm in the world and um more recently she co-found that she foundedrecently she co-found that she foundedrecently she co-found that she founded uh barite capitaluh barite capitaluh barite capital real estate advisory firmreal estate advisory firmreal estate advisory firm as for our guest keynote speaker todayas for our guest keynote speaker today
Otheras for our guest keynote speaker today monish is the founder and managingmonish is the founder and managingmonish is the founder and managing partner of abra investment fundspartner of abra investment fundspartner of abra investment funds a family of investment funds that werea family of investment funds that werea family of investment funds that were inspired by the originalinspired by the originalinspired by the original buffett partnerships of the 1950s andbuffett partnerships of the 1950s andbuffett partnerships of the 1950s and our close replica of the originalour close replica of the originalour close replica of the original buffett partnership rules prior to pifbuffett partnership rules prior to pifbuffett partnership rules prior to pif he was the founder and ceo of transtechhe was the founder and ceo of transtechhe was the founder and ceo of transtech an i.t consulting assistance integrationan i.t consulting assistance integrationan i.t consulting assistance integration companycompanycompany which he sold in 2000which he sold in 2000which he sold in 2000 during his investing career monisha hasduring his investing career monisha hasduring his investing career monisha has written two books on value investing thewritten two books on value investing thewritten two books on value investing the dandel investor and mosaicdandel investor and mosaicdandel investor and mosaic prospectus of investing he graduatedprospectus of investing he graduatedprospectus of investing he graduated from clemson university with a degree infrom clemson university with a degree infrom clemson university with a degree in computer engineeringcomputer engineeringcomputer engineering and today he also serves as the founderand today he also serves as the founderand today he also serves as the founder and chairman ofand chairman ofand chairman of dakshana foundation a charitydakshana foundation a charitydakshana foundation a charity focused on poverty alleviation throughfocused on poverty alleviation throughfocused on poverty alleviation through education monica nori thank you both foreducation monica nori thank you both foreducation monica nori thank you both for being here today i'll i'll give up thebeing here today i'll i'll give up thebeing here today i'll i'll give up the floor to you nowfloor to you nowfloor to you now
Questionerthank you um alan it's it's good to see
Otherthank you um alan it's it's good to see you again umyou again umyou again um and um manish thank you for agreeing toand um manish thank you for agreeing toand um manish thank you for agreeing to take time on a sunday uh to do thistake time on a sunday uh to do thistake time on a sunday uh to do this you you must have ayou you must have ayou you must have a looking at behind you you must have alooking at behind you you must have alooking at behind you you must have a penchant for carspenchant for carspenchant for cars i seei seei see ferrari maseratiferrari maseratiferrari maserati jeepjeepjeep so they're all they're all owned by theso they're all they're all owned by theso they're all they're all owned by the same companysame companysame company and in uh 2012 i hadand in uh 2012 i hadand in uh 2012 i had made an investmentmade an investmentmade an investment in fiat chryslerin fiat chryslerin fiat chrysler uh automobiles and uhuh automobiles and uhuh automobiles and uh at that time embedded within fiat wasat that time embedded within fiat wasat that time embedded within fiat was also ferrarialso ferrarialso ferrari and they had just done the deal with uhand they had just done the deal with uhand they had just done the deal with uh chryslerchryslerchrysler in 2000 2008in 2000 2008in 2000 2008 so basically all of those brands alphaso basically all of those brands alphaso basically all of those brands alpha maserati rammaserati rammaserati ram and uh and ferrari and so on were alland uh and ferrari and so on were alland uh and ferrari and so on were all within that same umbrellawithin that same umbrellawithin that same umbrella and uh it was uh i mean i hated the autoand uh it was uh i mean i hated the autoand uh it was uh i mean i hated the auto industry all my lifeindustry all my lifeindustry all my life i think it's a horrible industryi think it's a horrible industryi think it's a horrible industry andandand it ended up being a spectacularit ended up being a spectacularit ended up being a spectacular investmentinvestmentinvestment because uhbecause uhbecause uh because basically that that group hadbecause basically that that group hadbecause basically that that group had about 140 billion inabout 140 billion inabout 140 billion in revenuerevenuerevenue and the market cap was 5 billionand the market cap was 5 billionand the market cap was 5 billion oh my god
Questionerand ferrari alone is like 60 billion now
Questionerwell kudos to you for you know finding that nugget in an industry that is you know has been over the decades highly highly cyclical and and you know at times horribly unprofitable and requiring major bailouts but i wanted to let's step back a little bit and you know you are characterized as a value investor and you know maybe and and a follower of sort of the warren buffett type investment strategy what is that you know what does that really mean and then we'll dig a little into some of the other stuff that we had spoke about just previously what is it what does it mean to be you know what kind of a how do you characterize yourself are you like another warren buffett
Otherso the dean or father of father of value investing is ben graham who was a warren buffett's teacher and uh and actually ben graham kind of
Warrenuh and actually ben graham kind of uh and actually ben graham kind of you know i don't know people would think you know i don't know people would think you know i don't know people would think this is a blasphemy but ben graham kind this is a blasphemy but ben graham kind this is a blasphemy but ben graham kind of led us astray he led me astray for a of led us astray he led me astray for a of led us astray he led me astray for a long time long time long time and uh and so if we go back to ben and uh and so if we go back to ben and uh and so if we go back to ben graham you know graham you know graham you know he he got he got he got wait maybe wait maybe wait maybe tell the audience who ben graham is yes tell the audience who ben graham is yes tell the audience who ben graham is yes they may not know uh ben ben graham uh they may not know uh ben ben graham uh they may not know uh ben ben graham uh used to be a professor at colombia when used to be a professor at colombia when used to be a professor at colombia when he passed away in the 70s he passed away in the 70s he passed away in the 70s and and and in the in the in the in the great depression and in the great depression and in the great depression and and the great crash 1929 to 32 and then and the great crash 1929 to 32 and then and the great crash 1929 to 32 and then all the way to 38 actually all the way to 38 actually all the way to 38 actually his portfolio got clobbered his portfolio got clobbered his portfolio got clobbered and when his portfolio got clobbered he and when his portfolio got clobbered he and when his portfolio got clobbered he uh went back and did a very holistic uh went back and did a very holistic uh went back and did a very holistic analysis of how one should invest analysis of how one should invest analysis of how one should invest where where where there is very strong downside protection there is very strong downside protection there is very strong downside protection there is very low risk there is very low risk there is very low risk and there is a disproportionate upside and there is a disproportionate upside and there is a disproportionate upside and he came up with a framework which and he came up with a framework which and he came up with a framework which was was was you know published in security analysis you know published in security analysis you know published in security analysis that it's gone through like seven or that it's gone through like seven or
Questionerthat it's gone through like seven or eight editions now but the security is basically the bible of uh value investing and uh and ben graham basically came up uh with this uh just two or three main ideas which have been the cornerstone of how buffett uh started investing the first is that you're not buying and selling pieces of paper you're buying ownership fractional ownership of a business and you should think of it as if you were buying the entire business so that's the first mindset in terms of how you should think about uh buying and selling stocks the second is that you should insist on a margin of safety so all companies are worth the sum of all cash they'll produce some now till judgment day discounted by some reasonable interest rate he said if you can figure that out then you want to be buying it well below that price and the third which is
