My guest this week is John Rogers, founder, CEO and CIO of Ariel investments, one of the longest standing asset management businesses still in existence. John has a very impressive resume. In addition to his success at Ariel, he was the captain of the Princeton University men’s basketball team, he was the co-chair of Barack Obama’s Presidential Inauguration, he sits on the board of McDonald’s, and he has given back to his community more than I can list here. John and I discuss Ariel’s investment process and its evolution over the years, lessons from John’s basketball career, value investing, and asset management’s diversity problem among many other interesting issues. Please enjoy!
2:20 – (first question) – Explore John’s experience playing basketball and what he has learned from playing on a team.
7:22 – What is the cleanest way to keep the investment team honest by pointing out any mistakes they are making.
8:28 – Looking at John Rogers investment process to determine his edge
12:27 – How does John analyze managers and executives, especially as it relates to their longer-term investment strategy
13:27 – What are the biggest red flags that make you want to avoid a business
19:31 – Going back to the beginning of Ariel and John’s interest in investing
22:13 – How did John tackle his portfolio early on and what industries he focused on then
24:37 – What helped to inspire John’s value investing strategy
26:16 – The Money Masters
28:14 – What has changed in terms of the prospects for value investing from when he started till now
30:46 – Looking at John’s investment philosophy against the current market
33:58 – How important is brand when evaluating a company as a potential investment and how is that quantified
36:32 – How do you hire people that are going to have vision and be a good fit
38:48 – How to screen for someone who has vision
42:18 – What are the key business lessons John has learned running a firm
45:16 – A look at the I Have a Dream Class
45:53 – Exploring John’s community activism and what has the highest rate of return that are most worth someone’s time.
50:38 – Getting John’s take on the issue of minorities and women in investing and how to improve the situation
55:35 – Identifying the most memorable day of John’s professional career
57:18 – The kindest thing anyone has ever done for John
57:56 – What excites you most about markets today and into the future
59:18 – How did John get to play Michael Jordan in basketball…and beat him
1:00:45 – Video of John playing Michael Jordan
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