YouSaid · the spoken record

Steven Galbraith

lines on the record: 98
first: 2017-04-13
most recent: 2017-04-13
sittings or episodes: 1
sources: podcast

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“I joined Morgan Stanley in two thousand, so really right at the top. I mean, it was really damn close. And naturally, I progressed into the hedge fund industry. I wasn't quite at the top for the hedge fund industry because I joined Maverick in 04. But at some levels, parts of the hedge fund industry, it probably is at a top with respect to the fee structure and your good friend from Omaha kind of made that point in his last letter.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“without getting too nostalgic. I probably, and I've done this, in fact, we didn't get into this, but almost everything I've ever done was pretty damn close to the top. It may be fodder for future conversations today. But, you know, if you think about it, I picked up the packaged food group. They had outperformed like nine out of the 10 years prior to me picking it up. And then they went and didn't real secular decline. I picked up the broker dealers in 99 when there were all the IP ago, you know, and I joined Morgan Stanley when it was trading at about four times book value. And as we well know, it went to, I think it troughed at 0.5 of book.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Poetry, his research pieces, you know, there's no way I'm doing poetry. You know me too well. So it's like, I got to do something different. And so what I tried to do was obviously make it catchy analytically readable, but also rely a lot on the data. And I'm proud. I mean, I finished number one the two years I did it. And Byron used to give me a hard time because he actually never was number one. Which is totally bizarre because he was way over number one in terms of his mind share. But it was an interesting experience. And it was also...”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I wrote this in one of my essays. I just said, you know, when I got the call from the headhunter, I assumed it was a fraternity butter making fun. And I showed up at his office and it would be like a bombed out building in Harlem or something because I just thought there's no way they're looking to replace these two legends. And you didn't, I didn't replace them, but bring in someone to come in and succeed Byron and Barton. And I was just, I was like a kid in a candy store tag. I was just thrilled because Morgan Stanley's access. I got to meet the best investors in the world. And then the data they had internally, just to be able to see the flow and things like that. And the main thing I figured out pretty quickly is I'm not going to replace them. So what I did, to some effect, I guess, was I used a lot of the Bernstein stuff. In other words, it was very quantitative. Whereas Byron was always very impressionistic, as was Barton used to cite”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“So let's take a step above the company analysis industry level. When you left Bernstein, you joined Morgan Stanley as the chief investment strategist followed in the footsteps of two mega giants, Barton Biggs and Byron Ween, who were just incredibly formidable in those seats. What was that like coming into a seat where you knew you were following kind of the Derek Jeter of strategy at the time?”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Billion had 87,000 dollars in revenue. I mean, it's just amazing. And today we're up to about $15 million. So we're making good progress, not making good money yet. But ultimately, I think we got a shot. It's a tough, tough business. But, you know, it's another thing about investing. I do think it's very important for folks if you can get a true, actually get real life experience at a company, right? Getting involved. So I've been on some corporate boards. I'm involved in large family offices and things like that. It just gives you a much better perspective of what the heck really goes on at these firms. And so in a weird way, I know it's a tiny little company, but it's helped me a lot understand what really is required to get through a cash flow cycle and add value.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“I talked to some of my buddies on Wall Street who had too much money and too much time on their hands, I guess. And what was interesting, Ted, is in hindsight, the response was quite frosty. People are like, look, I'm getting killed in my portfolio. I don't want to do this. So this is October of 2008. But interestingly, by like February of 2009, all my buddies were suddenly very interested in this. And the deal ended up being oversubscribed. And if anything, it was, again, with the benefit of hindsight, it was a sign of risk tolerance coming back to the market. And so here we are today speaking here in March. We just opened a brewery in Rhode Island. So it's the first time Narragansett beer has been brewed in Rhode Island in something like 50 years. When we bought the business, when it was originally bought, it went from, as I said, current dollars of”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“from a friend of mine and said, Narra Gansett is looking to resurrect itself. They had already had an angel investor. In fact, the current governor of Rhode Island, Gina Romando, another Yaley, was the angel and they needed money. And frankly, the angel had overpaid or the company hadn't delivered as they thought. And so I just said, I got to do this. I grew up in Rhode Island out of nostalgia.