Kurt Kurt, Portfolio Manager, California discussed on Capital Allocators


I saw portfolio manager and i'm looking for a job at that time. She said okay great kurt kurt then gave me this brochure fortunately for me hired me in nineteen eighty nine to join a two hundred million dollar money manager firm down in southern california and that that was really kind of the beginning of the journey that kurt and myself and our other partners have been on for two years the turn a little bit too growth investing testing. Let's talk about a lot of we all know. Growth in value all know the disciplines of value investing here about it a lot. A lot of the time is certainly the conversations i have. What is it about growth stock investing that works. You know i think in part it's a different perspective perspective on the world to be growth investor. You have to be optimistic. You have to be optimistic about the future. Value to me is a little bit more pessimistic. You're trying to by these assets at a compelling price based on their value today with the hopes that it'll keep plugging along and then ultimately it'll be a regression to the real value for growth investing. I i like it because i tend to see the world more positively. I think it's consistent with where i am kind of psychologically and to me optimists rule the world. I think optimists are the ones who ultimately get it right because if you look back through history buffett says it all the time never bet against america i'd say never bet against great growth companies with superior cultures that are highly competitively advantaged so so let's dive into that a little bit you mentioned great growth companies what constitutes a great growth company a couple of things for us and it's very different i think from what most people do and i kind of like one of the things that that we wrestle with a lot of people now are wrestling with whether active management can outperform. I think there's a lot of evidence to suggest that it can but to me. Most managers try to buy high-quality businesses with strong economic advantages are competitive advantage of selling at a discount to intrinsic value. I think one of the reasons that active managers underperformed consistently is because everybody's doing the same thing all approaching the market from the same perspective. What we have found is more times than not if you're just looking for high quality wide moat businesses selling cheaply today..

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