YouSaid · the spoken record

David Einhorn

lines on the record: 85
first: 2024-02-08
most recent: 2024-02-08
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Well, I guess if I had to pick one thing, I think it's been just the change in the dynamic of the market the way that it's broken from active and passive and all of the rest of it, and to also just kind of realize that people act to follow their motivations. If you figure out what the motivations are, often understand people's actions.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Advice for all young people is figure out what you're good at and find something that you can do that plays to your strength. People have strengths and they have weaknesses and you want to improve your weaknesses, but don't do that at your job. Do that in your social life. Do that for your hobbies. You know, if you want to get physically stronger, go lift weights or something like that if you're not strong. You know, if you're not strong, don't try to become an athlete because that doesn't play to your strength. Figure out what is it that you are good at where you have the best advantage over other people because there's plenty of people who are going to be competing for whatever it is that you are trying to do. So you may as well at least be trying to play to your strength.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, the thing is, it's January, and January is about the season you really don't think a lot about baseball. It wasn't a great year for the Mets. There's been lots and lots that have been written about it. I'm also Brewers fan. I'm from Milwaukee, so I still do Brewers, Bucks, and Packers. And I'm a little still recovering from the loss to the 49ers from a couple weeks ago.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I read a baseball book every year, usually the baseball perspectus. I read a poker book every year. Last year's was on physical tells, reading people's expressions and hearing all of that out. I don't get to read a lot of books. I'm really maybe three or four books a year at this point.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I don't think I ever really had like a single mentor. The closest would have been my boss Peter Colliery when I was at Siegler Colliery. He was really more my boss, I think. And I learned a lot from him. I think I've just taken on knowledge from various people and things that I've observed along the way.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Five totally different casts, different stories, but the theme is always the same, you know, the stories told exactly where it is, except the names have been changed to, you know, protect the survivors and so forth.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I just finished watching The Last Season of Fargo Which is deep and it's dark, and it's fantastic. And it's right there with the previous four seasons. There was the movie a long time ago, but then they've done a series on FX, and they're fantastic. They get a different cast and a different story each time. And it's dark. I enjoy that.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“I've been involved with Robin Hood for a long time. I was actually the chair of it for a couple years, but that ended a while ago. We're onto even more effective chairs than me, which is really great. When you talk about measured impact, they measure everything that they're doing. But then if you take a step back further and you ask yourself, Look at these, I'll just call them blue state big cities and the problems that they have across the country. And you see what's going on in Chicago and you see what's going on in San Francisco and you see what's happening in some of the other major cities. And then you look at New York. New York's doing a lot better than a lot of these other cities. And I think that a lot, some of this is from the cumulative effect of the Robin Hood Foundation. Something I'm very, very proud to.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“The poker tournaments are my best kind of fundraiser because people want to support the cause, but they don't really want to hear all about it for an hour. And so it's way better than these dinners with the PowerPoint presentations and the speeches and the stuff like that. I mean, we do that too in a lot of the things that we support. But poker tournaments are fun because people are just going to have a great evening and we're going to raise a bunch of money, which is kind of really what we want to do.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“But Michael J. Fox has put together the world experts on this, gathered a ton of funding, and is actually making real important progress. Last year, they had a major, major breakthrough where they have developed what they call a biomarker, which basically means that they can tap into your back and take out some of your material and figure out whether you're likely to have or maybe even already have Parkinson's. And so, if you're on the course to it, that means they can identify and diagnose it earlier, which means we can get to treatment faster”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, for them, mostly I host poker tournaments. Oh, really? Yeah, because I'm not very good at the science part. Like this is really, really hard problem that they're dealing with. I mean, this is a brain disease and there's nothing more complicated than the brain and trying to figure out like how to ameliorate this is really, really hard work.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Know, I saw a little caption saying, I need to spend more time arguing with strangers on the internet about politics. Like, this sounds like a really bad idea to me. I don't really spend very much time myself on these kinds of social media. I don't think that they're helping. In fact, they're probably hurting. It's hard. You know, having some humility makes a lot of sense. And that's like admitting that you're not right about everything and learning that you're wrong. And you need to spend time with people that you disagree with. You know, if you only spend time with people who agree with you, you don't learn anything. It's the people who you disagree with that can point out your biases and you can notice their biases and it helps you learn and helps you grow and helps you develop your thinking. And so it makes a lot of sense to engage with people that you don't agree with.