YouSaid · the spoken record

Dev Kantesaria

lines on the record: 55
first: 2021-10-22
most recent: 2021-10-22
sittings or episodes: 1
sources: podcast

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“What we call compounding machines. These are companies that can grow intrinsic value year after year for long periods of time. When you have something that's a monopoly or a duopoly in its respective industry, it has pricing power, it's capital efficient, its margins go up over time so these companies have operating leverage. Pulling these companies for many years, it's tax efficient. It's absolutely worked for us over the last 14 years. It's obviously worked for Buffett for over 50 years. And as we look at in the industry, the managers that have outperformed consistently over long periods of time. It is investors that fall within this camp of value investing. I would say that 98% of our peers in value investing focus on cigar butt stocks. Those are stocks that look cheap. Maybe they make washing machines and you want to buy it at a PE of 12. It's tempting. But what you find out quickly is that it's a cyclical. So when the economy is doing great, it's making money, but three years later, it may be losing money.”
2021-10-22 · We Study Billionaires · TIP389: Buffett's Core Principles w/ Dev Kantesaria · IDENTIFIED FROM THE TRANSCRIPT
“Yeah, so finance was my hobby. I used every free minute, every free hour that I had in my life to read about equities, read about finance. I looked at a lot of playbooks and I don't remember the exact day or the exact moment. But when you read Warren Buffett in Charlie Munger, it is like you are reading the Bible. It is a universal truth. And when you read some of their letters, it just hits you as this has to be the path. And so for me, early on, their philosophy resonated with me. It seemed like the only playbook that made sense that I wanted to use to grow wealth for my family and now for others. And so, again, I look at real estate. I look at bonds. I look at gold, cryptocurrencies. There's so many different opportunities out there, but there's really, even for me today, there's only one universal truth, only one path that makes sense to me. And that is to buy really high quality businesses.”
2021-10-22 · We Study Billionaires · TIP389: Buffett's Core Principles w/ Dev Kantesaria · IDENTIFIED FROM THE TRANSCRIPT
“Have 20 plus risk factors. You have patents, you have clinical trial data, chemistry, manufacturing, management team risk. And you have to assimilate all of those into a single risk reward decision or a pre-money valuation that you're willing to pay for the company. And so in public equities, today, information is available to everybody. Back in the 1960s, you'd have to write in the mail to get an annual report. There was actually informational advantage in many cases. Today, we have to assume that everybody has the same information. And so the edge comes from interpreting that information, looking at future risk factors, finding that margin of safety and distilling it down to a price you're willing to pay for a company.”
2021-10-22 · We Study Billionaires · TIP389: Buffett's Core Principles w/ Dev Kantesaria · IDENTIFIED FROM THE TRANSCRIPT
“So thankfully, they let me in. I had two great years at McKinsey, and then spent about 18 years as a venture capitalist. And that was an amazing learning ground for what I do today. It's not the standard path to public equities. Many people will start in eye banking, maybe with an MBA and then head over to equities. But building companies from the ground up with entrepreneurs being in the trenches, I've worked with hundreds of CEOs. I've been on many boards of directors, taken companies public, sold companies. All of that operational experience has been invaluable in assessing the risk of public equities. Our job in public equities is to assess future risk. It's great that Coca-Cola has had a good 100-year run, but is Coca-Cola going to be great for the next 10 years? And you sometimes have to assess a large number of future risk factors. In the venture capital world, you might have a company that was pre-revenue where you”
2021-10-22 · We Study Billionaires · TIP389: Buffett's Core Principles w/ Dev Kantesaria · IDENTIFIED FROM THE TRANSCRIPT
“I've had a few stops along the way. My dream in life when I was growing up was to be a world-renowned surgeon. So high school, college, medical school, everything was geared towards that dream. And when I got into my third year of medical school, that's when he started rotating in hospital. I realized that although I loved the intellectual aspects of medicine, practicing medicine was a lot different than what I thought. It wasn't like Little House on the Prairie. It wasn't like a TV show. I have a lot of respect for physicians, nurses, anyone in the healthcare field. It is hard work. It was not something that I could see myself doing for the next 30, 40 of my life. And so finance and equities in particular were always a passion of mine since I was eight years old. And when I decided that medicine might not be for me long term, I decided to apply to McKinsey for a management consulting position. I thought that would be a great way to transition over to the business world. And it was the only option I put out there for myself. If McKinsey didn't let me in, I'd be a surgeon today.”
2021-10-22 · We Study Billionaires · TIP389: Buffett's Core Principles w/ Dev Kantesaria · IDENTIFIED FROM THE TRANSCRIPT