Episódios
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Richard Cook, Co-Founder of Cook and Bynum, stops by The Business Brew to discuss his approach to global investing. Richard discusses his concentrated investment strategies, focusing on emerging markets, government dynamics, consumer behavior, and intrinsic value.
Highlighting key investments in markets like Mexico, Turkey, Pakistan, and Bangladesh, Richard discusses operational execution, investor relations, and long-term strategic planning. The episode also covers strategic investments during the Greek financial crisis, the role of conservative management, and the importance of understanding market dynamics.
With reflections on experiences in South Africa, Costa Rica, and Turkey, this conversation offers invaluable insights into global investment strategies and the essential qualities of successful business leaders.
Tune in to gain expert knowledge on navigating global investments and building a successful investment firm.
00:00 Welcome to The Business Brew
00:07 Introducing Richard Cook
00:45 Investment Philosophy and Strategy
01:09 Shoutout to the Editing Team
02:30 Starting the Interview with Richard Cook
03:02 Emerging Markets and Government Influence
04:15 Investment Holdings and Long-Term Strategy
07:47 The Power of Buybacks and Controlling
Shareholders
14:44 Avoiding Bias in Investment Decisions
19:08 Lessons from Past Investments
24:54 Navigating Market Cycles
34:18 Insights on Bottling Businesses
46:58 Premiumization in the Beverage Industry
48:15 Global Consumption Patterns
49:53 Investment Strategies and Intrinsic Value
51:29 Challenges in Forecasting Business Durability
53:32 Insights on Company Valuation
55:15 Case Study: Kraft and Mondelez
59:01 AB InBev and Craft Beer Market
01:09:59 Investment in Jumbo During Greek Crisis
01:20:39 Evaluating Emerging Markets
01:25:55 Building an Investment Firm
01:28:34 Conclusion and Final Thoughts
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In this episode of the Business Brew, host Bill Brewster sits down with the esteemed investor Bruce Berkowitz. They delve deep into Berkowitz's illustrious career, from his strategies during the financial crisis to his current outlook on various investment opportunities, including midstream energy and Florida real estate.
Berkowitz shares anecdotes, personal reflections, and valuable lessons learned over decades in finance. Additionally, Berkowitz emphasizes the importance of due diligence and remaining rational amidst market fluctuations.
Don't miss this enlightening conversation that offers unique insights into the minds of one of the most successful investors in the industry.
00:00 Welcome to The Business Brew
00:07 Introducing Bruce Berkowitz
01:12 Disclaimer and Due Diligence
02:01 Shoutout to the Editing Team
*Dope music*
03:23 Starting the Interview with Bruce Berkowitz
04:19 Bruce's Investment Philosophy
05:06 Insights on Wells Fargo
09:01 The Importance of Management and Culture
10:11 Challenges in the Banking Sector
12:46 Bruce's Focus on U.S. Investments
14:25 Research and Concentration in Investments
20:28 Fairholme's Unique Approach
27:01 Reflections on Sears and Real Estate
30:43 Lessons from St. Joe
32:38 Discussion on St. Joe's Elevated Properties
33:27 Hurricane Resilience and Modern Building Codes
35:07 Investment Strategies and Market Perspectives
35:54 Interest Rates and Duration Risk
39:14 Corporate Spreads and Reinvestment Risk
41:43 Societal Changes and Financial Perspectives
46:17 Enterprise Products and Midstream Energy
48:30 Energy Logistics and Environmental Impact
57:17 Technological Evolution in Energy
01:00:40 Mutual Funds vs. ETFs
01:02:04 Concluding Thoughts and Media Engagement
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Blake Haxton, analyst at Brandywine Global Asset Management's High Yield and Corporate Strategies Group, joins the Business Brew. This discussion focuses on the companies Blake covers as well as his views on markets generally. Blake tends to focus on "old economy" industries so prepare yourself for plenty of energy discussion. Bill and Blake also discuss industrials and homebuilders. The conversation also touches on the merits of high yield as an asset class.
Blake was recently featured in Barron's. You can find the article here: https://www.barrons.com/articles/paralympian-blake-haxton-high-yield-brandywine-global-6305e6e5
We hope you enjoy the conversation.
Detailed Show Notes:
4:00 - What Blake covers
5:10 - commodities are fairly tight from a supply demand perspective
8:00 - airline discussion
13:00 - energy as an example of how Brandywine looks to take advantage of capital cycles
16:00 - the prospective outlook for high yield
19:00 - how the high yield benchmark is different from the equity benchmark
24:00 - how the improvement in counterparty risk changed the risk/reward of lending to pipeline companies
28:25 - how to think about decline curves in the US vs. Canadian oil companies
30:25 - how differentials impact Canadian energy economics
38:30 - does it make sense to have an allocation to energy?