Questionerthat price and the third which is probably a very important concept this concept of mr market where mr market shows up every 15 minutes every 10 minutes kind of a manic depressive character and he's continuously giving you quotes on any business you want under the sun and your job is to make mr market work for you and not the other way around so when mr market serves you prices that are way too low you should be buying and reserves your price is way too high you should be selling to him and so those were the cornerstones and uh because he came out of the great depression and you know 70 80 collapse in indices and so on he uh came up with this net net framework of buying things at two thirds of current assets which would be really really low not even paying anything for plant equipment net current assets and and if you if you did that you would do extremely
Warrenif you did that you would do extremely well except those types of businesses are very hard to find today and um i think where ben graham led us astray is his focus was to buy a business for 50 cents or 40 cents or 30 cents and then as it approached its intrinsic value of a dollar if it had not grown then you sold the business so he was very focused on downside protection and in reality i think in investing what happens is you make the most money by investing in businesses which have long growth runways and significantly increase intrinsic value over time and so for example in the ben graham framework if you were an investor in walmart in the 70s and if walmart got up to like you know 40 50 times earnings well before that a ben graham type investor would exit and that would be terrible because uh kind of missed the forest from the trees
Questionerkind of missed the forest from the trees the idea is that if you own great compounding machines you shouldn't actually be selling even when it crosses intrinsic value even when it crosses intrinsic value by 20 30 40 percent as long as the nature of the business is very sound and robust and so that particular shift which is holding things above intrinsic value would be blasphemy in the gram world and i for most of my career stuck to that intrinsic value being the kind of the red line right and i think it was a mistake and so uh but you know like they say you get old too soon and why is too late we we finally figured it out i think two years ago and now i have 22 years of runway left before i leave planet earth so we still have some room to make amends so is that because you have been like i said characterized as a value a value investor whatever that means right
Questionerinvestor whatever that means right and and and your there was a report issued in 2020 saying that you kind of shifting your strategy is what you just described about holding beyond intrinsic whatever the quote intrinsic value is and i'm not even sure i know what that means that does that describe you know a somewhat of a change in philosophy in your organization or you know where how how can anybody in a market environment like we've had at least until december 31 which was really growth oriented how can somebody be a successful value investor given valuations
Warrenso uh value and growth are joined at the hip they're two sides of the same coin and so there is no such thing as growth investing versus value investing all intelligent investing is value investing and so if i bought a business which had a billion dollar market cap and for the next 50 years would produce 100 million a
Warren50 years would produce 100 million a year in cash flow non-stop and then disappear after that i can use interest rates and such and come up with an intrinsic value for the business by discounting those cash flows back to today and if i were to buy another business which had a billion dollar market cap 100 million in cash flows growing 10 a year for example and in 25 or 30 years that business disappeared i could also discount those cash flows back and i would come up with a value both those companies have a specific value and one would want to invest where the difference between what you're paying and what it's worth is greater now the difficulty in investing is that figuring out future cash flows is really hard in most cases it's impossible but in a sliver of cases you can get some semblance of putting some boundaries on and and so growth and value are the same
Todd Combsand and so growth and value are the same thing for value investors they would look at both my framework change wasn't a change in this growth was value i have been a value investor which encompasses growth since the since 1994 when i started doing this so there's no change there the change was on holding things above intrinsic value so if i own a walmart or i own a amazon and i have a fix on the intrinsic value which is an intrinsic value john burr williams designed it you know maybe 100 years ago 92 years ago actually he he said some of all cash that's going to come out of the enterprise from now till judgment day is counted by a reasonable interest rate that's the intrinsic value of any business and so holding holding above perceived intrinsic value especially when the runway is very long and the business is getting better that's the that's the important change
Questionerthat's the that's the important change and uh and that's the change and uh and that's the change and uh and that's the change so does that mean that when you say so does that mean that when you say so does that mean that when you say holding holding holding i mean i'm not i mean i'm not i mean i'm not i'm a little confused holding above i'm a little confused holding above i'm a little confused holding above intrinsic value suggests that intrinsic value suggests that intrinsic value suggests that you expect the value to continue to you expect the value to continue to you expect the value to continue to increase increase increase so let me let me let me and so you're so let me let me let me and so you're so let me let me let me and so you're not it's not it's not holding above not it's not it's not holding above not it's not it's not holding above intrinsically intrinsically intrinsically
Warrenlet's let's go to the real world and let's leave the let's leave the let's leave the definitions behind because the definitions behind because the definitions behind because the definitions don't work in the real world definitions don't work in the real world definitions don't work in the real world because we cannot estimate future cash because we cannot estimate future cash because we cannot estimate future cash flows i mean if i if i asked anyone what flows i mean if i if i asked anyone what flows i mean if i if i asked anyone what are the future cash flow facebook what's are the future cash flow facebook what's are the future cash flow facebook what's the future cash flow berkshire hathaway the future cash flow berkshire hathaway the future cash flow berkshire hathaway i mean there are no there's no firm i mean there are no there's no firm i mean there are no there's no firm answer answer answer because it's it's unknown and especially because it's it's unknown and especially because it's it's unknown and especially when you go five or ten years out it when you go five or ten years out it when you go five or ten years out it becomes really fuzzy so let's go into becomes really fuzzy so let's go into becomes really fuzzy so let's go into the real world because we have to the real world because we have to the real world because we have to practice this art in the real world in practice this art in the real world in
