It is Friday the 19th of April 2019. My name is Jeremy Midland and welcome to episode 36 of a Stock Market Movers podcast just to remind that nothing that I or any of the guests say today. She'll be considered Financial advice. The information discussed on the show is general information only and if you're looking for financial vices, please speak to an authorized to financial advisor. It is also good Friday today and I hope that you think is a good episode today for Easter. You might even think have been thinking that it will be no podcast this week.That this is a podcast that never sleeps even for Easter. So we do have a good show today. I caught up with investor friend of mine called met Joss during the week. We were second down having a coffee talking about Warren Buffett as you do which is a great way to spend any morning and we sort of decided let's do a podcast. So we sat down and recorded a 25 minute conversation. The conversation is unscripted and we have no sick question. So I really hope that you enjoy it during the week also also made an effort to catch. Up with Craig her person the CEO of pleasure. I basically just wanted to get his thoughts on the acquisition by McDonald's of nearly 10 percent of the stock. So I've added that and as bonus content the content at the end. Okay. So let's pick up on the conversation that I had with Matt. So I'm sitting here with Matt Jaws. So first thing that would be able to tell us a bit about yourself. Yeah. Sure. So I'm originally from New Zealand joined a grad program of the shipping company out of out of uni and moved to Copenhagen for a few years and while I was there became obsessed with investing Kind of took over my life and nights and weekends instead of investment Club there in Copenhagen and I got obsessed and then moved to Australia to work as a research analyst for a couple years and then portfolio manager for but over two years. So yeah left there and November and kind of enjoying being a private investor at the moment and looking at next steps. Yeah. So what what made you become obsessed with investing was there a did you have a spark from when you're a kid, or was it a particular moment or was it saying just developed an interest for yeah, I guess it was. Was in my teens. I read some terrible books like Rich Dad Poor Dad and then that kind of stuff. Yeah in hindsight like I love the other time but it definitely like got me on that think that mindset and so, you know, but my first shares when I was like 18, but it was only a few years later that I really found like Warren Buffett and value investing that I really had something to Anchor myself to before that was terrible investment of that young but I guess got me some experience and learning what not to do and then really really got obsessed was yeah. Reading a book about Warren Buffett like a lot of people and and realizing there's a whole different way to invest and yeah, I guess it was a similar approach to myself and then when you were 18, what what how what what what were you doing? Yeah what to do. What made you buy your first stock? What was the sort of process that you followed for me? It was I Googled what companies increase their profits every year. Yeah, Roman Healthcare came up and I bought Ramen Healthcare. That was my whole investment process. What was yours? Yeah, it wasn't great process kind of embarrassing. I think my first company was a vending machine like a vending machine company that would restock electronically ended up. I think I did. Okay, but after I saw it in up going bankrupt, so thankful. I got out of that one. And then later at some point. I invested in like a mining exploration company. I had those kind of viewed the world like there was more about big macro themes is how you should invest which can work for some people but it's pretty challenging so much more like driven from the bottom up these So yeah, but that's I guess how I might kind of first thoughts. I was worried like forums where you know, it's a blind leading the blind. Uh, yeah, what's the hot idea and that kind of stuff? Yeah. I think everyone has to go through that. Yeah. I think it's always best to go through that when you are 18 year old 18 years old with a small amount of money because at least then you're making mistakes and learning lessons with a smaller amount of money as opposed to a larger amount. Yeah, so obviously it developed from the air and then you got into the Warren Buffett and the bottom-up value investing. And treating it like a business. So how did it evolve from there? Yeah, so got really into value investing bread all the kind of Classics and I still kind of that is kind of like the base of how I think about things but my style has evolved quite a lot over the last few years Peter Lynch was a big influence another book called a hundred to one in the stock market that looking more at there's a few like outlier companies like Amazon in the US and there's local equivalents a few companies that kind of Dominate and those are the companies I focus on now, so it's much more. On growth and I do evaluation to make sure it's not crazy priced. So is that sort of where the the qualitative aspects of the company don't necessarily get reflected in the balance sheet. Yeah straight away or the income statement straightaway. Yeah, exactly. I just think that people don't really it's very hard for us to appreciate exponential growth for instance the kind of the s-curve