This week, Dan Rasmussen - founder of Verdad Advisors and author of The Humble Investor - drops by to challenge conventional wisdom, discuss humility, and stir up some lively debate.

In this conversation, Dan discusses his investment philosophy; focusing on the risks associated with private equity, the unpredictability of future growth, and the importance of patience in investing. Dan also touches on his approach to investigating biotech investing.

We hope you enjoy the show.

Sponsorship Information

Thank you to ⁠Fiscal.ai⁠ for sponsoring the show.

DISCOUNT INFO: If you use the affiliate link ⁠⁠fiscal.ai/brew⁠⁠, you will automatically get 2 weeks of Fiscal Pro for Free and if you find that you want to upgrade, my link will get you 15% off any paid plans. About ⁠Fiscal.ai⁠

⁠Fiscal.ai⁠ is the complete modern data terminal for global equities.

The ⁠Fiscal.ai⁠ platform combines a powerful user experience with all the financial data capabilities that professional investors need.

Users get up to 20 years of historical financials for all stocks globally that they can easily chart, compare, or export into their own models.

And unlike legacy data terminals where it can take hours or even days, ⁠Fiscal.ai⁠’s data is updated within minutes of earnings reports.

⁠Fiscal.ai⁠ also tracks all the company-specific Segment & KPI data so you don’t have to.

• Like to track Amazon’s Cloud Revenue? They’ve got it.

• How about Spotify’s premium subscribers?

• Or Google’s quarterly paid clicks?

They’ve got all of it.

Takeaways

Private equity is often treated as less risky than it truly is.

The recent decline in private equity fundraising indicates a shift in investor sentiment.

Future growth rates are unpredictable.

Focus on profitability and quality in business investments.

Volatility is predictable both in cross-section and time series.

Japan may be a good place for value investors to hunt.

David Gardner returns to discuss his new book: Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth. After decades of research, the book is a culmination of David's work in investing. This conversation should whet your appetite and help understand David's philosophy.

Takeaways

Investing requires a long-term mindset and patience.

Market volatility is a natural part of investing.

Concentration in a few strong positions can be beneficial.

Initial position sizing should be conservative, typically around 5%.

Avoid adding to losing positions; focus on winners.

Understanding the brand and leadership of a company is crucial.

Total addressable market can expand, leading to growth opportunities.

AI can enhance investment strategies and content creation.

Investing is about understanding the underlying business, not just stock prices.

Building a portfolio should reflect personal values and vision.

Other Episode

You can find David and Bill's first conversation at:

Apple: https://podcasts.apple.com/us/podcast/david-gardner-an-investing-fool/id1540847053?i=1000542928487

Spotify: https://open.spotify.com/episode/6QQaQXlOz4mvjFS425vkQs?si=VsXHLcseTneft5J0APQS_Q

Youtube: https://www.youtube.com/watch?v=VXijHth4OrU

Sponsorship Information

Thank you to Fiscal.ai for sponsoring the show. DISCOUNT INFO: If you use the affiliate link ⁠fiscal.ai/brew⁠, you will automatically get 2 weeks of Fiscal Pro for Free and if you find that you want to upgrade, my link will get you 15% off any paid plans. About Fiscal.ai

Fiscal.ai is the complete modern data terminal for global equities.

The Fiscal.ai platform combines a powerful user experience with all the financial data capabilities that professional investors need.

Users get up to 20 years of historical financials for all stocks globally that they can easily chart, compare, or export into their own models.

And unlike legacy data terminals where it can take hours or even days, Fiscal.ai’s data is updated within minutes of earnings reports.

Fiscal.ai also tracks all the company-specific Segment & KPI data so you don’t have to.

• Like to track Amazon’s Cloud Revenue? They’ve got it.

• How about Spotify’s premium subscribers?

• Or Google’s quarterly paid clicks?

They’ve got all of it.

Braden Dennis stops by to discuss building Fiscal.ai. Long time show listeners may remember Stratosphere.io. That was "Era 1" of the company. Today, Braden is working on "Era 3" of the company; Fiscal.ai.

Braden talks about building a product for himself, to acquiring customers, to early LLM adoption, and finally to competing with FactSet. Fiscal.ai recently raised $10mm in a Series A round led by Portage and Social Leverage.

We hope you enjoy the conversation. It's a cool story.

ALSO, if you use the affiliate link fiscal.ai/brew, you will automatically get 2 weeks of Fiscal Pro for Free and if you find that you want to upgrade, my link will get you 15% off any paid plans.

Thank you for using the affiliate link, I appreciate the support. -Bill