YouSaid · the spoken record

Andrew Sugrue

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61
first
2021-05-04
most recent
2021-05-04
sittings or episodes
1
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podcast

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  1. “I think first we like to understand the world as it is today and why is it the case. So this market is defined by X. It's this size. It has this market share makeup. It has this earnings power, this supplier versus demand dynamic. Why is that the case? And how could technology fundamentally reshape that end market? How can business models totally rerate? You look at things like the Internet of Things, a business like Latch that's taken a relatively stayed category of lock hardware, a one-time sale, and transitioned it into an enterprise software business with some of the best economics. That's what gets me kind of excited is these kind of businesses that have masked business quality, businesses that are taking these very old line industries without a lot of innovation and solving a real large consumer need and creating a high quality business.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  2. “Business that will be quite impactful for shareholders. She's changed the way that women perceive beauty, the ability to change beauty from beauty as size zero to beauty is who you are, that beauty is about someone's perspective on you versus self-empowerment, self-actualization, the inclusivity that she's brought to a category that's been defined by its exclusivity has been so powerful to be a part of the direct messages you get from folks who say, I've never felt beautiful before and I now feel beautiful. I now feel worthwhile. That resonates with me as someone who for a large part of my life didn't feel worthwhile. You just get such satisfaction about scaling that impact and partnering with folks like that who have a vision of how the world can be better.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  3. “I find our job to be the most fascinating job in the world. This perk that we get to meet with the smartest individuals in the world, the most driven individuals in the world who see the world not as it is today, but how it should be and how it could be and have a tactical vision of how they're going to make that end state accomplish is the most intoxicating thing to be around. And so I get energy from my job. My job doesn't consume my energy. I look forward to my Monday morning rather than dreading it, doing my very, very small part and our firm small part in helping these entrepreneurs realize their vision, helping to change the world for what we see as the better is hugely gratifying. I look at what Rihanna has been able to do at SavageX Fenti and we've been so blessed to be a small part of her story as her largest outside investor. It's not just that she's creating a highly cash generative business.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  4. “I grew up gay in the south when I was growing up. There weren't a ton of people who I knew who were like me. I struggled with that for quite a lot of time as a young person. And I really invested that nervous energy into trying to be successful on quantifiable metrics, succeeding in school, succeeding in athletics, et cetera, so that I could be outwardly perceived as being successful and worthwhile when internally I didn't feel that way. As I came to be more accepting and celebrating who I am as a human, I thankfully didn't lose that drive to be successful, that drive to prove myself that probably started from an area of insecurity.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  5. “Meet with suppliers, understand the first principal dynamics of a market and why it's constructed the way it is. I think his relentless focus on understanding the first principles of a market and a business is what's made him quite successful. And I think what's so interesting about first principles-based mindset is it's a mental model that you can use across all industries. Julian wasn't just successful in consumer or healthcare or technology. He was successful across those because he had consistent mental models around attractive internal returns on investing capital, around defensibility of business models that enabled him to look at very different end markets with a consistent framework.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  6. “Think he recognized that everyone in this industry is smart. The key difference between successful and unsuccessful people is really the hunger. Why do they have a chip on their shoulder that's going to motivate them to outwork the competition? Focusing on people who have a first principles-based mindset, just because the world is the way it is is a horrible excuse. It's really about finding people who are willing to dive in and understand why the world is the way it is today and how it could change, doing the work to go meet with customers.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  7. “Julian really changed the game. If you look at the number of people who started their career working for him and the number of people who have started their career working for Tiger Cubs, folks who trained under him, it's really extraordinary the amount of capital that's now controlled by that group of people.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  8. “Of the things that's always stuck with me about joy is one his approach to human capital and two, his clarity of thinking, the best investment theses are oftentimes the most simple to explain. He has told me that the vast majority of his money was made on a handful of ideas and the rest was just surviving. I think that's something that we take to heart here while we run concentrated, whereas others run highly diffused portfolios. We run a portfolio of eight to ten of the best ideas that we can find, recognizing that there are a few truly great ideas in the world. The thing that Julian really totally changed is the view on hiring young hungry sharp people.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  9. “Your competitors, where you have branding similar to others in a very efficient marketplace, which is Facebook and Google, where those returns quickly get computed away. So unless you had some kind of sustainable advantage over time, these businesses weren't really investable for us.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  10. “The world was going, but he really wanted to make sure that winning was worth it. Not only was the market size large, but that category leading business, that these businesses had a sustainable advantage, a compounding advantage over time, whether they be powered by network effects or some scale pricing advantage or intellectual property, these initially attractive returns could be sustained over time. I think working for someone like him who had this purview of having invested for multiple decades, there's a healthy respect for the efficiency of capital markets that initially attractive returns could quickly get competed away. And so many of the kind of e-commerce models, others where you find this initial product market fit where there's a consumer demand for a product and high internal returns on invested capital, whether that be through Facebook marketing or Google AdWords, those get competed away quite quickly when you have contract manufacturers who can stand up the same competing product.”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source

  11. “Great. Well, thanks again for having me on the show. Caterton, which is where I really cut my teeth in investing my first job in the investing world, I really learned the concept of keeping the consumer as your North Star to steal a line from Rich Barton. The focus of the best companies at solving a unique problem that their customers have and being relentless and improving that experience to that end customer, looking for very large end markets that are being disrupted by some new technology, some changing consumer preference or evolving regulatory environment and leaning in towards the disruptors who are taking advantage of that. So back in the day at Caterton, we were looking at new models like Peloton, new marketplaces like Vroom that were taking on very large end markets and saying, hey, we can create a better user experience. And that will be a great business. I think at Shumway Capital, what I really learned was this relentless focus on business quality. Chris was interested in where”

    2021-05-04 · Invest Like the Best · Andrew Sugrue - Investing in Paradigm Shifts - [Invest Like the Best, EP. 224] · IDENTIFIED FROM THE TRANSCRIPT · source