Otherpractice this art in the real world in 201920192019 i was in istanbul and ii was in istanbul and ii was in istanbul and i visited a companyvisited a companyvisited a company where thewhere thewhere the market cap was 20 million dollarsmarket cap was 20 million dollarsmarket cap was 20 million dollars to zero and theto zero and theto zero and the liquidation value of the business wasliquidation value of the business wasliquidation value of the business was eight hundred million dollarseight hundred million dollarseight hundred million dollars sososo i'm glad you'rei'm glad you'rei'm glad you're mismatched i'm i'm so glad you're awakemismatched i'm i'm so glad you're awakemismatched i'm i'm so glad you're awake now so basically this was the businessnow so basically this was the businessnow so basically this was the business and by the way what what happened inand by the way what what happened inand by the way what what happened in 2019 to me in istanbul2019 to me in istanbul2019 to me in istanbul never happened to me in the previous 28never happened to me in the previous 28never happened to me in the previous 28 or 26 years of investing and will notor 26 years of investing and will notor 26 years of investing and will not happen again till i die but ithappen again till i die but ithappen again till i die but it illustratesillustratesillustrates what i'm about to say because this is awhat i'm about to say because this is awhat i'm about to say because this is a real case okayreal case okayreal case okay so uh and i wish hb is the case on thisso uh and i wish hb is the case on thisso uh and i wish hb is the case on this company it'd be fun it'd be a fun casecompany it'd be fun it'd be a fun casecompany it'd be fun it'd be a fun case to read soto read soto read so what is the what is thewhat is the what is thewhat is the what is the name of the company is racename of the company is racename of the company is race logistics r e y s a slogistics r e y s a slogistics r e y s a s so resource logistics was sitting at aso resource logistics was sitting at aso resource logistics was sitting at a 20 million market cap20 million market cap20 million market cap andandand my friend who's a you knowmy friend who's a you knowmy friend who's a you know died in the worlddied in the worlddied in the world ben graham investorben graham investorben graham investor i told him to just take me to all the
Questioneri told him to just take me to all the companies in his portfolio when i was visiting istanbul and he took me to resasresas and when we were driving there he explained to me that the liquidation value of the business was 800 million and the market cap was 20 million i said is it fraudulent like what are we looking at here what's going on here he said no he said it's really simple to value the business because they have 12 million square feet of warehouses they're 99 lease to blue chip companies ikea car 4 amazon so on 10-year leases inflation index all of that and any broker would give you a price on those warehouses and when you look at these 83 warehouses and you just you know look at what is the going market rate for these things that's where you end up with you you end up with about a billion dollars of value about 200 million of debt and you end up
Questionerabout 200 million of debt and you end up with 800 million
Questionerand i met the father and son run the company they seemed like perfectly smart honest people to me
Questionerand i said okay if i try to buy the stock maybe i'll get a hundred thousand dollars worth or something you know some mickey mouse amount
Questionerand that'll be that and what ended up happening is because turkey is such a crazy market where people don't value things
Questioneri end up buying a third of the company for seven million dollars which we still own today now i gave you liquidation value i didn't give you future cash flows right because
Questionerliquidation value is something i could hang my hat on right i mean i it's a real number i didn't even have to go into future cash flows but what i realized once i met the guys running the business is that they were really exceptional capital allocators and i looked at the
Ted Weschlercapital allocators and i looked at the long history of all the different things they had done and it was remarkable every business they were in so it's not just the warehouses they are the largest freight rail operator in turkey they have the largest truck fleet in turkey uh they're the largest forklift rental company they have large numbers of vehicle inspection statement stations which are required every two years number of great businesses and what i and and it was hard to value all those businesses because those are cash flows and stuff it become fuzzy but i didn't care about valuing those businesses because even if they were worth zero i was i still had the 800 mil and uh so we bought the business we bought one third of it it's gone up five or six times in the last two three years and dollars still sitting at 10 cents on the dollar so still a long ways to go
Questionerthe dollar so still a long ways to go but now we get to intrinsic value i don't care about liquidation value intrinsic value intrinsic value of race resource and it's gone up since the 2019 i think resources liquidation value now is about a billion at least a billion and intrinsic value which is because adding in what the father-son can bring to the table maybe it might be worth one and a half billion so what i wanted to say is that if tomorrow a business like racers got actually valued at one and a half billion and we had something like seven million turn into 500 million if that were to happen i would not sell a single share i would hold above intrinsic value in that particular case because the sun is 37 years old and the son i think is better than the father so what i'm trying to say here is now we have a real world case we were able to make the investment not
Questionerwe were able to make the investment not worrying about intrinsic value and at least now even when i take an optimistic view of intrinsic value i would go above that because of the nature and quality of the business well let me ask you a couple questions about that i mean i understand that and you're basically the good news is you have hard assets leased with cash flows you can actually value to be comfortable with the liquidation value number but turkey's an interesting example of a a of a case where the macro issues associated with with turkey which is a wonderful in istanbul i love istanbul and it's beautiful it's beautiful to talk about macro now because the inflation in the u.s is mickey mouse forget the u.s inflation right but let before we go we'll come back to the u.s and talk about what's going on in the u.s but in turkey you had a situation in
Questionerbut in turkey you had a situation in which the president of the country had done some things that that really did not help the macro environment economic environment of the country their currency tanked and so you had sort of these confluence of events of ergodon doing things that were not the smartest thing in the world to do with respect to its country's economic situation andso you go into uh an investment like that and and you have said that the micro trumps the macro is that a fair summary
Otherso so actually turkey is a very beautiful case to have this micro versus macro discussion because when i invested in 2019 a few things were very clear to me it was very clear to me that inflation which was running 50 a year real inflation is 50 a year the official rate is 25 which is you know fiction nonsense yeah so we have 50 inflation a year which means the
Otherinflation a year which means the currency will probably weaken at 50 percent a year and i so when we invested in race in 2019 it was five turkish lira to the dollar today as i speak to you it's approaching 15 turkish era to the dollar okay so i've had a 70 decline in the lira in dollars that investment is up 6x in lira it's up 18x but who cares about the lira we care about dollars so why did i invest when i saw a massive inflation because so what was happening in turkey and what is still happening in turkey everyone and their brother has exited the country that's part of the reason that it's actually the cheapest market in the world i'm the most orgasmic about investing in turkey versus any other place in the world and i should tell the audience they have it's istanbul is a map it's a fabulous city i just spent i just spent three
Questionercity i just spent i just spent three weeks in istanbulweeks in istanbulweeks in istanbul and it was a blast it was just awesomeand it was a blast it was just awesomeand it was a blast it was just awesome so all of you that if you're trying toso all of you that if you're trying toso all of you that if you're trying to do yourdo yourdo your you know your scheduledyou know your scheduledyou know your scheduled vacate vacays um as i know you all arevacate vacays um as i know you all arevacate vacays um as i know you all are i would puti would puti would put istanbul high on the list the food'sistanbul high on the list the food'sistanbul high on the list the food's amazing the the grilled blue fish fromamazing the the grilled blue fish fromamazing the the grilled blue fish from the bros forestthe bros forestthe bros forest that's what it's all aboutthat's what it's all aboutthat's what it's all about the grilled blue fish okay but anywaythe grilled blue fish okay but anywaythe grilled blue fish okay but anyway let's get back i digress so uh basicallylet's get back i digress so uh basicallylet's get back i digress so uh basically uh there are businesses in turkeyuh there are businesses in turkeyuh there are businesses in turkey whichwhichwhich benefit from inflationbenefit from inflationbenefit from inflation and there are businessesand there are businessesand there are businesses that get hurt by inflationthat get hurt by inflationthat get hurt by inflation race is a business that is actuallyrace is a business that is actuallyrace is a business that is actually a beneficiary so the more crazy thea beneficiary so the more crazy thea beneficiary so the more crazy the macro environment environment getsmacro environment environment getsmacro environment environment gets uh the better it is for them so foruh the better it is for them so foruh the better it is for them so for example just to the government hasexample just to the government hasexample just to the government has artificially kept interest rates lowartificially kept interest rates lowartificially kept interest rates low which is what is causing a lot ofwhich is what is causing a lot ofwhich is what is causing a lot of turmoilturmoilturmoil all their debt and they hardly have anyall their debt and they hardly have anyall their debt and they hardly have any any debt now is at 14 percentany debt now is at 14 percent
