In this episode of the Invest Like the Best podcast, Gavin Baker, the founder of Atreides Management, shares his distinctive approach to growth investing in the consumer and technology sectors. He advocates for a long-term perspective, typically spanning 5 to 7 years, and emphasizes investing in companies with high returns on invested capital (ROIC), strong competitive advantages, and management that prioritizes ownership and business growth over short-term market fluctuations. Baker illustrates his investment philosophy with examples like Apple, which benefits from the value of used iPhones, a robust ecosystem of wearable devices, and potential competition with Google in search. He also discusses the video game industry, noting the rise in player engagement, monetization opportunities, and the development of consistent franchises within metaverse platforms. Additionally, he points out the growing significance of alternative data and the challenges traditional value investing faces due to regulatory capture and the increasing dominance of scale in the tech industry.
