Why a Long-Term Investment Focus Makes All the Difference

Stansberry Investor Hour

Stansberry Research

America, How, To, Crash, Money, Learn, Stansberry, Income, Research, Debt, Stocks, Porter, Business, Realestate, Banking, Investment, American, Investing, Invest, Howtosave, Sjuggerud, Ferris, Eifrig, Jubilee, Buck, Sexton, Market, Bonds, Churchouse, Savings, Options, Lashmet

4.4 • 677 Ratings

🗓️ 2 December 2024

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this week's Stansberry Investor Hour, Dan and Corey are joined by Matt Franz. Matt is founder and principal of Eagle Point Capital. The registered investment adviser aims to build wealth in the long term while avoiding the permanent loss of capital.

Matt kicks off the show by describing Eagle Point Capital's ownership mentality for buying stocks and what qualities he looks for in a company. As he explains, businesses that have very simple unit economics and that are noncyclical tend to be the best. He also zeroes in on specific metrics to evaluate stocks, the importance of owning businesses that reinvest capital, and his "replication mode" method for assessing a company's future potential. (1:41)

Next, Matt talks about whether brands can be economic moats. He urges investors not to conflate brand awareness with pricing power, using consumer-electronics company Toshiba as an example. This leads to a conversation about luxury brands, why Matt prefers distributors to retailers, and why he only invests in companies worth 10 times earnings or less. Matt then breaks down his long-term focus, discussing intrinsic value and giving listeners a reality check. (17:10)

Finally, Matt highlights the discipline it takes to be a long-term value investor, as it's human nature to want to add more to a position when it's soaring or sell shares on bad news. However, when you own good businesses, it's best to sit on your hands and do nothing. Matt also shares some guidelines Eagle Point Capital follows when searching for stocks in terms of market cap, industry, risk factor, and cyclicality. (37:53)

Transcript

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0:00.0	Hello and welcome to the Stansbury Investor Hour. I'm Dan Ferris. I'm the editor of Extreme Value and the Ferris Report, both published by Stansberry Research. And I'm Corey McLaughlin, editor of the Stansberry Daily Digest. Today we talk with Matt Franz, founder of Eagle Point Capital. I met Matt earlier this year at the ValueX Vale Conference in Dale Colorado.
0:22.7	He's a very thoughtful, highly intelligent young value investor.
0:26.7	I couldn't wait to get him on the show.
0:28.7	And here he is.
0:29.4	So let's talk with him right now.
0:31.0	Let's talk with Matt Franz.
0:32.6	Let's do it right now.
0:51.8	For the last 25 years, Dan Ferris has predicted nearly every financial and political crisis in America, including the collapse of Lehman Brothers in 2008 and the peak of the NASDAQ in 2021.
0:56.7	Now he has a new major announcement about a crisis that could soon threaten the U.S. economy and can soon bankrupt millions of citizens.
1:00.3	As he puts it, there is something happening in this country, something much bigger than you may
1:04.6	yet realize, and millions are about to be blindsided unless they take the right steps now.
1:10.1	Find out what's coming and how to protect your
1:12.0	portfolio by going to www.com and sign up for this free report. The last time the U.S. economy
1:20.3	looked like this, stocks didn't move for 16 years, and many investors lost 80% of their wealth.
1:26.8	Learn the steps you can take right away to protect and
1:29.1	potentially grow your holdings many times over at www. American Darkday.com. Matt, welcome to the show.
1:42.8	Glad you could be here. Thanks for having me, Dan. Good to see you again. Yeah. So, Matt, welcome to the show. Glad you could be here. Thanks for having me, Dan.
1:44.7	Good to see you again.
1:45.8	Yeah.
1:46.2	So, Matt, I wish you weren't so darn smart.
1:49.4	You guys figured out that your substack is worth money and you put it behind a paywall.
1:53.9	I was enjoying that.
	...

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