Otherany debt now is at 14 percent in turkish lira their releases which get inflation index you know rents every year even at the official rate increase at 25 and when the lease expires after 10 years it goes to market rate and so bottom line is the capex was done in yesterday's lira the revenue comes in today's dollars or euros or lira and the resus is not hurt at all in fact i want this thing to continue because it gives them more tailwind there are other businesses in turkey for example there's a juice manufacturer where 98 is exported and revenue is in euros and all expenses are in lira and in and wages are not going up at the rate of inflation so the turks are getting poorer but that company has rising profits in your in euros in the light of this macro so what i'm just what i'm saying is a lot of businesses most businesses get hurt
Questionerhurthurt in this scenarioin this scenarioin this scenario and most businesses in turkey i have noand most businesses in turkey i have noand most businesses in turkey i have no interest in because they would be hurtinterest in because they would be hurtinterest in because they would be hurt but some don't get hurt and sometimesbut some don't get hurt and sometimesbut some don't get hurt and sometimes you get such a large margin of safetyyou get such a large margin of safetyyou get such a large margin of safety like i got with racers that i couldlike i got with racers that i couldlike i got with racers that i could ignore a lot of the macro events and iignore a lot of the macro events and iignore a lot of the macro events and i think that in the end racers will be athink that in the end racers will be athink that in the end racers will be a huge home run sohuge home run sohuge home run so that is how i think of micro and macro ithat is how i think of micro and macro ithat is how i think of micro and macro i look at the business i look at what'slook at the business i look at what'slook at the business i look at what's going on outside and then we take itgoing on outside and then we take itgoing on outside and then we take it from there okay so you know and that's afrom there okay so you know and that's afrom there okay so you know and that's a great example of yourgreat example of yourgreat example of your philosophy in terms of trying to balancephilosophy in terms of trying to balancephilosophy in terms of trying to balance the two let's come back to the unitedthe two let's come back to the unitedthe two let's come back to the united states because most of the audience herestates because most of the audience herestates because most of the audience here is hereis hereis here and we have seenand we have seenand we have seen [Music][Music][Music] you knowyou knowyou know an extraordinary in a very short periodan extraordinary in a very short periodan extraordinary in a very short period of time an extraordinary bump inof time an extraordinary bump inof time an extraordinary bump in inflationinflationinflation in a quarterin a quarterin a quarter basicallybasicallybasically and we haveand we haveand we have you know the government bond yields areyou know the government bond yields areyou know the government bond yields are you know depending on which duration youyou know depending on which duration you
Questioneryou know depending on which duration you look at they're hovering around two percent while inflation is at seven or eight percent which is not good i think we could agree with that right
Questionerwell if you're a fixed income investor buying treasuries it's definitely not good it's really sad
Questionerso you know what is this kind of portend for the united states and how do you feel about the us economy which is for better for we're still the largest economy in the world and there's these i mean these numbers you have on the one hand fabulous employment numbers that just came out yesterday on friday yes the day before yesterday and inflation running looks like an eight percent wages are going up like how do you how do you make sense of all of this are we are we go are we headed headed we have growth but are we headed to a recession but are we headed towards stagflation i mean i know you may not think about it
Warreni know you may not think about it so the way my little brain works is all these things cannot be figured out by my little brain and my my little brain doesn't even try to figure them out okay what my little brain does is it starts with a business it does not start with the economy and all the factors you mentioned so i hone in on a business so let's say for example i look at a business like amazon for example i don't i don't own amazon but let's take that exam what i am focused on is i just want to understand what a business like that looks like five or ten years from now 15 years from now and for most businesses i cannot figure it out and so i say okay you know i can't do much here because i don't know what it looks like once in a while we get some clarity on some business like i did with research for example and we can step up
Questionerand we can step up so before we even get to the macro so before we even get to the macro so before we even get to the macro even if i say it's two percent even if i say it's two percent even if i say it's two percent inflation and two percent interest rates inflation and two percent interest rates inflation and two percent interest rates and nothing is everything is benign and nothing is everything is benign and nothing is everything is benign going back you know two three years for going back you know two three years for going back you know two three years for example example example even in that environment even in that environment even in that environment the difficulty is trying to figure out the difficulty is trying to figure out the difficulty is trying to figure out what the future trajectory of these what the future trajectory of these what the future trajectory of these businesses and there's a small sliver of businesses and there's a small sliver of businesses and there's a small sliver of businesses businesses businesses where based on circle of competence where based on circle of competence where based on circle of competence i think i can figure out the trajectory i think i can figure out the trajectory i think i can figure out the trajectory with something like a 50 to 60 success with something like a 50 to 60 success with something like a 50 to 60 success rate which means that if i made 10 bets rate which means that if i made 10 bets rate which means that if i made 10 bets maybe five or six out of 10 i might be maybe five or six out of 10 i might be maybe five or six out of 10 i might be correct and 40 50 i will not be correct correct and 40 50 i will not be correct correct and 40 50 i will not be correct in that in with those types of in that in with those types of in that in with those types of batting averages batting averages batting averages the results would be great and uh and the results would be great and uh and the results would be great and uh and and so i don't i don't waste a lot of my and so i don't i don't waste a lot of my and so i don't i don't waste a lot of my time i spend a lot of my time time i spend a lot of my time time i spend a lot of my time trying to figure out things that i know trying to figure out things that i know trying to figure out things that i know people who spend their whole lives on people who spend their whole lives on people who spend their whole lives on this can't figure out
Questionerthis can't figure out and uh so that's just way about my pay grade and uh and so i i you know in buffett terms i look for things that are absolute no-brainers that is hitting you in your head with like a 2x4 and it's it's absolutely you don't have to think about things too much to know that it's going to work and that's where our focus is
Questionerso but i i think it's important for the audience to understand because you are perceived as a quote value investor and what i hear you to say is that that's not really the right characterization and the shift most recently away from growth because the market in this past quarter has penalized growth a lot
