In this episode, we speak with FPA Crescent Manager Steve Romick. Steve has built an exceptional long-term record using an approach that combines value investing with protection of capital and drawdown management. We discuss the biggest lessons he has learned in his decades of managing money, get his take on the current state of value investing and talk about many of the unique aspects of managing a go anywhere fund.

#valueinvesting

00:00 - Intro
03:03 - The biggest lesson Steve wishes he knew earlier in his career
05:19 - The challenges of managing a go anywhere fund
07:57 - Investing in cargo ships
09:19 - How Steve thinks about investor behavior
12:27 - Putting the current inflation situation into context
14:31 - Great investors admit what they don't know
16:47 - The impact of macro on Steve's process
17:46 - Defining margin of safety
18:34 - Steve's evolution as a value investor
24:07 - Steve's views on AI
27:43 - Is value investing dead?
30:09 - Has narrative become more important than fundamentals?
32:15 - Position sizing and portfolio concentration
35:39 - What Steve learned from the COVID crisis
41:10 - Steve's sell discipline
43:36 - Investing in international markets
49:44 - How FPA Crescent has limited drawdowns
52:38 - Steve's most memorable investments
56:30 - The one lesson Steve would teach the average investor

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