Interview with John Hempton

Featuring John Hempton

John Hempton, Founder & CIO of Bronte Capital, explains the framework he uses to identify potential short-sale targets by looking for what he calls “bone-headed retail mistakes.” John gives examples from high-profile cases such as Valeant, Gabriel Resources, Sino-Forest, and Longtop Financial Technologies and demonstrates the extra lengths the determined short-seller must go to with tales of phone calls to local labor unions, detailed comparisons of capital equipment to listed employees on the balance sheet, and the hiring of a Romanian law student to pore through Communist Party archives.

Published on
22 April, 2016
Topic
Research, Career, Investment Framework
Duration
89 minutes
Asset class
Equities
Rating
32

Comments

  • JL

    Jim L.

    29 5 2017 22:23

    0       0

    Watched the Bill Browder interview before this. Juxtapose one of the most impressive guys I've ever come across with this. mmh

  • JL

    Jim L.

    29 5 2017 22:18

    1       0

    Painfully pompous. I have always especially liked blatantly false modesty!

  • DF

    Dan F.

    2 5 2017 16:06

    0       0

    He's right about GAAP. It's a moral test.

  • TS

    Thomas S.

    30 5 2016 02:07

    1       0

    One other little detail on VZ. About 200billion in debt. What happens to the dividend if rates rise? How will they service their debt?

  • PM

    Peter M.

    23 5 2016 22:18

    2       1

    I am a geologist with 33 years of experience His comments on rosia montania are completely wrong and nieve. politically and socially it is difficult. if he judges all his shorts like this he is a fool

  • KS

    Kashyap S.

    23 5 2016 10:20

    0       0

    One of the most fascinating and though provoking interviews I have ever had the honour to watch. Thank you, RealVision. Very, very impressive walk-through on the thesis building for VZ.

  • AB

    Andrew B.

    21 5 2016 07:07

    0       1

    Bronte's A$ denom fund started May 2013 underperformed - up 46% thru April. v unhedged S&P500 up 74.5% (27.5% index + 36.5% currency). Good analysis <>good port. mgt. Enjoyed the analysis though

  • CE

    Colin E.

    19 5 2016 18:14

    0       0

    It was a long winded interview but he is a money manager not a talking head. Listening to the degree of second level thinking he does was great. Spectrum usage.. A trend to ride...Thanks RVTV!

  • DS

    David S.

    19 5 2016 00:49

    0       0

    Get a grip lazy people. John is investing other people's money. He is the type of manager that I would want to handle my money.

  • BB

    Bill B.

    13 5 2016 22:58

    0       0

    I like the technical explanations.

  • SB

    Stewart B.

    4 5 2016 21:09

    0       0

    One of my favourite RV guests. Thank you for putting on some new and detailed content. I just wish there was more!

    I like his common sense and checklist approach.

  • CW

    Christine W.

    2 5 2016 23:06

    0       5

    Too lemgthy and detailed for amount of usable information

  • AE

    Alex E.

    1 5 2016 01:45

    4       0

    This is why I love RVTV. Learn something new every time! Wonder what John would think of data over electrical. That's new tech coming along which is brilliant. Data hidden inside electric current!

  • JR

    Jon R.

    28 4 2016 18:19

    4       1

    Interesting to hear how much deeper they dig than the typical sell side analyst. Would love to hear a follow up on Verizon in due time.

  • PJ

    Peter J.

    27 4 2016 19:33

    5       0

    Wow was this a different interview! I found it absolutely fascinating. It might have been a bit detailed in parts, but it demonstrated the depth of research and effort that makes on Stock selection

  • WB

    Wes B.

    27 4 2016 03:23

    6       0

    This guy is obviously brilliant. My check list starts with never being on other side of any of his positions.

  • SC

    Sau C.

    26 4 2016 19:45

    3       0

    Thanks. Educated me on the history of spectrum. Also shows how much research these bears have to do when they're formulating their bear thesis.

  • JD

    John D.

    26 4 2016 07:05

    4       0

    One of Your Best...Great Stuff...

  • BB

    Brian B.

    25 4 2016 12:47

    4       0

    Superb. Love his inquisitive mind and the detail he goes into. Be smarter than the boneheads!

  • GB

    Grant B.

    24 4 2016 23:04

    4       0

    Checklists? Read The Checklist Manifesto by Atul Gawande 2009. Helps if people read books as well.

  • FS

    Fred S.

    24 4 2016 16:04

    18       0

    I suspect the naysayers in these comments are the ones too lazy to do their homework. This is another home run for RV! Thanks!!