Questioneryeah but we're not concerned about one quarter here or one quarter there i think so if i look at the us for example i think the last time well i i made an investment uh in march april 2020
Questioner2020 uh right when everything was imploding uh right when everything was imploding uh right when everything was imploding uh you know with a pandemic but uh you know with a pandemic but uh you know with a pandemic but i only have one company in our portfolio only have one company in our portfolio only have one company in our portfolio that is in the united states that is in the united states that is in the united states and we made that investment in 2018. and we made that investment in 2018. and we made that investment in 2018. so so so you know you know you know and we made another investment in 2020 and we made another investment in 2020 and we made another investment in 2020 which we don't own anymore but what i'm which we don't own anymore but what i'm which we don't own anymore but what i'm saying is that saying is that saying is that when i look at things in the united when i look at things in the united when i look at things in the united states currently states currently states currently i cannot come up with things i cannot come up with things i cannot come up with things that are obvious that are obvious that are obvious investments that my little brain can investments that my little brain can investments that my little brain can understand understand understand and uh and so and uh and so and uh and so you know i go to you know i go to you know i go to places where places where places where things are a little bit more palatable things are a little bit more palatable things are a little bit more palatable and understandable and i think like a and understandable and i think like a and understandable and i think like a place like turkey is great because place like turkey is great because place like turkey is great because there's so much fear there's so much fear there's so much fear that the baby got thrown out of the bath that the baby got thrown out of the bath that the baby got thrown out of the bath wall and so wall and so wall and so we we we if i spend my time if i spend my time if i spend my time on 50 turkish companies that's a much on 50 turkish companies that's a much on 50 turkish companies that's a much more worthwhile thing for me to do more worthwhile thing for me to do more worthwhile thing for me to do than anything else which which which you know i can't disagree with that you know i can't disagree with that you know i can't disagree with that because i look at the united states because i look at the united states
Questionerbecause i look at the united states right now and none of it makes any sense right now and none of it makes any sense right now and none of it makes any sense so i think the thing so i think the thing so i think the thing you know the thing what buffett says is you know the thing what buffett says is you know the thing what buffett says is that if things don't make sense that if things don't make sense that if things don't make sense there's no compulsion to act you know in there's no compulsion to act you know in there's no compulsion to act you know in investing investing investing we don't make money when we buy a stock we don't make money when we buy a stock we don't make money when we buy a stock we don't make money when we sell a stock we don't make money when we sell a stock we don't make money when we sell a stock we make money by waiting we make money by waiting we make money by waiting we make money by being patient and we we make money by being patient and we we make money by being patient and we make money by picking our spot so make money by picking our spot so make money by picking our spot so anytime something doesn't make sense anytime something doesn't make sense anytime something doesn't make sense take a pass and take a pass and take a pass and it's okay to take a pass on 99 of stuff it's okay to take a pass on 99 of stuff it's okay to take a pass on 99 of stuff so let me ask you this because it's so let me ask you this because it's so let me ask you this because it's really hard to take a pass really hard to take a pass really hard to take a pass if you have if you have if you have capital that's been committed to you capital that's been committed to you capital that's been committed to you how do you deal with i mean do you learn how do you deal with i mean do you learn how do you deal with i mean do you learn to just i mean so for the audience to just i mean so for the audience to just i mean so for the audience benefit you know you're living in in benefit you know you're living in in benefit you know you're living in in austin correct austin correct austin correct yes yes yes do you just like go play golf do you just like go play golf do you just like go play golf i mean what do you do i mean what do you do i mean what do you do and what do you do with money that's and what do you do with money that's and what do you do with money that's been allocated to you when you don't been allocated to you when you don
Todd Combsbeen allocated to you when you don't find if the marketfind if the marketfind if the market isn't there that'sisn't there that'sisn't there that's you know if the market isn't giving youyou know if the market isn't giving youyou know if the market isn't giving you what you wantwhat you wantwhat you want you know in a in a typical yearyou know in a in a typical yearyou know in a in a typical year i may findi may findi may find one two or three things to buyone two or three things to buyone two or three things to buy and i may find one two or three thingsand i may find one two or three thingsand i may find one two or three things to sell it could be zero it could beto sell it could be zero it could beto sell it could be zero it could be three it's in that rangethree it's in that rangethree it's in that range and the job descriptionand the job descriptionand the job description isisis to readto readto read to read and think not to actto read and think not to actto read and think not to act sososo i love reading and i'm reading all thei love reading and i'm reading all thei love reading and i'm reading all the timetimetime and the reading sometimes is directlyand the reading sometimes is directlyand the reading sometimes is directly related to investments and a lot ofrelated to investments and a lot ofrelated to investments and a lot of times it's nottimes it's nottimes it's not andandand i mean to give you an examplei mean to give you an examplei mean to give you an examplei'm reading a book right now called thei'm reading a book right now called thei'm reading a book right now called the ceo factoryceo factoryceo factory and it's a great book and it may neverand it's a great book and it may neverand it's a great book and it may never have any relevancehave any relevancehave any relevance to any investing ever do but it wasto any investing ever do but it wasto any investing ever do but it was written by a guy who used to be with awritten by a guy who used to be with awritten by a guy who used to be with a unilever's subsidiary in india hindustanunilever's subsidiary in india hindustanunilever's subsidiary in india hindustan unilever which forunilever which forunilever which for 65 years has come about compounded at 1665 years has come about compounded at 1665 years has come about compounded at 16 a yeara yeara year uh it's a spectacular business it's doneuh it's a spectacular business it's done
Questioneruh it's a spectacular business it's done way better than unity way better than unity way better than unity and i think that and i think that and i think that i'm really enjoying that book it's a i'm really enjoying that book it's a i'm really enjoying that book it's a great book it's explaining why great book it's explaining why great book it's explaining why the company produces all these ceos that the company produces all these ceos that the company produces all these ceos that go to do such great work in other go to do such great work in other go to do such great work in other companies so what i'm saying is that companies so what i'm saying is that companies so what i'm saying is that you know i like reading i like thinking you know i like reading i like thinking you know i like reading i like thinking i'm not particularly concerned that we i'm not particularly concerned that we i'm not particularly concerned that we aren't able to find anything this aren't able to find anything this aren't able to find anything this quarter or next quarter or whatever quarter or next quarter or whatever quarter or next quarter or whatever and and and if my investors if my investors if my investors are expecting me to be you know doing are expecting me to be you know doing are expecting me to be you know doing something every week in terms of buying something every week in terms of buying something every week in terms of buying or selling or selling or selling well they invested with the wrong guy well they invested with the wrong guy well they invested with the wrong guy and they will figure out they need they and they will figure out they need they and they will figure out they need they need to exit need to exit need to exit and and and so i'm not particularly concerned about so i'm not particularly concerned about so i'm not particularly concerned about you know you know you know assets under management or what my assets under management or what my assets under management or what my investors think or investors think or investors think or will they take their money away and all will they take their money away and all will they take their money away and all of that of that of that the way i look at it is that the way i look at it is that the way i look at it is that you know if all my money and the you know if all my money and the you know if all my money and the management went away management went away management went away it's okay