how crazy things how fast things can grow for how long when there is mass adoption. So I think all of those are opportunities any time the markets generally getting something wrong as a good opportunity for us. Yeah. I'll come back to that in a second that in terms of books. You mentioned books. There's any particular books you'd recommend people read Yeah, a hundred to one hundred 100 Baggers, which I thought yeah, I've been reading as well. So I like it those 100 Baggers win every dollar you invest it turns into a hundred dollars. Yeah, so it's looking at that but kind of categorize has all of the companies that have done more than that. So from Emory Apple was like an 8,000 bagger. I think Warren Buffett's company is an 18,000 Baggers. So every dollar turns into a Yeah, yeah, there's interesting what I like about that though is that it's not just a lotto ticket because there are many times along the way where you can buy these companies at reasonable valuations and kind of join in that huge wealth creation Journey that they're doing. So it's about trying to find what are the common characteristics of those? Yeah, and I guess the I've read that because well, it's a it's a good book and I'll post it in the in the show notes from reading the book. I think the key thing. Apart from identifying those companies has been able to hold on. Yeah to them as well because there's obviously even with Amazon used the example earlier where there's a whole period of Amazon's existence as a public company where it would have delivered mediocre or turn certain how basically we're only two is how do you identify the companies that are worth holding onto because for every Amazon there's literally thousands of companies that yeah go to zero or don't achieve the same sort of returns. Yeah. You may end up holding them. Same period of time as your as your particular things you look for or yeah, it's a great question. There's a few common traits. So they tend to be often quite Capital light businesses. They don't need too much more Capital to grow and when they do reinvest they have very high Returns on invested capital and that stuff you can measure the other is a lot of it is driven by comparable. So just just for listens. What do you mean by Capital like company? So a capital like company would be often. It's a software business or a brand something where to add an extra, you know million dollars of Revenue you I need to go out and build too much Machinery is often the case. So something about the business which means you can add a lot more Revenue a lot more customers without going and building a new Factory us right now, but your sucks up a lot of capital A lot of investment. If you have to invest a lot to do it that it slows everything down means you're a returns are going to be that much lower because you have to keep putting in more cash and you're making a lower return on that chemical you do deploy a hundred percent exactly. So I think software has been a big part but also Brands like A2 milk was another company that an investor them. It's a very Capital like company is exactly so that's an interesting one, right? It seems like a big Capital intensive, but actually they have sunlight to do all the capital intensive stuff. Yeah, that's what is basically yeah, it is the marketing company exactly one someone else doing all the hard work for low returns and finding the businesses that capture the value on and I have to admit that's one of the reasons I missed a to milk was because I made the Assumption without doing any research that it would be a capital intensive business where it was until I dug into it later on when everyone started talking about it that I realized. I used it was a hundred Anacapa like business. It reminds me of Coca cola's business model. Yes. Exactly. I think that's the example I use. Yeah that Bellamy's and HTML both Coca-Cola. They have the bottlers. Yeah the hard work. Yeah. I just manage the brand. It doesn't mean the bottling businesses are a bad business. Yeah, that could still be great, but they can't even the same Returns on Capital. You can't be as exceptional. Absolutely. So I hate to sort of ask this question, but I know you have some views on the macro seen as well. Even though it more bottom-up focused in this conversation. What's your view on The Wider economy? And yeah and the stock market in general. Yes. I'm living in Australia. And I think it's very interesting there because it hasn't been a recession about 30 years. And so I think people have forgotten what it's what it's like or that they can happen. So the moment over their house prices are down about 10% a lot of indicators as slowing down. So I'm I guess I'm fairly bearish on there. Royal Australian economy almost all of the companies they invest in a global businesses. I find the best businesses tend to have Global Revenue software and everything else even a to is quite Global. So that's kind of how I'm positioning myself for it, but I'm not like timing the market that's not my strategy is always bottom up but it just makes you a bit more cautious. I kind of like Howard marks mastering the market cycle view where it's you're trying to not time the market, but you can be more like aggressive in the 2009 and as things get to me. Expensive you become a bit less aggressive. So so it's not necessarily a detailed macro view. It's more say something as simple as you don't know when the top of the market