Todd Ahlsten - Durable Moats & Increasing Relevance

Listen to this episode from A.U.M. on Spotify. In this episode of AUM, host Ryan Henderson sits down with Todd Ahlsten, Chief Investment Officer of Parnassus Investments. Todd shares his journey from a 22-year-old intern to leading a firm managing $46 billion in assets, reflecting on key experiences that shaped his investment philosophy. The conversation delves into the dynamics of the semiconductor industry, the importance of wide business moats and durable competitive advantages, and the evolving relevance of companies like John Deere and Waste Management. Todd also offers insights into the impact of AI on various sectors and highlights the critical traits for successful long-term investing. 02:13 Todd's Early Interest in Investing04:35 Joining Parnassus Investments05:38 Skills and Evolution in Investing08:32 Navigating Market Noise12:40 The Parnassus Investment Process16:42 Idea Generation and Stock Selection20:34 Traits of Innovative Companies27:13 Management Traits and Avoiding Complacency29:17 Deep Dive: John Deere29:25 Agriculture Industry Overview29:53 Deere's Cyclical Recovery and Secular Rerate31:46 Technological Advancements in Agriculture33:14 Investment Strategies During Economic Cycles36:45 Waste Management's Competitive Edge39:46 AI and Semiconductor Investment Trends48:20 Evolution of Investment Strategies53:18 Advice for Aspiring InvestorsLearn more about Parnassus Investments: https://www.parnassus.com/