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Bob Robotti - Finding Opportunities In Cyclical Industries
Manage episode 473191436 series 3653161
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In this episode of AUM, we are joined by Bob Robotti, President and Chief Investment Officer of Robotti & Co.
Bob delves into his career in value investing that spans over five decades. Bob shares insights on the cyclical nature of finance versus the cumulative nature of science and engineering. He recounts his early auditing experiences with Tweedy Brown and Gabelli, highlighting how they shaped his investment approach.
The discussion covers the importance of timing, identifying value investments in cyclical industries, and the competitive advantages of energy-intensive businesses in North America. Bob also talks about his investment process, the significance of board involvement, and advice for new investors entering the industry.
01:49 Bob's Early Career and First Exposure to Investing
04:24 The Rise of Value Investing
07:31 Learning from Industry Giants
10:46 Investment Process at Robotti Company
16:40 Challenges and Opportunities in Value Investing
20:15 Case Study: Builders FirstSource and Industry Consolidation
23:19 The Impact of Market Cycles on Business Consolidation
24:04 Mistakes Management Teams Make in Cyclical Industries
24:49 Case Study: Atwood Oceanics and Counter-Cyclical Investment
26:36 Strategies for Success at the Bottom of the Cycle
27:39 Understanding Grassroots Macroeconomics
28:42 Navigating Information Overload in Investing
32:21 The Future of Stock Picking vs. Index Investing
36:05 Energy Intensive Businesses in North America
38:05 The Impact of Tariffs on Industrial Companies
39:58 The Role and Value of Board Membership
41:50 Advice for Aspiring Investors
To see more about Robotti & Co check out https://advisors.robotti.com/
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