Otherit's okay i would just manage the money i had and that'd be fine too i just have more of race as for myself and that there's nothing wrong with that you know i just make race half my portfolio and uh work from there
Otheralan i see you coming back on screen so i think you want to open it up to q a is that correct
Otheruh yes yes i think this would be a good time to to hand over to the audience and we have a couple of questions queued up already
Questionerum once you've talked in the past about using checklists in your investment process and what advice do you have for students seeking to create their own checklist
Otheryeah that's a great question so uh uh i created i created the checklist uh uh mainly uh the i guess the framework i used and this was i think about 14 14 years ago was i looked at investments that were made by great investors where the results were negative they
Questionerwhere the results were negative they lost money lost money lost money and uh that's really kind of public and uh that's really kind of public and uh that's really kind of public knowledge because we have 13 f's they knowledge because we have 13 f's they knowledge because we have 13 f's they file when they buy and 13 file when they buy and 13 file when they buy and 13 so we were able to figure out you know so we were able to figure out you know so we were able to figure out you know which investments which investments which investments warren buffett made where he made money warren buffett made where he made money warren buffett made where he made money or lost money or or lost money or or lost money or you know a number of investors that we you know a number of investors that we you know a number of investors that we respect respect respect then the second question we asked is if then the second question we asked is if then the second question we asked is if a business if a investment ended up with a business if a investment ended up with a business if a investment ended up with a negative return a negative return a negative return was there data was there data was there data available before the investment made available before the investment made available before the investment made first of all we understand try to first of all we understand try to first of all we understand try to understand why did the investment work understand why did the investment work understand why did the investment work and and and then the third question we asked then the third question we asked then the third question we asked ourselves was was that visible ourselves was was that visible ourselves was was that visible before the investment was made so for before the investment was made so for before the investment was made so for example example example so exa for example so exa for example so exa for example sometimes sometimes and and so let's let's take the example of us and so let's let's take the example of us and so let's let's take the example of us a usair was an investment warren buffett a usair was an investment warren buffett a usair was an investment warren buffett had made had made had made a long time ago a long time ago a long time ago and it did not it did not go well in the and it did not it did not go well in the and it did not it did not go well in the end he ended up not losing money but for
Otherend he ended up not losing money but for a while it was it didn't do well and the reason it didn't do well was he misread the mode so southwest airlines had come in they were low-cost provider and they really hammered us air's pittsburgh hub and so on and that was visible before the investment was made so it was related to competition and moves misreading of competition and modes um so what ended up happening when we created this checklist was it fell into a number of very nice buckets why did investments not work the largest single lawsuit reason investments did not work was leverage so leverage has been an achilles heel for a lot of the second biggest reason was some kind of misunderstanding on the more competitive advantage of the business so the investor basically misunderstood or basically couldn't couldn't really
Otherbasically couldn't couldn't really figure out that the board wasn't asfigure out that the board wasn't asfigure out that the board wasn't as deep and wide as they thought they weredeep and wide as they thought they weredeep and wide as they thought they were then they were the third issue was youthen they were the third issue was youthen they were the third issue was you know things like management ownershipknow things like management ownershipknow things like management ownership there were issues with the nature ofthere were issues with the nature ofthere were issues with the nature of management of the nature of ownershipmanagement of the nature of ownershipmanagement of the nature of ownership which again was visible beforewhich again was visible beforewhich again was visible before and then you got into some other issuesand then you got into some other issuesand then you got into some other issues like unions things like that so butlike unions things like that so butlike unions things like that so but these three were the big ones rightthese three were the big ones rightthese three were the big ones right leverage emotes and management and soleverage emotes and management and soleverage emotes and management and so the checklist ended upthe checklist ended upthe checklist ended up i think currently the checklist i usei think currently the checklist i usei think currently the checklist i use has about 170 questions on it and it ithas about 170 questions on it and it ithas about 170 questions on it and it it really carries more than its weight in areally carries more than its weight in areally carries more than its weight in a big waybig waybig way so when i've done the research onso when i've done the research onso when i've done the research on investmentinvestmentinvestment uh before i pull the trigger i run theuh before i pull the trigger i run theuh before i pull the trigger i run the checklist and what happens is thechecklist and what happens is thechecklist and what happens is the biggest value it addsbiggest value it addsbiggest value it adds is they will usually be at least sevenis they will usually be at least sevenis they will usually be at least seven eight or ten questions which i don'teight or ten questions which i don'teight or ten questions which i don't know the answer toknow the answer toknow the answer to and that's the biggest i would say
Otherand that's the biggest i would say benefit of the checklist because it forces me to do more research and sometimes to answer those 10 questions might take another month or two of figuring it out and then we can again go back and run the checklist when we have all those answers then we are able to see what are the weak points in the business what could cause a problem and when we can see that then we can make a go no-go decision because there are no businesses which have no issues every business has issues the question is how how does it kind of lay out and how comfortable can you get with the issues surrounding the business like for example in 2012 we invested in fiat chrysler and we knew the auto industry is horrible we also knew that all the union contracts had been redone and detroit had become a great place to make cars and so on
Questionermake cars and so on and the markets didn't yet understand that and so that's an example of you know digging in and going in even when there were unions and there were comparative advantage issues and all of that super interesting another question from the audience goes i've learned from your barons interview and a few other lectures that you're a big fan of certain growth properties uh you've owned it since 2016 and built a major position in 2020 again uh you got a good friend guys buyer also owning it but you recently exited over two-thirds of the position while the price is still depressed how did your view of intrinsic value change for srg what data point made you change your mind
