On this Australian Investors Podcast, Owen Rask is joined by Nick Cummings, an analyst at Intelligent Investor and a passionate global value investor. Nick speaks with Owen Rask about Coupang Inc (NYSE: CPNG), South Korea’s Amazon, and Diageo plc (LON: DGE), the owner of liquor brands like Johnnie Walker.
Podcast topics & question covered by Nick Cummings & Owen Rask:
Ice breakers:
Of these 5 factors which 3 would you pick and why?
- Revenue growth
- ROIC
- Net debt
- Free cash flow
- EBIT margin
What’s the best business model you’ve ever seen? (valuation aside)
Background and Career:
- Could you share with our listeners a bit about your journey to becoming an investment analyst, and how you came to work with The Intelligent Investor in Australia?
- What initially drew you to the field of investment analysis, and how has your approach evolved over the years?
- Can you highlight some key experiences or lessons learned throughout your career that have shaped your investment philosophy today?
Investment Process:
- When it comes to uncovering stocks for long-term investment, what are the key principles you and team adhere to in your analysis?
- Do you do anything that, say, Nathan or Gaurav mightn’t do?
- How do you deal with that as a team?
- Could you walk us through your typical process of evaluating a company from a fundamental standpoint?
- Do you use a checklist? If so, what specific metrics or factors do you consider most important?
- How do you differentiate between short-term market noise and long-term fundamental value when assessing potential investment opportunities? I’m specifically interested in ways you sharpen your edge as an investor:
- Information: what sources of news are good, what make no sense?
- Behaviour: tricks or tools you use to keep yourself in check?
- Analysis: what you do that other analysts underweight or don’t do at all?
Stock Analysis: Coupang
- Coupang has been described as the “Amazon of South Korea.” What is it about Coupang’s business model that makes it so intriguing to you?
- What key metrics or factors do you focus on when analyzing Coupang, and how do you assess its long-term growth potential?
- Given the competitive landscape and potential challenges, what 1-2 risks do you see for Coupang moving forward?
- How do you value a business like Coupang?
Stock Analysis: Diageo
- How did you come across Diageo and what does the business do?
- Johnnie Walker, Baileys, Guinness, Smirnoff… the list goes on. Diageo is a global leader in the alcoholic beverage industry. What aspects of Diageo’s business give it a competitive advantage?
- What specific factors or metrics do you closely monitor when evaluating Diageo’s performance? For example, were there specific risks or perceived threats you wanted to overcome through research?
- What would make you sell Diageo?
- Final question, if you could go back and tell yourself one thing about investing, what would it be?
this episode, you’ll LOVE our series. Episodes go live every Saturday at 7 am and Wednesday arvo.