is going to be but you know, it's not the bottom of the market. Yeah, exactly. You know, you're closer to the top than the bottom. I think it's pretty fair to say and I think just keeping an eye on these things because I think there will be a time where you can just measure you can observe the world and see that things are very bad and it takes a while for that story to change so it's not really about predicting. The future is just observing things. So like in Australia Had very nearly and negative economic growth if the next couple come out there will be a lag before people really realize that it's the first recession and 30 years where you might want to start positioning yourself for that and for me right when I'm doing one reason, I don't really think about where we are and the cycle or even though it's obviously very important information. I normally just think about the individual companies and if it makes sense to buy here, but how do you position yourself knowing that we might be closer to the top than the bottom for example, yeah. Yeah, I think it's still be driven by those valuations that I'm that still a bad rap for me. I guess it's just being more observant of how those valuations are and like are you stretching yourself to buy are you kind of padding out your evaluation to ya think? This is good. You can justify anything. Exactly. Yeah been very cautious about justifying anything when things are running hot I think is one part of it. And then also just try to look for parts that aren't running hot. So, you know, a lot of Australian Tech had became very expensive you can look to other Accounts or other parts of the industry. So that's it's not everything is always hot at once either. That's another thing to keep in mind because it'll be my biggest problem with a lot of software companies. I look at some of them and I just think they're fantastic businesses, but I can't rationalize the valuation. Am I hearing what do you think of the valuations in the software space of a moment? It really depends on the business. Some of them are very expensive appen was one that had bought fairly recently and I still think is reasonable value today and that so that's so what happened. Yeah, so that's how they provide that. AI training data the training data for AI systems for Google and other big companies like Facebook so so that they can train their algorithms. They provide the training data. So there's still this Pockets but I think it has a definite raids on the ASX and APS is it? Yes, that's correct lady in a px HX. Yeah. Yeah. So that's a company that's up and to few thousand percent over the last few years. Yes, but I still think it's reasonably priced it is there are companies out there, but I think you need to As you say don't bottom-up approach. I say one other point that I think a lot of people don't appreciate how good software businesses are so there had been a very long time where they were under values. That's how they've gone up so much because people don't realize how good it is to have a business with zero marginal cost that you can replicate globally and all the other good stuff that comes with it. So, yeah, so when you use when you say that you mean that for every customer you add doesn't actually cost you anything a hundred. Yeah. Yeah, so it's very different from a traditional model. Is no extra cost to have another customer. It's also very hard fat customer to switch. So they often quite sticky software companies. It's hard to move away. Those those two together very low cost of supply and strong sticky demand is like a magic combination and I don't think the markets fully baked that and I think sometimes they can get too excited. We've seen the.com crash excetera, but generally speaking they're still not fully appreciated. Yeah. Yeah, so you sort of see some more upside and general. Yeah. I think I think it'll be it'll be swings. I think that Companies will still continue to be under appreciated in the space. It's just a matter of avoiding some that it is overhyped and no one has any model for them. Yeah, just it all comes back to me to valuation. That's how you make sense of the world. And so can you talk me through I guess your process. I mean I had to actually had some questions from the listeners during the week about my investment process. But what's what's your sort of investment process from origination to place in the order? Yeah. So very quickly I try to like wow. I'm buffets start with the a so he goes through every company on the index a to zed and Australia that's like 2,000 companies and New Zealand. It's a bit easier. Yeah hundred so go through everyone to like filter out what you'd try and find as a top 10% that are interesting business models and have all the things that you look for. So for me, that's again Capital light businesses that are probably growing if they're not profitable. They're likely to be soon. Well run trying to just skim through and then Diving very deep and a few of them. So before I'm actually buying a company I'd want to be talking to customers and suppliers talking to management getting a handle of what is the competitive dynamics of this business. How dominant is it over all of the other companies trying to do what it does and then finally putting a valuation on it, which means forecasting for me. It means forecasting in the next 10 years of cash flows. I normally am more willing to give credit to companies to continue