TIP680: Investing in Exceptional Businesses for the Long Run w/ Dev Kantesaria
6 December 2024 - 1 hour 6 minsOn today’s episode, Clay is joined by Dev Kantesaria to discuss the current market environment, the types of investments he is looking for, FICO, S&P Global, and much more.
Dev is the founder and portfolio manager at Valley Forge Capital Management. The firm has been highly successful since its inception in 2007, as it’s outperformed the S&P 500 by a wide margin and has over $4 billion in assets under management.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
01:46 - Dev’s view on the current market environment and the recent stock market rally.
05:02 - How Valley Forge Capital Management adopted Warren Buffett and Charlie Munger’s investment approach.
09:16 - Why predictability is an ess...
Series Episodes
TIP851: HEICO Vs. TransDigm: Whose Aerospace Monopoly Is Better? w/ Kyle Grieve & Shawn O'Malley
In today’s episode, Kyle Grieve and Shawn O’Malley discuss HEICO and TransDigm, two dominant players in the aerospace components industry known for their pricing power and resiliency. They’ll compare how each company grows through acquisitions and organic expansion, how they approach debt and capital allocation, and what gives each business its durable competitive advantages. The discussion also covers the risks facing both companies, including regulatory scrutiny and reliance on continued aerospace demand, as well as potential sources of future growth. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:06:41) How TransDigm built its sole-source pricing power model (00:10:12) How HEICO competes by underpricing original equipment manufacturers (00:16:14) Why the aerospace industry has such high barriers to entry (00:19:35) Why both companies rely heavily on acquisitions to grow (00:29:33) How each company’s approach to debt differs sharply (00:33:26) Why regulators have started scrutinizing TransDigm’s acquisition strategy (00:46:20) What gives HEICO and TransDigm such durable competitive advantages (00:54:08) How ownership and incentive structures shape each management team (01:07:30) What risks could disrupt either company’s long runway of growth (01:11:33) Where future growth could come from for both businesses (01:16:44) Valuation discussion (01:19:19) Intrinsic value of HEICO (01:20:07) Whether Kyle & Shawn will add HEICO or TransDigm to the Intrinsic Value Portfolio Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive The Intrinsic Value Mastermind Community. Track The Intrinsic Value Portfolio. Portfolio Review Submit Tool. Listen to the TransDigm episode with Daniel and Shawn. Listen to our HEICO episode with Clay Finck. Listen to the TransDigm Foundations with Nicholas Howley. Listen to TransDigm episode with Nicholas Howley. Read The Compounders book. Check out our previous Intrinsic Value breakdowns: Copart, Comfort Systems, SpaceX, Copa Holdings. Follow Kyle on X and LinkedIn. Follow Shawn on X and LinkedIn. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Check out The Investor’s Podcast Starter Packs. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Monarch Plus500 Netsuite References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
1 hour 17 mins
3 October Finished
TIP850: Walmart (WMT): From Discount Retailer to eCommerce Powerhouse w/ Kyle Grieve & Shawn O'Malley
In today’s episode, Kyle Grieve and Shawn O’Malley discuss Walmart and how it grew from Sam Walton’s small-town five-and-dime into a retail giant. Today, it also makes money from e-commerce, a marketplace, advertising and memberships. They cover the scale advantages behind Walmart’s everyday low prices, how its suppliers end up financing its inventory, and why its power over those suppliers continues to draw antitrust scrutiny. They also look at Walmart’s capital allocation, management, growth levers and the biggest risks facing the business. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:02:12) How Sam Walton’s early franchise lessons shaped Walmart’s strategy (00:11:10) Why trading margin for volume remains core to Walmart (00:15:21) How Walmart makes money beyond traditional brick-and-mortar retail (00:28:56) Why everyday low prices built lasting customer trust (00:34:48) How negative working capital supports Walmart’s free cash flow (00:38:01) What the PepsiCo case reveals about Walmart’s supplier power (00:41:19) How Walmart splits capital between buybacks, dividends and reinvestment (00:53:25) Why the Jet.com acquisition was a good acquisition despite the write-down (01:05:52) Where Walmart’s future growth may come from (01:10:14) How agentic AI shopping could threaten Walmart’s customer relationships (01:15:27) Valuation discussion of Walmart (01:16:58) Walmart's intrinsic value (01:19:43) Whether Kyle & Shawn will add Walmart to the Intrinsic Value Portfolio Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive The Intrinsic Value Mastermind Community. Track The Intrinsic Value Portfolio. Portfolio Review Submit Tool. Buy your copy of Sam Walton’s autobiography Made In America. Check out our previous Intrinsic Value breakdowns: Lululemon, Nike, Ulta, Our Biggest Losers. Follow Kyle on X and LinkedIn. Follow Shawn on X and LinkedIn. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Check out The Investor’s Podcast Starter Packs. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Monarch Plus500 Netsuite References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
