Marc Rubinstein on the Challenges Facing Facebook’s Diem

February 25, 2021 in Audio, Commentary, Equities, Financial, Ideas, Interviews, Member Podcast, Net Interest

We had the pleasure of speaking with Marc Rubinstein, author of Net Interest, a financial sector newsletter, about his essay, Facebook’s Big Diem.

Marc writes:

In case you didn’t hear, this week the price of Bitcoin went through $50,000.

It’s been on quite a journey since breaking out of a white paper in 2008. At the beginning it was touted as a currency, a new medium for facilitating commerce. “Electronic cash,” Satoshi said. People still talk about that time Laszlo Hanyecz bought two Papa John’s pizzas for 10,000 bitcoin – “like maybe two large ones so I have some left over for the next day.” (Ouch.)

In the early days, the goal of pioneers in the space was to get Bitcoin accepted by merchants as a medium of payment. Soon after its launch as a Bitcoin wallet, Coinbase began signing them up. By October 2014 it had ten $1 billion businesses plugged into its systems ready and willing to accept the new currency.

Yet as a payment device, it didn’t really take off. Transactions were slow and the price of Bitcoin was too volatile. Bitcoin morphed from a cryptocurrency to a crypto asset, reinventing itself as an alternative to gold.

Having survived its ups and downs and lived to tell the tale, its status as a commodity is likely secure. More fluid is the space it vacated in payments; that space remains a battleground. One contender there is Facebook.

Read on or listen to our conversation (recorded on February 22, 2021):

download audio read article

About This Audio Series:

MOI Global is delighted to engage in illuminating conversations on the financial sector with Marc Rubinstein, whose Net Interest newsletter we have found to be truly exceptional. Our goal is to bring you Marc’s insights into financial services businesses and trends on a regular basis, with Marc’s weekly essays serving as inspiration for our discussions.

About Marc Rubinstein:

Marc is a fellow MOI Global member, managing partner of Fordington Advisors, and author of Net Interest. He is a former analyst and hedge fund manager, most recently at Lansdowne Partners, with more than 25 years of experience in the financial sector. Marc is based in London.

About Net Interest:

Net Interest, authored by Marc Rubinstein, is a newsletter of insight and analysis from the world of finance. Enjoyed by the most senior executives and smartest investors in the industry, it casts light on this important sector in an easy-to-read style. Each post explores a theme trending in the sector. Between fintech, economics and investment cycles—there’s always something to talk about!

Members, log in below to access the restricted content.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Ep. 30: David Barr on Finding Value in Fast-Growing Businesses

February 25, 2021 in Audio, Diary, Equities, Interviews, Podcast, This Week in Intelligent Investing

It’s a pleasure to share with you Season 1 Episode 30 of This Week in Intelligent Investing, co-hosted by

  • Phil Ordway of Anabatic Investment Partners in Chicago, Illinois;
  • Elliot Turner of RGA Investment Advisors in Stamford, Connecticut; and
  • John Mihaljevic of MOI Global in Zurich, Switzerland;

with special guest David Barr, CEO of PenderFund Capital Management.

Enjoy the conversation!

download audio recording

Special guest David Barr, CEO of PenderFund Capital Management, joins us for a conversation on private vs. public market investing, how the concept of value has evolved, and how Dave & Team are finding value in fast-growing businesses. Elliot Turner, Phil Ordway, and John Mihaljevic engage Dave in a lively discussion of these and other topics.

Follow Up

Would you like to get in touch?

Follow This Week in Intelligent Investing on Twitter.

Engage on Twitter with Elliot, Phil, or John.

Connect on LinkedIn with Elliot, Phil, or John.

This Week in Intelligent Investing is available on Amazon Podcasts, Apple Podcasts, Google Podcasts, Pandora, Podbean, Spotify, Stitcher, TuneIn, and YouTube.

If you missed any past episodes, you can listen to them here.

About the Podcast Co-Hosts

Philip Ordway is Managing Principal and Portfolio Manager of Anabatic Fund, L.P. Previously, Philip was a partner at Chicago Fundamental Investment Partners (CFIP). At CFIP, which he joined in 2007, Philip was responsible for investments across the capital structure in various industries. Prior to joining CFIP, Philip was an analyst in structured corporate finance with Citigroup Global Markets, Inc. from 2002 to 2005. Philip earned his B.S. in Education & Social Policy and Economics from Northwestern University in 2002 and his M.B.A. from the Kellogg School of Management at Northwestern University in 2007, where he now serves as an Adjunct Professor in the Finance Department.