Ted Weschleryeah so actually we don't own heritage anymore which makes it easy for me to talk about it uh basically we we bought cerritage right when the pandemic was hitting in
Questionerright when the pandemic was hitting in the second quarter of 2020 the stock had collapsed it was 30 yard dollars a share uh before the pandemic and it was kind of hovering between six and nine dollars a share after the pandemic hit because there was a lot of concern about you know retail and footprints and all of that with all the lockdowns and i analyzed it and it looked really cheap and looked like the very significant upside because they were redeveloping all the old seer space and such last year i concluded that i had made a mistake in one part of the heritage thesis and the one part of the thesis was that they are redeveloping all of these properties and it's really kind of like a you know a company which runs in a hundred different countries because each municipality and each city and location has its own nuances about how they look
Greg Abelhas its own nuances about how they look at the approvals and rezonings and different things that the company needs and i realized that i had underestimated how difficult moving that aircraft carrier with all those different geographies and and battles and so uh we had bought it so cheap that we still were with very significant gain when we were selling and and because i i saw that this was a a flaw in the analysis and one thing one should always keep in mind which i already talked about is john templeton used to say the best anna's analysts will be rock right two out of three times and probably more realistically in investing we'll probably write about half that so so one of the things that's really important in investing is to be honest with yourself and when i realized that the redevelopment challenges are much more significant than i had estimated
Questionerestimated you know i took my chips off the table you know i took my chips off the table you know i took my chips off the table and and and so it was a mistake so it was a mistake so it was a mistake but it was a mistake where we end up but it was a mistake where we end up but it was a mistake where we end up with a positive result but i think the with a positive result but i think the with a positive result but i think the big mistake was that big mistake was that big mistake was that in the second quarter of 2020 there were in the second quarter of 2020 there were in the second quarter of 2020 there were lots and lots of companies available lots and lots of companies available lots and lots of companies available cheap cheap cheap and we and we and we here we ended up depending on when we here we ended up depending on when we here we ended up depending on when we were selling were selling were selling somewhere between 20 to 40 percent somewhere between 20 to 40 percent somewhere between 20 to 40 percent return on our money return on our money return on our money and i think we could have gotten a lot and i think we could have gotten a lot and i think we could have gotten a lot more more more uh with a different bet uh with a different bet uh with a different bet so that's that's the unfortunate part so that's that's the unfortunate part so that's that's the unfortunate part the the the opportunity cost was high um um um another question from the audience is another question from the audience is another question from the audience is is how do you balance modeling your is how do you balance modeling your is how do you balance modeling your investment principles after someone investment principles after someone investment principles after someone else's success like that of warren else's success like that of warren else's success like that of warren buffett versus building your own through buffett versus building your own through buffett versus building your own through experience so that's a great question and so that's a great question and so that's a great question and i am what you might call a shameless i am what you might call a shameless i am what you might call a shameless cloner cloner cloner and i think it would be quite foolhardy and i think it would be quite foolhardy and i think it would be quite foolhardy in the investment world in the investment world in the investment world to not ride on the shoulders of giants
Questionerto not ride on the shoulders of giants i think a lot of smart people many of them dead have done a lot of heavy lifting and to try to sit down and create everything by yourself nobody is that smart so ben graham put some frameworks in place uh warren buffett has built on that framework quite significantly and others will build beyond that and i think if if i were to focus on graham buffett and monger especially monger i think that's a tremendous uh framework to use so i'll give her some real world examples of companies that are cloners that don't figure it out themselves that have done really well so almost everything microsoft has had a success at they have either stolen legally or illegally from some other company they have a very large budget for their research labs which in several decades have produced almost nothing you know tens of billions of dollars
Questioneryou know tens of billions of dollars being spent on research but if you look at word it was lifted from word perfect if you look at excel it was listed from lifted from lotus one two three if you look at themes it's coming from zoom and if you look at microsoft edge you know from google chrome and they annihilated netscape and you know stole from them and whatever else on and on you know money from quicken that they've never got much traction even search uh you know bing you know what bing stats stands for bing stats for but it's not google and and uh so uh basically we would not have a business like microsoft if they said we're gonna invent everything internally and uh and even uh even when you look at a business like burger king so mcdonald's has a large uh you know army of people who focus on figuring out locations locations are really important for fast
Questionerlocations are really important for fast food and burger king has two guys and they just look at where mcdonald's is putting up locations and then they go and clone it and those two guys and their dog do pretty well and uh repeatedly you will find so if you look at ryanair in europe you know they cloned the southwest model and and went from there and so many many airlines around the world cloned the southwest model and in fact the only ones that have done well are the ones who have cloned the southwest model anyone else would try to do any other type of airline just fell flat and and went bankrupt so cloning is there's there's something weird in the human psyche which looks down on cloning they think it's kind of beneath ourselves like what you just said like you know we should do our own work and i think that's a very tough way to go through life
Othergo through life i i like to go through life i i like to go through life i i like to go through life in an easy man in an easy man in an easy man so for example when i went to turkey so for example when i went to turkey so for example when i went to turkey i didn't go to turkey and say okay i'm i didn't go to turkey and say okay i'm i didn't go to turkey and say okay i'm going to go going to go going to go visit 100 turkish companies visit 100 turkish companies visit 100 turkish companies i knew a guy who was a very good i knew a guy who was a very good i knew a guy who was a very good ben graham investor was very thoughtful ben graham investor was very thoughtful ben graham investor was very thoughtful and he had already put money behind a and he had already put money behind a and he had already put money behind a bunch of companies and so i said bunch of companies and so i said bunch of companies and so i said hider let's go visit the companies in hider let's go visit the companies in hider let's go visit the companies in your portfolio because that's a winnowed your portfolio because that's a winnowed your portfolio because that's a winnowed down list that have already gone through down list that have already gone through down list that have already gone through one brain one brain one brain and uh even when i'm looking at in idea and uh even when i'm looking at in idea and uh even when i'm looking at in idea generation i look at data roma generation i look at data roma generation i look at data roma a bunch of a bunch of a bunch of investors like i like to look at what investors like i like to look at what investors like i like to look at what bilakman's doing you know bilakman's doing you know bilakman's doing you know everything bilakman does doesn't work everything bilakman does doesn't work everything bilakman does doesn't work some things work some things don't but some things work some things don't but some things work some things don't but you know we know there's a 50 batting you know we know there's a 50 batting you know we know there's a 50 batting average but it's better than throwing average but it's better than throwing average but it's better than throwing darts and picking picking stocks to darts and picking picking stocks to darts and picking picking stocks to drill down drill down drill down so cloning is a very powerful idea so cloning is a very powerful idea so cloning is a very powerful idea if you embrace cloning you will get a
