Blake Haxton - Industrials and High Yield

John Maxfield from "Maxfield on Banks" stops by the show. John is a wealth of knowledge and has an entertaining personality. Bill and John cover a lot of ground. John discusses the history and dynamics of banking, including the unique supply and demand of credit, traits of successful bankers, and the impact of historical tragedies on banker psychology. The episode also covers stories of notable bankers and failures, the free banking era, liquidity surges, and banking crises. John also delves into modern banking dynamics, including the rise of private credit, and shares insights from his extensive research and personal experiences with top bankers. Additionally, John talks about his elite banking symposium and unique forms of networking and learning in the banking sector.    You can find John's past symposiums here: ⁠https://www.thebankingsymposium.com/⁠ And his archive on ⁠https://www.maxfieldonbanks.com/⁠ Show Notes: 00:00 Welcome to the Business Brew  01:23 Introducing John Maxfield  01:54 The Art of Banking  02:28 The Common Traits of Great Bankers  16:22 Historical Perspectives on Banking  20:16 The Free Banking Era  25:03 Modern Banking Challenges and Innovations  41:04 The Beale Model and Banking Risks  41:45 Factoring Company Acquisition   43:14 Blockchain in Trucking Industry  44:03 Building a Competitive Network  50:51 Banking Failures and Historical Insights  56:08 The Role of AI in Banking Research  01:00:48 Personal Stories and Networking  01:05:45 Citigroup's Complexities and Global Role  01:10:55 Elite Banking Symposium  01:15:51 Final Thoughts and Farewell 

Ryan Dobratz, from Third Avenue Funds, stops by The Business Brew to discuss Third Ave’s real estate strategy.  Ryan discusses the benefits of focusing on real estate operating companies over REITs, the potential of investments like CBRE, challenges in the office market, and the outlook for residential real estate. They also discuss investment strategies in the residential market, opportunities in Fannie Mae and Freddie Mac, and Dobratz's personal career journey.    00:00 Welcome to the Business Brew  00:03 Introducing Ryan Dobratz and Third Avenue Funds  00:39 Disclaimer and Financial Advice Warning  01:44 Starting the Conversation with Ryan Dobratz  02:46 Ryan's Career Journey and Early Influences  05:51 Joining Third Avenue and Moving to New York  08:24 Strategic Move to Austin and Real Estate Insights  09:38 Challenges and Opportunities in the Office Sector  13:10 Investing in Real Estate Services Companies  15:02 Philosophy on NAV and Investment Strategies  23:55 Preference for C Corps Over REITs  28:11 Prologis and Industrial Real Estate  35:21 Public vs. Private Real Estate Investments  39:46 Incentives and Behavioral Finance in Private Markets  40:18 Active vs Passive Investing in Real Estate  42:57 Third Avenue's Real Estate Strategy  46:27 Residential Real Estate Investments  59:46 Fannie Mae and Freddie Mac: A Deep Dive  01:18:01 Challenges and Opportunities in Tower REITs  01:22:06 Conclusion and Final Thoughts 

Shoutout to SpeechDocs (@speechdocs on X) for the show notes below. 🎙️ Welcome to The Business Brew! 🎙️  In this special solo episode, host Bill Brewster opens up about life, markets, and the future of The Business Brew. From surviving Hurricane Milton and its aftermath to contemplating a rebrand of the show, Bill shares raw and unfiltered thoughts on resilience, growth, and change.  📌 What You’ll Learn in This Episode:  The surprising truth about ETF tax loopholes 🤔  Reflections on Florida real estate and climate challenges 🌴  How personal challenges shape perspective and growth 💡  A candid take on rebranding The Business Brew for a fresh start 🚀  Insights on parenting, relationships, and navigating life’s toughest moments 👨‍👩‍👧  💭 Key Quote: "The Business Brew has to die for me to live."  Whether you’re here for market insights, personal reflections, or a behind-the-scenes look at the podcast’s evolution, this episode is packed with value. Hit play, and let’s brew up something new together. ☕    🛠️ Stay Connected: ✅ Subscribe for more unfiltered insights and updates on the show’s rebranding journey. ✅ Like and share this episode if it resonates with you. ✅ Drop a comment below—what do you think about the future of The Business Brew?  #TheBusinessBrew #PodcastRebrand #MarketInsights #PersonalGrowth #HurricaneMilton #Resilience 

In this episode of The Business Brew, host Bill Brewster interviews John Buckingham, editor of the Prudent Speculator newsletter. John shares his investing expertise, strategies for managing a diversified portfolio, and provides data-driven insights on how stock markets perform under different tax regimes, political administrations, and election cycles. They discuss how to stay disciplined and focused on long-term investment objectives amidst market noise and uncertainty. John's commentary is complemented with historical data, illustrating that despite economic and political turbulence, sticking to a disciplined investment strategy can be rewarding.   00:00 Welcome to the Business Brew 01:52 Introducing John Buckingham 04:01 Navigating Market Uncertainty 06:32 The Value of Value Investing 11:11 The Origin of the Prudent Speculator 24:13 The Importance of Dividends 35:56 Navigating Market Volatility 36:12 Apple's Investment Strategy 37:43 The Role of Volatility in Investing 38:18 Market Reactions and Investor Behavior 39:39 Historical Market Trends and Predictions 46:39 Investment Strategies and Stock Selection 51:28 Tax Rates and Market Performance 57:00 Election Impact on Markets 01:04:04 Long-Term Investment Philosophy 01:07:31 Concluding Thoughts