Elliot Turner is a co-founder and Managing Partner, CIO at RGA Investment Advisors, LLC. RGA Investment Advisors runs a long-term, low turnover, growth at a reasonable price investment strategy seeking out global opportunities. Elliot focuses on discovering and analyzing long-term, high quality investment opportunities and strategic portfolio management. Prior to joining RGA, Elliot managed portfolios at at AustinWeston Asset Management LLC, Chimera Securities and T3 Capital. Elliot holds the Chartered Financial Analyst (CFA) designation as well as a Juris Doctor from Brooklyn Law School.. He also holds a Bachelor of Arts degree from Emory University where he double majored in Political Science and Philosophy.

John Mihaljevic leads MOI Global and serves as managing editor of The Manual of Ideas. He managed a private partnership, Mihaljevic Partners LP, from 2005-2016. John is a winner of the Value Investors Club’s prize for best investment idea. He is a trained capital allocator, having studied under Yale University Chief Investment Officer David Swensen and served as Research Assistant to Nobel Laureate James Tobin. John holds a BA in Economics, summa cum laude, from Yale and is a CFA charterholder.

The content of this podcast is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this podcast. The podcast participants and their affiliates may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated on this podcast.

Oakcliff Capital: Reflections After Sixteen Years

February 24, 2021 in Commentary, Equities, Letters

This essay is authored by Bryan R. Lawrence, the founder of Oakcliff Capital, an investment partnership which invests in publicly-traded securities. Bryan is a member of Yorktown Partners LLC, a private equity firm which invests in energy businesses, and he serves on the boards of several Yorktown portfolio companies. He is a co-founder and trustee of Public Prep, which develops and manages charter schools in New York City. His analyses of US government finances have been published by The Washington Post.

At Oakcliff Capital, we write letters to our limited partners at midyear and yearend to talk about what has happened in the prior six months. In 2020, the pandemic massively stressed economies and financial markets and required intense attention as events unfolded. The pandemic also locked us down from most social interaction, which gave us more time to reflect in general. While our letters have often included commentary on our investment philosophy and process, our 2020 yearend letter goes deeper into our views on investing and what we have learned over the sixteen years we have been in business.

Members, log in below to access the restricted content.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

Andrew Wilkinson on Tiny Capital, the Berkshire Hathaway of the Internet

February 17, 2021 in Audio, Diary, Equities, Interviews, Member Podcast, Technology, Venture Capital

We had the great pleasure of speaking with Andrew Wilkinson, co-founder of Tiny Capital, based in Vancouver, British Columbia. Andrew also serves as a director of publicly held WeCommerce Holdings (Canada: WE).

Inspiration for our discussion was Andrew’s tweet,

“Entrepreneurship is just delegation.
Investing is its most extreme form.”

The quote aligns well with Andrew’s experience as both entrepreneur and investor. The conversation touched on aspects of Andrew’s journey, his management and investment philosophies, and his thoughts on topics including the Shopify ecosystem and the business of podcasting.

Listen to the conversation (recorded on January 26, 2021):

download audio learn more

A transcript will be shared with members soon.

Andrew Wilkinson is a co-founder of Tiny Capital, based in Vancouver, British Columbia. In 2006, Andrew founded MetaLab Design, one of the world’s top design agencies. After rapid growth, he used the profits to diversify into a variety of businesses, which today form Tiny. Andrew has gone from working out of his apartment just over a decade ago, to overseeing a group of companies with more than 300 employees and tens of millions in revenue. Andrew is a major shareholder and serves as a director of WeCommerce, a holding company that owns a family of companies and brands in the Shopify partner ecosystem. WeCommerce went public in December 2020 and trades on the TSX Venture Exchange under the symbol WE.

Members, log in below to access the restricted content.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Ep. 29: Myopic Loss Aversion | Psychology of Misjudgment 3.0

February 17, 2021 in Audio, Diary, Equities, Interviews, Podcast, This Week in Intelligent Investing

It’s a pleasure to share with you Season 1 Episode 29 of This Week in Intelligent Investing, co-hosted by Phil Ordway of Anabatic Investment Partners, based in Chicago, Illinois; Elliot Turner of RGA Investment Advisors, based in Stamford, Connecticut; and John Mihaljevic of MOI Global, based in Zurich, Switzerland.

Enjoy the conversation!

download audio recording

In this episode, John Mihaljevic co-hosts a discussion of (1) myopic loss aversion and the lumpiness of investment returns, led by Elliot Turner; and (2) updated thoughts on Charlie Muger’s Psychology of Human Misjudgment, led by Phil Ordway.

Related Links

Phil’s segment:

Follow Up

Would you like to get in touch?

Follow This Week in Intelligent Investing on Twitter.

Engage on Twitter with Elliot, Phil, or John.

Connect on LinkedIn with Elliot, Phil, or John.