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“That's the collaboration and the real core effort from the Einhorn Collaboratives. We've actually kind of got this thing going for the last three years.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“New pluralist is a funding collaborative. We've gotten 22 funders of very diverse views, everything from the Kochs to the Hewlettz. And what we do is we pool our money and we're working on these cultural problems. We've created a fund, essentially what we do, and then we make grants out into the field of field builders of people who are doing things to unite and bridge differences. And so what's interesting is first you have just the funders figuring out how they can sit at the table together because some of these people don't like each other or they don't like what they do in other areas of whatever it is that they're doing. And they've agreed to come together and then you put them together and then you actually have to say what is it that we have in common that we can fund for the good of the country.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that's right. Because I believe in bridging. I believe. People on both sides of this argument think that they're right and they don't think that they're bad people, right? No matter which side you're on, you think you're the good guy, right? And so at some level, maybe they are. Or maybe we've got to at least understand it. And then you got to figure out how do you engage in it. And then how is it that you can find some commonality? What values do we all have in common even if we disagree in important ways about what policies are being performed or what the behavior is? And yes, you do need some base level of societal norm. And if you don't have that, you can't have anything. But once you get through that base level, then you can try to figure out how you bring people together. And sometimes just agreeing to disagree is fine, right? Another major initiative we have is something that we call the new pluralists.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think Cornell look, everybody has problems. And Cornell has problems too. And I'm not going to point anything at any of these other universities that I'm not as involved with. My philosophy for this is to try to bring about positive change. I think when you have a crisis, it creates an opportunity for change. And I think that you do this internally. You do this by discussing it with the president. You discuss it with the provost. You discuss it with the other trustees. You discuss it with the deans. I've been very involved in many, many conversations. And some things I'm very happy about and some things I feel like there's a lot more that can be done. But I believe in trying to work this out through the system and not coming out in a very public way and criticizing in the newspaper or on this interview or something like that.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you can because in the bonding thing I was talking about with the babies and the mothers, you can actually follow them on a longitudinal basis and say, how are these people performing? How are these people behaving? How are they healthy? How are the relationships? Do they make friends when they get to middle school and so on and so forth?”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“We focus on what we call that bonding. We call another aspect of what we're doing bridging. That's where we're trying to bridge across difference in communities Getting some people together of different religions or different political persuasions or different cultural views and giving them opportunities to experience things together, whether it's service, whether it's dinner, whether it's going to the church of the different religion or going to the mosque of the different religion or the synagogue and creating bonding between religious groups and so forth.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“We're literally starting a program where we've done a lot of research. We've done clinical studies. And essentially, if you teach the mother to hold the baby, you teach the mother to talk to the baby, to teach the mother what to say to a baby, how to get the baby to make eye contact back and forth. And how when the baby becomes dysregulated, you know, crying or whatever it is, how do you regulate back and become calm? And once you learn to calm yourself, and once the mother learns to calm the baby, and sometimes actually the baby calms the mother by creating this kind of dual relationship, you wind up with a healthy relationship between the mother and the baby, which they're then both able to take out positively into the rest of their lives.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it's really interesting because like 70% or so of America is not politically polarized. It's just the 15% on the far of each side that get all the attention and drive everybody else crazy. Most people don't care that much and they kind of want to get along. Our efforts are not just political. In fact, they're mostly not political. They're cultural. We are working on helping mothers bond with their newborn babies, for example, because if you can develop a connection with a newborn baby between the mom and the baby in a dual kind of way, it's great for the mother, but it teaches the baby also how to have a normal relationship with somebody, and then they can take that forward into the rest of their life.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“The Einhorn Collaborative is my philanthropic effort. And it is a view that we have a crisis of connection, that people are not connecting to one another, that the society is becoming more divided, and that we need to work on bridging people back together.