1 hour 16 mins
30 September Finished
TIP849: Average Returns Can Still Make You Wealthy w/ David Fagan
In this episode, Stig Brodersen speaks with David Fagan about Total Wealth Performance and why someone with average investment returns can still build a meaningful net worth. They discuss why saving is the first step in wealth creation, why financial independence is a matter of intention rather than luck, and how idle cash quietly becomes one of the most expensive decisions investors ever make. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:04:20) Why David has been a saver ever since he blew his entire net worth on a Hot Wheels racetrack at age eight (00:12:34) Why money decisions that look odd are often rational given someone's lived experiences (00:13:56) Why financial independence is not luck but small habits that compound (00:17:47) What Total Wealth Performance is, and why the return on your broker statement is not your real return (00:22:29) How Stig thinks about financial independence (00:29:34) The ABCs of front-end performance: availability, behavior, and configuration (00:37:55) Why idle cash is one of the most expensive decisions an investor can make (00:45:00) Why net worth beats portfolio returns as a scorecard during the accumulation phase (00:54:13) How and why tax is a real expense Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive The Intrinsic Value Mastermind Community. Check out Stig and David's free educational resource, Compounding Simplicity. Watch David Fagan's free educational videos. Read Charles Schwab's study, Does Market Timing Work? Listen to our interview with David Fagan about Why Simplicity Beats Complexity. Listen to our interview with David Fagan about Simple Investing. Listen to our interview with David Fagan about investing like a business owner. Listen to our interview with David Fagan about Buffett's favorite business book. Connect with David on LinkedIn or through mbf Chartered Professional Accountants. Stig's blog post on his portfolio and track record since 2014. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Check out The Investor’s Podcast Starter Packs. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Monarch Plus500 Netsuite Plaud References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
1 hour 11 mins
26 September Finished
TIP848: Meta (META): What the Market Misses? w/ Daniel Mahncke & Shawn O'Malley
Daniel Mahncke and Shawn O’Malley revisit Meta Platforms (NASDAQ: META), the advertising machine behind Facebook, Instagram, and WhatsApp that reaches 3.6 billion people every day — over 40% of the world’s population — and just grew ad revenue 27% to a nearly $240 billion annual run rate. Yet the stock trades more than 20% below its highs, because the money is going out even faster than it’s coming in: operating margins fell from 43% to 31% in a single year, quarterly free cash flow collapsed from $8.5 billion to $784 million, and capex guidance now sits at $130–145 billion this year — with analysts penciling in $200 billion for next. Daniel and Shawn dig into what all that spending actually buys. Is this Mark Zuckerberg’s third failed attempt to turn Meta into a platform — after the FarmVille-era Facebook apps and a $100 billion metaverse — or does AI finally make the vision real, whether through AI glasses, a personal agent, a budding cloud business, or an ad engine where every pixel becomes sellable inventory? They also cover Meta’s $17 billion settlement with 47 states over teen safety, the special purpose vehicles keeping tens of billions of data-center debt off Meta’s balance sheet, why Apple is quietly taking the opposite side of Meta’s bet, and why Wall Street rewards Google for the same capex it punishes Meta for. In the end, Daniel rebuilds his valuation model from scratch and decides whether Meta finally earns a spot in The Intrinsic Value Portfolio. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:01:54) About Zuckerberg’s Platform Dream (00:11:52) Why Meta was sued and how it settled (00:25:18) What the regulatory risk means for Meta’s future (00:30:56) What Meta’s AI vision looks like (00:39:00) How AI could revolutionize Meta’s Ads Business (00:42:02) About the optionality of WhatsApp (00:53:21) Why AI could make Meta glasses a success (01:06:58) How Meta is planning to build a Cloud Business (01:22:46) Meta's valuation discussion (01:26:29) How much Meta's stock is actually worth (01:26:51) Whether META will be added to The Intrinsic Value Portfolio Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive The Intrinsic Value Mastermind Community. Track The Intrinsic Value Portfolio. Portfolio Review Submit Tool. Our original deep-dive on Meta. Zuckerberg’s WSJ Article – The AI Future is for Everyone. Ben Thompson’s Research at Stratechery. Check out our previous Intrinsic Value breakdowns: Alphabet, Microsoft, SpaceX. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Check out The Investor’s Podcast Starter Packs. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Monarch Plus500 Netsuite Plaud References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
