Jul 2, 2018
On June 28, 2018, the Pender Value Fund turned five. In this first of three part series, David Barr and Felix Narhi, co-managers of the Fund, go way back to explore their investing roots, discussing how they got into investing in the first place, the forces that influenced them early in their careers, some failures and the lessons learned along the way. They delve into how their investment strategies have evolved as a result of the knowledge they have accumulated over time, and why this learning is crucial to ensuring future success as well. David and Felix also have some insights about the key role of management teams in the success of a company, as well as the need to balance quantitative judgements with qualitative analyses. They also talk about what it takes for a company to move from being a growth company to being a great business. Tune in to find out more.
Key Takeaways:
[2:15] How did Felix get into investing, and more particularly value investing, early in his career?
[4:10] David shares his experience of how he was introduced to The Warren Buffett Way.
[5:15] Investing is really about cumulative knowledge. How has Felix evolved his approach though the course of his career?
[9:05] Felix and David discuss the difference between investment analysis and business analysis, and the drivers that taught them what makes a company successful.
[11:54] What are some of the failures David experienced in his career, and what did he learn from them? Hint: It's to do with management teams and the people in them.
[14:44] There's so much dynamism in business right now - things are changing incredibly fast, and it's crucial to keep learning and adapting over time to keep up.
[17:13] Why are qualitative judgments just as important as quantitative judgments?
[18:13] When tuna's on sale, you buy tuna. What takes a company from being a growth company to being a great business?
[22:42] David shares a personal anecdote about capital allocation and growth-by-acquisition.
Mentioned in This Episode:
David Barr, President and Portfolio Manager, PenderFund
Felix Narhi, Chief Investment Officer and Portfolio Manager, PenderFund
Billion Dollar Lessons: What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years, by Paul Carroll and Chunka Mui
Pender Book Review of Billion Dollar Lessons
The Warren Buffett Way, by Robert G. Hagstrom
Deals from Hell: M&A Lessons That Rise Above The Ashes, by Robert F. Bruner
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