Mike Alkin of Sachem Cove Partners stops by The Business Brew to share his journey in uncovering the uranium investment thesis. Bill found out about Mike when he began listening to Mike's podcast in 2018/19. At that time, Mike was telling everyone that would listen about how asymmetric the opportunity was. Mike interviewed industry insiders, other investors, and laid out his thesis in public. Bill found it inspiring. This conversation dives deep into the complexities of the uranium market. The discussion includes a detailed analysis of nuclear power, supply-demand dynamics, and the industry’s challenges. Mike also provides valuable advice for young analysts and highlights the significance of contrarian investing. Additionally, they explore recent advancements in nuclear energy and the evolving markets of EVs, wind, and solar energy. As always, this episode is for educational and entertainment purposes only, not financial advice.    Michael (Mike) Alkin is a principal of Sachem Cove Partners, LLC, the general partner of Sachem Cove Special Opportunities Fund, LP. He is also the Chief Investment Officer of Public Equities of Lloyd Harbor Capital Management, LLC, the investment manager of the Fund, and in that role is responsible for the Fund’s investment process. He has nearly 30 years of hedge fund experience with extensive investing experience across many cyclical industries. Prior to Sachem Cove and Lloyd Harbor, he was an analyst and partner for 7 years at Knott Partners. Prior to Knott, amongst the firms where held similar roles were Walker Smith Capital, Zweig-DiMenna, and Windsor Partners. Detailed Show Notes 00:00 Welcome to the Business Brew  00:08 Introducing Mike Alkin and the Uranium Thesis  00:48 The Inspiration Behind the Podcast  01:21 Disclaimer and Acknowledgements  02:32 Deep Dive into the Uranium Market  05:26 Challenges and Insights in the Uranium Industry  09:13 Understanding Market Dynamics and Investor Behavior  12:50 The Journey to Conviction in Uranium Investment  17:40 The Role of Nuclear Power in the Energy Market  42:39 The Impact of Geopolitical Risks on Uranium Supply  44:32 The Fuel Cycle and U.S. Fuel Buyers  45:23 Challenges with Industry Forecasts  46:11 Presenting at the NEI Conference  47:09 Confrontations and Convictions  48:56 Expert Networks and Market Misconceptions  52:10 Global Nuclear Power Dynamics  01:01:24 Kazakhstan's Uranium Production  01:10:42 The Future of Nuclear and Renewables  01:18:01 Investment Strategies and Advice  01:22:26 Conclusion and Final Thoughts 

Dylan is a former attorney turned private investor focused on small/microcap stocks and overlooked pockets of the market. He publishes a free newsletter on Substack called Raging Bull Investments, which provides deep-dive investment write-ups and occasional market commentary, and is active on Twitter as raging bull cap/Jake LaMotta.

Richard Cook, Co-Founder of Cook and Bynum, stops by The Business Brew to discuss his approach to global investing. Richard discusses his concentrated investment strategies, focusing on emerging markets, government dynamics, consumer behavior, and intrinsic value. Highlighting key investments in markets like Mexico, Turkey, Pakistan, and Bangladesh, Richard discusses operational execution, investor relations, and long-term strategic planning. The episode also covers strategic investments during the Greek financial crisis, the role of conservative management, and the importance of understanding market dynamics. With reflections on experiences in South Africa, Costa Rica, and Turkey, this conversation offers invaluable insights into global investment strategies and the essential qualities of successful business leaders. Tune in to gain expert knowledge on navigating global investments and building a successful investment firm.    00:00 Welcome to The Business Brew  00:07 Introducing Richard Cook  00:45 Investment Philosophy and Strategy  01:09 Shoutout to the Editing Team  02:30 Starting the Interview with Richard Cook  03:02 Emerging Markets and Government Influence  04:15 Investment Holdings and Long-Term Strategy  07:47 The Power of Buybacks and Controlling Shareholders  14:44 Avoiding Bias in Investment Decisions  19:08 Lessons from Past Investments  24:54 Navigating Market Cycles  34:18 Insights on Bottling Businesses  46:58 Premiumization in the Beverage Industry  48:15 Global Consumption Patterns  49:53 Investment Strategies and Intrinsic Value  51:29 Challenges in Forecasting Business Durability  53:32 Insights on Company Valuation  55:15 Case Study: Kraft and Mondelez  59:01 AB InBev and Craft Beer Market  01:09:59 Investment in Jumbo During Greek Crisis  01:20:39 Evaluating Emerging Markets  01:25:55 Building an Investment Firm  01:28:34 Conclusion and Final Thoughts 

