Dennis Lynch - Delivering Alpha in Adapting Markets - [Invest Like the Best, EP. 228]

My guest today is Dennis Lynch, Head of Counterpoint Global, where he oversees over $100bn in AUM and boasts one of the strongest track records of any public investor. In our conversation, we cover Dennis's unique approach to building a research team, how misclassification of companies often creates the highest upside opportunities, and how Dennis has adapted his investment process over the past 20 years. I think Dennis defines what it means to be intellectually honest, and you will hear that in his answers throughout our discussion. I hope you enjoy my conversation with Dennis Lynch. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. (for me- ) ------ This episode is brought to you by Tegus. Tegus has built the most extensive primary information platform available for investors. With Tegus, you can learn everything you’d want to know about a company in an on-demand digital platform. Investors share their expert calls, allowing others to instantly access more than 10,000 calls on Affirm, Teladoc, Roblox, or almost any company of interest. All you have to do is log in. Visit tegus.co/patrick to learn more. ------ This episode is brought to you by MIT Investment Management Company (MITIMCo), the endowment office of MIT. MITIMCo seeks to find people who are focused on achieving exceptional long-term investment returns, partner with these firms early, and stick around for the very long term. MITIMCo is also searching for an exceptional new teammate to join their internal investment team. Visit mitimco.org to learn more – click “Join” to learn more about the Global Investor Role on MITIMCo’s team or and click “Emerging Managers” to learn more about their emerging manager activities. ------ Invest Like the Best is a property of Colossus, Inc. For more episodes of Invest Like the Best, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus Show Notes [00:03:47] - [First question] - How he would teach potential students to be investors [00:04:26] - The Money Game [00:04:40] - Moneyball [00:05:59] - Pros and cons of volatility when investing [00:08:55] - Emotional response to volatility [00:12:44] - Training to have a better temperament [00:14:20] - What is his investing game [00:15:17] - The Ethical Algorithm [00:16:44] - How time horizon impacts their investment strategy [00:20:53] - Assessing a company’s earnings power [00:26:12] - Shifting business models vs. evolving within a business model [00:32:32] - Understanding how to invest in disruptive businesses [00:35:26] - Why he’s skeptical on Growth and Value investing strategies [00:38:42] - Expectations Investing [00:38:55] - How his view of assessing businesses has changed [00:43:56] - Defining unit economics [00:45:41] - Taking on uncertainty risk in the portfolio [00:50:38] - The business that taught him the most; Amazon [00:53:32] - Dealing with massive amounts of change [00:56:01] - The Big Short [00:59:46] - Interest in psychedelic research [01:01:02] - What has changed the most in investing from when he started [01:04:19] - Kindest thing anyone has done for him