Podcast Review | Doug Tynan Interview | Inside the Rope Podcast

Doug Tynan Interview | Inside the Rope Podcast

A key mantra at NAOS is learning from the successes and failures of other investors (as well as our own). We always enjoy listening to the perspectives and insights from high quality investors, a process which can only make you a better investor. In this episode of David Clark’s Inside the Rope podcast series, Doug Tynan, an Australian successful global equity investor who is the founder of investment firm GCQ is interviewed. After we read the book ‘Checklist Manifesto’, you start to get a better understanding of the importance of how a routine checklist (using pilots as the main example) can be applied to investing. It is clear from this interview that Tynan is systematic in his approach with a stringent checklist, particularly around industry dynamics and he credits this with helping him become a better investor.

Some real-world examples of companies that fit within the CQG checklist include Visa, Mastercard and Uber. Why? They have very powerful network effects, which as we know is one of the most powerful forces behind building a sustainable competitive advantage for a company. Network effects are so hard to achieve, but once you have them, to borrow a phrase from the Mastercard marketing team, they can be “priceless”. They become self-fulfilling with scale and trying to usurp any high-quality two-sided marketplace with lots of time and lots of capital may still not be enough. Furthermore, he believes that for any company in which their competitive advantage is solely based around a technological advantage, look out, as technology rapidly advances.

They key takeaway - rules and process can aid in offsetting any psychological weaknesses and an edge in psychology is your main asset when investing in equities.

‍Link to Podcast

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