Sep 21, 2021
Keith Smith is the Founder and Portfolio Manager at Bonhoeffer Capital Management. Bonhoeffer is a value-oriented investment partnership that seeks to grow capital at a faster rate than market indices over full market cycles and provide minimal exposure to permanent loss. Richard talks to Keith about his electrical engineering background and his transition from a Business Valuation Expert to an Investment Fund Manager. *Value versus Growth Business Valuation. Identifying great investment opportunities. Anglo Dutch Public Companies and so much more.
To learn more about Keith please visit www.bonhoeffercapital.com. To learn more about Richard or to request a transcript of the podcast please visit www.thinkaen.com.
(1:08) Keith’s Background
(02:35) From Electrical Engineering to Business Valuation
(04:47) Value versus Growth Investing; Operational Leverage
(08:47) Current Stock Market Valuations; Ben Graham, China and QE
(14:40) Starting an Investment Partnership; Investment Mistakes
(19:11) Keith’s circle of competence and investing in companies with high Free Cash Flow; Telecom and Media
(24:03) Shareholder governance and how large institutions can do better
(27:54) Management alignment of interest and the Dutch East India Company
(29:18) Anglo Dutch Roots and Keith’s explanation of why some countries deserve higher multiples; Netherlands Cost of Capital Advantage; Emerging Markets
(34:43) Investing in Europe, Taxes, China, Disruption, UK
(39:09) Some investment ideas and themes including Asbury Automotive (AGB), Consolidated Communications (CNSL), Builders FirstSource (BLDR)
(48:12) When Keith exits an investment / sell criteria
(55:28) Keith’s thought on inflation