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“That was in the 60s. And it probably had something like 60% market share in Rhode Island. It had well, well into the double digits throughout New England. You know, it's a huge enterprise. And then it got bought by different lousy private equity guys and lousy industrial players. And they watered down the beer. They cut back on marketing. And ultimately they ended up closing the plant in Cranston. It was bought by Falstaff was, I think, the last owner, which was an Indiana brewer, and they were brewing at an Indiana and shipping it to Rhode Island. And so I got involved in 2008. I met Maverick and were losing millions of dollars every single day. I'm coming into the office and my eyeballs are bleeding from how much money we're losing. And I get a prospectus.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, exactly. That's true. That is true. And actually this one I think we're going to make money on. Actually, we made money on the soccer team just because we bought low. With Ganset, it was a labor of love. I grew up in Rhode Island and Narragansett beer had been the largest employer in the state. And it was the official beer of the Boston Red Sox. And this is a cautionary tale because it does give you some sense, particularly with the buyout, the private equity fever pitch we kind of see now with endowments and others. Gansett In current dollars probably had well over a billion dollars in revenue. It was the fifth largest beer in the whole country.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“So let's take a little divergent path. You spend some time with financials, you spend some time with consumer companies. And today you own a small interest in a local brewery not too far from your hometown. So let's go there. Narah Ganset Beer Company. How did that come about? How do you have a car that you drive around? That's a walking advertisement, the surfboard in your office of the same. A terrific story. Why don't you go ahead with that one?”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“supportive and ked said hell no i'm going i'll never forget that because he was such a stand up guy and he said look if he's right he's right and if we can prove him wrong we should but you're right that the biases are against that kind of recommendation”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“On Hershey, because it was preposterously valued and I thought they were going to have issues in and around some stuff Nestle was doing. And I invited him. Bernstein had a big conference every year. And the IR guy didn't want Ken to go because he said.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“It was we were vastly different. So my initial launch report, I had more sales than buys, which was unheard of on Wall Street. And the reason we could do it is we didn't have any corporate finance harm. So they had an investment arm. They had no traditional underwriting arm. And so at some point, we took pride in it. And it was our point of differentiation. And what I found, Ted, is the better management, and I'm not saying by any means a lot of them, but the better managements did want to hear the negative scenario. As a portfolio manager, I don't want my analysts coming in telling me nothing but the good news. I know the good news. That's why we own the stock. Tell me where we're going to be wrong, you know. And so I'll never forget it. Ken Wolf was the CEO of Hershey. He's a fellow Yale guy, actually, played football at Yale. And Ken was the CEO of Hershey. And I put a cell.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“That seemed very antithetical to the old sell side where we read reports all the time that there are only buy recommendations. And even today, the number of cell recommendations is in the minority. And you see... There's a very, whether it's game theory or just behavior, there's a reason why, right? Because there's this sort of virtuous or vicious circle that comes from, you write something nice about the company, hey, is P&G going to invite you if you wrote the buy report or the sell report? And it goes on and on. Was Bernstein different from that in some way? It was.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“engaging in all kinds of couponing and things like that discounting. So things like that, whereas the conventional wisdom was this is the single greatest business ever, it's a consumer staple, blah, blah, blah. And so I think it was that Ted. It's like, okay, take a risk. That's it very emphatic.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Catchiness to what I write. But the thing that was great about Bernstein is they didn't encourage you to, but they certainly allowed you to fail. So in other words, a big part of their ethos was you're going to be wrong. You got to take risks. If you're just going to have the mean view on everything, you're going to get a mean outcome, except when you add in fees, you're going to underperform. And so, look, you can't be provocative for provocative sake, but I do think one of the things they were pretty good at is saying, hey, you know what? Think outside of what is currently the zeitgeist. Think about where things could evolve to. So one of my early pieces was on the cereal industry and how the pricing structure had to collapse because of the margin structure had run up too high.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it's a combination. Like if a tree falls in the woods, if you can't write, if you can't communicate in this industry, you're going to have a hard time in any larger institution. And so there was a degree of”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Coming up with to corporate boards. I got phone down at representing Nabisco's board, Quaker Oats Board, Kellogg's Board. And that's a really cool and pretty special feeling where the output you're producing is provocative enough that the company wanted to actually hear what you had to say.