Capital Allocators – Inside the Institutional Investment Industry [REPLAY] - Mike Trigg – Defying the Fade at WCM (Capital Allocators, EP.162)
Dec 20, 2021
Mike Trigg, a partner and portfolio manager at WCM, shares his journey from The Motley Fool to transforming WCM into a powerhouse with over $66 billion in assets. He discusses the firm’s strategy of focusing on companies with strong 'moats' and a lasting competitive edge. The conversation highlights how company culture impacts investment decisions and the importance of adapting to market challenges. Trigg also emphasizes the value of kindness in professional interactions and offers insights into maintaining personal growth amid the complexities of investing.
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Outsourcing Criteria
- WCM identifies four key criteria for outsourcing business models: runway for outsourcing, service cost as a small part of customer P&L, fragmented customer base, and evidence of moving up the value chain.
- They applied this to companies like Taiwan Semiconductor and Christian Hansen.
Moat Trajectory's Importance
- Moat trajectory helps distinguish between momentum and structural differences in companies.
- It helps avoid bad investments, particularly in growth investing.
Moat and Growth
- Moat trajectory and growth formula combined create positive moat trajectory.
- Different businesses require different sensitivities to moat and growth.