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“The government's going to borrow the entire hedge fund industry this year. And then that just tides them over for 2024. Where is it going to come for 2025? Figuring this out to the nearest moment is impossible because it's a question of confidence. It's a reflexivity. It's George Soros' theory. Like this is all fine until it's not fine. But when it's not fine, then we're going to have a really interesting problem.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“But it's going up at an accelerating pace. I mean, we're now well over 100% debt to GDP. Right? So, if interest rates are 4% or something like that, you're paying out 4% or more of GDP in interest, right? And so you're paying out a big percentage of your tax collections. In debt service, even before you get to what you actually want to have, and you're at a six and a half percent deficit to GDP with full employment, which is something we've never seen before outside of a war. And so if we have a recession, you know, that number is going to get much, much worse. And at some point, where is the $3 trillion going to come from? We just talked about the hedge fund industry. The whole hedge fund industry is $3 trillion.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, we can't make the deficit our biggest priority. It's our biggest problem. Like Congress can't do anything about this. If you talk to a congressperson and say or a senator and say, well, what are you going to do about the deficit, like the amount of change that would need to happen to move the needle, it's kind of almost like a waste of time because nobody's willing to make the major, major type of tax increases or the major, major types of spending cuts? You know, they're willing to nickel and dime away at the other side's constituency. So the Republicans are willing to stick it to the Democrat voters a little bit. The Democrats are willing to stick it to the Republican voters a little bit. But at the end of the day, like there's nobody who's serious about it, it's more like, well, it's unsustainable and we're going to go up the roller coaster. And at some point it's going to go down and then we're going to deal with it then. And what is that crisis going to look like? I don't know what that crisis is going to look like. And I know this has been a long time building.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“This, like, it's not even like there's an intermediate plan for fiscal responsibility. So the idea that the market is focused on 50 billion here of incremental treasury borrowings or how many tenure bonds they're going to sell or how many dirtier bonds, what it is, is underneath that is an acknowledgement that there's a big problem. Because otherwise they wouldn't be focused on it, but they're distracting from the problem by trying to find a second derivative incremental data point. And I think that the easier thing to do is to keep the eye on the bigger picture, which should play itself out maybe over the more intermediate term.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“It's fantastic. And this is like the world looking for data points, but they're missing it's a forest for trees. Who really cares if they're borrowing $700 billion or $750 billion? They're borrowing so much money that you just have to look at this and go, like, where's $3 trillion going to go to lend to the Fed this year? Where's three or four trillion to go next time? So if you just take a step back and you say, how sustainable is this? And where is all of this money going to come from? You realize like instead of being enthusiastic for, hey, they're going to borrow 50 billion less as if that's going to make all of the difference in the world. Hey, we could sell 700 billion of bonds, but we can't sell 750. Like this is completely strange to me. And I think as you market looks at it over the course of the year, at some point get back to the point where they're saying, you know, we're really borrowing maybe more than we should. And when you talk to people in Congress, they have no plans to do anything about that.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Sure. Look, I think that the economy is strong. I don't think we are in a recession. I don't think we're about to be in a recession. And so as a result, I'm still more worried that if they lower rates a whole bunch, they'll get the inflation to come back. So I'm still long inflation. And I kind of don't think we're going to see anywhere near as many Fed cuts as people are talking about this year. You know, it's kind of funny. People often look at just like the wrong thing, or they look at, they find something very irrelevant and they spend a lot of time on it. Like recently, you know, it came out that the federal government was going to borrow like $50 billion less this quarter. So they're only going to borrow $700 billion instead of... $750 billion”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“And the Fed funds hasn't even moved yet. Right. So it's not clear that these two rates correlate 100% And so you could even have a situation where you lower the rates and the inflation starts coming back and it causes the long rates to go up. It wouldn't surprise me at all. You know, relating to the housing, I mean, I'm the chairman of a home builder. It's Green Brick Partners. And we're building houses as fast as we can. There's a ton of demand for the houses. The rates are, I mean, sure, we'd love lower rates to get people's monthly payments down a little bit. I mean, that would be great, but it doesn't really matter. There's plenty of demand. The market is very, very strong for us. And so we're limited by how fast can we build the houses. And that's terrific.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, a couple of things. First of all, housing prices off the 10 year. It doesn't price off the Fed funds. So if the Fed funds goes from $5 and something to three and something, like everybody thinks that it's going to do, it's not clear that that's going to move the 10-year rate at all. The 10-year continue.