Druckenmiller Protege on Tech Investing and Developing Your Own Framework

Published on
July 21st, 2020
Duration
39 minutes

Sven Henrich: Bear Market Rally, Bull Market Trap


Druckenmiller Protege on Tech Investing and Developing Your Own Framework

The Interview ·
Featuring Beeneet Kothari

Published on: July 21st, 2020 • Duration: 39 minutes

We all get our start somewhere, and often the formative experiences of our early years shape our career path for years to come. Beeneet Kothari, managing partner at Tekne, was fortunate enough to spend a large chunk of his formative years at Stanley Druckenmiller's Duquesne Capital where he became the youngest portfolio manager in the history of the firm. In this interview with Christian Alexander, headhunter and author of Macro Link, Kothari outlines his biggest takeaways from working with legends of finance and eventually starting and running his own successful fund. He explains why some of the most important lessons he learned are not hard and fast rules but ways to think, and why even after working at one of the most successful macro shops in the world, he built his fund with a narrow focus on his first love of tech investing. Additionally, he provides his views on bargain hunting, diversification and portfolio concentration, provides his outlook for technology investing in general, and argues against thinking of technology as a sector in the traditional sense. Filmed on July 15, 2020.

Comments

Transcript

  • NJ
    Nesko J.
    21 July 2020 @ 06:45
    Wouldn’t be great to provide social links from the participants in any video? Twitter, Instagram, web, (public, not provate)
    • AF
      Andre F.
      21 July 2020 @ 09:08
      Why!? You can check all of that yourself.
    • MK
      Michael K.
      21 July 2020 @ 11:44
      It’s pretty easy with Google and Twitter to do this yourself. I do it with every guest I wish to follow. Otherwise, RV is the only remaining specialist finance media that doesn’t have marketing at every turn (aside from those short briefs at the end of videos and product fragmentation).
    • MW
      Marcus W.
      7 August 2020 @ 08:42
      Best to keep it clean and simple an on platform. Don't need any other distractions. I like to be locked in this little room of real vision.
  • TG
    Terry G.
    21 July 2020 @ 08:36
    I like how Druckenmiller is name-dropped to boost views.
    • MM
      Melvyn M.
      21 July 2020 @ 09:45
      I’d argue this unashamed name drop is justified, not that there’s a piece of content on RV I haven’t watched and found value in.
    • MW
      Max W. | Real Vision
      21 July 2020 @ 20:19
      I'd be interested to hear if anyone is willing to attribute their click to this name dropping in the title and also if anyone gave the interview more of a chance because Raoul gave the intro. I guess how many of you wouldn't have watched had it been called "Tech Investing and Developing Your Own Framework" and additionally, how many would have turned it off during the How I got My Start in Finance section if it weren't for Raoul telling you how much he respected these two?
    • SH
      Sebastian H.
      21 July 2020 @ 23:07
      I probably wouldn't have watched the whole thing without the name drop. Not enough time in the day, but this was well worth it!
    • DS
      David S.
      22 July 2020 @ 02:56
      I would watch with or without. I find the use of Mr. Druckenmiller name useful as a reference point for excellence from his performance and his RVTV interview. Keep up the good work. DLS
    • PP
      Patrick P.
      22 July 2020 @ 03:23
      Max ... marketing is everything ... nothing starts until someone sells something. Would I want to hear what he had to say if you told me he had worked with "Joe shit the rag man" ....?? Easy answer....NO!
    • ZY
      Zheng Y.
      22 July 2020 @ 05:29
      @Max W. I gave the video more of a chance because of both of these reasons.
    • SM
      Shantanu M.
      22 July 2020 @ 18:39
      I clicked the link to read the comments because of "Druckenmiller". Though I would have probably clicked on "Developing your own Framework" too, despite finding nothing interesting in comments i am still going to watch the video.
    • AW
      Angela W.
      22 July 2020 @ 20:05
      Hi Max, yes I definitely watched it because of both, but also because it is about tech, which is re-defining so many aspects of life right now. When Raoul expends his personal capital to endorse someone of course I’m going to watch it. Name dropping Druckenmiller works when the person interviewed backs up with quality insights from Stan, and these gentlemen definitely did. Thanks for another great interview. Love RV!
    • MF
      M F.
      23 July 2020 @ 14:45
      I think Max W is correct. I wouldn't have clicked on it without SD's name....more critically, the question is am I glad I did; the answer is yes. So, getting me to watch something that I am happy I watched, via a name grabber is fine in my book, if the interview had the horses to back it up..which both CA and BK did...so thank you RV.
    • MW
      Marcus W.
      7 August 2020 @ 08:41
