My guest today is Dennis Lynch, Head of Counterpoint Global, where he oversees over $100bn in AUM and boasts one of the strongest track records of any public investor. In our conversation, we cover Dennis's unique approach to building a research team, how misclassification of companies often creates the highest upside opportunities, and how Dennis has adapted his investment process over the past 20 years. I think Dennis defines what it means to be intellectually honest, and you will hear that in his answers throughout our discussion. I hope you enjoy my conversation with Dennis Lynch.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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[00:03:47] - [First question] - How he would teach potential students to be investors
[00:04:26] - The Money Game
[00:04:40] - Moneyball
[00:05:59] - Pros and cons of volatility when investing
[00:08:55] - Emotional response to volatility
[00:12:44] - Training to have a better temperament
[00:14:20] - What is his investing game
[00:15:17] - The Ethical Algorithm
[00:16:44] - How time horizon impacts their investment strategy
[00:20:53] - Assessing a company’s earnings power
[00:26:12] - Shifting business models vs. evolving within a business model
[00:32:32] - Understanding how to invest in disruptive businesses
[00:35:26] - Why he’s skeptical on Growth and Value investing strategies
[00:38:42] - Expectations Investing
[00:38:55] - How his view of assessing businesses has changed
[00:43:56] - Defining unit economics
[00:45:41] - Taking on uncertainty risk in the portfolio
[00:50:38] - The business that taught him the most; Amazon
[00:53:32] - Dealing with massive amounts of change
[00:56:01] - The Big Short
[00:59:46] - Interest in psychedelic research
[01:01:02] - What has changed the most in investing from when he started
[01:04:19] - Kindest thing anyone has done for him