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Chapter 1: What is the main topic discussed in this episode?
In fact, for most hyperscalers is a good example of thinking about return on invested capital.
Chapter 2: What is the true definition of value investing?
Because like Google before, the reason why also they were able to compound is because they needed relatively little capital to produce the earnings and cash flows of what they were doing into new projects, or even just enhancing their search business.
Chapter 3: How does modern value investing differ from traditional methods?
Now the tides have shifted. what they want to do now is super capital intensive and you know i don't want to deliver the point and repeat myself too much but it's just it makes it at least questionable right
Hi, folks, and welcome to another episode of Stock Club.
Chapter 4: What risks are associated with the current AI investment landscape?
This week, we have a very special guest with us, Jose Mayora. Jose is the author of Wall Street's Blind Spots, a unique perspective on value investing, valuation and capital allocation. He's also the founder and senior portfolio manager of DeVita Capital, a value focused equities fund.
Chapter 5: How can companies effectively reinvest their cash flows?
Jose, welcome to the show. It's a pleasure to have you on Stock Club here today.
It's a pleasure to be here.
Chapter 6: What are the implications of high return on invested capital?
Thank you for having me.
So let's jump right into it. So tell me a bit about your background and how you got into finance.
Chapter 7: Why is patience crucial in value investing?
Sure. So I've pretty much been in finance and economics all throughout my life. Ever since I graduated from high school, I went to UVA in the States and studied.
Chapter 8: What common mistakes do investors make when valuing companies?
I did a double major in finance and economics. Then I went into investment banking for almost five years. While I was in investment banking, I got my CFA and after that I went to do a master's in economics.
And then finally, after a very small detour that I don't think it's worth going into, I eventually moved back to my finance and value investing kind of world, which is what I'm really passionate about. And over the last four years, I've been managing a fund called Divita Value Growth Fund, which is managed by Divita Capital, the investment manager. And it's through a value investing approach.
And we can talk about more about that. And maybe the only thing I'd add from my background that I think is helpful for the audience to understand is that I was studying kind of all my career and all my specialty studies. I was doing it kind of in parallel. On the one hand, it was what I was being taught in college or the CFA or my master's.
But on the other hand, I was doing my own kind of self-studying because what I was being taught are kind of mainstream explanations for finance and economic phenomena or whatever. I wasn't really kind of swallowing the pill, as I like to call it. So in the case of, for example, finance,
Well, value investing is not precisely mainstream, and unless you go to Columbia University or some other few places, you're not necessarily going to be taught value investing. So I was reading value investing philosophy and books as I was studying the more mainstream in college, for example, and in CFA. And so that kind of really gave me a perspective.
and helped me really think independently because I could see how different approaches could lead to different answers. And I had to always question myself, okay, what's good about this approach? What's bad about that approach, et cetera. And in terms of economics, not to side rail the conversation too much, but in terms of economics, it was similar.
So mainstream economics, it's mostly going to Keynesian economics. There's different schools of thought, but Keynesian economics is the more mainstream or a variation of it. And I wasn't a big fan of the explanations of Keynesian economics, of how it described the real world. I don't think it's accurate in many respects.
And so I was doing kind of my parallel studies in other schools of thought of economics, Chicago School, and most importantly, the Austrian School of Economics, which is where I eventually landed. And that's why I went to do my master's in economics in Spain, because it's one of the few programs that really teaches Austrian economics in depth.
So anyway, that's a little about my background, but pretty much all throughout it's been finance and econ.
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