growing for longer probably. And also recognizing something called operating leverage, which is for these businesses because they don't need to spend much more when they add new customers each bit of Revenue. They don't either have much more cost. So that's a lot of operating leverage means a much higher increase in profits and revenue. So you're literally doing Warren Buffett when you steer first out of them and boosting for those that don't know we'll probably not just when you first started what he's probably always done as he's literally gone through it was back in the day was with the Barons book or something. Yeah Moody's He's made you to Daniel. Yeah, so he went through the Moody's manual with basically a list of 10,000 stocks or whatever. It was all listed in the massive book and he went through a tizzy. Just looking looking at each individual company and finding out their information. Are you obviously not using a book. So you're doing it online or using any screening tools or he'd literally going from 1 to 2. Yeah. I have a spreadsheet which pulls in some data from Capital IQ that honestly that just saves me some time you could do it without and I just have another spreadsheet which has a big list of all the Tucker's Yeah, although symbols for all the companies. So yeah, I don't really use too much house. I find that's a really good exercise because it just calibrates you as well. Like it helps you identify when a company is really exceptional because you look at all the other companies which exactly yeah, so that's half of the value. It's not just that it is a way to like turn over all the Rocks. It's also makes you realize when you've really found something special. I hundred percent agree. I think sometimes when you over screen for things you lose a lot of learning in the process. Mmm, you know from actually it from actually going through And that obviously is time to time consuming. So then say you found one that registers your interest unique step is to read the company. Yeah, read the company reports see if that still interesting then start reading maybe about competitors ideally talk to some customers or read something from customers. If there are if there's like a prospective this understanding the product. Yeah understanding the product understand its competitive position. It's really good if you can talk to a competitor And see what they think about the company that can be like quite good and tell if they really think there are threat. That's probably a good sign. Yeah. Yeah, so it's just I can't take in as much information as possible that stage and just trying to like connect all the dots. So Warren Buffett has a filter for example, if he doesn't understand where he obviously understands a lot more companies than what he lets on but if he doesn't understand what the cash flow is going to be like in 10 years time. He'll just move on to the next one. Do you hit you sound like you're a bit more flexible. Yeah. I'm definitely Willing to I guess see different options for the future. I think that's like a great approach and that can work very well. But it means that you don't buy Google and Amazon do easily. So it's more for me having a like to have a clear idea of why the company will grow so and and then they can be like other optionality on top. So if I was back in time value in Amazon, I'd be value in it on it like book retail business and I wouldn't be valuing AWS which is that we don't exist you can might be To you know, that's nice to have on top. So for me that's as looking at the existing business that and that and that example. Sorry to interrupt one if they had done the someone may have been able to realize that Jeff Bezos was was brilliant. Yeah, and may have realized that based on that qualitative information. They could have predicted that he would do something else and something they didn't know what it was going to be. But you had essentially back in the back in the person the Union Jack. Yeah, and that I think can be like the cherry on top. So that would allow me with valuation to like hold a company as it runs up to fair value. I'll even hold a company sometimes slightly above and intrinsic value estimate if I think there's a lot of big upside that could come soon. So in Australia, there was an example of a company called all tiem, which makes software for Designing printed CL users. Are you not yet? That's been a another big winner and part of the reason was it finally figured out how to start charging customers and China who are pirating its product but around the time like it ran slightly ahead of fair value, but there had been making some progress in China and I was comfortable to hold a certain size position recognizing they could have a real big change and they ended up did they did have it and it worked out in there a few hundred percent since then, it's that can sometimes go the other way, but you still got a very good business and yeah, so what you mentioned you would hold up to fair value. So say if a company become you've got a price that you think it's worth. Yeah at what point do you sell when? It's over that price when it meets that price also, I'd normally start trimming back for position. So say it it's a 10% position reducing it to 8% takes a bit of the risk off the table. I think about all that like it sounds like small boring stuff and I think that is a big part of my portfolio management. So I think around when it starts