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How to Stay Humiliated When the Future Is Uncertain
When investors have a big win or feel like they can do no wrong, it's natural to become overconfident and double down on our bets thinking that we can't lose. Buffett helps combat uncertainty in the markets by investing only within a circle of competence in areas he knows really, really well. The next time you feel you know it all, reflect deeply on that fact. And only invest in businesses that you can truly understand.
On today’s episode, Clay Finck reviews Gautam Baid’s book, The Joys of Compounding.
Gautam Baid is the Managing Partner and Fund Manager of Stellar Wealth Partners India Fund, a Delaware-based investment partnership which is available to accredited investors in the US. The fund is modeled after the Buffett Partnership fee structure and invests in listed Indian equities with a long-term, fundamental, and value-oriented approach.
IN THIS EPISODE YOU’LL LEARN:
0:00 - Intro
05:54 - Why we should commit to lifelong learning.
14:49 - How mental models can help us make more rational and effective decisions.
16:53 - How understanding first principles can help us better understand the world around us.
18:06 - What the Feynman Technique is and how you can use it to learn anything well.
30:49 - What Warren Buffett and Bill Gates consider their most critical factor to their success.
31:51 - Why the best investors are those with a behavioral edge.
38:13 - Why the world’s most successful people choose the right role models to learn from.
42:16 - Why successful investing requires extreme humility.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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