MI295: From Numbers to Riches: Return On Equity’s Impact on Investments w/ Jason Donville and Jesse Gamble
The Intrinsic Value Podcast - The Investor’s Podcast Network
The Investor's Podcast Network
4.6 • 592 Ratings
🗓️ 26 September 2023
⏱️ 61 minutes
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| 0:00.0 | You're listening to TIP. |
| 0:02.8 | The challenge, though, that's happened in my investing career is that balance sheets are getting |
| 0:06.3 | distorted by a lot of different things, which means calculating the true return on equity of a |
| 0:11.3 | business, which can still be done, is not a five-minute exercise with a calculator and the |
| 0:15.4 | financial statements. |
| 0:16.6 | You would have to go back over almost the history of the company and re-add everything in and |
| 0:21.0 | all that kind of stuff. So we're increasingly looking at things like the relation between |
| 0:24.9 | margins, sales growth, that kind of stuff and saying, if this company had a normalized balance |
| 0:29.3 | sheet, it would probably be a 25% ROI company. |
| 0:34.9 | On today's episode, I chat with Jason Donville and Jesse Gamble. |
| 0:39.4 | Jason and Jesse are fund managers at Donville-Kent Asset Management. |
| 0:43.2 | They write a highly informative and entertaining newsletter called the ROE Reporter. |
| 0:47.4 | Articles date back to the great financial crisis, and they do a wonderful job of discussing |
| 0:51.0 | individual businesses in their portfolio, as well as what they are seeing from a macroeconomic perspective. |
| 0:56.7 | Today we'll be discussing their investing strategy, based on finding high and sustainable |
| 1:00.4 | return on equity businesses, why small caps are inefficiently priced, the future of Constellation |
| 1:05.5 | software, the importance of focusing on fundamentals over share price, and much, much more. |
| 1:12.1 | I first heard about Jason Donnellville from his chapter in Chris Mayer's Hunter Beggers book. After scouring through his |
| 1:16.8 | ROE reporter newsletter, I really enjoyed his emphasis on ROE. Jason and Jesse's long-term approach |
| 1:22.4 | is apparent when you consider they've held Constellation Software since it IPOed. Now, sit back and relax as we get right |
| 1:28.8 | into this week's episode with Jason Donville and Jesse Gamble. You're listening to Millennial |
| 1:34.7 | Investing by the Investors Podcast Network, where your hosts, Robert Leonard, Patrick Donnelly, |
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