TIP632: MASTERMIND Q2, 2024

W/ TOBIAS CARLISLE AND HARI RAMACHANDRA

18 May 2024

In today’s episode, Stig Brodersen speaks to Tobias Carlisle and Hari Ramachandra. Stig only owns five individual stocks, and in this episode, he outlines why he has put Burberry on this watchlist. Hari’s pick, ICICI Bank Limited, is a solid bet on the rise of India, and Tobias pitches Playtika, a value stock trading at an appealing valuation.

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IN THIS EPISODE, YOU’LL LEARN:

  • What are the current economic conditions?.
  • Are we entering a world with less disruption?.
  • What Stig’s bull case is for Burberry (Ticker: BURBY).
  • The bear case for Burberry, including the current deterioration in the luxury sector.
  • Why Toby has invested in Playtika (Ticker: PLTK).
  • The bear case for Playtika, including the lack of moat and switching costs.
  • Why Hari is bullish on ICICI Bank Limited (Ticker: ICICIBANK).
  • The bear case of ICICI Bank Limited, including whether the valuation is stretched.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:03] Stig Brodersen: In today’s Mastermind episode, I’m pitching Burberry. You might not like the close and you might not like the lack of insider ownership, but I do think you’re going to love the valuation. A luxury brand for more than 150 years of history trading at only 10 times earnings almost seems too good to be true.

[00:00:20] Stig Brodersen: But also, I have to say almost, there is some hair on it and you would need a solid margin of safety to invest in this discounted pie type of investment. Hari’s pick, ICICI Bank is a solid bet on India’s rise. We’re discussing how to position yourself best if you agree with the bull thesis on India, including what might look like an overstretched valuation.

[00:00:42] Stig Brodersen: Tobias’ pitch is Playtika. This is a stock with 70 percent gross margins and 20 percent operating margins and it’s trading at a surprisingly appealing valuation. Yes, there are some headwinds. So therefore, we are considering, are these secular or they’re short term issues? Now, without further delay, here is our Q2 2024 Mastermind discussion.

[00:01:06] Intro: Celebrating 10 years and more than 150 million downloads. You are listening to The Investor’s Podcast Network. Since 2014, we studied the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected. Now for your host, Stig Brodersen.

[00:01:35] Stig Brodersen: Welcome to The Investor’s Podcast. I’m your host, Stig Brodersen and I’m here today with Tobias Carlisle and Hari Ramachandra. Gents, you’re looking good today. How’s life?

[00:01:45] Tobias Carlisle: Thanks, Stig. I’ve got the Blade Runner background. I’ve got like a slice through the sun’s coming in at a crazy angle, but it’s fun. How are you, Hari?

[00:01:53] Hari Ramachandra: Hey, doing good, Toby and Stig. Good to see you guys as always.

[00:01:57] Stig Brodersen: Great seeing you. So Hari, you asked you before we hit record, whether or not we could talk about the economy in general and I made the disclaimer, I don’t know about anything that’s going on. We are supposed to be micro investors, not macro investors and because of that, perhaps we should, I don’t know if you have a question you want to ask Toby about macro then.

[00:02:17] Hari Ramachandra: My question essentially was, that’s all the stuff that what Milton Friedman or any of the textbooks would have suggested is not happening. For example, interest rates was raised at the fastest rate in history, as they were saying, but inflation is kind of coming down, but not that much.

[00:02:35] Hari Ramachandra: We don’t see a dent on the housing prices. In fact, that is steadily raising. The stock market is also ripping. It’s doing well. There is geopolitical tensions. There are wars going on but nothing seems to be impacting the key indicators of wealth, which is stock prices or home prices in your United States, at least.

[00:03:00] Hari Ramachandra: And I wanted to know what’s going on. What are you guys thinking? Like, is it puzzling you? These are the explanations. So Toby, Stig, I would like to know what your opinion is.

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