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Consumer I started on, so it was interesting. So, the segue to me, so I had a really robust credit background. So I really understood cash flow. I didn't even know what a stock was, really. And so at Bernstein, I came in and started covering consumer companies. And in many ways, Ted, that was a perfect segue just because they're not that hard, right? It's almost like bond math. Like P&G is almost like a bond, right? The variance in their financial outcomes is very low. And so for a kid wanting training wheels for his equity investing, it was absolutely spectacular learning ground and training ground. And then when I found to the extent I had any strengths, it was I was pretty well regarded on the strategic front. So what was neat about that role, because Bernstein was so well regarded in its research, I routinely got called to present the stuff I was...”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“He was just such a great mentor. I then moved on and Morgan Stanley and had Byron and Barton Biggs as mentors. And then most prominently, and perhaps the oddest couple of all, you know, Jack Bogle's probably not only my best friend in the industry, but he's just been a unbelievable moral and intellectual mentor.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's funny, Ted. I really just flailed away and I just worked my ass off because my basic view is in finance and investing, there's a lot of uncontrollables. The only thing I really could control is my work ethic. And so early on, I just got lucky and worked my butt off and kept getting Peter principled, like getting promoted to way above my level of competence. I started getting mentors when I joined what I would call Wall Street Proper. So on Chase, I really was part of a commercial bank. I then went to Sanford Bernstein. So I went to the equity side, the more traditional investing side. And there I've just been unbelievably blessed. I've had, you know, my first mentor was probably Lou Sanders at Bernstein, just an absolute brilliant man. And he gave a damn about me. He didn't, he was one of those guys. He was relatively aloof, but”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Because we had a lot of bad Latin American loans, we had a lot of bad real estate loans in Texas, so on and so forth. So it actually was a very fertile time to be doing what I did. And so the combination, again, as I said, I grew up in Rhode Island, a small town kid. I'd barely had a passport in college and suddenly I'm spending time in all these countries. For what it's worth, I do think in a young person thinking about a career in finance, if you get a shot to work overseas, do it. Just A, you get a lot more responsibility. And B, just learning how things are done elsewhere. It can't help but make you a better investor.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Was kind of things, and you know, and it was one of those things where to a young person, it's glamorous and great to a 40 something year old, it's like, you got to be kidding me. I got, you know, a baseball game to go to with my kid or whatever. And to some extent, you know, you're so naive and young, you're willing to ask the dumb slash hard questions where you're looking at something fresh. And so there was something to be said for it. And it's worth noting that this was right after or around the petrodollar recycling crisis. So the bank, I always joke when I was working at Chase. The art collection was worth more than the bank.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Job. At a young age, I was probably 23. Chase had this program called Credit Audit and basically what it was was a group of SWAT analysts, 23 to 26 year olds who would be tasked with flying all over the world to do analyses of the bank's troubled loan portfolio. And so you'd fly in and so I'd spend a month in Indonesia, a month in Chile, Argentina, all over the world and you'd be kind of parachuted in and expected to analyze these really screwed up credits and come back with kind of a game plan for management back in New York is how do we solve this?”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“We've spoken about so pure nepotism. My brother who is clearly the smart one in the family, I mean, he graduated the highest honors from Brown in mathematical economics, very smart guy, went through the Chase training program. This was back in the day when the Big Banks had very large and long training programs. He did quite well. And I interviewed and they figured, well, if he's half as good as a brother, he'll get the job. And so I went through the training program. And I'm telling you, Ted, this was, it was gold dust. I mean, it was like a mini MBA. They spent a full year. They taught you accounting. I had never had accounting. You did all these case studies. You spent an immense amount of time on credit. So it was like a full year going through it. And it was the single best preparation you could have. And then from there, and we've talked about this in the past, I had just a dream.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“I call them wages. Fortunately for Sal, there were enough knuckleheads in my fraternity that we probably in aggregate did what most gamblers do. So I kind of caught the bug and I saw that analytics kind of bring it all together. And so I found my way to Wall Street, somewhat circuitously, but that was the early origins. And I do think in my experience anyway, 10 years as well, you've seen it. I do think there is this linkage between statistics, sports, and investing. You do see a pretty common theme where a lot of folks in this industry have that path.