Making Markets · Colossus | Investing & Business Podcasts

Evan Tindell: Value Investing in 2025 - [Making Markets, EP.57]

·39 min·2 clips

Tesla's market cap went from 550 billion to 1.3 trillion in 2024.

1. Making Markets speaks with Evan Tindell about value investing in 2025 and the way he approaches long and short books at Bereem Capital. 2. Evan Tindell is the co-founder and CIO of Bereem Capital, and Eric Golden is the host and CEO of Canopy Capital who frames the discussion around market psychology. 3. The episode asks whether classic value investing still works when information is widely available, meme stocks move fast, and global markets like Japan look cheaper than the US. 4. Evan says value investing goes in cycles, and he points to the tech bubble and the early 2000s as earlier periods when value investors earned most of their alpha. 5. He says he first read about value investing around 2005 while playing professional poker and looking for a rational way to deploy his bankroll. 6. Eric raises Peter Lynch and the idea that turning over more rocks should still uncover better ideas, even as information gets automated. 7. Evan replies that there are far fewer US net-nets and far fewer stocks trading at four times earnings than there used to be. 8. He argues that SPACs in 2021 show that better information did not stop investors from bidding companies with no revenue to huge valuations. 9. Evan says his firm was “morally obligated” to short some names after the COVID-era run-up in growth stocks and the SPAC boom. 10. He describes 2022 as a strong year for the short book and 2024 as the opposite, with losses concentrated in MicroStrategy, DJT, and GameStop. 11. Evan says those stocks share the problem of lacking a viable long-term business model, but he still has to manage the risk of short squeezes. 12. He says a stock like GameStop can move from 20 to 600, so the risk on the short side is never fully controllable. 13. Evan explains that shorting is partly an art because timing matters, borrow costs matter, and he may wait for a stock like DJT to double before adding risk. 14. He gives an example of a new short in a company with billions in market cap, no revenue, and a product that may not justify the valuation. 15. On Tesla, Evan says the company went from 550 billion in market cap in Q1 2024 to 1.3 trillion by the end of last year, which he thinks the election did not justify economically. 16. He adds that Trump policy moves, BYD competition, and a 71% drop in Tesla sales in Germany over the first two months of the year all matter to the short case. 17. Evan and Eric talk in a conversational interview style, with Eric pressing on short timing, catalysts, and how a value manager thinks about exits. 18. The tone is analytical and specific, with repeated references to numbers, position sizing, EV policy, Japan Exchange reforms, and IRR modeling. 19. Value investors, short sellers, and readers of market structure will get the most from this episode. 20. Investors who dislike valuation detail or short-selling mechanics may skip it.

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