Outperforming the Market, Managing Risk, & Market Inefficiencies w/ Andrew Brenton (TIP674)

[@WeStudyBillionaires]

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[@NoeMilcentPatrimoine]

Great guest! Very different from the others

[@WeStudyBillionaires]

Thanks so much for tuning in! 💯

[@simmonds3930]

This was an awesome interview! Thank you!

[@WeStudyBillionaires]

Thank you so much! 🌟

[@69thAndYorkAve]

Absolutely superb interview!!

[@WeStudyBillionaires]

Glad you enjoyed it! 🙌

[@davids4227]

Thank you for these Andrew Brenton videos, and specifically by allowing Andrew to go in depth into their holdings, their thinking without interrupting his flow. Exceptional work here by the podcast host!

[@WeStudyBillionaires]

Thanks so much for watching! ❤

[@JustInvestToday]

Amazing interview!

[@WeStudyBillionaires]

Thanks so much! 🙌

[@kotelnikovo]

According to FundLibrary, North America Equity Fund Class F-160 has a CAGR of 15,7% since inception in 2008. 10 year and 5 year CAGR are 10,1% and 9,1% respectively. Of course there are several classes of funds, but to me the so-called annual 20% returns should come from the effect of early days, maybe when they leaned to small Canadian companies? The current portfolio is mixed in terms of growth, quality and ROIC. They have good business such as SSNC, MIDD, GIL, BC or SCI and others where the thesis should be pure cheapness, such as JELD (a plain mistake IMHO), OTEX or BFH.

[@sebastianschmidtataktien-e4705]

Great Interview. And great finally have somebody talking about one of my Portfolio treasures - ATS Corp. Started buying them 2020 and there just has been a good opportunity to buy some more in September this year.

[@WeStudyBillionaires]

Glad you enjoyed the interview! 💡

[@aj8599]

Awesome 💯

[@WeStudyBillionaires]

Thank you! Cheers! 🎉

[@ChristianSoschner]

Excellent 😊

[@WeStudyBillionaires]

Much appreciated! 🙏

[@RichardWhiteBurrill-cj2pt]

inspiring

[@WeStudyBillionaires]

Thanks so much! 💯

[@ElLotdog]

Is he saying Buffets method is to always stay fully invested? Ironic considering he’s currently sitting on a record cash hoard….

[@tx2023pwr]

buffett generates more cash than he can possibly invest. That is the reason buffett has a huge cash position. Not becasue he doesn't want to invest.

[@therighteous802]

​@@tx2023pwr no, he explicitly sold A LOT.

[@ElLotdog]

@@tx2023pwrthat’s just not true… look at his apple and bofa sales this year

[@jimmyc215]

The only thing ironic is that he covered this exact point but you failed to listen.

[@chavocanuck]

With Berkshire's scale, they cannot, as Buffett has repeatedly lamented, be agile enough to buy and sell positions without swinging a stock's price. Thus, changing the weight of a position is a very slow, drawn out process, as can be seen by the multi-month gradual exit from Apple.

[@jimjackson4256]

In yet Warren buffet has a record amount of cash.

[@michaelfriend3990]

Lol true

[@Ro22666]

lol pumping kinsale at 8x book.

[@tulipmania4923]

Based on the website the fund did not beat the s&p 500 - they beat the s&p 500/tsx index. This seems very misleading. Can you please interview managers that actually outperform the s&p 500?

[@clayfinck431]

I pulled their returns (20%/year in USD terms, 19%/year in CAD) and then compared that to the returns of the S&P 500 over the same time period (8.3% since Nov 1998 with dividends reinvested).

[@tulipmania4923]

@clayfinck431 seems odd they would not present that on their website but instead say they beat the s&p/tsx. Can you please provide all your sources

[@JWSpaceX]

Please show us all records of yearly performances since inception before claiming performance as great as Warren Buffett/ David Tepper

[@user-nx2rm7xi6x]

Yes, I am wondering too. Clay, just post the performance records comparison in the show note. This is important and serious 😊

[@alexgardner3125]

They're buying mostly Canadian companies, so of course they'll use the tsx as their benchmark. Americans always think they're special 😂 Doesn't mean they didn't beat the s&p500, it means they don't care about the s&p500 because it isn't their benchmark.

[@survivingthetimes]

With the influx of throngs of retail traders in the recent years, the market has become extremely less efficient. I think that someone with their ear to the street, who is old enough to recognize various trend shifts when they see 'em, and has a well developed pulse of the market and can put it all together to figure out what the wacky masses will do next will profit far more than any room full of quants and other overpaid degreed eggheads.

[@digilifepro]

So someone who is "in the know" on what they can reasonably and consistently expect, particularly an older person. Which then would mean the vast majority of their experience and pulse taking is from the time when trades cost $50, to $29.99, to $10, i.e. the 80s 90s early 00s? Which then that would mean most active participants were professionals chilling in orderly markets and made their nut on those juicy fees and the more trades they could squeeze in the more their vig was? Oh and any individual retail investors had to go through those professionals thru a broker, and made way way less trades, like 80-90% fewer trades in a year than WSB makes in a day (can you imagine paying $10-$20 a trade?! I can! I had to pay em) That reminds me- there also were no free sophisticated TA apps that a 16 yr old could play analyst on like today. And the ones that were available had a ridiculous premium to purchase a dang CD-ROM to install, quite a long time before internet. Nor were there gobs and gobs of free data, auto analysis, order flow, etc to analyze for 100 years at your fingertips and still would have barely scratched the surface. So we take this experienced person, crushing it in an orderly market raking in the fees, and we introduce the wacky masses (or just chuck em in a WSB forum, though their head might explode) and wacky to me says high volatility, YOLOs and FOMOs, maybe a bit of BOLOs if we factor in rotation to Bitcoin. This veteran of smooth moves is now getting stomach ulcers and constant migraines trying to figure out what tendies and Wendys are, and we're expecting them to profit Far more than a room full of quants who can write algos that cover every letter in the Greek alphabet, including alpha to extract alpha, using advanced applied mathematics learned via egghead degrees from MIT and CalTech? I don't know much but to me this doesn't sound like this vet would really have any better chance at beating the market than a goldfish who picks stocks based on what side of the tank they happen to be on. In fact I think this person would throw in the towel about 60 days into the upside down world of GME meme stonk +42% -53% craze. Or perhaps this person would be what we know today as Citadel HF and institutional sized capital. Either way, this person sounds like they'd be lost in a sea of red. But that's just me. Anyhow, this strategy might need a bit of an adjustment. Just a guess though. 😅 cheers mate!

[@jimjackson4256]

If these guys can do so good why are they selling their services.

[@pabloespinosa8691]

Because they can make more money. The investments strategy of the fund can manage more money than they can themself deployed. If that’s the case they can eran money on the return of their own capital plus a fee on external capital that doesn’t spoil their strategy