Podcast Appearance: 'Value Investing with Legends' with Andrew Wellington and Dan Kaskawits
Published On, December 17, 2022
Click Here for Important Disclaimers
Episode Overview – December 16, 2022
Lyrical's Andrew Wellington and Dan Kaskawits joined Tano Santos on the Value Investing with Legends podcast from Columbia Business School's Heilbrunn Center for a conversation about Lyrical's approach to value investing.
The discussion centered on Lyrical's three-pillar process, Value, Quality, and Analyzability. Rather than chasing popular or high-growth names, Lyrical deliberately hunts within the cheapest twenty percent of its universe—the top 1,000 U.S. stocks—where opportunities tend to be overlooked. Most of those companies look unattractive at first glance. The advantage comes from identifying the rare gems hiding among them.
A theme that ran throughout the conversation was the discipline of avoiding complexity. Andrew and Dan discussed investing in businesses where future earnings can be reasonably understood. If a company is too unpredictable or opaque, even if it looks cheap, they are willing to pass. That filter is what helps them avoid costly mistakes and stay steady through volatility.
They also offered their view on quality. For Lyrical, quality is less about finding perfect companies and more about avoiding the lowest-quality businesses. Capital-light, resilient, and flexible businesses tend to perform better over time, particularly during downturns.
The conversation also covered why value has been a difficult category at times, how behavioral biases continue to create opportunities, and how Lyrical's international approach largely mirrors what the firm does in the U.S.
The episode is a practical look at how experienced investors filter thousands of stocks down to a concentrated portfolio, and why patience, simplicity, and discipline still tend to win over time.
“Bad stuff happens. You need to own businesses that are transparent enough and simple enough that you won't feel like, 'I don't know what to do.' We want to avoid that situation, and that's a big part of why we stick with analyzability.”
— Andrew Wellington
About "Value Investing with Legends" Podcast
Value Investing with Legends is a podcast produced by the Heilbrunn Center for Graham & Dodd Investing at Columbia Business School, featuring in-depth interviews with renowned investment managers about their philosophies, processes, and market insights. It explores the practical application of value investing principles, such as buying high-quality businesses for less than their intrinsic value, often with a focus on long-term holding periods, risk management, and behavioral aspects of investing.
Disclaimers
Lyrical disclaims any duty to update historical information included herein – which was provided as of the date of this podcast, noted above - including whether we continue to hold positions that are mentioned.
Specific investments described in this document do not represent all investments by Lyrical. You should not assume that investment decisions we include were or will be profitable. Specific investment examples are for illustrative purposes only and are not necessarily representative of investments that have been made since this podcast or in the future. A list of all prior investment recommendations is available upon request. In the interest of our clients, reporting as to positions in transition (being purchased or sold) is lagged at our discretion. Generally, securities which have not been purchased for all accounts are not reflected as held and sales of positions which remain in any client accounts similarly are not reflected.
Please see lyricalam.com/notes for a discussion of certain risks of an investment.
