Supply Chain Disruptions and Opportunities in Shipping with J. Mintzmyer
Episode 21: Show Notes
While the shipping industry has forever been cyclical, it’s been on a particularly wild ride in the era of COVID-19. Shifting supply chains, continual bottlenecks caused by the pandemic, and eventual post-COVID recovery, all have a significant impact on shipping. So how can you best position yourself to benefit from these dynamics in 2022? On today’s episode of The Pitch Podcast, we speak with J. Mintzmyer, the Founder of Value Investor’s Edge and an expert in maritime shipping, who explains how supply chain disruptions have affected the shipping sector and beyond, the impact of new environmental regulations, and how his team values shipping stocks. He also shares his investment framework, including how to know when a market move is something you should pay attention to versus when it’s just volatility and noise.
Key Points From This Episode:
- The fascination with international trade that got J interested in the maritime shipping sector.
- Insight into the kinds of cargo these ships carry, from crude oil and dry bulk to containers.
- J unpacks how the supply chain crisis impacted the shipping sector and his investments.
- Find out how pricing works for shipping companies based on historical precedents.
- Some of the weaknesses in the shipping system and how they play out.
- How long J believes the supply chain crisis will persist and his advice for investors.
- Learn how rates are impacted by the supply of ships and why there are so few new ships hitting the water in 2022
- Why J says that new environmental regulations will actually be very bullish for the sector.
- His view on whether or not fewer, slower ships will lead to further inflation for consumers.
- The private market component to shipping and some insight into J’s investments.
- How his team values shipping stocks using both quantitative and qualitative metrics.
- Why qualitative metrics such as a competent management team are of crucial importance.
- Price to NAV (net asset value), future projected cashflows, and price to book valuation methodologies.
- An example of a recent investment that J made that typifies his approach.
- What gives J and his team an edge in the shipping sector.