42:10 - a discussion about how assets generally are priced
52:00 - the pitch for debt vs. equities
54:45 - where is the US housing market in the cycle?
1:06:00 - trading down in credit quality for yield
1:13:00 - how ETFs can provide opportunities when they sell
1:21:00 - how was covering energy in COVID?
1:29:00 - what’s different today with shale as a key producer
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Bill Chen returns to The Business Brew to explore the current landscape of Real Estate Investment Trusts (REITs). Delve into Chen's comprehensive due diligence process, investment strategies, and the future of multifamily and office REITs. Discover key insights on market conditions, cap rates, capital allocation, and the impact of interest rates on investment returns.
The discussion also highlights strategic decisions by large-cap public REITs, dealing with distressed assets, and the potential risks and opportunities in today's real estate market.
A must-watch for anyone looking to understand the intricacies of real estate investing in uncertain times.
Note: This episode was recorded on July 9, 2024.
00:00 - Welcome to The Business Brew
00:05 - Introducing Bill Chen and REITs Discussion
00:35 - A Walk-Through Manhattan with Bill Chen
03:28 - The Future of Office Spaces
09:48 - Bank Balance Sheets and Office Exposure
19:24 - Analyzing REIT Investments
38:12 - Analyzing Cap Rates in Real Estate Investments
41:45 - The Impact of Public Company Costs on Returns
49:30 - Liquidity and Market Dynamics in Real Estate
53:11 - Challenges and Opportunities in the Current Market
1:00:10 - Grocery-Anchored Shopping Centers: A Resilient Asset Class
1:06:17 - Interest Rates and Their Influence on Real Estate Returns
1:15:02 - Understanding Real Estate Multiples and Leverage
1:15:41 - Market Fears and Multifamily Capitalization Rates
1:16:32 - Challenges in Real Estate Development
1:16:56 - Opportunities in a Down Market
1:17:20 - Connecting with the Speaker
1:18:25 - Investment Strategies and Market Timing
1:19:51 - Balancing Market Humility and Aggression
1:21:23 - Psychological Approaches to Real Estate Investment
1:23:24 - Resilience of Multifamily Assets
1:24:48 - The Future of Home Ownership and Renting
1:27:54 - Personal Experiences with Real Estate
1:30:56 - The REIT Mafia and Investment Benchmarks
1:35:16 - Long-Term Investment Perspectives
1:42:22 - Final Thoughts and Farewell
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Al Goldstein, Co-Founder, CEO, and Chairman of Stoic Lane stops by The Business Brew to discuss what his firm is doing in the private markets. Stoic lane is focused on acquiring controlling positions primarily in short term rental management and back office solutions for entrepreneurs. The entity is structured as a corporation with shares rather than as a partnership. As of now, Al's long term goal is to go public.
3:00 - Background and first exit
6:00 - Entering real estate in 2008
8:00 - Al's perspective as an immigrant
10:00 - Starting a private REIT
13:50 - Al's next venture in consumer lending
18:30 - What is Stoic Lane
26:15 - Capital light model with regional brands
30:00 - Creating the right incentives
34:00 - Focusing on the long term
40:00 - Execution is the hard part
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Bill drops in to give a podcast status update and let the listeners know what is going on.
Come see him at The CFA Society of New York on June 25th.
If you are interested in the golf events please send your information to [email protected].
Thank you as always for listening!
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Charles Lemonides, founder and CIO of ValueWorks LLC, stops by The Business Brew to discuss his investment philosophy. Charles started his career as a high yield bond analyst. Over time, he gravitated towards equity. In this episode he says "I find the best investment opportunities are where you can find something that is a real growth opportunity but it is selling for a value price."
Today, ValueWorks LLC, tends to run portfolios with 25-30 long securities in them. Charles tries to have 15 "very, very different" bets in each portfolio.
We hope you enjoy this conversation.
John Hempton on "When do you average down?"
Detailed Show Notes:
5:15 - Best investment setups/opportunities
7:30 - Conceptual position sizing
9:40 - ValueWorks different vehicles and philosophy
17:45 - How Charles built his firm around a philosophy
20:00 - Why Rivian may be a value investment
28:20 - Comcast
31:00 - How Charles manages different types of theses?
35:00 - Where are we in a market cycle?
39:30 - What stocks do you want into a top?
44:40 - What makes Charles tick
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Consuelo Mack stops by The Business Brew to discuss her career in financial media. Consuelo hosts the show WealthTrack, a show Bill has watched and/or listened to for years. This conversation will help Consuelo's fans understand more about her early career and how she developed WealthTrack.
