Daniel Loeb Calls Semiconductors Most Attractive Sector, Nvidia Still Cheap
#100Marc Andreessen 🇺🇸@PMARCASelf recommending.
Patrick OShaughnessy@patrick_oshagMy conversation with @DanielSLoeb1, his first ever podcast and one I've been wanting to do for years. Dan started Third Point in 1995 with $3 million. Today the firm manages over $24 billion across equities, credit, venture, and insurance. Along the way he wrote some of the most iconic activist letters. We discuss: - Why deep value stopped working - The power of writing - The Twitter and XAI credit trades - Lessons from FTX and Danaher - The Sony and Sotheby's stories - What makes a great analyst today - The importance of kindness I feel lucky we all get to learn from one of the greats. Enjoy! Timestamps: 0:00 Intro 2:48 Macro Views and Tech Trends 5:13 The Roots of Third Point 10:30 Evolving to Quality and Thematic Investing 19:07 Market Psychology and Inefficiencies 24:10 Good and Bad Corporate Governance 29:19 Activism 31:23 Sotheby's 41:37 AI 44:28 Sony 52:50 Danaher's Operating System 56:31 Building an Insurance Business 59:25 FTX 1:05:17 What Makes a Great Analyst Today 1:07:24 The Next Decade 1:10:00 Kindest Thing
#1862Patrick OShaughnessy@PATRICK_OSHAGDan Loeb on the opportunities created by quants, CTAs, and pod shops:
"The advantage of a fundamental investor, who doesn't make trading decisions based on computers, is that there are still a lot of market irregularities caused by some very good strategies, but collectively they create anomalies.
You have quants, CTAs, pods. They have a great strategy for them and their investors, but it causes some unusual behaviors.
Fundamental investors believe that, as Warren Buffett would say, if a stock goes down, you celebrate it because it's a chance to buy more at a better price.
They have risk metrics which have forced selling on the way down, so they do the opposite.
It might be rational for their business model, but it's not rational for long-term investors.
That's where the human element comes in. To make those tough trading decisions when fundamentals are going one way and stock prices are going the other way, and to take the pain of losses in the short run."
Patrick OShaughnessy@patrick_oshagMy conversation with @DanielSLoeb1, his first ever podcast and one I've been wanting to do for years. Dan started Third Point in 1995 with $3 million. Today the firm manages over $24 billion across equities, credit, venture, and insurance. Along the way he wrote some of the most iconic activist letters. We discuss: - Why deep value stopped working - The power of writing - The Twitter and XAI credit trades - Lessons from FTX and Danaher - The Sony and Sotheby's stories - What makes a great analyst today - The importance of kindness I feel lucky we all get to learn from one of the greats. Enjoy! Timestamps: 0:00 Intro 2:48 Macro Views and Tech Trends 5:13 The Roots of Third Point 10:30 Evolving to Quality and Thematic Investing 19:07 Market Psychology and Inefficiencies 24:10 Good and Bad Corporate Governance 29:19 Activism 31:23 Sotheby's 41:37 AI 44:28 Sony 52:50 Danaher's Operating System 56:31 Building an Insurance Business 59:25 FTX 1:05:17 What Makes a Great Analyst Today 1:07:24 The Next Decade 1:10:00 Kindest Thing
#1862Patrick OShaughnessy@PATRICK_OSHAGWe found the clip of @andrewrsorkin breaking the Dan Loeb Sony story live on CNBC in 2013, 15 minutes after it happened.
It was one of my favorite stories from the conversation with Dan.
"The first time we invested in it, it was basically a conglomerate.
It had obviously the main Sony studios. It had a semiconductor business, a life insurance business, the consumer electronics. So we advised them to separate these businesses.
We met with the management team. We had a big deck that we went through.
At the end of the meeting, we told them, "Well, in the interest of transparency, we shared our investment thesis with The New York Times."
They went into a panic when we told them about that.
Andrew Ross Sorkin wrote the story and agreed to embargo it until the Japanese market closed.
The story came out, and they had prearranged us to go on a tour of their innovation center.
But before we went on the innovation center, Kaz Hirai (CEO of Sony) looked at me, he says, "You told The New York Times?"
I said, "Yeah, but just The New York Times, nobody else."
He says, "Okay, just The New York Times."
It was wild. We were walking around the innovation center looking at our BlackBerrys when the story went everywhere.
They really pushed back on everything that we recommended. It took them about five years, and I think one by one, they've done many of the things."
Patrick OShaughnessy@patrick_oshagMy conversation with @DanielSLoeb1, his first ever podcast and one I've been wanting to do for years. Dan started Third Point in 1995 with $3 million. Today the firm manages over $24 billion across equities, credit, venture, and insurance. Along the way he wrote some of the most iconic activist letters. We discuss: - Why deep value stopped working - The power of writing - The Twitter and XAI credit trades - Lessons from FTX and Danaher - The Sony and Sotheby's stories - What makes a great analyst today - The importance of kindness I feel lucky we all get to learn from one of the greats. Enjoy! Timestamps: 0:00 Intro 2:48 Macro Views and Tech Trends 5:13 The Roots of Third Point 10:30 Evolving to Quality and Thematic Investing 19:07 Market Psychology and Inefficiencies 24:10 Good and Bad Corporate Governance 29:19 Activism 31:23 Sotheby's 41:37 AI 44:28 Sony 52:50 Danaher's Operating System 56:31 Building an Insurance Business 59:25 FTX 1:05:17 What Makes a Great Analyst Today 1:07:24 The Next Decade 1:10:00 Kindest Thing