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b'My guest this week is Michael Mauboussin, the head of consilient research at Counterpoint Global. Michael is an all-time favorite guest here on the show, and this is his fourth appearance. We discuss one of the biggest topics in the world of investing: the shift from public to private markets that has taken place over the last several decades. We explore the reasons for this shift, the biggest overall changes in capital markets, and what the future may hold. Along the way we explore other fascinating topics like the rise of intangible asset investments, employee-based compensation as a form of financing, and more. If you enjoy this conversation I urge you to read Michael\\u2019s paper on the topic which will be linked in the shownotes. Please enjoy this conversation with Michael Mauboussin.\\n \\xa0\\n This episode of Invest Like The Best is sponsored by\\xa0Canalyst.\\xa0Canalyst\\xa0is the leading destination for public company data and analysis.\\xa0\\n If you\\u2019re a professional equity investor and haven\\u2019t talked to\\xa0Canalyst\\xa0recently, you should give them a shout. Learn more and try\\xa0Canalyst\\xa0for yourself at\\xa0canalyst.com/Patrick.\\xa0\\xa0\\n \\xa0\\n For more episodes go to InvestorFieldGuide.com/podcast.\\n Sign up for the book club and new email newsletter called \\u201cInside the Episode\\u201d at InvestorFieldGuide.com/bookclub.\\n Follow Patrick on Twitter at @patrick_oshag\\n \\xa0\\n Show Notes\\n (2:27) \\u2013 (First question) \\u2013 Motivation for writing the book from public to private equity\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (2:28) \\u2013 Public to Private Equity in the US: A Long-Term Look\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (3:02) \\u2013 The Incredible Shrinking Universe of Stocks\\n (4:48) \\u2013 Size of the public vs private markets\\n (7:20) \\u2013 History and changes in the public to private markets\\n (12:00) \\u2013 Public market vs venture capital returns\\n (16:48) \\u2013 Persistence of returns\\n (20:01) \\u2013 Role of price and EBIDTA on the returns of a buyout\\n (23:31) \\u2013 How buyout forms are sourcing the debt\\n (29:31) \\u2013 Transition to businesses relying on intangibles\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (29:42) \\u2013 Capitalism without Capital: The Rise of the Intangible Economy\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (30:13) \\u2013 Endogenous Technological Change\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (30:36) \\u2013 Should Intangible Investments Be Reported Separately or Commingled with Operating Expenses? New Evidence\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (34:18) \\u2013 Explaining the Recent Failure of Value Investing\\n (36:21) \\u2013 Superstar firms and increasing returns\\n (42:38) \\u2013 Role on monopolies in creating network effects\\n (4:52) \\u2013 The allocators perspective in these investments\\n (49:16) \\u2013 How does this all impact public market active management\\n (51:54) \\u2013 Advice to young people getting into the investment industry\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (52:30) \\u2013 Jeremy Grantham Podcast Episode\\n (53:30) \\u2013 Other areas he is researching/looking into\\n (55:44) \\u2013 How investment work and Santa Fe research influence eachother\\n (56:54) \\u2013 Investors to learn from\\n \\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0\\xa0 (57:15) \\u2013 John Collison Podcast Episode\\n \\xa0Learn More\\n For more episodes go to InvestorFieldGuide.com/podcast.\\n Sign up for the book club and new email newsletter called \\u201cInside the Episode\\u201d at InvestorFieldGuide.com/bookclub.\\n Follow Patrick on Twitter at @patrick_oshag'