Bill was very happy Consuelo said yes to coming on the show. His only regret is messing up Ed Hyman and Ed Yardeni in the conversation. He hopes both Eds forgive him.
We hope you enjoy the conversation!
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Hunter Hopcroft, Managing Director, Portfolio Solutions at Armada ETF Advisors, stops by The Business Brew to primarily discuss REITs. Hunter is quite a thinker and the conversation veers into other parts of markets such as AI, how the economy is changing and more. You can find Hunter's writing here: https://www.lewisenterprises.blog/
Bill pinged Hunter after someone (on the Twitter machine, so you know it's factual) made a comment that REITs are inherently bad investment vehicles. We hope this episode is informative and realistic about the investment vehicles. You may learn:
The vast difference between market cap weighted public REIT allocations and private sector real estate allocations Why public market REITs have less leverage than their private peers A theory about why Blackstone bought $AIRC and what the true cap rate was Whether dividends are better than academia believesAs always, we hope you enjoy the show. Thank you for your time!
PS. Reach out if you are interested in sponsoring the show. You can contact Bill at [email protected].
Detailed Show Notes:
3:00 - Hunter transitioned his career around an interest in REITs
7:00 - Private and public markets own basically the same assets
10:00 - How private markets create a lock in for RIAs that may help the RIAs' multiple when they sell the business
11:00 - Negative features of REITs
17:00 - The downside scenarios for multifamily housing
20:30 - What can dividend growth do for a portfolio?
27:30 - How Hunter thinks about the different REIT asset classes.
30:00 - The difference between private real estate allocations and public market market cap weighted allocations
41:00 - The different valuation methodologies to analyze $AIRC
48:00 - Why are private market cap rates still healthy relative to public markets?
52:00 - Hunter's view on markets and where they are right now
56:00 - Some riffing on AI
1:04:00 - In defense of Marty Whitman!
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Elliot Turner, Managing Partner and CIO of RGIA Investment Advisors, returns to The Business Brew for a great conversation. To start, Bill and Elliot discuss what Elliot learned from the period of 2021 to now. They then discuss some specific stock ideas, thoughts on portfolio management, and much more. We hope you enjoy.
Note: This episode was recorded on April 3, 2024. Bill owns a small position in Fevertree (established after recording) and a basket of positions in some smaller life science companies.
Detailed Show Notes:
3:00 - Learnings
10:30 - Prioritizing health to lead to success
14:00 - Was it an everything bubble?
22:15 - Fevertree discussion
37:40 - Thoughts on position sizing
44:30 - Incentives in finance papers
49:00 - A great NVDA story
55:00 - Is life sciences similar to tech after 2000
58:50 - The 3 forces that make life sciences and biotech interesting for humanity
1:08:00 - Is The Street focused on the wrong things?
1:16:20 - Maravai
1:25:00 - Thinking about patent cliffs
1:29:00 - High costs of failure and why that may be a good opportunity for existing suppliers
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Darren Fisk, Founder and CEO of Forum Investment Group, LLC, stops by The Business Brew to discuss his real estate investment firm, strategy, and thoughts. Darren focuses on multifamily real estate. His background is in lending and he added an equity focus during the GFC. This conversation covers lending, insurance, how to think about development, and more.
Darren's father in law taught him that "Cash may be king, but cash flow is queen." Thus, in the beginning of Forum they were focused on cash flow. Today they are willing to develop real estate as well.
Forum's investment structures are through LLCs as opposed to an LP/GP structure, which is interesting. We hope you find this conversation enjoyable.
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Matthew Sweeney, CFA, Managing Partner & Portfolio Manager of Laughing Water Capital stops by The Business Brew for a laid back conversation about how he approaching investing. Laughing Water Capital tends to focus on smaller companies in an effort to find overlooked opportunities. In the episode, Matt talks about his idea of "value," how he got started in the business, and why he prefers stocks with smaller ($500mm-$3Bn) market capitalizations.
We hope you enjoy the episode.
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time.
Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations.
Daloopa's data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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Hedda Nadler, co-founder of Mount & Nadler, stops by The Business Brew to discuss her career as one of the leading marketing practitioners serving professional money managers. Mount & Nadler represents a broad range of clientele in the financial and investment spheres, with an emphasis on investment companies and money managers. This conversation gives the perspective of one of the people behind the scenes of finance.
Under Hedda's direction, Mount & Nadler is known among mutual funds, money managers and the media as a firm that provides excellent and responsive services whether the news is positive or negative. During her 40+ year career, Hedda also has ably handled PR for shareholder activists and lift-outs, as well as crisis counseling. Throughout, she has advised clients sensibly and effectively when dealing with the media.
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time.
Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations.