Questionerif you embrace cloning you will get a massive edge on your fellow peers and humans and people will look down on it and that's okay we have no shame we are shameless on that topic and you already gave away one and this might be our last question for today but are there any new fund managers you found admirable and we recommend the students study and clone
Questioneryeah so i think there's always there's always new managers emerging and one of the things about the investment business that's important to remember joel greenblatt pointed this out is is when investment managers start out they have very little capital sometimes they have very little capital sometimes they have very little capital sometimes they just have their own capital or they just have their own capital or they just have their own capital or their families capital their families capital their families capital might even be just a million dollars or might even be just a million dollars or might even be just a million dollars or five million dollars very small amount five million dollars very small amount five million dollars very small amount and with one million five million ten and with one million five million ten and with one million five million ten million million million you will be looking in nooks and you will be looking in nooks and you will be looking in nooks and crannies that a lot of other people crannies that a lot of other people crannies that a lot of other people don't because you could make a half
Questionerdon't because you could make a half million dollar investment or a hundred thousand dollar investment and it could move the needle and the great ones in that group when they start compounding by definition that five million is going to become 50 million and then 500 men and they will no longer be able to make a hundred thousand dollars or five hundred thousand dollars the bet size increases which means they have to leave the bottom they have to leave the bottom which gave them all the success and so in investing what happens is the bottom continuously gets cleared out of great talent because the great talent moves up the food chain and the bottom gets available to the new emerging managers and uh so there are some there are some managers i think josh tarasoff is one name that comes to mind i i like andrew wilkinson a lot you know
Otheri i like andrew wilkinson a lot you know he runs tiny capital he runs tiny capital he runs tiny capital out of out of out of victoria victoria victoria in british columbia in british columbia in british columbia and and and he's at tiny.com he's at tiny.com he's at tiny.com and so there's there's a bunch of these and so there's there's a bunch of these and so there's there's a bunch of these uh guys who are very well-versed uh guys who are very well-versed uh guys who are very well-versed in in in the emerging technologies and the emerging technologies and the emerging technologies and looking at different nooks and crannies looking at different nooks and crannies looking at different nooks and crannies there's a guy i recently became friends there's a guy i recently became friends there's a guy i recently became friends with he's not a public equity investor with he's not a public equity investor with he's not a public equity investor but he's really smart on the tech side but he's really smart on the tech side but he's really smart on the tech side and he's been making and he's been making and he's been making really astute really astute really astute private investments into really really private investments into really really private investments into really really tiny tiny tiny tech companies i mean these are tech companies i mean these are tech companies i mean these are companies you know maybe even hundred companies you know maybe even hundred companies you know maybe even hundred thousand half a million of revenue thousand half a million of revenue thousand half a million of revenue but then he's able to help them grow but then he's able to help them grow but then he's able to help them grow that and such so that and such so that and such so i think that i think that i think that this is the great news about investing this is the great news about investing this is the great news about investing is that the bottom is always available is that the bottom is always available is that the bottom is always available and then if you do well you move up with and then if you do well you move up with and then if you do well you move up with the rest
Questionermonisha nori thank you so much for being generous with your time and making this generous with your time and making this generous with your time and making this a great great event for for all students
Othera great great event for for all students today um well alan and uh and nori it was a pleasure to hang out with you guys and uh always always fun to talk to uh hbs students and i think you've got other other mba students as well so wonderful and i thank you for your time alan thanks and to the entire team that put this together and i only have one question so manish again going back to the beginning and seeing all those car things on your wall what kind of car do you drive
Otherwell you know i i had to go full texan after moving to austin i just moved to austin i just got a ram longhorn and it is so awesome and you know i got to know the owners of ferrari when i owned the stock and it's a very deep regret of mine that so i'm i'm not a ferrari kind of guy but i felt like i made so much money on ferrari that i should own a ferrari so i approached them you know usually
Questionerapproached them you know usually ferraris have two or three year wait list so they said monish we can help you with delivery we cannot help you with price ferrari never discounts anything so i said i wasn't looking at any discount delivery advancement is fine so i got my my 488 spider ferrari in 2018 and that was uh such a joy and fun to own but when i moved here because i live in the hills and it's a very low car it just wasn't practical so i i got rid of the ferrari and i got my ram longhorn for one-fourth the price and uh and also by the way in the entire period i owned the ferrari it never went down in price it just stayed where it was great but i also have a also have a alfa romeo stelvio which is great it's got a ferrari engine in it so i still have ferrari in the garage kind of camouflaged and uh maserati levante so they're all part of fiat chrysler
Questionerpart of fiat chrysler because i'm loyal to them and i'll always be loyal but my favorite car is the longhorn
Otherwell that's you know my son would applaud that because he's got a big ass truck um pardon my french i'm i'm alan i'm sorry i know i'm not supposed to say that and but i did have years ago a maserati as well so i have to confess that so anyway i you know manisha was a delight to have you thank you so much for giving all of us your time and your insights it was you know really really appreciated and remarkable so thank you so much and i don't know you know we we can't i don't we can't applaud can we allen because no you can only raise your hand you can only raise your hand on on zoom but you can applaud that's what i mean that'll be in the next release thank you thank you thank you okay all right all the best bye
Otherall right all the best bye
Otherthank you
Otherthank you
Otherand
Otherand
Otherand with that we conclude the 2022 investment conference
Otherjust a quick address to the attendees
Otherbig thank you for all the keynote speakers for donating their time and wisdom to us just making this an overall awesome event for students here in year out same goes to our moderators thank you for volunteering your time on a sunday to help us host this event and make it a great discussion and learning opportunity for for our students a big shout out to investment conference planning team and the broader investment club leadership board for doing a great job in organizing this event and the conference together this year and thank you to the sponsors as well your generous support allows us to continue hosting events like these throughout the year and last but not least thank you to all our attendees for tuning in today and making this a great event uh we look forward to host you hosting you again next year hopefully in person until then take care and and