Join Eric Schleien in this Q&A format as he answers questions on short positions, investment strategies, destroying your own conclusions on business and investments, and so much more. When asked about the mistakes he's made with investments and what can be learned from them, Eric expounds on what he thinks is a rear-view mirror thinking and on how he managed to lose more money to areas of omission than commission.
SummaryWhile it's common for others to work on becoming large firms, Eric's unique gameplay is to stay boutique and manageable. For Eric, it's not necessarily rejecting growth. Instead, it's more about being able to hold control and balance on different elements. When you're running multiple large funds, it will reach a point where you start losing the competitive advantage by becoming too large, he explains.
In this episode, the group also brings up the relevance of Environmental and Social Trends in determining the long-term value of companies. Quoting from Brookfield Asset Management CEO Bruce Flatt, "It's not a good business to not be a good steward of the environment.", for Eric, if a business is taking steps to have an adaptable and inclusive culture – value is quickly elevated. Even though it's not the end-all-be-all, for Eric, when a business does good in proving its CSR, it helps contribute to building a competitive advantage and value in the long run.
Show Notes- [01:20] Podcasting is going to be bigger than radio; On Liberated Syndication/Libsyn (LSYN).
- [06:26] How do you size your investments and know what to trim?
- [10:38] The art form to portfolio management.
- [14:00] On the threat inflation poses.
- [19:50] The advantages of being a boutique firm.
- [21:53] On not taking short positions.
- [26:26] Has the pandemic changed investment strategies?
- [28:22] Rear-view mirror thinking.
- [34:05] How do you factor in ESTs on a business's long-term value?
- [36:39] There's only so much you can control when you run large funds.
- [42:06] When an investor insists on dividends…
Principles of Power - The Art & Wisdom of Badassery Book by Eric Schleien
About Eric SchleienOver the past decade, Eric has trained thousands of individuals, including board members of public companies as well as several Fortune 500 CEOs. Eric specializes in organizational culture and has become a leading authority on organizational culture in the investment industry.
Eric has been investing for 15 years and has been using breakthrough coaching methodologies for over a decade. Eric had the insight to combine proven coaching methodologies with shareholder activism techniques to create an entirely new model for shareholder activism that was more reliable and created greater sustainable results in a rapid period of time. On average, Tribal Leadership produces a 3-5x increase in profits of culturally troubled companies within an average of 24 months or less.
Eric currently resides in Philadelphia, PA.
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