Daloopa's data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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Wes Gray, the Alpha Architect himself, stops by the Business Brew to discuss how he (a) created the ETF $BOXX, (b) helps people start their own ETFs, (c) why value and momentum work as factors, and much more.
This episode is a quick release after Corey Hoffstein's. It may or may not be the only episode we release for the next 13 days or so.
The release cadence is influenced by the amount of press BOXX has been getting. We hope to add to your understanding. As always, do your due diligence!
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time.
Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations.
Daloopa's data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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Corey Hoffstein, Founder and CEO of Returned Stacked Portfolio Solutions, stops by to discuss how he uses ETFs to leverage his investing assets. Corey and Bill discuss a concept that is not novel to institutional investors, but may benefit individuals today because of ETF innovations. Bill wanted to discuss how Corey came up with his idea, how he executes his idea, and what risks his strategy might have.
You can find more information at Return Stacked Portfolio Solutions.
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time.
Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations.
Daloopa's data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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Will Thomson of Massif Capital returns for his annual appearance. In this episode he teaches about the lithium and copper markets. The end of the episode is more general and worth hanging around for.
You can find Massif Cap's letters here. The Q4 letter discusses lithium on Page 7. Whole letter is worth a read.
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time.
Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations.
Daloopa's data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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Devin Martin, recommended by the one and only Tom Morgan, stops by the show to discuss how he helps high performing individuals hone in on what they truly want out of life. Devin primarily works with successful people who want to achieve something more/different.
In this episode we discuss his methodology. There is some discussion of ayahuasca and psychedelics so be prepared (shout out to one of the best songs in The Lion King).
As always, we hope you enjoy the show! Big shoutout to Daloopa for sponsoring the show.
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time.
Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations.
Daloopa's data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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Andrew Walker, friend of the pod, returns to discuss some of his reflections following the Spirit merger ruling going against him. Bill pinged Andrew following the ruling and asked whether he would want to come back on the podcast to discuss the pros and cons of publicly liking a stock idea that does not work out. For those that listened to the episode a few weeks ago, or remember Bill's Qurate days, you may glean a little more insight into why the Spirit merger caused Bill to think so much.
The episode then goes on to discuss Calumet Specialty Products Partners. You can go back to last week's episode for a SAF primer. And you can also subscribe to https://yetanothervaluepodcast.substack.com/ to find Andrew's research on that company.
As always, we hope you enjoy the show.
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time. Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations. Our data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
Detailed Show Notes
2:16 - That hot hot song
3:00 - Andrew's reflections on Spirit
15:40 - Bill's Qurate experience
18:00 - The double edged sword of being public
22:00 - What is the duty to vet guests?
24:50 - Binary bets vs. slow bleed bets
29:45 Being aware of being on tilt
32:00 - Calumet Specialty Products discussion
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Kyle Mowery, Founder and Portfolio Manager at Grizzly Rock Captial, LLC, stops by the Business Brew to teach the audience about sustainable air fuel. Bill deviates the conversation *a bit* to renewable diesel at times, but SAF is the primary topic.
SAF is a potentially interesting investment topic because it is the only known way to decarbonize air travel. Importantly, there appears to be a shortage in the near term.
Companies discussed include Darling (DAR), Calumet (CLMT), LanzaJet (LNZA) and more. Here is a link to one of Darling's early investor presentations about Diamond Green Diesel: https://www.sec.gov/Archives/edgar/data/916540/000119312511081529/dex991.htm
Sponsor Info:
Daloopa is founded by a former hedge fund analyst to bring simplicity into the investment process. Daloopa offers an AI driven single source for all company reported data, and allows for investment teams to make the most informed decisions in the shortest amount of time. Daloopa scales the velocity of an investment team’s idea gen. Analysts spend less time locating and manually inputting meaningful disclosures into Excel and more time synthesizing in the minutes after the print. Daloopa captures data from all company reported sources, including from footnotes, MD&As, and investor presentations. Our data sheets include GAAP to non-GAAP adjustments, guidance, and all company specific KPIs. Each datapoint is auditable to the source for easy verification and accuracy. Daloopa’s Excel plugin can also update your existing models for the latest quarter in just a single click.
Bulge-bracket banks and major multi-managers are trusting Daloopa for use in initiating coverage, building and maintaining industry dashboards, and keeping their models up to date.
Visit Daloopa.com/BusinessBrew to create a free account and learn more about how Daloopa can help increase your team’s speed to differentiated insight.
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This is a brief message from Bill. Sent in the spirit of communication with the fans. After listening to it, it's about 85-90% accurate with some incomplete thoughts and some things that could have been said differently. But, the overall message and general feeling is accurate-ish.
Looking forward to dropping an episode next week.
Like, subscribe and rate. Please and thank you!
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