getting past fair value start thinking about to trim it at a certain point of it's 20% above what you think it's worth. You probably need to be looking to sell it. It does depend a lot though. Like how what other new news is Humming how how many other upside potential optionality to have so and as your other situations that you would sell to say if there was say you own an Amazon for example, and they suddenly just sent you a very uncomfortable with or didn't like or yeah, I think that selling is one of the biggest areas people don't do well and I think one of the reasons why there's a lot of reasons why but my fool you as you should sell very quickly when a thesis is broken. So your reason for holding the stock is your thesis. Think X thing will happen if that if you find some evidence counter to that, I think you should sell very quickly because as I said, there's a few percent of companies that do these exceptional hundred bag or more returns, but that means that you are probably going to be holding a lot that aren't those in need to identify those early and pull your weeds as quickly as possible which goes against human nature. There's a bias of loss aversion they call it where you don't want to realize a loss or yeah don't want to realize something on its down, but I think you need to be able to be willing to move very quickly and what if A situation where you buy a stock based off your valuation and what you think of the company and and the price may drop 50 percent we could easily happen. Yeah, especially with these sorts of companies. Yeah. Do you make any decisions based off price? Like if the thesis and your valuation is still intact with that with that encourage you to buy more or what would you generally don't want to be driven by price? But if there's some reason that it's down 50% and I didn't see that then that means I'm probably the wrong. Yes, so I don't I definitely not My price but if the market is telling you wrong and if I check my view, I guess so ideally by more but it would depend a lot like often if it's down 50% It means I probably got something wrong. And so I'd want to be very comfortable that I was right and the market was wrong. So if your thesis is still intact and nothing you've changed then you might consider. Yeah, I don't really like if I was very convinced the markers wrong that can be a great opportunity, but it's just just don't be too arrogant I guess is my yeah for myself and just make sure you're you really you should Stand Charlie Munger scissors understand the Bears position understand the negative position better than they do. Yeah in New York, you know it well enough to and from a portfolio management management perspective a you typically quite concentrated than your stock. Yeah. Yeah, I guess a lot of fun managers out there. I think I mostly about correct protecting their salary and their career risk. Yeah, so they'll buy a hundred or two hundred companies and be very likely index and they just don't want to be too different on that scale. I'm very concentrated because I probably only 50 Into 20 companies, you know an individual investor might think that's quite Diversified. I think that's it like a fair level where you're getting enough diversification while still concentrating as much as possible in your best ideas. Yeah, and what's the advantage you're concentrating in your best ideas? Yeah. Basically just that it's very hard to be right and have a different thought on a hundred companies. It's much easier. It's yeah if I could have a hundred really brilliant ideas, that would be fine. But I think the amount of time and energy you need to invest it concentrates you down to a few. And you really want to be by focusing on those best as long as you're accurate that is how you can have. Yeah, exceptional returns. Basically. Yeah, I mean, I'll always think of I think of some other way to be honest. Like if you've got if you've got a great idea they don't come around every day. Yeah, exactly. And then if you've got a great idea and you're this one percent of your portfolio on it and it and it goes up five times, then you've got five percent in your portfolio and you don't really realize the full exactly the full return and I, you know, ideally one of my mom Us by low and then by a higher so I really try and pride myself in force myself to continue to buy more if they're if the thesis is unfolding well so it doesn't always happen is a bias we anchored to that original price but I think if you find a company that can go up tenfold if you can buy when it's up to fold threefold fivefold they're still really the zones evaluations I was like yeah and often it can ya can run up and people still don't really appreciate so oh yeah, I mean Amazon was a goodbye when I was a four billion dollar Accompany, it was a good buyer when it was a 40 billion dollar company, you know, so it's if you could buy along the way and really doing well and I guess just on the diversification thing, there's nothing wrong with having that diversification, you know, owning a hundred stocks only 500 stocks, but there's easy ways of doing it is yeah exactly you can buy an ETF. So we've been talking for a while now Matt. So just before we wrap up, is there any particular stocks or companies you'd like to talk about to listeners bear in mind that nothing's Financial advice and kill General. Formation. Yeah, I think so. Apon was one that I mentioned earlier. I think that's