Episode 33: Interview with Chris Gosselin from Australian Fund Monitors

Chris Gosselin from Australian Fund Monitors (https://www.fundmonitors.com/landing.php) interviewed us about the fund and strategy.  0:00 - Introducing Michael Frazis 1:12 - Michael introduces Frazis Capital and describes its core investment requirements (Customer love, explosive growth and market leadership) 2:45 - The opportunity presented by high growth companies with ugly financial statements, professional scepticism and high short interest 4:00 - The best investment opportunities are often in front of your eyes the entire time 4:35 - Michael reiterates the importance of the fund's core investment requirements 6:10 - Unit economics often tell a very different and more valuable story than financial statements (using Xero and Tesla as examples) 7:35 - Frazis Capital's systematic framework 9:30 - Chris asks Michael, "When you don't get it right, how do you manage that?" 12:00 - Chris asks Michael, "Is there a stage at which these companies, which are growing very quickly, become mature?" 12:40 - Michael discusses Adobe and Salesforce as examples of mature software companies 14:50 - The importance of focusing on market leaders, using the example of the BNPL industry  16:10 - MercadoLibre and Sea - true market leaders, which deserve valuation premiums 18:00 - Focusing on $5-20 billion companies growing revenue at 50-100%/annum 18:40 - Chris and Michael discuss the headwinds and opportunities presented by COVID-19 20:10 - Making sure that portfolio holdings are accelerating through the coronavirus period 22:00 - What is the smart move right now? Find companies with pent-up demand