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CNBC's "Fast Money"

CNBC Pro Talks: Jim Lebenthal on why going back to the fundamentals will make you a better investor 6/7/24

CNBC's "Fast Money"

CNBC

News, Investing, Business

3.9 • 1.3K Ratings

🗓️ 7 June 2024

⏱️ 29 minutes

🧾️ Download transcript

Summary

Veteran "Halftime" guest and investor Jim Lebenthal sat down with CNBC's Dominic Chu to discuss how the former nuclear engineer and U.S. Navy officer created a science-minded approach to fundamental analysis and value investing that has led to a decades-long career on Wall Street. Lebenthal goes into detail on how he uses different fundamental analytical tools, walking Pro subscribers through how he finds price-to-earnings growth ratios of stocks like Amazon and Nvidia. He also gives examples of how to incorporate tools from technical analysis to help augment his decision-making process, and fields stock-specific questions from Pro subscribers. CNBC Pro Talks features one-on-one interviews with Wall Street’s top investors, smartest traders and rising stars. CNBC’s Dominic Chu finds out what makes them tick, what makes them money, and how you can follow in their footsteps. CNBC Pro Talks is a monthly interview series that’s part of CNBC’s premium subscription service, CNBC Pro. To hear the full Pro Talk interview—including specific stock picks and investment strategies—listeners can subscribe to [cnbc.com/protalks]. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

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0:00.0

This is C.N.C. Pro Talks, where we go one-on-one with Wall Street's top investors,

0:06.2

smartest traders, and rising stars. We find out what makes them tick, what makes them

0:10.8

money, and how you can follow in their footsteps.

0:14.0

Hello and welcome to see

0:20.0

NBC Pro Talks, I'm Dominic Chu.

0:22.0

We've got a very special guest for this month's interview, and that's Jim Labenthall. So welcome to the show, Jim. And all you have time fans know him as Farmer Jim, but let's give him more of a proper

0:34.1

introduction here. Jim is now currently a partner at Sarity Partners where he's a

0:38.9

member of the firm's Investment Committee. He also manages the U.S. equity portfolios for their clients.

0:44.8

Now for this pro talk we want to dive a little deeper into the world of

0:48.5

fundamental analysis and how to use it to make better investment decisions.

0:53.0

But before we get into the details of all these earnings revisions and peg ratios and price to sales and do

1:00.2

DuPont analysis and everything else,

1:02.8

we're gonna talk a little bit about nuclear submarines

1:05.9

and molecular biology.

1:07.2

And that's because, before Wall Street,

1:09.3

Jim used to be an officer,

1:11.0

if you didn't know this, in the US Navy, leading crews on attack submarines for weeks at a time sometimes,

1:18.0

and before that he studied molecular biology at Princeton,

1:23.6

so a renaissance man, if you will.

1:26.1

It's in this science-minded approach

1:28.4

to the stock market that we're going to kind of

1:30.2

dissect and delve a little bit more into today. So Jim again, thank you for

...

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