Our conversation with David Berkowitz, founder and CIO of Value Aligned Partners, covers investment strategies that focus on long-term value creators. Greg and David discuss the inefficiencies of the “earnings game,” aligning management incentives with shareholder interests, and how to identify high-quality companies with sustainable competitive advantages. Berkowitz outlines three investment strategies: ownership companies with strong incentive structures, “cannibal” companies with high share buybacks, and dominant monopolistic or oligopolistic firms. He also compares public and private equity investment approaches, emphasizing behavioral economics and value-focused operating systems. In addition to being an investor, David conducts corporate finance education and value-based management training for corporate professionals and board members.
