Episode 21: Joe Magyer – Compound
On this episode:
My guest for this episode is a very special one for The Australian Investors Podcast and for Owen.
Joe Magyer is the Chief Investment Officer of Lakehouse Capital. Lakehouse is part of The Motley Fool Australia, which is where I met Joe many years ago. To my mind, Joe is at the cutting edge of what it means to be a value investor in modern times.
In this conversation, Joe describes his three fascinations in great detail, how he structures his team, valuation and loads more, including his favourite coffee spots in and around Melbourne and Sydney.
Please enjoy this episode of The Australian Investors Podcast.
- 1:30 – Intro to Joe, building a Lakehouse, Joe’s weird and wonderful 13th birthday present
- 3:20 – Joe’s intro to The Motley Fool
- 4:50 – First job out of undergraduate in investment banking, but it wasn’t Joe’s passion
- 6:15 – Joe’s first gig at The Motley Fool
- 10:00 – Who influenced Joe and where did his unique angle on value investing come from?
- David Gardner’s checklist (podcast link)
- 13:45 – Ebay at 26x earnings and why Joe’s newsletter was #1 over five years
- 16:00 – Why Australia?
- 19:00 – Early learnings managing money and starting Lakehouse Capital
- 24:00 – Building teams and Joe’s 3 “fascinations” – Loyalty, Networks & IP
- 30:45 – Joe on the spirit of value investing, and growth versus value
- 35:00 – Valuation and model traps
- 36:00 – downside risk and managing it at the stock level
- 37:03 – price versus value and “optionality” – “in the money” and “out of the money”
- 37:30 – Joe’s “fascination” with “loyalty” — not retention
- 43:00 – 1 trick to finding companies with optionality — and Joe still rents!
- 46:00 – How does Joe think about risk and is Australia facing a recession?
- 54:00 – Joe’s favourite books
- 56:30 – Joe’s TOP coffee and food spots, Melbourne and Sydney
- 58:00 – What Joe would tell his kids about investing