      Watched because first word was "Druckenmiller", became 50% less interested after reading Protege and didnt really read the rest of the title after that. Just FYI. Got value on it either way. Gotta love 2x
  • JR
    Jason R.
    22 July 2020 @ 18:02
    Beeneet lost me when he started talking about China as the best place to be. If you want to ignore business ethics, fairness and rule of law, then sure, invest in China. This is exactly what is wrong with the financial world today. The only thing that matters is return, not HOW you got that return or on whose back that return was earned on or by what rules that return was gained by. Brutal.
    • JM
      Jackson M.
      31 July 2020 @ 13:15
      Agreed - something morally wrong about supporting the CCP
  • DB
    Donna B.
    22 July 2020 @ 17:22
    A pleasant interview and good content. But Christian's attire was hideous.
    • AB
      Alastair B.
      22 July 2020 @ 21:29
      HH looked better in his wifebeater on the beach!
    • NT
      Nehal T.
      29 July 2020 @ 19:57
      More a distraction than bad taste or anything. I personally don't mind outfit choices, but the contrast between the two is so many frames is a little bit hard to adjust your brains too. May be Beeneet should have put on his wifebeater.
  • NT
    Nehal T.
    29 July 2020 @ 19:36
    Impressive!
  • SC
    Sam C.
    28 July 2020 @ 08:27
    Damn must be hard to find good companies without some debt. Also wow his Bonus thing seems, long? :) Why is it so hard to be clear upfront about what people can expect and under what circumstances you could renegotiate.
  • SG
    Sashi G.
    26 July 2020 @ 13:06
    Nor every down year is a bad year. It is how you react to it that matters. That is very wise investing philosophy
  • DP
    Duane P.
    21 July 2020 @ 18:26
    Does anybody have link to accessing the Macro-Link newsletter Raoul referred to at the beginning? I can't find it anywhere.
    • RP
      Raoul P. | Founder
      21 July 2020 @ 19:57
      Its on Medium too...
    • DT
      David T.
      22 July 2020 @ 00:39
      https://medium.com/@christian_alexander
    • DP
      Duane P.
      26 July 2020 @ 03:19
      The Medium link just seems like random political musings by Christian. Nothing on macro topics though...
  • tr
    tom r.
    25 July 2020 @ 22:07
    Another excellent interview. Lots of intelligence and common sense. I have a huge respect for people like this.
  • SC
    Scott C.
    23 July 2020 @ 21:30
    Great interview, aside from the invest in lower cost China thesis. I have no interest in investing in a company that offshores their skilled labour to China as their competitive advantage.
    • PJ
      Patrick J.
      24 July 2020 @ 11:06
      I don't understand this China centric thesis, why not reference the hordes of companies that outsource software development to India at even more attractive rates? Very odd answer.
  • MH
    Michael H.
    22 July 2020 @ 18:54
    Any chance we can get the investment managers TRACK RECORD??? Only way we can analyze. Not too many beating the averages the last 10yrs....and I am talking legendary managers like Sequoia Fund. Very tough environment.
  • DS
    David S.
    21 July 2020 @ 20:22
    Great interview. Short direct questions with purpose. Mr. Kothari's answers were direct and informative. Loved the quote “… you never ask a question without baselining the person’s answer.” I would like to have a deeper understand of his meaning of the term baselining with an example. Never too late to learn. Thanks. DLS
    • ly
      lena y.
      22 July 2020 @ 02:51
      David, I have the same question. When you find out the answer please post it! I'm waiting! LY
    • DS
      David S.
      22 July 2020 @ 05:40
      It has to do with internal consistency as opposed to a benchmark. Several examples would help my understanding. DLS
    • PW
      PETER W.
      22 July 2020 @ 06:28
      Yes - it is to do with internal (behavioural) consistency. You baseline a potential question by asking another one (first) to which you already know the answer. But Mr Kothari contrasts this type of questioning from its application in a legal context (to avoid surprise/to elicit a specific line of reasoning in the interviewee in order to drive a desired outcome) to an IB application which is to be able to put the answer within a psychological context. In other words, by asking such questions it can help gauge how the person responds (how they avoid difficult answers, how they weigh their words, how they skirt the 'truth'). Seems it is more art than science and not sure how examples could help. Basically, the advice given in the interview is go out and ask questions as part of your networking and lead with questions to which you already know the answer in order to be better equipped to interpret the answer to those questions you really wish to ask (but to which you don't yet know the answer). As is often cited, the bulk of any communication is body language and tone and not so much words so pay attention to these signals as well as words.
    • MM
      Marvin M.
      22 July 2020 @ 14:17