1 hour 26 mins
23 September Finished
RWH072: The Making of A Money Master w/ Rob Vinall
In this episode, William Green speaks with Rob Vinall, an English hedge fund manager with a terrific track record. Since launching his Business Owner Fund in 2008, he’s racked up stellar annualized returns of 15.5%. Rob almost never gives interviews but speaks in depth here about the principles & practices that have driven his success in the 20 years since he founded his firm, RV Capital—not least, his habit of betting on CEOs who view their business as their life’s work. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:03:54) How Rob Vinall vaulted himself out of humble circumstances (00:14:26) Why he disliked working at Goldman Sachs (00:17:12) How he taught himself to invest during the dotcom crash (00:24:20) How Berkshire Hathaway’s annual meeting changed his life (00:27:39) How he launched a fund with no staff, no office & no track record (00:41:22) What he learned from Warren Buffett’s relationship with Ajit Jain (00:50:19) What qualities Rob looks for in outlier CEOs (01:01:03) Why he admires Mark Zuckerberg & disagrees with Meta’s critics (01:03:21) How Rob’s thinking about business moats has evolved (01:04:47) Why he’s betting a third of his assets on out-of-favor Chinese stocks (01:20:41) Why today’s momentum-driven market is ideal for long-term investors (01:32:12) How he survived the most traumatic year of his life (01:42:07) What drives him after 20 years of investment success (01:48:54) How to handle being rich without wrecking your kids Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Inquire about William Green’s Richer, Wiser, Happier Masterclass. Benjamin Graham’s book, The Intelligent Investor. Alice Schroeder’s book, The Snowball. William Green’s podcast episode with Chris Begg. William Green’s podcast episode with Terry Smith. William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book. Follow William Green on X. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. SPONSORS Support our free podcast by supporting our sponsors: Monarch Plus500 Netsuite Plaud References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
1 hour 48 mins
19 September Finished
TIP847: Alphabet (GOOGL): The Megacap That Still Might Be Underrated w/ Kyle Grieve & Shawn O’Malley
In today’s episode, Kyle Grieve and Shawn O’Malley revisit Alphabet nearly two years after Shawn’s original pitch, tracing how the company transformed from a cash-rich, buyback-driven business into an aggressive spender on AI infrastructure. They walk through what changed across Search, YouTube, Cloud, and Waymo, and unpack why the market’s fears around AI disrupting Google were largely unfounded. Along the way, they dig into how Alphabet is funding its buildout, what that means for shareholders, and which questions will determine whether this evolved version of the business is actually better. IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:02:03) Why Shawn’s original Alphabet thesis needed a revisit (00:05:55) How the AI-kills-search narrative played out in reality (00:32:00) Why Google Cloud’s margins surprised skeptical investors (00:45:27) How Waymo went from afterthought to major asset (00:51:27) How Alphabet’s AI spending flows through its earnings (01:09:06) What Berkshire Hathaway’s growing stake signals about the company (01:09:42) Why Alphabet paused buybacks and started raising equity (01:13:11) Which unresolved questions will define Alphabet’s next few years (01:19:06) Whether Kyle & Shawn will add to their Alphabet position in the Intrinsic Value Portfolio Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive The Intrinsic Value Mastermind Community. Track The Intrinsic Value Portfolio. Learn more about how to join us in NYC for our Intrinsic Value Conference. Portfolio Review Submit Tool. Our original podcast deep-dive on Alphabet. Check out our previous Intrinsic Value breakdowns: SpaceX, Microsoft, Meta. Follow Kyle on X and LinkedIn. Follow Shawn on X and LinkedIn. Related books mentioned in the podcast. Ad-free episodes on our Premium Feed. NEW TO THE SHOW? Get smarter about valuing businesses through The Intrinsic Value Newsletter. Check out The Investor’s Podcast Starter Packs. Follow our official social media accounts: X | LinkedIn | Facebook. Try our tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Monarch Plus500 Scribe Plaud Netsuite References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them. Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm
1 hour 19 mins
16 September Finished
