When Sean Ryan, who runs the Predicting Alpha podcast, reached out to me about being on his show, I wasn’t sure what value I could add to his followers. His podcast focuses more on active traders than on long-term, fundamental investors. However, Sean thought a discussion that covered Cove Street’s philosophy and process would be beneficial to the traders who listen to his show. That got me thinking that there doesn’t necessarily have to be a huge gap between traders and fundamental investors. Maybe both sides could learn from each other. So, I agreed to be on the podcast and we had a great discussion about:

• The role of luck in investing and how to distinguish between a good decision and bad one
• Why it is important to invest in companies that have the ability to take a punch
• How understanding management and having a process that mitigates biases can give you an edge as an investor
• How to know when valuations hit extreme levels and what to do to protect yourself from losing money

Please enjoy the full interview below.

To watch the interview on YouTube, click here.