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Employment is really pretty full right now, and the economy is kind of humming along. And I think the idea that they're going to rush back to really lower rates, and they may do it, right? But I don't think that they're really going to help anybody. By doing so”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“But the 25th jelly donut, you're not really helping yourself anymore. And so you had these emergency fed policies. And in an emergency, that makes sense. But then after the emergency passes, they kept the policies and you kept rates at zero for like some really long period of time. And it was essentially just like giving a diabetic person more jelly donuts since the economy had a very gradual and slow recovery. And now as they had the inflation and the rates have come back up, they thought that they would be slowing the economy, but they're actually strengthening the economy. Higher rates getting off the zero bound, if you moved rates from 5 to 10, it would certainly slow the economy. But from zero to five, it actually strengthens the economy. I think that's why we have this really strong GDP growth that is persisting right now. I think it's surprised a lot of people. And so I think it's really weird now that everybody thinks that they're going to lower rates. Things are pretty good.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Then they had the period of pretending that there wasn't going to be any inflation, no matter how much money that they printed, and then when that became evident, they spent a long time explaining that it was transitory. And then they finally decided that maybe it wasn't transitory and they should do something about it. And then they decided after none of it was transitory, it turned out that some of it was transitory, and now it's rolling itself back down. The basic thing with the Fed, I think, is They don't seem to have I disagree with their view relating to the relationship between interest rates and the economy and inflation and what they're actually doing. Because I believe that when rates get low, below a certain amount, they actually slow down the economy by lowering them further. So as a result, I had this thesis called it the jelly donut monetary policy, where the first jelly donut tastes great.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't know how to award a grade. I'm not the professor and I'm not here to grade the Fed. I would observe that they've done some things very well. You know, they created a stability at the bottom of the crisis. They provided liquidity. They didn't let lots of things go bankrupt and so forth. Now, there's a moral hazard that comes from that because you condition people to think that things won't be allowed to go bankrupt and essentially you're socializing a lot of risk effectively onto the national balance sheet.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, the great thing about this business is every day you wake up and you just don't know what you're going to get. You have things that are on your schedule. Oh, this company's going to announce earnings or you're going to talk to this analyst or you're going to talk to this management team or whatever it is. And you have a few things that are on your calendar. And then you have the rest of the day. And the rest of the day is dealing with the incoming email. It's dealing with the news. It's dealing with developments that you didn't particularly expect and deciding if there's anything that you need to research further or trade or do. And so, you know, you just, you know, you never know what you're going to get on any particular day. And that's what makes it so exciting.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“And it gets edited down through a few cycles. But in terms of the post mortems, I've always been like, you know, if something goes great, explain why it went great. If it didn't go well and we lost money on it, just say so. If we do a really, really good job, we're going to be wrong 35% of the time. Right. Right. So what's the shame in writing in a letter we invested in this particular stock and it didn't work out the way that we wanted it to and we lost a whole bunch of money, it's in the result anyway, so you may as well describe it.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“The Quartoi letters is something I enjoy doing. I start thinking about it maybe a month before the quarter ends. What themes are going on in the world that I might want to talk about? And then sometime after the quarter, I get some information about like how we did in the market and what stocks helped us and the rest of it. And then I write a letter. And I write the first draft. The first draft is what I want to say. It's unedited and unfiltered. And then I pass it off to the team and they fill in the holes. And then they help correct me about things maybe that I shouldn't say.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, most people in business who are running companies try to conduct their business basically honestly. So they're selling their product, they're developing their product, they're paying their people, they're recording their books, auditors come in, they're trying to show them the right results, things work out pretty good. The question is for the handful that don't view the world that way, that want to take advantage of the system and fake it or lie or cheat or whatever it is they want to do. And for those companies, there's probably they can probably get away with what they want to.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think they view that as their role because the concern is if they come in and do something to, you know, before the money has been lost, that might make the stock go down a few percent that day. And then they'll be blamed because then they'll have helped cause investors to have lost money and they don't want that responsibility.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“All kinds of regulations they want to deal with, like the hedge fund industry and the rest of it they're doing. Stuff in crypto and things like this. But in terms of their basic policing of financial statements, financial disclosures, corporate behavior, that's where the SEC has, they've essentially stopped what they're doing there.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Right. Well, let me just say it's not like the SEC is completely gone. Like, if you have some insight information and you tip off your brother-in-law and he makes $50,000, they're going to find that and come down a ton of bricks on that.