Eric Markowitz shares his thoughts on gaining expertise on a topic or business, which takes more time than most people would think. Once you’ve gained that expertise, you can make better decisions, even if that decision is to do nothing or not invest.
“Conviction is great. Opinions are really bad, because opinions will really screw you up.” – Eric Markowitz
EPISODE GUIDE (LINKS, QUOTES, NOTES, AND BOOKS MENTIONED)
https://www.danielscrivner.com/notes/eric-markowitz-worm-capital-playbook-show-notes
FULL TEXT TRANSCRIPT
https://www.danielscrivner.com/notes/eric-markowitz-worm-capital-playbook-transcript
ABOUT ERIC MARKOWITZ
Eric Markowitz is Head of Research at Worm Capital. Worm is one of my favorite hedge funds, and I've been reading their quarterly reports for years. They run a concentrated long only strategy and invest in technology innovation and disruption. They have a concentrated portfolio of between five and 10 positions that today includes Shopify, Spotify, Tesla, Airbnb, Amazon, and NextEra Energy. Since inception, Worm has compounded their investors' capital at over 31% per year, while the S&P 500 over the same period has delivered just over 15%.
In this episode, we cover Eric's origins as a journalist and how that shaped his approach to investment research. We talk about Worm's two-step research process, which starts with what they call the Jane Goodall phase and ends with Elon Musk, the engineer. Trust me, these names are weird, but the content is absolutely amazing. We explore why Eric focuses on slowing down the research process, as well as, the rules and guardrails they use to ensure they get the best research outcomes. And we discuss the behavioral side of investing, how Eric thinks about it and why it's so powerful in shaping investment results over time.
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