Phil Ruvinsky - Sustainable Competitive Advantages in Technology

Value Investing with Legends

In this episode, Michael Mauboussin, adjunct professor at Columbia Business School, hosts Phil Ruvinsky, Managing Director and Head of the Fundamental U.S. Growth Team at BlackRock. With extensive experience in the investment industry, Phil shares his journey from law to finance, discusses his investment philosophy, and explains the importance of sustainable competitive advantages. The conversation explores the evaluation of management, the impact of AI on the competitive landscape, and the nuances of portfolio construction. Phil also highlights the role of macroeconomic factors and regulatory changes in investment decisions, shares his thoughts on the future of active management in an increasingly indexed market, and much more!

Key Topics:

• Introduction to Phil's career and background (1:06)

• Transition from law to investment and early career challenges (2:15)

• Importance of business school in shaping investment philosophy (3:47)

• Recommended books for new team members (4:22)

• Utilizing competitive strategy analysis in investment decisions (5:50)

• Unique characteristics of technology, media, and telecom sectors (7:03)

• Analysis of return on invested capital in different business models (9:10)

• Approaches to valuation and use of different tools (10:25)

• Evaluating the importance of management in investment decisions (12:15)

• Impact of AI and generative AI on the competitive landscape (14:17)

• Application of AI in the investment process (18:07)

• Trends in market concentration and their implications (20:26)

• Effects of indexing and rules-based investing on markets (23:27)

• Corporate governance, capital allocation, and executive compensation (25:35)

• Differences between being an analyst and a portfolio manager (28:02)

• Portfolio construction and risk management (29:38)

• Considering macroeconomic factors in investment decisions (32:00)

• Concerns and excitement about the future (34:21)

• Phil's book recommendations (35:58)

• And much more!

Mentioned in this Episode:

• Digital Empires: The Global Battle to Regulate Technology by Anu Bradford

• Expectations Investing: Reading Stock Prices for Better Returns by Michael Mauboussin

• Competition Demystified: A Radically Simplified Approach to Business Strategy by Bruce Greenwald

• The Platform Delusion: Who Wins and Who Loses in the Age of Tech Titans by Jonathan Nee

• Napoleon Unleashed: A History of the Revolutionary, Emperor, and Military Genius who Reshaped Europe and Defined Modern Leadership by Aeon History

• Meditations by Marcus Aurelius

• Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts by Annie Duke

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