still quite interesting. They just made a takeover of their one of their big competitors. So I think that could be a really interesting space is AI continues to roll out and still at a reasonable price. Another company could just quickly mention that I quite like is automate so there the Ada 888 is just eight is the number eight. Yeah, correct. So they're providing kind of standard. And for running audio engineering over ethernet cables rather than over traditional audio-visual cables. They have run up a bit. But I very attractive long-running economics for me. The question just there is monitoring the valuation. So they profitable at the moment or are they still in there just tap into profit and they're basically becoming their Dontae standard their transmission standard is becoming the standard for the industry and that is very valuable. If you control the the standard for the industry a very valuable spot to And so I think they've got a lot of good economics are very good competitive position. They need to manage that well, they can't be too aggressive like Microsoft in the early 90s, but it's a similar kind of thesis where they control the standard for industry and they're selling the product at the industry uses. So yeah, really interesting one and again app and I think is probably closer to like a much more reasonable valuation as well for a company. That's still growing very fast. Fantastic and is we can listeners go if they want to find out more information about you. Yeah the best right now. Is probably Matt just.com. So MIT TJ, OAS s.com. So I write about investing their I'll be writing up another company that I haven't talked about so far over the next couple of weeks. So I've just been researching a kiwi company actually. So yeah be right in right in a few thoughts and invest in there. That's the best place to follow along. So that's a free blog as it. Yeah. It's a free blog there will be some other next steps and use hopefully the yeah man squirt. Yeah, that's a good that's a free blogging going just to have a read about investing. So there you go listeners heat to met Josh.com and a couple weeks to find out about it. You in City companies, isn't it? Absolutely good stuff. Thanks so much for coming in. Thanks very much for having me on she's home. So I hope you enjoyed the conversation with MIT. I always liked talking to Matt. We are very similar and different approaches. We both think about investing from a bottom-up perspective. And we believe that the key thing is that it starts with the fact that you're buying part of the business. So I always think that most questions in the stock market if you unsure of the answer can be answered when you get back to the question, what would this mean if I were buying the whole business and you can work backwards from there? I would say that the only difference between our approach is that met generally is more comfortable. Each is more comfortable with forecasting out growth rates in the future than what I am. So this generally means that is usually more comfortable than what I am and buying companies that have valuation that assume a lot of growth which is absolutely fine. There's nothing wrong with that. So it was a fantastic conversation. I hope you enjoyed it. So for this for this part and the final part of the episode, I just had to get hold of craic herbs and from pleasure during the weekend and talk about the McDonald's by and so I've added this in as bonus content for the episode which I'll play for you now. So Craig was speaking on the podcast last week about McDonald's buying into picture. I'd love to hear the back story about how that came about. Well, the process is started with us renegotiating the global agreement with him in terms of ss agreement and that was taken quite some time because we were trying to move our pricing model lawn from a very distribution based model to more transaction activity base and through that we sort of got to see you know, the number of customers. The customers we actually had on a platform and in the markets and it sort of became fully clear that we were quite significant to their business and to their franchisees. Is that because you had a hundred million of their customers. Yeah. Well, we're seriously we didn't we didn't at that time we had you know, so this is we can we put on about five percent every month. Yeah, and we integrate new markets pretty much every month as well. So as it went through became more and more and I think from their perspective, If it was you know, how can we make sure that you know, our customers are kept safe in this environment, you know, then you the business was investing quite heavily and creased availability security those sorts of things and experience with the customers, but I think it became a point where you know became quite a strategically important to them and so they wanted to participate in their business to really help us grow. So obviously a 10% holder now when you mention strategic for them before can you expand on that a little bit? It's nine point nine percent, but I believe well, I think you know, if you look at what Steve Easterbrook was saying about the importance of you know, the digital experience in terms of the experience of the future for McDonald's. This is enabler of that experience the acquisition of dynamic yield the week before the 300 million to that company which fictive is helping them get more value out of their