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Paul Black is Co-CEO and portfolio manager at WCM Investment Management, a $26 billion manager of global equities that he joined when it was a $200 million boutique in 1989.\\xa0 With so much of the institutional world, including my own training, focused on value investing, I was pleasantly surprised to learn about a large, high performing growth stock manager located in a non-descript building in Laguna Beach, California.

Our conversation starts with Paul\\u2019s trial-by-fire entry into the business and turns to growth stock investing, including defining a great growth company, searching for widening moats, assessing a culture tied to competitive advantage, creating a positive culture, learning from mistakes, identifying tailwinds, and protecting the downside.

Paul embodies the principals he preaches and offers some tasty food for thought.

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Show Notes

2:54 \\u2013 How Paul got started in the business

4:52 \\u2013 Lessons learned in the early years of his career

\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 5:56 \\u2013 Common Stocks and Uncommon Profits and Other Writings

\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 6:01 \\u2013 Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor

\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 6:05 \\u2013 The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel

7:49 \\u2013 What works about growth stock investing

9:01 \\u2013 What constitutes a great growth company

13:47 \\u2013 Defining and measuring a company\\u2019s competitive advantage

17:50 \\u2013 How does he assess a company\\u2019s culture

\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 19:41 \\u2013 The Culture Cycle: How to Shape the Unseen Force that Transforms Performance

20:26 \\u2013 Questions that help assess company culture

21:57 \\u2013 Any data to back up claims that companies with good cultures perform better over time

22:46 \\u2013 Culture aligning with competitive advantage

24:30 \\u2013 Looking at WCM\\u2019s moat and culture

31:23 \\u2013 The landscape for active management

33:53 \\u2013 Weathering tough periods for the firm

37:02 \\u2013 How do they think about culture in other countries

39:01 \\u2013 Why does growth stock investing work when the data shows otherwise

40:47 \\u2013 What is he excited about in growth stocks

43:45 \\u2013 Tailwinds at the sector level

45:10 \\u2013 Downside protection in the portfolio

46:38 \\u2013 Patterns of positive and negative allocator behavior

48:35 \\u2013 How do they manage the change in the portfolio going from 200 million to 26 billion

49:53 \\u2013 Closing questions