  • RD

    Ryan D.

    24 4 2016 13:34

    6       0

    Loved the interview. RV is killing it lately. Mungerisms are a great operating system for the modern BS Economy. Would have loved to hear a little about Alibaba. http://brontecapital.blogspot.com/2015

  • JH

    John H.

    24 4 2016 04:15

    16       0

    Slowing down and walking you through HOW to think rather than WHAT to think. Priceless.

  • RA

    Robert A.

    24 4 2016 03:45

    6       0

    Top 5% of RV, and I have watched every one. Invert, Invert, talk to the Unions and know your bandwidth. So....essentially Seth and John just bought into a great story and got lax on their homework.

  • TJ

    Terry J.

    23 4 2016 18:47

    9       0

    An invaluable education in how a successful short seller thinks. Loved the checklist discipline. Brilliant!

  • HB

    Heini B.

    23 4 2016 18:36

    10       0

    Loved it, successful short sellers are heroes. I would listen to Hempton for hours to get inside his brain. Can we get Charlie Munger? Is it possible RVTV Can get even better?

  • rs

    richard s.

    23 4 2016 16:13

    16       0

    Without a doubt the best interview I have listened to so far on RealvisionTV!
    Hempton covers short selling, long buying and some of the thoughtful analytics he goes thorough for his investments.

  • FV

    Fredrik V.

    23 4 2016 12:34

    1       0

    Totally agree with the limitation of the human brain and overlooking obvious pitfalls. Myself use:
    http://www.amazon.com/The-Checklist-Manifesto-Things-Right/dp/0312430000

  • TS

    Tim S.

    23 4 2016 08:14

    5       0

    A bit laborious at times. But some useful nuggets of information. Clearly a smart guy with a solid process.

  • CC

    Christopher C.

    23 4 2016 04:03

    6       0

    Perhaps one would do well to visit the thoughts of Charlie Munger before disparaging them. https://www.youtube.com/watch?v=K6RS_PqudxU

  • CM

    C M.

    23 4 2016 02:07

    3       22

    I'm 64 hours into his VZ thesis and his technology lecture is boring me to tears. Tell me the thesis in three points and in under 3 min. On the bright side, he is no longer quoting Charlie Munger...

  • SP

    Steve P.

    23 4 2016 01:53

    12       0

    A superb lesson in contra thought re investing. Find the flaws and evaluate from the negative side. What a wake up !!

  • S

    Sean .

    23 4 2016 01:11

    7       1

    John is a great value investor with a brilliant research ethos

  • BM

    Bill M.

    23 4 2016 00:49

    27       0

    Even if it had been five hours long, I would still have listened to it all because knowing his process is very valuable to me! Thanks a million!

  • ss

    sid s.

    22 4 2016 21:03

    6       0

    follow your check list . they save lives and money.

  • PV

    Peter V.

    22 4 2016 20:53

    12       0

    Worth listening to every minute. A great interview. Thanks Grant!

  • KC

    Ken C.

    22 4 2016 19:57

    2       0

    VZ is the new MO. Plus its more addicting then nicotine. Everyday there is a new kid (new junkie) getting a cell phone while and older person pass on.

  • DR

    De R.

    22 4 2016 19:35

    0       0

    Oneplus One

  • SS

    Sam S.

    22 4 2016 19:15

    0       0

    Smooth concise a little bit long with some details. Bandwidth in Super Bowl 2015 in Arizona was partly a huge security monitoring system--too. I loved this interview! Thx!

  • GB

    Grant B.

    22 4 2016 18:54

    9       51

    Tx for a nice history lesson. This is too long & boring to complete. Are there any fwd looking things to contribute? This is brutal. Hope someone can post a bullet summary of anything fwd looking.

  • CC

    Christopher C.

    22 4 2016 18:54

    5       2

    Abstract to find the value. Rigorous logic times the convexity of deep technical info raised by the power of investment convexity yields both the possibility of gargantuan returns and fragility.

  • GH

    Gary H.

    22 4 2016 18:43

    8       21

    Pretty painful for the most part. 1g vs 3g vs 5 g blah blah blah.

  • KC

    Klendathu C.

    22 4 2016 18:20

    3       0

    Still trying to watch with massive lag issues :(

  • IF

    Ian F.

    22 4 2016 17:47

    14       1

    Shit I need to get some work done today but I can't turn this video off! 90 minutes... goodbye afternoon. Love to hear anyone profiting off of douchebag Ackman.