John Armitage: How He Invests, Building Egerton, and What Worries Him About AI

Armitage says sustained pricing power above cost inflation, disciplined valuation, and small concentrated-but-diversified positions remain the core edge as AI reshapes market efficiency.

• Pricing power is paramount: Armitage defines it as the ability to raise prices despite competition, calling sustained pricing power above cost inflation the clearest sign of a structurally great business.
• Modeling philosophy: Egerton focuses on incremental margins and key drivers (e.g., Airbus unit economics, NVIDIA's 75% gross margin and memory-cost sensitivity) rather than over-engineered spreadsheets—'garbage in, garbage out.'

Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.