The FORT Podcast: Ryan Reeves
Ryan Reeves is the Founder and CEO of Investing City and is also the host of the Investing City podcast. They discuss the power of value investing, the world of an investor, the hype around cryptocurrency and more.
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01:46 – Ryan’s Background and Investing City
05:37 – Growth Investing vs. Value Investing
07:00 – How to Get Better at Utilizing Search Engines
09:25 – A Typical Day in the World of an Investor
13:53 – Is there a method to the madness when reading an S2 or a quarterly earnings report?
16:54 – Do you look at companies who hemorrhage cash differently in terms of the money they could make in the future?
19:30 – Is there a time horizon for how you look at things?
23:14 – How much time do you spend stress testing an idea as opposed to looking for new ones?
24:50 – Do you think Berkshire is set up for companies in the modern era?
29:30 – Ryan’s Research as a Service (RAS)
37:14 – Ryan’s Core Portfolio Policy
39:00 – How do you know when you “actually know something”?
41:27 – How do you get to know employees in the companies that you look to invest in?
45:08 – Are you a believer in the Bitcoin revolution?
50:38 – What are the biggest mistakes a novice investor makes?
53:07 – Books Influential on Ryan’s Journey
MORE ABOUT RYAN
Ryan loves helping people crush the stock market. He has been investing rigorously in stocks since the age of 12 and he has numerous 10-bagger returns. He graduated Pepperdine in 3 years summa cum laude and has worked for the Motley Fool, Morgan Stanley, and two NYC hedge funds. He is also a top contributor on Seeking Alpha and Medium. He started Investing City to harness the power of community through the internet. Ryan also enjoys being outdoors, playing basketball, surfing and going to church.
Episode Summary
Reeves kicked off the conversation by shedding light on the concept of investing as a form of pattern recognition. He emphasized the critical nature of discerning trends in financial statements and understanding their subsequent impact on stock prices. By highlighting the importance of foreseeing potential outcomes based on financial indicators, such as shifts in gross margin, Reeves provided listeners with a glimpse into his analytical mindset, underscoring the need for a thorough grasp of financial nuances to excel in the investment realm.
The conversation then transitioned into Reeves’ personal approach to investing, where he underscored the indispensability of deep thinking and extensive analysis. He walked listeners through his typical day, which encompasses a balanced blend of reading and writing, aimed at sharpening his understanding of industries and investments. Reeves stressed that while reading is a common practice among investors, the act of writing and critically analyzing information is a pivotal step in cementing knowledge and identifying gaps in understanding, ultimately leading to more informed investment decisions.
As the discussion progressed, Reeves explored various investment strategies, particularly the evaluation of different stocks and the critical decisions surrounding fund allocation. He provided insight into scenarios where an investor might be tempted to shift investments from one stock to another, based on perceived potential, urging caution and advocating for thorough research and understanding before making such decisions. The allure of a seemingly brighter opportunity, Reeves noted, should not lead to hasty decisions without the requisite analysis, highlighting the importance of a measured and informed approach to investing.
Delving into the world of investment research, Reeves highlighted the role of transparency and community in enhancing the quality and depth of financial analysis. He pointed out the value of platforms like Seeking Alpha, where transparency and community-driven content play a crucial role in democratizing access to investment knowledge. By emphasizing the significance of financial databases and the collaborative nature of community-driven platforms, Reeves showcased his appreciation for the communal aspect of investment research, underscoring the collective effort involved in enriching the investment landscape.
In the concluding part of the podcast, Reeves touched upon the topic of incentives, drawing attention to their paramount importance in driving performance and decision-making in the business world. He shared a compelling anecdote to illustrate how the level of investment or stake in a business directly correlates with an individual’s motivation and commitment to its success. The alignment of incentives with business goals, Reeves argued, is a critical factor in ensuring genuine dedication and outstanding results, highlighting the irreplaceable nature of true commitment and effort in achieving success.