In this episode of the Business Brew, host Bill Brewster sits down with the esteemed investor Bruce Berkowitz. They delve deep into Berkowitz's illustrious career, from his strategies during the financial crisis to his current outlook on various investment opportunities, including midstream energy and Florida real estate. Berkowitz shares anecdotes, personal reflections, and valuable lessons learned over decades in finance. Additionally, Berkowitz emphasizes the importance of due diligence and remaining rational amidst market fluctuations. Don't miss this enlightening conversation that offers unique insights into the minds of one of the most successful investors in the industry. 00:00 Welcome to The Business Brew 00:07 Introducing Bruce Berkowitz 01:12 Disclaimer and Due Diligence 02:01 Shoutout to the Editing Team *Dope music* 03:23 Starting the Interview with Bruce Berkowitz 04:19 Bruce's Investment Philosophy 05:06 Insights on Wells Fargo 09:01 The Importance of Management and Culture 10:11 Challenges in the Banking Sector 12:46 Bruce's Focus on U.S. Investments 14:25 Research and Concentration in Investments 20:28 Fairholme's Unique Approach 27:01 Reflections on Sears and Real Estate 30:43 Lessons from St. Joe 32:38 Discussion on St. Joe's Elevated Properties 33:27 Hurricane Resilience and Modern Building Codes 35:07 Investment Strategies and Market Perspectives 35:54 Interest Rates and Duration Risk 39:14 Corporate Spreads and Reinvestment Risk 41:43 Societal Changes and Financial Perspectives 46:17 Enterprise Products and Midstream Energy 48:30 Energy Logistics and Environmental Impact 57:17 Technological Evolution in Energy 01:00:40 Mutual Funds vs. ETFs 01:02:04 Concluding Thoughts and Media Engagement

Blake Haxton, analyst at Brandywine Global Asset Management's High Yield and Corporate Strategies Group, joins the Business Brew. This discussion focuses on the companies Blake covers as well as his views on markets generally. Blake tends to focus on "old economy" industries so prepare yourself for plenty of energy discussion. Bill and Blake also discuss industrials and homebuilders. The conversation also touches on the merits of high yield as an asset class. Blake was recently featured in Barron's. You can find the article here: https://www.barrons.com/articles/paralympian-blake-haxton-high-yield-brandywine-global-6305e6e5 We hope you enjoy the conversation. Detailed Show Notes: 4:00 - What Blake covers 5:10 - commodities are fairly tight from a supply demand perspective 8:00 - airline discussion 13:00 - energy as an example of how Brandywine looks to take advantage of capital cycles 16:00 - the prospective outlook for high yield 19:00 - how the high yield benchmark is different from the equity benchmark 24:00 - how the improvement in counterparty risk changed the risk/reward of lending to pipeline companies 28:25 - how to think about decline curves in the US vs. Canadian oil companies 30:25 - how differentials impact Canadian energy economics 38:30 - does it make sense to have an allocation to energy? 42:10 - a discussion about how assets generally are priced 52:00 - the pitch for debt vs. equities 54:45 - where is the US housing market in the cycle? 1:06:00 - trading down in credit quality for yield 1:13:00 - how ETFs can provide opportunities when they sell 1:21:00 - how was covering energy in COVID? 1:29:00 - what’s different today with shale as a key producer

Bill Chen returns to The Business Brew to explore the current landscape of Real Estate Investment Trusts (REITs). Delve into Chen's comprehensive due diligence process, investment strategies, and the future of multifamily and office REITs. Discover key insights on market conditions, cap rates, capital allocation, and the impact of interest rates on investment returns. The discussion also highlights strategic decisions by large-cap public REITs, dealing with distressed assets, and the potential risks and opportunities in today's real estate market. A must-watch for anyone looking to understand the intricacies of real estate investing in uncertain times. Note: This episode was recorded on July 9, 2024. 00:00 - Welcome to The Business Brew 00:05 - Introducing Bill Chen and REITs Discussion 00:35 - A Walk-Through Manhattan with Bill Chen 03:28 - The Future of Office Spaces 09:48 - Bank Balance Sheets and Office Exposure 19:24 - Analyzing REIT Investments 38:12 - Analyzing Cap Rates in Real Estate Investments 41:45 - The Impact of Public Company Costs on Returns 49:30 - Liquidity and Market Dynamics in Real Estate 53:11 - Challenges and Opportunities in the Current Market 1:00:10 - Grocery-Anchored Shopping Centers: A Resilient Asset Class 1:06:17 - Interest Rates and Their Influence on Real Estate Returns 1:15:02 - Understanding Real Estate Multiples and Leverage 1:15:41 - Market Fears and Multifamily Capitalization Rates 1:16:32 - Challenges in Real Estate Development 1:16:56 - Opportunities in a Down Market 1:17:20 - Connecting with the Speaker 1:18:25 - Investment Strategies and Market Timing 1:19:51 - Balancing Market Humility and Aggression 1:21:23 - Psychological Approaches to Real Estate Investment 1:23:24 - Resilience of Multifamily Assets 1:24:48 - The Future of Home Ownership and Renting 1:27:54 - Personal Experiences with Real Estate 1:30:56 - The REIT Mafia and Investment Benchmarks 1:35:16 - Long-Term Investment Perspectives 1:42:22 - Final Thoughts and Farewell