Pat Dorsey Interview; Invest Like the Best

Investment Analysis Clubs Saul’s Investing Discussions
1

Hey everyone,

I’m a huge fan of Patrick O’Shaughnessy and his Invest like the Best podcast. Today he released Episode 77: The Moat Portfolio - an interview with Pat Dorsey

Lot’s of great insights and big ideas but specifically for Saul style investing:

Why the market can’t accurately price qualitative insights

Zero marginal cost distribution business model

Network effects and potential downsides

Relative vs absolute market share

Exploring the SaaS business model

Application of moats and pricing power with SaaS businesses

Understanding how to evaluate a SaaS or subscription-based business (lifetime value of the customer vs acquisition cost).

https://play.google.com/music/m/Ipf4k4cmloenonfhm6xaui6rsvm?..

20 Likes
2

CMFAleeb - you beat me to this! Just listened to this. Fantastic.

I wish I could rec your post 10x. Patrick O’Shaughnessy is world class podcaster, just fantastic. He has that rare gift of being personable, intelligent, charismatic and empathic, the kind of interviewer who really gets his guests to open up. Killer podcast. Invaluable insight into the minds of brilliant people.

3 Likes
3

Thanks Dan!

Yeah Patrick is incredible at what he does. He’s also a really good person too. Class act all around.

4

Do you have a link other than Google Hell? GRRRR…

Denny Schlesinger

5

You can try this:

http://investorfieldguide.com/dorsey2/

reference:
https://duckduckgo.com/?q=invest+like+the+best+podcast

6

You can try this:

http://investorfieldguide.com/dorsey2/

Thanks! The link I found only goes to 74!

http://investorfieldguide.com/podcast/

Denny Schlesinger

7

Thanks! The link I found only goes to 74!
http://investorfieldguide.com/podcast/

I know, but then I found it under the “Most Read” column on right. I guess the smarter thing would be to go to the home page:
http://investorfieldguide.com/

8

If you have an iPhone, open that pre-installed app Poscasts. From there, search ‘Invest like the best’. Then you can subscribe it and it’s free. He produce about one podcast each week.

2 Likes
9

If you have an iPhone,

No iPhone, no smartphone, just two dumb desktop phones and a MacBookPro laptop. :wink:

Denny Schlesinger

1 Like
10

I haven’t listened to #77 (esp #2) BUT episode #51 is the first one, which I listened to today and liked a lot. Discussed moat, but I don’t think they went into a lot of detail, basically talked about the Tiffany brand and FB networking.

11

thank you very much for posting!

12

In the interview (among very interesting conversation) Pat mentioned Workiva (WK) as a SaaS example.

Their product Wdesk is a collaborative work management platform for organizations to collect, link, report and analyze their business data. Wdesk’s word processing, spreadsheet and presentation applications are integrated and built upon a data management engine, offering synchronized data, controlled collaboration, granular permissions and a full audit trail.

FY revenue growth +16%
FY Revenue: $208M
FY Adjusted Earnings of -$25M

I haven’t dug into them much, but I’m not sure they’re doing anything spectacular at the moment. They are down 20% today after earnings after being bid up sharply in Feb.

2 Likes
13

Lot’s of great insights and big ideas but specifically for Saul style investing:

Why the market can’t accurately price qualitative insights

Zero marginal cost distribution business model

Network effects and potential downsides

Relative vs absolute market share

Exploring the SaaS business model

Application of moats and pricing power with SaaS businesses

Understanding how to evaluate a SaaS or subscription-based business (lifetime value of the customer vs acquisition cost).

I just checked Dorsey’s current portfolio, which has familiar names. eg :


FB   21%
GOOG 11%
PYPL 9%
TTD  7%

https://www.dataroma.com/m/holdings.php?m=DA

2 Likes
14 
Dorsey has recently brought a big position in WIX.  His top 5 :

FB 	23.38%
WIX 	15.00%
PYPL	11.17%	
TTD 	10.89%	
GOOG 	9.89%

[https://www.dataroma.com/m/holdings.php?m=DA](https://www.dataroma.com/m/holdings.php?m=DA)
4 Likes
15

Dorsey has started a big Roku position, and added to Alteryx and Avalara.

His portfolio :

https://dataroma.com/m/holdings.php?m=DA

8 Likes