In this episode, John Mihaljevic hosts a discussion of:
Level 1 thinking and Keynes' beauty contest: Phil Ordway assesses the market environment and asserts that so-called "Level 1" thinking underpins a large portion of market activity. We discuss investors playing Keynes' "beauty contest" while often disregarding valuation-based investing.
Sources of operating leverage: Elliot Turner talks operating leverage and the various sources of it at the companies he follows. We discuss the upside and downside of operating leverage, how it creates value for shareholders, but also the dangers it breeds when business fundamentals deteriorate.
Enjoy the discussion!
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