Duncan Hearst, Walmart, Bribery discussed on Capital Allocators
We feel like man how about that for an education. How about that for learning a very different way of approaching the markets so again good humility which makes you grateful that you survived and and showed up to live another day and those periods of time have been huge for what we're doing now on the global noble equity side yeah so you spend a lot of time now in international markets. What are the differences in how you think about culture in other countries. That's a good question because it is different what we do think in part. We have a hard time being a growth manager finding a lotta great companies in japan in part because of the cultural issues. You know there's i. I think it's changing a lot but historically. It's been hard for us to find names there where we think the cultures are healthy. You know there's a lot of the still have the cross ownership of shares yeah you you still have a very paternalistic society and paternalistic companies. They're not very transparent so it's. It's very difficult for us to find names for that reason in japan we do you have a number of them but in general it's difficult in other parts of the world <hes> yeah interesting what i what i have found is when you look at compensation structures which there's another way of looking at culture. How do they pay people. I think it's great to outside the u._s. You don't see guys making thirty or forty million dollars while they're c._f._o. Makes five five hundred thousand you just don't see that you see a lot more reasonable equity. Payouts andrew are salary payouts in those companies which i which i like. I like a lot because i think ultimately that that benefits. Everybody benefits shareholders but you're right in emerging market you know people. Were you know we own walmart mexico about five or six years ago. I think it was there was the big new york times piece on kind of the bribery. The so-called bribery that walmart was engaging in to get space right now. Interestingly what we most people i haven't heard is the end of that story. Which is it was just big. You know just blew up and wall. Mex was on inflames. Nothing came out of it there. The nothing nothing was proved emerging economies they operate a little differently than a lot of european and north american countries and things that we would would see as being kind of under the table or normal so there is this part where you've got to understand that and just make sure that it's reasonable. She could turn back to growth stock investing as a concept in the e._t._f. World and other factor the blowing out of factor products. You hear about value products. You don't hear about growth products so the notion is supposed to be that value stocks work because they're boring and nobody pays attention to them and growth stocks. You do get the google or amazon every now and then but on average that grow socks on and perform because people are optimistic and they priced them too high. Where does that breakdown or or is it more that there's a subset of that growth stock universe that you've been able to identify because it's it's clearly worked for you guys yeah. I think there's a subset you know we're not buying fad names or high real high price names. We're not buying momentum. It's funny because you know how many years ago fifteen twenty years there were. There were a bunch of bunch of multibillion dollar momentum shops and i can't really think of one right now so that is still in existence so when you think of growth in terms of momentum i completely agree. We're all down here are so san diego nichols appleton nicholson turner turner investment vestment partners <hes>. There's a there's a firm great firm called <hes> duncan hearst victor that came out of nichols lap. <hes> actually came out security pacific bank yet. They're gone. They're gone and i'll never forget we actually one year when i met with a gentleman duncan hearst and he was telling you as a marketer and he said hey you know i'm so good at closing business now. He said i win..