#55 Edward Chancellor: Capital Returns

This Investing by the Books podcast episode features an interview with Edward Chancellor, author of "Capital Returns," conducted by Christian Billinger. The conversation centers on Marathon Asset Management's equity investing strategy, particularly its focus on supply-side dynamics and how overinvestment in sectors leads to lower returns. Chancellor discusses how this framework applies to various investment styles, from value to growth, and uses historical examples like the British railway mania and the tech bubble to illustrate his points. He also analyzes current market trends, highlighting potential overinvestment in AI and EVs, while noting underinvestment in energy as a potential opportunity. Listeners gain insights into a unique investment approach that considers the capital cycle's impact on returns, emphasizing the importance of understanding supply-side dynamics over relying solely on demand projections.