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“I don't think Silver with that. What happened with the SEC was last year there was a story that there was a whistleblower who sent a letter to the SEC said there's massive accounting fraud at Tesla and I have 20,000 documents. I'd love to show you. And the SEC didn't even bother to follow up with the whistleblower. So that's kind of where we're at”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Non existent. There is no SEC policing corporate behavior. You know, they're not, look, they used to do real things to companies. They used to go after the management and tell them they can't be directors or officers. They used to for a while they would find some companies. Occasionally they would make people even like, oh, well, we'll just improve the disclosure, restate the financials. Stuff like that. Like these things don't happen anymore.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, shorting is very difficult. A couple years ago, we had a great year shorting. Last year was not a good year shorting for us. You know, a lot of the absence of market participants figuring out what things are worth translates into more difficulty in shorting because value, it's just not a consideration for so many investment strategies or so many investors. I mean, like all the retail investors, not all, but many of them, they couldn't figure out value even if they wanted to. Many of the professional investors have completely lost their view of what value is. Again, they have opinions about price, but they don't have opinions about value. And the other thing is the world has become very cynical. And so, you know, if a company is like committing fraud, the market has been conditioned. Well, when they announce the fraud, that's a great time to buy this stuff. And that used to be like the opposite of that. And then you add in.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“You actually got to bet on what the reported inflation be versus the market expectations and it's a derivative and they pay you the difference. And so if the market says inflation is going to be 2% over the next year, and you bet on the over effectively, and then it turns out that it's 6%, well, you make four points times your notional. And it doesn't matter what anybody's opinion is. Because the CPI is the CPI, and that's what defines the bet. So you don't even have to figure out what market sentiment is going to be or what other investors are going to do. It just realizes all the way through. And so I always find if we can find a direct way to express an opinion, that's better than an indirect way.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“I just think like a few years ago, we came to the view that there was going to be a bunch of inflation, and we could have bought a bunch of commodities. But the best thing to do, or commodity companies or companies that would benefit from inflation. But the best thing to do was there's a derivative called an inflation swap.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“No, no, no, macro, it's a separate category in what we do, and I'm the macro manager. And what I've learned over time is if you have an idea, find the most direct way to express it. So, if you want to be bullish about oil prices, don't buy 10 oil stocks. Buy oil. If you have an opinion about interest rates, don't try to buy a bunch of banks, buy sulfur futures or sell sofa futures or buy 10-year futures or whatever it is that you think you want to do. And I find that if you can make your insight translate most directly into the investment, then at least if you're right or you're wrong, it's going to be for the reasons that you thought and it's not going to be because you bought some oil company. It turned out that they spilled the oil or the well turned dry or something like that. You don't really have a lot of insight about that. If your view is there's a great oil prospect and look at this well, it's going to be amazing. Well, then go ahead, buy that oil company because that's what your insight is.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, no, it really is. The competitors have essentially left the field, and it means, like I said, things that we used to have to pay 10 times earnings for, we can pay five times earnings for. And you think that the market is very expensive, but our names are not expensive, and companies, and these aren't terrible companies, they're just companies that are too small and nobody cares, and they're not in the sexiest of places.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“It's actually much more exciting now. Like I mentioned before in 1996, there was just tons of competit And right now, I just feel like there's way fewer people competing with us for ideas, trying to do what we're doing. And so I just think the opportunity is actually probably as good or better than it's ever been. And that energizes me every day to come in and try to find ideas.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Look, we have. Always had generally between 30 and 60% of our capital and our top five names. And we have maybe 15 or 20 names that make any difference at all in the long part of our portfolio. So we don't need 500 companies to invest in. We need 15.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source
“Right, and so now we can take that to we can realize well, what has been created from this, which is what's been created is there's complete apathy in a certain segment of the market. And you no longer have to pay 10 times earnings for that type of a situation. I mean, there are ones at 10 times earnings and we pass on those. But we can find that same type of situation right now at four times earnings and at five times earnings. And if you pay four or five times earnings and the balance sheet is not levered and they're able to return the cash and buy back 10, 15, 20% of the stock, in four or five years they're going to run out of stock or the stock is going to go up. So you're literally counting on the companies to make that happen for you.”
2024-02-08 · Masters in Business · David Einhorn: Market Structures Are Broken · IDENTIFIED FROM THE TRANSCRIPT · source