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“You have to pay the VIG. You really do have to have a system or a process and analytics behind it if you have even a hope. Anyway, long story short, there, we did really well. I financed my junior trip to the Bahamas out of my wages”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Share a mutual passion for writing, which we can talk about later in terms of investing. I did kind of get a little bit of the exposure to the finance side. And then this is a somewhat more controversial part of it. I was in a fraternity, and we basically were part of a reasonably large betting ring out in Boston. And so Sal was our bookie, and he was over Jay's Delhi. And one of the things we found was college sports were really inefficiently priced. So, and this was way before the internet. So we used to bet on like Utah state against Montana in hoops or something like that. And you could really, with a little bit of homework, get an edge. And because unlike investing, the expected return on betting is negative because”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so it's interesting, Ted. So many. So I worked with Lee Ainsley at Maverick, and one of the things he told me is, you know, I was, and you hear this a lot on Wall Street, I was buying and selling stocks as an eight-year-old. And that was completely foreign to me. I was buying and selling baseball cards. So I was a freak about statistics. I love statistics. I knew who had the highest batting average in 1907. I mean, I just knew everything about it. So I really love the statistical part of it. My mom was actually more of an artist and an English major and had worked at Brown University. And my dad was a finance guy and retired as vice chairman of Met Life. And so I was kind of torn between the two. I went to Tufts University outside of Boston and actually majored both in economics, largely focusing on statistics and maths, but also English. I actually got a double major and I was kind of torn between the two.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“But you try and control what you can, and what we found, what was also interesting as part of our thing is we also implemented some of the don't overpay for the stars. So when the team, the team really did, we were for, I think five years in a row, we were in the top five or six, which is all you can hope for. It's kind of like the Patriots way. Or if you think about sports here, where you want a shot to be number one every single year, and that subtle tweak to the financial model actually helped obviously the finance of the company, but also the outcomes for the team. And so that was kind of our view. It's exactly what you said. If you get the process right and you're taking enough shots on goal,”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“It turns out in some of these, if that sort of money ball aspect was right about time of possession and shots on goal, that you had the right process and the wrong outcome. I have had a recent experience in a bet that some people know about that feels the same way.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Somewhat ignominiously had a couple bad losses, but was a decent builder of culture and morale. And he's the guy that got us to that championship game or almost to the Premier League.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, it was interesting. The manager we originally had was a nondescript guy, and we brought back a gentleman named Nigel Clough. And his father, there was actually a movie about Darby Rams and that Nottingham Forest and some other things about his father, who, and I can't remember his first name, but he was an unbelievably charismatic and very controversial footballer and beloved in the Midlands. And we bought Nigel back thinking, well, this will be a cultural shot in the arm. It's exactly what you want to kind of bring in. And it ended up being a complete fiasco. You can't create culture de facto, right? It just doesn't, you don't just insert this personality and expect it to win. So then we brought in a guy named Steve McLaren, who had been coach for the UK team in the World Cup.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“There's a book I read a couple of months ago called The Real Madrid Way. Stephen Mandis wrote it. He was a former Goldman Sachs guy and had unfettered access to everyone in the organization. Message of the book was the reason for their long lasting success had to do with culture. And the Real Madrid community, the fans, employees, owners. Involved had to buy into being good citizens in this country. A focus on getting the right personalities in the locker room and being willing to part with Primadonna, who's a great player but didn't represent the Holy Ethos of the community. You see that play out with the Derby team.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Is soccer like American football is very much a team sport, meaning you're much better off spending incremental money on the 15th, 14th, 13th, and obviously 12th, 11th player, the people coming off the bench and the less good players than paying a ton of dough for a Wayne Rooney or a Ronaldo or one of these stars because they're incremental ability to influence the outcome is actually relatively low. So it's total contrast to like American basketball where if you have a stud like LeBron James, you almost can't pay him enough. Whereas in these more team-oriented games, you're far, far better off investing on the value spectrum, if you will, as opposed to the big growth guy.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, we learned a couple things. One, the traditional UK management are just against it. So one of the things we did, much like Moneyball, where they figured out things like stolen bases were overrated, walks were underrated. We did a lot of analysis on what ends up contributing to great teams. And a couple things, some of them are fairly obvious, but the two most prominent features were time of possession. So if you control the ball, you tend to win. And secondly, shots on goal. So just shoot the damn ball. It's kind of like investing. Too many people are striving for perfection. You got to take some shots on goal a little bit. And so those are the two kind of analytic things we learn. And so we incorporated in the team. And the team did get better. But most interestingly,”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm patient, but another patient, another fire sale wrong way, apparently. Process of owning that team, and we've talked some about Moneyball. And I know you had done some work to try to figure out how do you apply those strategies to soccer. What'd you learn?”