Sir Chris Hohn | Podcast | In Good Company | Norges Bank Investment Management

This episode explores the principles of successful investing, focusing on identifying companies with sustainable competitive advantages or "moats." Sir Chris Hohn emphasizes that high barriers to entry, such as irreplaceable physical assets like airports and intellectual property like advanced aircraft engines, are more critical than growth itself. He argues that competition erodes profits, making it essential to invest in businesses that are difficult to compete with or substitute. The discussion pivots to valuation, where Hohn advocates for long-term DCF analysis, highlighting that the predictability and longevity of a company's cash flows are key, even more so than the initial multiple paid. In contrast to private equity, Hohn believes the best businesses reside in public markets due to their scale and the tendency for companies to sell less desirable assets to private equity firms. As the conversation evolves, Hohn shares his perspective on activism, noting a shift from aggressive interventions to constructive engagement, and also touches on the challenges and risks associated with shorting, using Wirecard as a cautionary tale. The episode concludes with Hohn's views on philanthropy, his foundation's priorities in climate change and children's health, and his advice to young people to seek spiritual understanding for a more purposeful life.