This Week in Intelligent Investing is available on Amazon Podcasts, Apple Podcasts, Google Podcasts, Pandora, Podbean, Spotify, Stitcher, TuneIn, and YouTube.

If you missed any past episodes, you can listen to them here.

About the Podcast Co-Hosts

Philip Ordway is Managing Principal and Portfolio Manager of Anabatic Fund, L.P. Previously, Philip was a partner at Chicago Fundamental Investment Partners (CFIP). At CFIP, which he joined in 2007, Philip was responsible for investments across the capital structure in various industries. Prior to joining CFIP, Philip was an analyst in structured corporate finance with Citigroup Global Markets, Inc. from 2002 to 2005. Philip earned his B.S. in Education & Social Policy and Economics from Northwestern University in 2002 and his M.B.A. from the Kellogg School of Management at Northwestern University in 2007, where he now serves as an Adjunct Professor in the Finance Department.

Elliot Turner is a co-founder and Managing Partner, CIO at RGA Investment Advisors, LLC. RGA Investment Advisors runs a long-term, low turnover, growth at a reasonable price investment strategy seeking out global opportunities. Elliot focuses on discovering and analyzing long-term, high quality investment opportunities and strategic portfolio management. Prior to joining RGA, Elliot managed portfolios at at AustinWeston Asset Management LLC, Chimera Securities and T3 Capital. Elliot holds the Chartered Financial Analyst (CFA) designation as well as a Juris Doctor from Brooklyn Law School.. He also holds a Bachelor of Arts degree from Emory University where he double majored in Political Science and Philosophy.

John Mihaljevic leads MOI Global and serves as managing editor of The Manual of Ideas. He managed a private partnership, Mihaljevic Partners LP, from 2005-2016. John is a winner of the Value Investors Club’s prize for best investment idea. He is a trained capital allocator, having studied under Yale University Chief Investment Officer David Swensen and served as Research Assistant to Nobel Laureate James Tobin. John holds a BA in Economics, summa cum laude, from Yale and is a CFA charterholder.

The content of this podcast is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this podcast. The podcast participants and their affiliates may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated on this podcast.

Marc Rubinstein on Financial Regulation and the Policy Triangle

February 17, 2021 in Audio, Commentary, Equities, Financial, Ideas, Interviews, Member Podcast, Net Interest

We had the pleasure of speaking with Marc Rubinstein, author of Net Interest, a financial sector newsletter, about his essay, The Policy Triangle.

Marc writes:

When Bernie Sanders wore mittens to the presidential inauguration last month, rather than gloves, he made a trade-off: hand warmth over manual dexterity. It’s the kind of trade-off we all make, every day.

Policy is all about trade-offs, too. The pandemic response is a stark demonstration. For the past year, policymakers have had to trade public health against the economy. For sure, the relationship is not strictly binary, but in order to optimise overall welfare, policymakers need to make choices. This one is a difficult and highly visible trade-off because it straddles multiple domains; policymakers typically have an easier time managing trade-offs within their specific fields. Those who look after the economy, for example, have bags of experience thinking about how inflation trades off against growth.

When financial regulators think about trade-offs, the one they’ve traditionally wrestled with is the trade-off between financial stability and competition. It arises because banks are special: their resilience doesn’t just impact them and their shareholders; it impacts everybody. As financial crises through the ages have shown, if a bank goes down it can have a huge social cost. And if there’s a force that can chip away at resilience, it’s competition. It may start out innocently enough, but competition often leads towards excessive risk-taking. In an effort to remain competitive, banks can be seduced into relaxing credit standards. Their incentive to monitor loans and maintain long-term relationships with borrowers diminishes, credit gets oversupplied and soon enough you have a problem.

Read on or listen to our conversation (recorded on February 15, 2021):

download audio read article

About This Audio Series:

MOI Global is delighted to engage in illuminating conversations on the financial sector with Marc Rubinstein, whose Net Interest newsletter we have found to be truly exceptional. Our goal is to bring you Marc’s insights into financial services businesses and trends on a regular basis, with Marc’s weekly essays serving as inspiration for our discussions.

About Marc Rubinstein:

Marc is a fellow MOI Global member, managing partner of Fordington Advisors, and author of Net Interest. He is a former analyst and hedge fund manager, most recently at Lansdowne Partners, with more than 25 years of experience in the financial sector. Marc is based in London.

About Net Interest:

Net Interest, authored by Marc Rubinstein, is a newsletter of insight and analysis from the world of finance. Enjoyed by the most senior executives and smartest investors in the industry, it casts light on this important sector in an easy-to-read style. Each post explores a theme trending in the sector. Between fintech, economics and investment cycles—there’s always something to talk about!

Members, log in below to access the restricted content.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.