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's going to end well. So, this is kind of like when you're buying Enron on the way down, you know, or whatever. But anyway, unfortunately for us, they had it one more time in the second half, and they scored with 35 seconds left in the game. And we lost. Painful We've subsequently sold the team.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“11 on 10. So we go into the second half and we had something like 12 shots on goal, which is almost unheard of in football, European football. And we're just dominating. And in fact, they only had it in our half of the field one time for the first 44 minutes of the half second half.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, one below. And Derby County, for folks in the US, the equivalent is kind of like Akron, Ohio, or maybe the Green Bay Packers would not be a bad analog in the sense that it's in the middle of nowhere incredibly rabid following 100 year history, and yet very downtrodden. I mean, they had a long, long history. So anyway, with this game, we're dominating. We're playing Queens Park Rangers. We're dominating the game. And then right before half, they actually had a man sent off. And so what happens in soccer, you play a man down.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I fly over with my daughter and my wife and a bunch of friends, and it's at Wimbley Stadium. And the place is just, it's far beyond the Super Bowl or the World Series. You can't even put into this.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the New York Times actually wrote a wonderful treatment of this. And basically it's viewed as the most valuable game in all of sport. So long story short there is teams play off and the winner of this play-in game gets promoted. And it literally would have meant probably 150 million pounds to us had they gotten.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or so we thought. So I can't remember what the purchase price was. It may have been 25 million pounds or something like that. So we buy this thing. And one of the things we didn't quite realize is this whole concept of relegation can work in perpetuity. In other words, if your team stinks, you can get down multiple layers and you lose multiple economics. Anyway, long story short, that first year for basically about 90% of the year we were in the bottom position. So we were going to get relegated again, at which point the works were.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“And the economics of it can be actually catastrophic because you go from the big leagues where you're getting all these sponsorships and AIGs sponsoring you and you're selling out and you have TV contracts and so it's worth a multi, multi, multi-million. And when you get what's known as relegated, it results in a huge diminution value. And so like as with a stock and as a value guys, you well know, we look at this and say this is a gift. We're like, we're basically buying this team because the seller panicked. He saw the future cash flows of this team imploding. He said, I'm out of here. And we basically bought the team for what we thought was the value of the stadium. So we're like, we're basically getting this team for free and we got the stadium. So it was one of these classic some of the parts things.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of my buddies actually from, I went through the Chase training program with one of my dear buddies from, he's a fellow Rhode Islander, and he actually has turned his passion into his business and he buys and sells effectively minor league baseball teams. And it was actually at one point was a very inefficient market head. It was unlike the majors, which really are trading off egos and big price tags. It was inefficient market. So he came to me with this wonderful value proposition. There was a club called the Derby County Rams. And he said, Steve, in the UK, what happens is if you're in the effectively the major leagues and your team stinks, you get sent down to the minors as a team”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“Career and still has a full tank of gas. Alongside his storied career in finance, Steve has dabbled in a European soccer team, a local beer company, and a wildly successful charter school. We discuss Steve's very personal take on all of this, and I promise you won't want to miss a second. So without further ado, I bring you the incomparable Steve Galbreth. Steve, thanks for joining the show.”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source
“My guest on today's show is Steve Galbreth, an investment manager, brilliant writer, engaging thinker, and one of the most well-liked men on Wall Street. Steve's career has touched every aspect of investment management. He's worked as a research analyst, portfolio manager, investment strategist, business leader, entrepreneur, and on the boards of an endowment and a family office. He started as an analyst at Chase Bank in credit and Sanford Bernstein in equities and later got recruited by Morgan Stanley to succeed the legendary duo of Barton Biggs and Byron Wien as chief investment strategist. Steve Lesmart and Stanley in the mid-2000s to join and help lead multi-billion dollar hedge fund Maverick Capital. He departed some years later to take his hand at his own hedge fund startup. Today, he manages his own family office in true family style, as you'll hear later in the show. At barely past 50, Stevis had a remarkable”
2017-04-13 · Capital Allocators · Steven Galbraith – Five Tool Player (Capital Allocators, EP.01) · IDENTIFIED FROM THE TRANSCRIPT · source