      The term baseline is used in lie detector sessions where the interviewer asks the interviewee questions such as, your name, where you live, etc. to establish a “baseline” of what the interviewee’s response line looks like when they are telling the truth. Then when they tell a lie, the line on the machine changes so the interviewer knows they are not truthful. The baseline approach to questioning someone is to ask questions and observe their response to then observe when their response is inconsistent with previous observations.
    • DS
      David S.
      22 July 2020 @ 17:48
      Peter W. and Marvin M. – Thank you for your comments. Both were very helpful. DLS
  • VD
    Vishal D.
    21 July 2020 @ 16:39
    this is interesting but the china thesis makes no sense...people need to trust their software vendor...we are seeing the decline in china trust
    • DT
      David T.
      21 July 2020 @ 23:53
      “The Capitalists will sell us the rope with which we will hang them” - Lenin. Western "democratic" capitalists are selling that rope, be it Amazon, Google, Apple or NBA.
    • LP
      Lauri P.
      22 July 2020 @ 12:10
      Yes my thoughts exactly... No way Huawei is going to be the only Chinese company going to be put on the sidelines , and for good reasons. Zoom has been on the headlines for all the privacy & security issues and for censoring foreigners talking mean things about CCP. No one in their right mind should trust Chinese developed software in critical business processes.
    • MM
      Marvin M.
      22 July 2020 @ 14:07
      He was saying have the company, such as Agora, based in the U S and source the work to a country outside the U S where the programming can be done less expensively than having someone in Silicon Valley duty program and the development of the software.
  • PS
    Paul S.
    22 July 2020 @ 00:31
    Took a while to find the second company he was talking about, after Zoom, thought he said Abora but think he was saying Agora, Inc. (NasdaqGS "API)" IPOed in June, headquartered in Shanghai and Santa Clara USA. Never heard of them, until now...
  • DT
    David T.
    21 July 2020 @ 23:48
    So, dictatorship with capitalism turns out to be a better option than democracy and free market capitalism. What do people want from Trump then. He is just coping China and Russia, not North Korea. World is fuck'd up. Russia wants war and they are getting it. Market loves it.
  • PP
    Peter P.
    21 July 2020 @ 23:18
    Spectacular interview & spectacular interviewer (tight, succinct)
    • PP
      Peter P.
      21 July 2020 @ 23:20
      & wonderful interviewee - always love hearing from a different generation than mine & especially when that person is already wise enough to select & impart his own nuggets of value add. Thank you Beenneet.
    • PP
      Peter P.
      21 July 2020 @ 23:21
      Thank you Beeneet.
  • RM
    Ron M.
    21 July 2020 @ 23:03
    Great interview from both sides. Macro investing does come down to un-diversified trades and sometimes we overcomplicate things with too many positions... excellent reminder right now. Precious metals certainly are a key play right now, but tech (perhaps less public markets as valuations are quite crazy, more venture) and biotech seem to be the obvious growth plays.
  • PG
    Philippe G.
    21 July 2020 @ 20:36
    Great point on Warren Buffet and passive indexing!
  • DW
    Denton W.
    21 July 2020 @ 19:42
    Awesome. Would be great if Chris could do more interviews with his contracts.
    • DW
      Denton W.
      21 July 2020 @ 19:42
      contacts***
  • JS
    J S.
    21 July 2020 @ 16:36
    Outstanding interview. Please bring CA more often. Ty.
  • MS
    Matthew S.
    21 July 2020 @ 16:29
    Christian is great... would love to see more like this
  • PC
    Petros C.
    21 July 2020 @ 15:02
    RV team the audio is incomplete (27 mins)
    • MW
      Max W. | Real Vision
      21 July 2020 @ 15:54
      Thanks for pointing this out. Very strange. The actual file uploaded is the full 39 minutes.
  • DD
    Dmitry D.
    21 July 2020 @ 15:40
    Excellent interview, great insight and thinking.
    • DD
      Dmitry D.
      21 July 2020 @ 15:51
      Also awesome to see live interviews making a comeback. Goes somewhat against what Beeneet was saying about tech trends I suppose, but I was missing the studio
  • TB
    Tobin B.
    21 July 2020 @ 15:37
    Good talk between 1.5 new minds (to RV). Thanks for bringing this on, as Christian seems to be quite empathic, and is a good interviewer. It's great to hear Beeneet's entreprenuerial story; this should give encouragement to younger generations inheriting a difficul- to-navigate environment.
  • ar
    andrew r.
    21 July 2020 @ 15:19
    Two quality guests, but I would have liked more of what happened in the last few minutes. Most of the interview was dominated by vague generalities.
  • TS
    Theodoros S.
    21 July 2020 @ 12:51
    The idea of focusing in only one sector, like Beeneet Kothari, focuses in tech finds me indifferent. I believe this process is wrong.
  • Jk
    Jyothi k.
    21 July 2020 @ 07:22
    The best takeaway for me is the question looking at price levels and the imputed mindplay on quality benchmark.
  • HJ
    Henry J.
    21 July 2020 @ 05:53
    In-person interviews are back! woohoo