Cyclical Stocks and a New Idea w/ Alex Jones, Porter Street Research

Podcast
Written By Alex Barrow

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Disclaimer

Nothing you hear on this podcast is in any way, shape or form to be construed as investment advice. The guest on this podcast may hold positions in any/all names mentioned during the podcast. This is not investment advice and investors should always conduct personal due diligence before investing in any security. Past performance of any funds mentioned are not indicative of future returns.My guest this week is Alex Jones. No, not that Alex Jones. Alex is an independent investment consultant working with hedge fund/institutional clients. He started his investing career at Cambridge Associates. After a stint there, he moved into a money manager role for an Endowment. It was here Alex got his first taste in asset management and investment/investor allocation.From there, he worked as an analyst for author and investor Chris Mayer.Our conversation dives deep into industrial and cyclical stocks. We cap the discussion with Alex's latest investment idea: Orion Engineered Carbon (OEC). Alex shares what he learned from his 43-page deep dive on the company, and why it might be a great idea over the next 5-7 years.Here's the time-stamp:

  • [1:10] Who is Alex Jones & How He Got Started Investing
  • [4:05] What It's Like Being Chris Mayer's Analyst
  • [7:53] Making The Plunge To Independent Research
  • [14:41] Alex's Favorite Accounting Books
  • [20:21] How Alex Finds Stocks
  • [27:05] Why Casual Dining Restaurants Are Terrible Investments
  • [32:54] Why Alex Likes Cyclical, Hairy Businesses
  • [34:26] Deep Dive: Orion Engineered Carbon (OEC)
  • [46:42] Navigating Commodity Risks
  • [54:06] Thinking About Replacement Value
  • [59:01] Specialty Carbon Black Value Proposition
  • [71:15] What Are The Insider Incentives?
  • [76:09] Valuation Process
  • [83:33] Risks w/ OEC
  • [91:04] Where To Find Alex & Closing Questions

If you want to learn more about Alex, check out the links below:

Alex Barrow

Founder & MO Team Lead, CIO at Foundation Capital, macro junky, former Intelligence professional at FBI, DIA, and DOD, USMC Scout Sniper turned yogi/meditator.

https://x.com/MacroOps
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