drive-thru decisioning really talk to these enablers of that experience being quite important and I guess they wanted to get closer to our business and that since yeah, and you mentioned sort of off here before about Is he some sort of exclusivity with McDonald's and him to some products or is it has that working? Well, so it's part of the deal there's a list of companies which we won't work with. Yeah. Yeah Foods restaurant Brands as you might expect KFC Pizza the direct the direct the direct competitors and I think you know from our perspective. We weren't targeting them necessarily anyway for the reason that they may not have wanted to be in the place. We are allowed to compete. This was at some scale and also just from a good business practice perspective not wanting to harm or impact our customers result by giving a teacher someone else. So is that strategic from McDonald's do you think yeah, I think yeah absolutely it because what came then with that was, you know, the ability for them to you know, if we get a takeover office from somebody within that realm one of their competitors, they have the ability to step up and look at If they want to take more of the company or or suit more control, absolutely and it's obviously a huge why said is a big vote of confidence from the company. Did it generate a lot of publicity and press for you guys incredible amount of publicity into the first day. We had 11 new leads and through the website. Unfortunately from those brands that were not able to work for anymore but some of them anyway, but certainly a lot of a lot of leads and you know, it's sort of global PR that you can't really buy. Yeah, exactly. Fantastic. It's really pop lecture on the map. And you know, it's opened a lot of opportunity. So we're in that very interesting position the moment we were able to say, no not good fit for us. This is more what we're focused on yes a sifting through that and they taken an active role in the business or was it more of a passive? No, McDonald's golden toads are a shareholder like any other shareholder. They're not the largest shareholder in the company and they have the same footing as everybody else. Yeah. There's no board directors right now. That's coming up that fantastic. Great was is there anything? You'd like to add about the about the residual not the the state holding or as anything about the country voted at the moment. I just think you know again it's you know, really strong positive signal of the talent that you Zealand has in the space that we can export it worldwide and get the traction and interest of you know, really big Global brands that are interested in what we do here and I think from Little all Cluny Zealand we can serve global companies and cloud-based technology is obviously enable that but I think it's just Another really good story of us taking on the world. Yeah, absolutely licenses while saying I can't think of saying gee before I can't think of a situation. We're in an American company of this sort of prestigious born to an Indian company. So it's that neither. Can I it's very interesting you something anyway good. It's not just great. Right there. That's about all we have time for this week big. Thanks again to this week's guest met Josh from that Joss.com and Craig her person from picture always love to get gifts on the podcast. So if there's anyone that you would like to get on the podcast in please email me at Jeremy at Stock Market Movers Taco de Lins ID, please also give us a like on Facebook as well. Send me a message. Also. If you would like to receive a copy of my quarterly investment report that I send out to investors for My Portfolio Service. Thanks again for listening to episode 36 of the the Stock Market Movers podcast for Friday the 19th of April 2019. I'll see you all again next week.
This week on the podcast it is my pleasure to interview Matt Joass. In an unscripted and wide ranging discussion we get stuck into everything from the macro economy, to investment process and some individual stock names. Matt's Bio is inserted below and you can find out more about Matt by going to www.mattjoass.com. -- Matts Bio: Matt Joass, CFA is a private investor and former Portfolio Manager of Motley Fool Pro, a concentrated small-cap focused ASX investment portfolio. During his tenure as Portfolio Manager, Matt generated an annualised return of 32%, compared to an 8% return for the benchmark. Matt has appeared as an expert guest on CNBC Asia and Sky Business, and contributed to the Sydney Morning Herald and the Australian Financial Review. Matt’s ideal investment is a small, fast-growing business, that is capital-light, with demand- and supply-side competitive advantages, high returns on incremental invested capital, little analyst coverage, deeply aligned management (typically founders), and that are top-dogs or first-movers in an emerging and important industry. Last but by no means least, the company must be trading at a discount to Matt’s estimate of intrinsic value. -- A reminder that the comments on the podcast, particularly those related to individual stocks are not financial advice and is general information only. If you are looking for financial advice I recommend that you speak to an authorised financial adviser. Listen in by searching Stock Market Movers on Apple or wherever you get your podcasts. If you are looking to get in touch or would like more information go to www.stockmarketmovers.co.nz 